Customers today are more different than ever before, and their expectations shift quickly. This is where customer transformation begins. The modern consumer is more digitally savvy. They also spend their money on items that matter and toward businesses they want to support.
But these are facts that the average business already knows. The question is, how can you use this to your advantage? Businesses have previously been told to adopt a digital transformation plan. However, you should look into a customer transformation strategy for the best results. That’s because your customers have more power than you think.
But what does this mean? How will it benefit your business?
What Is Customer Transformation?
Customer Transformation is a customer-centric process focused on transforming a company’s products, services, and experiences to meet the continuously changing expectations of digital consumers.
We all know that your customers are the ultimate success driver for your business. However, many businesses influence their processes by adapting to digital and enterprise demands. But when you put your focus on other areas, you take away from your customers.
Customer transformation tailors your business processes and leverages data to better understand your consumers and deliver better experiences. This is not digital transformation (more on that later.)
Overall, customer transformation has three goals:
- Delivering value to new and existing customers
- Adapting to changing consumer expectations
- Using these processes to attract new customers
In short, you’re adapting your business processes to benefit the customer experience – and the technology to do this should already be in place.
Examples of Customer Transformation Strategies
Do you need some concrete examples of a customer transformation mindset? This strategy can influence different actions, but some of the most common ones include:
- Multi-channel communication
- Understand your customers’ wants and needs
- Using data such as customer insights
- Building strong relationships with customers across all channels
Using these strategies will take you outside of traditional business-to-consumer communication models. You adapt digitally while still satisfying customers.
The Importance of a Customer-centric Strategy
Customer transformation helps your business in many ways. First, it not only helps you attract new customers but also retain them. 82% of companies believe that customer retention is cheaper than acquisition. Simply put, if you don’t give consumers what they want, they will support your competitor. This is especially true if their problems are service-related. And can be further enhanced when
Today, customer service is about being knowledgeable and personalized. Maintaining customer data and knowing customer behaviors are essential. That’s because you can better personalize their experience with your brand.
You can achieve this with technology, which is what we will cover next.
Digital Transformation and Customer Transformation
Digital transformation differs from customer transformation in terms of intent. But digital transformation can play a role in any consumer transformation strategy.
Customer Transformation vs Digital Transformation
Before we get into combining the two strategies, let’s look at the differences. Digital transformation is the act of integrating technology into all areas of your business. This not only alters the value you provide to your customers and staff but can change your entire business operations.
Digital transformation is when an organization takes advantage of new technologies to redesign and redefine relationships with its customers, employees, and partners. Digital transformation for business covers everything from modernizing applications and creating new business models to building new products and services for customers.
There are different reasons why businesses may focus on digital transformation. Most do so to survive. In the digital age, the brick-and-mortar store ma and pa business model won’t suffice. The modern business owner has to adopt digital processes to meet demands from colleagues and be competitive.
Can You Combine These Strategies?
Many businesses adopt digital transformation strategies to meet customer demand. This is where the two strategies can unify.
Modern technology not only supports processes but supports people. How so? The best way to leverage both digital and customer transformation is by using data to better understand customer needs.
Let’s take a look at a core business function: customer service. The modern customer doesn’t want to wait on hold. If they have a question, they want immediate answers. You can implement digital communication tools, such as messaging, to address customer concerns quickly and solve them immediately.
Another way that businesses use tech to appeal to customers is by collecting consumer data. This will help give you better insights into customer behavior so you can personalize your marketing campaigns. Many businesses do this by using platforms such as customer response management (CRM).
However, data privacy is also of the essence.
Businesses often collect sensitive data, such as location. While this better identifies your audience, it will also leave you and your customers vulnerable to hacking. This is why customers are now wary about sharing certain data with anyone, including businesses. If you do collect customer data, stay compliant and only collect data if they consent.
First Step in Customer Transformation: Insights
Are you interested in adopting a customer transformation strategy but aren’t sure where to start? The first step should be easier to achieve than you think: gain customer insights. But this can also be a challenge for many reasons.
Businesses are used to looking inward for solutions to their problems. Instead, you should go to the source and discover what customers are wanting.
But how can you achieve this? There are a few simple solutions. First, engage with your customers and create an effective customer service strategy. If your customers subscribe to emails, ask them to fill out a short survey about their experience.
Customer Transformation Will Create a Valuable Business
Customers are constantly changing and businesses need to keep up with these changing demands. The best way to do this is by adopting a customer transformation strategy. But what if you already have a customer transformation strategy? There may be other internal and external issues with your organization. My name is Chris Hood and I’m an entrepreneur, digital strategist, podcaster, and more. But my main passion is creating content that helps other business owners, such as yourself. Continue reading my blog. There’s something here that can help you!