Businesses based only on transactional customer relationships are dying. Here is a new tactic to grow business today

Businesses based only on transactional customer relationships are dying

A Customer-Connected Experience cannot be delivered to the customer until the company dig into the data and gets in touch with the customer on a personalised level.

Age of connected Experiences

Instead of delivering a transactional relationship, today the organisations should think towards creating connected customer experiences and thereby own the journey of the customer. Here’s an example: Insurance company A makes available services and products in both physical and online world so that customer can interact with the company anywhere, anytime. Whereas insurance company B positions itself as a partner to the customer in their wellness journey. They also sell insurance policies both online and physical world, but what makes their services different in the way they care for the customers. They connect the customers to the local gym, they encourage customers to exercise regularly, they motivate their customers using gamification, they also remind the customers to do their annual medical check-ups. Healthy customers mean fewer insurance claims submitted and more profit to the company. This also benefits the customer because staying healthy, results in insurance premium going down in the long term.

Persona driven experience

Persona based segmentation can help retailers give connected experiences with the customer at the granular level. Once they know about their customers and their store behaviour, the retailer can give persona based distinguished experiences to the customer by offering special discounts, sending messages during shopping, to inform complementary products through carefully crafted multimedia content and to top that off, in-store assistance to complete the order for the desired product.

How to efficiently integrate online and physical experiences

Amazon prime members get a special discount at whole food’s retail store. This not only helps the customers to return to whole foods, but amazon is also able to match a person’s online and physical store purchasing behaviours and get a more comprehensive picture of each persona, their expectations, and their pain points etc.

Delivering differentiated CX

Connected experiences deliver differentiated customer experience. For instance, imagine a dog owner, Alexa reminds the customer when to buy a dog food and the customer orders the dog food from amazon because he gets the product at a competitive price. This is his regular behaviour. Obviously, he sees no reason to visit the pet store down the street to buy the dog food. But he might consider altering his behaviour and visit the physical pet store down the street, if he gets some personalized services like brushing the teeth of the dog or shampooing the dog etc. Businesses first need to understand the customers as personas. In order to change their existing behaviour, Industries need to understand what are their expectations, pain points, and their behaviours of the customers. If the pet store started offering pet shampooing service, then the pet owner would start visiting the pet store and they would understand more about him that he travels a lot and he needs a pet sitter which the store starts to provide as an additional complementary service by tying up with a service provider and create new revenue source. The bottom line is to understand the customer and offer differentiated services.

Data silos exist in all parts of a business – operations, IT, marketing, sales etc. The data owned by each department has a different data strategy and governance strategy. So GDPR and its privacy implications will force companies to rethink the customer data strategy of every company. This is good for the business. As a first step, every business will think towards getting a good handle of the customers’ data.

Now the question is where do businesses begin?

Make a survey to find out which point of their journey they are in and where they are intending to go. What could be their ambitions? Help them understand what it means to deliver a customer- connected customer experience for them in the context of their business. Once that’s accomplished, it serves as the key for a better understanding of the customer as a persona, which helps organisations to give differentiated personalized customer experiences.

Featured Speaker

Seetha Hariharan
GM & Group Head. TCS and IBM. Digital Transformation Leader
In my roles as a growth, turnaround, start-up, and transformation driver, I’ve enjoyed setting the vision behind profitable operations… spearheading execution, mobilizing teams, building strategic plans, setting go-to market strategy, and creating cost-effective business results across Software, Services, Hardware, M&A, Marketing, and other groups. My approach includes consensus-building for new products and services, as well as close team mentoring to ensure progress against our goals. At TCS, I’ve had the opportunity to drive digital transformation offerings key to our transition into a software and services company.