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The purpose of your digital transformation

Article 3 of 5 in the series "The management's 5 steps to digital transformation"

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Whether you're thinking about just digitalising sales and marketing channels or digitalising the entire business, it is likely that you are driven by one of the following two desires to digitalise:

  1. You want to digitalise to achieve cost savings (by automating and streamlining your processes)
  2. Or you want to digitalise to generate increased value for customers

Many companies feel pressured by the pace of digital developments today and then launch themselves into digitalisation with a goal to operate faster and cheaper. So digitalisation with objective 1 as an incentive. And this would also get results.

BUT if you only focus on digitalising with the aim of optimising your own resources and processes, without focusing on your customers' needs and wishes, you will lose out in the long-term.

Which is why you should digitalise with a focus on your customers

The digital technologies and opportunities are developing at a furious pace, and this affects customers' behaviour and expectations of you as a supplier and brand.

In other words: If you want to stay relevant and interesting to your customers, then you need to constantly revisit and transform your go to market strategies, your channels, products and services - and maybe even your entire business model. But with the aim of creating value for your customers.

How to know what creates value for your customers

It requires an in-depth knowledge of your customers' needs and issues to find those digital initiatives that customers will really find value creating.

This is where Customer Journey Mapping can be a really effective work tool. You gain an insight into your customers' needs and barriers, pains and gains, what they expect from you and how they perceive your brand, products, services and the interaction between your channels

When you know your customers' steps in the customer journey and the problems, needs and barriers in each step, you can:

  • Work on building a cohesive and seamless Customer Journey, regardless of how many touchpoints the customer has Generate plenty of ideas for developing and digitalising communication, products and services, which can bring value to your customers - because you know their pains and gains
  • And finally, you will discover whether your customers experience any problems up to or after your core service, which could mean you end up redefining your business model. 

Your route to loyal customers

Remember that for customers the Customer Journey doesn't end with a purchase. It's only after the purchase that you can really show the customer how you will fulfil the promise you made in the phase before the purchase. It's also after the purchase, that you really have a chance to create either disappointed customers or loyal ambassadors for your brand.

Once you have mapped out the entire Customer Journey and are familiar with the typical needs and problems that can occur along the way, you gain a unique edge: You know when the next need or problem arises before the customer does. This means that you also have a chance to help the customer via relevant communication, services or products, before the customer even experiences their next need or problem.

This is the type of service that builds loyal customers: "They really understand my situation. They are thinking of me without me having to ask them to. And they give me relevant advice, tools and offers that really help me."

Step 3 to success with digital transformation

If you are digitalising with the single aim of automating and streamlining to save on resources, you will definitely see benefits. But you will also fall behind when it comes to market developments and customer expectations - which means you'll only get so far with your digital transformation.

We therefore recommend that you also put digital initiatives on the agenda that aim to bring value to your customers. Equally, you should regularly find out how you can create value for your customers. This is an ongoing process, but it's the customer-oriented initiatives that will future-proof your business.

Next article - Data and technology

Article 4 of 5 in the series "The management's 5 steps to digital transformation".

Read article 4



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