Putting a new customer experience at the forefront of your organization’s digital transformation strategy is a great first step. A differentiated and competitive experience will attract new customers and keep them coming back, and thus become a major driver of profit and recurring revenue.
Revamping the customer experience is a two-step process. It starts with gathering data-driven insights on customer preferences and patterns. The next step requires design thinking in which you take your insights on customers rethink your products and services and how customers learn about, buy, and use them.
Let’s take a closer look at each step:
1. Leading with data
Having access to data generated throughout the customer lifecycle is a huge opportunity. If you can pinpoint how and where your customers want to engage with you, and the needs they expect to be fulfilled, you’re in a strong starting position to create a great CX.
Businesses should harness insights on brand awareness, triggers that launch a purchase or lead to additional consumption, and any pain points that may cause customers to look elsewhere.
Auto-manufacturers are using data to understand how people use their cars and how to improve their driving experience. By using digital technologies such as the Internet of Things and artificial intelligence to capture and analyze this information, automakers are extending their customer relationship well beyond the point of sale. BMW, for example, is testing car sharing and parking space reservation mobile apps in response to consumer demand. In doing so, it is creating a customer experience that is likely to increase loyalty.
2. Thinking by design
Once you have generated big insights on what motivates customer to buy and what results in a superior experience, you should test your insights rapidly through prototypes of products or processes.
Design thinking means placing end users front and center and considering their environment-specific expectations of a product or service. By including pre-launch customer trials in your product development process, you will get valuable feedback can boost your chances of success.
U.S. insurer MassMutual collected and analyzed consumer data and found that people under 40 years old were unaware of a life insurance policy’s value. In 2014 it developed an education-focused buying experience called the ‘masters program for adults’. It made a range of learning, budgeting, and financial tools available across multiple channels. The entire company was reorganized to support its delivery – a perfect example of CX at the heart of successful digital transformation.
The most successful companies at digital transformation put the customer experience first. By using customer data to inform their decisions and committing to a design-thinking approach, they ensure that their digital transformation is tied to the things that customers value.
About the author(s)
Dinanath (Dina) Kholkar is Vice President & Global Head, Analytics & Insights at Tata Consultancy Services (TCS). In this role, Dina guides some of the world’s best companies in their journeys to unlock the potential of their data through the power of analytics and artificial intelligence (AI) to uncover new business opportunities, drive business growth and increase revenue streams.
Dina has been recognized as one of the top 100 influential global data leaders and data visionaries. He advocates ‘data centricity’ as a strategic lever for business growth and transformation. His thought leadership in addition to his team’s expertise and collaborative working with customer organizations is empowering them to realize the power of their data in real-time decision making and ensuring success in their Business 4.0 transformation journeys.
Dina holds a bachelor’s degree in electrical engineering. He has been providing industry leadership to the IEEE Pune section for over 15 years; currently Chair, Industry Relations and Membership development. He also provides leadership, guidance and strategic direction in domains including education, sustainability, agriculture, and ‘data for good’ through his volunteering work at IEEE Pune Section, Pune International Center (PIC), and the Tata Group. Dina is a member of the Board of Governors of his alma mater Veermata Jeejabai Technological Institute (VJTI), Mumbai and actively involved in the institute’s alumni association. He is a review committee member, Indian Statistical Institute, Kolkata and is on the advisory committee at Pune Knowledge Cluster (PKC).