Part 1 of 4: Why creating a winning digital customer strategy is important
Great, you’re in demand! You have a brilliant product, excellent services, and competitive pricing. But that only gets you a seat at the table. If you really want to stay ahead of the game and be in command of a modern, always-connected world, you need a winning digital customer experience strategy. Increasingly, there is a need to stand out from the crowd and not be easily imitated by others.
With macro factors dynamically evolving such as customer expectations, market investors, regulation/de-regulation, globalisation, technologies and of course virtualisation, how truly unique, relevant and sustainable is your business? And now more than ever, organisations need to think even harder about new ways of digitally working in an always connected but more physically remote world.
Increasingly, organisations need to deliver greater customer value at lower operating costs. Over the years, many businesses of all shapes and sizes could, and should, be doing so much better at understanding and serving their public. Despite the explosive growth of digital services, companies simply do not achieve their optimal business potential when managing their customers. Independent research has shown that up to 80% of customer contact in some industry sectors came from broken promises, processes or systems – Preventable contact emanating from repeat, wasted, duplicate or failure effort. The articles that follow provide a guide to key strategic customer considerations.
Part 2 of 4: CRM is a strategy not just technology
Despite the proliferation of online digital media and transactional self-services now available to the general public, customer-facing businesses simply do not achieve their optimal business potential. Now more than ever, organisations nof all shapes and sizes need to think even harder about new or different ways of digitally working in an always connected, virtual world.
Whilst Customer Relationship Management (CRM) historically is a well-established approach to manage customers, international research has shown that many organisations have stated that they are unable to realise, or measure effectively, their return on CRM investment. But what exactly is CRM? For example:
“CRM is a technology for managing all your company’s relationships and interactions with customers and potential customers. The goal is simple: Improve business relationships. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability.”
And therein lies the dichotomy – “…Technology. System…” Whereas a broader view should be along the lines of:
“A strategy to learn about customers personalised needs and aspirations, leading to the proactive management of the holistic customer lifecycle at every single touchpoint. Its goal is to add tangible value by continually driving customer growth, retention and advocacy.”
Business Integration, not just systems integration, is essential for an organisation to enable its people and partners to deliver a common, shared and embedded vision, strategy, culture and desired goals.
Part 3 of 4: Motivators & Hygiene Factors – Beware Customer Fickleness
Why is satisfying customers merely a hygiene factor and not necessarily a motivator for enduring allegiance? Being ‘ok’ alone does not develop sustainable customer loyalty.
Take a common digital transaction – ordering a product online that is delivered on time. Fine! In this case, all went according to plan. However, delivering what is expected of you is not a motivator for customers to remain loyal or an advocate for your business. It is purely a transaction that was fulfilled to the minimum requirement – that is to say, as per the customers’ reasonable expectations. As such the transaction merely performs as a hygiene factor.
Conversely, what would be the case of getting one or more elements of the customer journey wrong? Ultimately, the cost of poor or indifferent customer experiences can lead to customer disaffection, defection and negative market reputation.
Aim for ‘Done in One’ – simplified, seamless customer journeys at every single touchpoint throughout the full customer lifecycle. Your goal is to make it effortless for customers to do business with you. When it comes to service performance, ask less of “how did we do?” and repeatedly more of “how can we do better?”
Customers expect to be made to feel welcomed, wanted, understood and valued.
Part 4 of 4: Harnessing the Power of Data
‘Big Data’ is a term often referred to, but how about moving the rhetoric towards ‘Smart Intelligence’. Unless companies have the right capabilities to interpret data in a way that provides valuable insight, it could remain merely a reactive reporting and measuring tool. Digital transformation should enable data to be analysed in an outcome-focussed, timely, unambiguous, secure and actionable way. Its end game is to inform evidence-based decisions to ever-improve the organisation’s proposition and keep ahead of the game. If companies are serious about migrating from reaction to a continually learning pro-active organisation, data and wider digital transformation should engender a change of mindset for the whole organisation.
It is critical that strategies around customer insight, omnichannel contact management, cloud services, managed services and delivery agencies need to be managed at a senior leadership level. Guardianship, assurance, compliance and governance of the company brand becomes ever more imperative, irrespective of the operational model. A cohesive customer data strategy incorporating a single version of the customer data and the increased risk of cyber security threats makes the need for an overarching Data Business Unit ever-more essential.
If you really want to stay ahead of the game and be in command of a modern, always-connected world, you need a winning digital customer experience strategy. One that enables you to digitally serve your customers better, leaner, and smarter.
YOU’RE IN DEMAND, BE IN COMMAND
Philip Grant, CM Leaders Ltd.
07702 575439
[email protected]