The real Digital Transformation is not what its name would have us believe at first glance. It’s not about investing in technology to become more modern while disregarding all other variables which, far from an investment, is simply spending on technology. The Digital Transformation is first and foremost a Human Transformation, a shift in the way we think and work. It’s a change that flows from the top of the company pyramid and helps all other levels understand that it’s no longer about a business trying to sell its product: it’s about understanding “who are our customers and what are their actual needs?” in order to meet them.
Why Center on the Customer?
Answering the question "What do the customers want?” is the basis for understanding the concept of Customer Centricity, which companies must have a keen grasp of nowadays. Customer-centric means making the customer center-stage, and according to 58% of business leaders, is the most important aspect of digital culture.
The notion of Customer Centricity refers to a strategy in which the customers who generate the most value for the company are at the center of its activity. Yes, that means only the best customers, not all of them.
Companies that manage to implement a strategy based on customer centricity are 60% more profitable than those that do not. Customer-centric means identifying the most valuable customers and focusing acquisition, development and marketing strategies on them. Does this mean that other customers should be ignored? Far from it! It’s about having the needs meet the service or product rather than the other way around. Within this process, you will identify the happiest customers who are the proof that the work is having the desired effect.
Companies with a well-defined, customer-centric strategy start with the understanding that customers’ needs are different, as are their behaviors in relation to the company, allowing decision-making to focus on providing them with the most personalized experience possible.
In fact, 31% of consumers seek a more personalized shopping experience, as they see this as a decisive factor in their decision making.
How to start placing the Customer at the Center
This is an extremely important point. Given that many companies get uncomfortable when hearing the term “culture change”––as if it meant altering the company's identity–– we will call it a change in mindset.
In order to start placing the customer at the center, we must begin by acknowledging the actions that led us to deploy our old strategy, so as to change it. At ACID LABS, we offer support through Change Management and Business Coaching services which allow us to accompany clients who are experiencing this type of change and detect the resistances they commonly entail.
Next, the company must carry out a series of significant actions, such as:
- Implementing actions to listen to their customers.
- Segmenting their customers and define concrete actions with each segment.
- Actively listening to their customers.
- Designing the best Customer Journey to meet their needs.
- Paying special attention to the Customer Experience.
Here there are some noteworthy points. Let's start with "Listening to your customers”. How do you listen to your customers today? Whether it’s through surveys or questionnaires, it’s crucial you measure you customers’ satisfaction to clearly identify what you’re doing right and what can be improved.
Use feedback to anticipate solutions that may become a trend in the future. It’s also an excellent way to create empathy which aids in spotting unmet needs.
If you need assistance, turn to expert services like those we offer at ACID LABS, which include Strategic Consulting or its compact alternative Market Discovery. These services help you empathize with your customers, understand their needs, pain points and genuine expectations.
Obviously, the focus isn’t only on the customer, as these services also help uncover other vital elements from a company standpoint: What added-value sets you apart from your competitors to meet the needs that the customer is expressing? What resources and strengths does your company have to effectively face the pains and expectations the customer is expressing?
This way, you will finally understand what features your products or services must have in order to satisfy your customer. To design an effective Customer Journey and focus on user experience, we can also help you with ACID LABS' Design and Innovation services.
Here we can accompany you with customer experience-based consulting by means of a CX Transformation process, which places an emphasis on the end-to-end customer experience, not only at the company level but also in aspects relating to its visual environment, advertising, and others.
In addition, we can assist you with Service Design where these inputs are used to manage and develop new services or products the company can provide for its customers.
I thought this was about Digital Transformation, how is all of this relevant?
Many readers may be asking themselves this question, but let's recall the meaning of Digital Transformation. There are many definitions, out of which I prefer the following, for reasons I will explain shortly.
The issue of the Customer Centricity is critical to initiating any change within these aspects. In tune with the approach we take at ACID LABS, Digital Transformation will start with the people. Therefore, just as the client is the center of our activity, people are the center of every TD process.
By initiating the change process with people (clients are also people, as companies are made up of people without whom they would not exist), we will generate an important shift in Mindset, making them feel part of something much bigger and more consequential than just their daily tasks. We will help develop the Communication, Collaboration, Affiliation and sense of Belonging to the company, and in turn, we will work on people’s collaboration and learning in pursuit of continuous improvement.
This work method will directly influence the company's processes. Silos and standstills will start to disappear and be replaced by collaborative and multidisciplinary processes; whose success or failure––as well as maintenance and improvement––are dependent on all parties.
The change in these processes will lead to adjustments and the collection of a variety of previously untapped data which, when adequately processed, can provide important insights into the behaviors, habits and and satisfaction of our customers, as well as our own processes. Ultimately, this can deliver information about the technology we should ideally incorporate in order to optimize processes for our customer relationships.
As you may have noticed, the road to Digital Transformation can’t be traveled in a single day, but by no means does that make it impossible. What’s certain is that it’s a road best traveled with the right ally, because an outside companion––a strategic partner––can help you visualize things that you would have otherwise overlooked, just as a psychologist helps us visualize aspects of our own personality we hadn’t previously detected, going unnoticed due to their deeply-rooted nature within our subconscious.
For this reason, here at ACID LABS we face Digital Transformation processes with a team highly trained in human issues, specialized in detecting resistances, fears, and complications deeply entrenched within the business subconscious in order to help our strategic partners successfully achieve their goals.