Digital Transformation (12/15)
The three main building blocks with which firms are digitally transforming the customer experience points are: understanding the customer, top-line growth and customer contact.
Companies are beginning to leverage previous investments in systems to gain a thorough understanding of the geographies and specific market segments. Some are exploring social media to understand what makes customers happy – and leads to customer dissatisfaction.
In addition, companies are learning to promote their brands more effectively through digital media. Companies are also building new online communities to advise and create loyalty with customers in medical, real estate or financial services products. Others are building products that enhance the brand image lifestyle in communities.
Many organizations are building analytical capacity to understand customers more detail. Some insurance companies, for example, are improving their portfolio and cost structures through underwriting and pricing based on the analysis. Other companies are conducting experiments based on analysis to drive customer behavior. In one case, a restaurant company is actively conducting experiments in pricing and promotion through a set of franchised stores. The experiment product prices is dynamically adjusted in response to demand, time, inventory levels and proximity to closing time.