Article

Kieron McCann
Kieron McCann 4 July 2018

The impact digital transformation has on new customer experiences

Digital leaders in every industry outperform their competition by a wide margin. After comparing financial results of companies based on their degree of digital sophistication, an assessment by Bain & Company found that revenues of digital leaders grew more than twice as fast as those at digital laggards. Profit followed a similar pattern—leaders were nearly twice as likely as laggards to increase profit. These findings leave little doubt that digital transformation yields significant results.

With customer experience (CX) overtaking price and product as the top brand differentiator, many businesses recognise that they need to become truly customer-centric to not only excel, but survive.

At many industry events, members of the audience asked ‘what impact does digital transformation have on new product development?’ My response is one based on situations we have witnessed many times with some of the companies we work with – that the two don’t exist in their own bubbles.

After two decades working directly within product management, the one thing I know for sure is that product managers are always on the lookout for the next innovative new technology to make their product and customer experiences better. After all, customers are becoming increasingly savvy to traditional marketing techniques, seeing through the rose-tinted glasses the teams behind the product are attempting to place over their eyes. With this trend continuing to grow, it will be left to the usability and reliability of the product itself to draw in repeat users.

These days most products have at least some form of digital dimension. Most will have a web presence and many have their own social media feeds, apps, geolocation features or smartphone integrations. Some offer remote software upgrades to extend their life, or even real-time data streaming for analytics, personalisation and optimisation. It’s not like any of this has required a large scale digital transformation programme to happen, it’s just part of the process of product management, where new innovations are integrated within the product offering – however, their role is predominately focused on what happens in their product domain, not what happens either side of it.

Customer experience is changing. For years, organisations have been able to do well by being better than their competitors on average, or on occasion, without any tracking methodology whatsoever in place. In the age of mass personalisation, every customer expects a good experience across the entire journey – and this is what digital transformation brings to product development.

For a number of years now digital transformation has been driven by technology. However, organisations pursuing digital transformation are realising that technology alone does not provide the answers: an aligned product design and delivery process enables organisations to not only track the end to end journey across multiple channels, but also ensure the product experience is positive. Today, the experience is the product. Product managers need to think about the journey from start to finish, breaking down organisational silos as they go.

The objective is to create a personalised experience that meets the needs of each customer for the entire journey. In order to do this, there needs to be a concerted effort to collect the right data to drive the insight to personalise these experiences, and to identify opportunities for innovation. Data is the fuel of customer experience and product managers will need to have a plan for how this data is collected and used, as well as what additional sources of data may be mashed up with it.  

While data allows innovation and personalisation, it also needs to be accompanied with a new approach to product management and innovation. Digital products are about evolution, not revolution - agile practices, continuous delivery and testing, and analytics are standard practices. As digital becomes a bigger component of the product offering, product managers will need to adopt this agile mind-set.

Digital transformation offers tremendous potential when it comes to product innovation and management. However, while the tech is important, the most important aspect will be in how we use it. Customer experience continues to grow in importance for brands’ marketing identities, without the continual digital focus it’s all too easy for a company to become the next Blockbuster, in the right industry but left far, far behind by the competition.

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
Digital Marketing Vs. Traditional Marketing: Which One Is Better?

Digital Marketing Vs. Traditional Marketing: Which One Is Better?

What's the difference between digital marketing and traditional marketing, and why does it matter? The answers may surprise you.

Julie Cave
Julie Cave 14 July 2016
Read more
7 reasons why social media marketing is important for your business

7 reasons why social media marketing is important for your business

Social media is quickly becoming one of the most important aspects of digital marketing, which provides incredible benefits that help reach millions of customers worldwide. And if you are not applying this profitable...

Sharron Nelson
Sharron Nelson 6 February 2018
Read more
Top 10 B2B Platforms to Help your Business Grow Worldwide

Top 10 B2B Platforms to Help your Business Grow Worldwide

Although the trend of a Business to Business portal is not new but the evolution of technology has indeed changed the way they function. Additional digital trading features and branding has taken the place of...

Salman Sharif
Salman Sharif 7 July 2017
Read more
Collection Of The Best Email Testing Tools Online

Collection Of The Best Email Testing Tools Online

Don’t be afraid of email testing. There are many free or freemium tools online that can help you with testing your SPAM score, deliverability and even the rendering of your email. We feature 30 email testing tools in...

Roland Pokornyik
Roland Pokornyik 31 October 2016
Read more
4 Important Digital Marketing Channels You Should Know About

4 Important Digital Marketing Channels You Should Know About

It goes without saying that a company can't do without digital marketing in today's world.

Digital Doughnut Contributor
Digital Doughnut Contributor 5 November 2014
Read more