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Cover of 'Winning digital customers'

Winning digital customers

Howard Tiersky

Overcoming obsolescence

Listen to the podcast excerpt:
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Description

Connecting emotionally with digital customers is essential for brands to stand out today. Customers must feel a genuine affinity and trust that your brand understands and meets their needs. This happens when brands authentically live their values in ways that resonate with customers' lifestyles and priorities.

Though digital experience alone doesn't guarantee success, failing to deliver on digital almost certainly fails customers. Successful modern brands build meaningful relationships by aligning their values and experiences with those of digital customers. It's less about being a "digital business" than about developing true resonance with an audience living digital-centric lives.

Ultimately brands must foster love and loyalty by forging genuine connections rooted in shared values and understanding. This "Digital Transformation Formula" relies on empathy, integrity and continuously earning customers' trust.

Table of contents

01

The journey begins – step #1 – know thy customer.

Understanding your customers deeply is a cornerstone for creating products and services that genuinely meet their needs. To achieve this, there are three primary research methodologies that can significantly enhance your knowledge about your customers: direct research, indirect research, and the development of personas.

Each of these methods offers unique insights and, when combined, can provide a comprehensive understanding of your customer base. Direct research is a hands-on approach that involves engaging with customers to learn about their objectives, challenges, preferences, and experiences with your offerings. This method can take various forms, including one-on-one interviews, distributing surveys to a broader audience, observing customers as they interact with your products or services, and tracking metrics such as customer referrals. The aim here is to pose specific questions that delve into the customers' thoughts and to identify distinct customer segments. For instance, conducting interviews with customers from varied demographics or those who interact with your company through different channels can reveal diverse perspectives. The insights gathered through direct research are invaluable in understanding the nuanced needs and preferences of your customer base.

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02

The journey continues – step #2 – map experiences.

To enhance customer experience, it's crucial to comprehensively chart the current customer journey, noting every point of contact and evaluating each interaction to identify both pain points and positive experiences. This thorough understanding paves the way for envisioning and achieving an improved future customer journey.

Begin by delineating the customer lifecycle into distinct stages, which vary by industry but generally include the following: The Trigger stage, where an event ignites a customer's need or interest, such as a medical emergency necessitating hospital care or a work presentation driving the need for the latest business books. Prospective customers might already be aware of certain brands due to advertising, which positions them as the go-to choice when a need arises.

During the Search phase, customers seek out solutions through various channels like search engines, retail stores, or recommendations from friends and experts. This research helps them form a set of options to consider. Next, in the Evaluate stage, customers weigh their options based on factors such as price, features, and quality.

The Purchase phase involves the practical steps of completing a transaction, which may include arranging financing, entering payment details, or undergoing required screenings. Once a purchase is made, the Fulfill stage sees customers engaging with the product or service, possibly reaching out for assistance in getting started.

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03

The journey progresses – step #3 – envision the future

Creating an ideal digital customer experience is a multifaceted endeavor that begins with a thorough examination of the existing challenges within an organization's technical architecture, data management, operational processes, and business model. It is crucial to pinpoint the specific business outcomes that are desired, understand the customer issues that need addressing, and be aware of the competitor solutions against which your efforts will be measured.

The next step is to engage in a structured ideation process aimed at generating innovative solutions to overcome the identified obstacles. This process should be firmly rooted in solving real customer problems. To enrich the ideation phase, it is essential to incorporate relevant insights such as competitive analysis, firsthand customer feedback, and an understanding of the resources at hand. It is also important to foster an environment that welcomes diverse perspectives, ensuring that the team includes individuals of varying ages, backgrounds, skills, and experiences. This diversity can lead to the emergence of spontaneous and potentially groundbreaking ideas, often occurring during moments of relaxation or in informal settings.

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04

The journey advances – step #4 – pursue early wins

In the journey of digital transformation, it's crucial to strike a balance between aiming for long-term objectives and celebrating the smaller victories along the way. While it's true that comprehensive projects may span years before they come to fruition, starting with manageable, quick fixes can significantly impact customer perception. This approach not only demonstrates to customers that their feedback is valued and acted upon but also fosters a sense of momentum both within the organization and in the market.

To effectively identify areas ripe for rapid improvement, a deep dive into the customer experience is essential. This involves analyzing various data sources, such as web traffic reports and performance metrics, to pinpoint the primary issues highlighted by users. Additionally, conducting user experience testing can reveal specific pain points, such as confusion over pricing, website layout, or obstacles like error messages that hinder transactions. Gaining insight into the customer's perspective is key to understanding their needs and challenges.

An audit of the current technology infrastructure can also uncover opportunities for upgrades that enhance the user experience. Whether it's speeding up website load times, streamlining sign-up processes, or identifying platform limitations, these insights can lead to innovative solutions. Engaging users in the testing of new concepts allows for their feedback to guide the changes, ensuring that the modifications resonate with their needs.

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05

The journey succeeds – step #5 – lead the charge

To achieve a successful digital transformation, enduring leadership commitment is crucial. Without buy-in from decision-makers, the inevitable obstacles and resistance will be insurmountable. Rally your leaders around the vision to propel progress.

Any real-world transition to digital faces pushback. Leadership can overcome hesitancy through motivating change agents, facilitating cooperation, and reinforcing confidence. Like renowned Japanese railway developer Hideo Shima, transformational leaders persist despite substantial barriers to realize a radically improved future.

After World War II with Japan's infrastructure in ruins, experts advocated rebuilding steam locomotives. Shima boldly proposed high-speed "bullet" trains instead, which took nearly a decade against strong headwinds. With scarce fuel, electrification was key. Magnetic levitation reduced friction by replacing steel-wheel carriages. Distributing electric motors in each car enabled impressive speed. Tunnels through mountains shortened trips versus going around them.

Shima’s bullet trains sliced the Tokyo to Osaka trip from six hours to three, massively spurring economic growth. His transportation revolution inspired leaders globally, like General Electric’s Jack Welch, to seek out similarly ambitious initiatives. Realizing substantial digital modernization requires accumulating diverse talents into a cohesive group. While an organization’s official innovator might be a CEO or CIO, success necessitates broad collaboration. Digital demands permeate divisions, so no solitary leader wields adequate authority.

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