Digital Transformation: Customer Centricity starts with data assets.

Digital transformation roadmap is built around People, Data and Process, embedded in a portfolio of innovative business concepts that drives business value creation.

Data is a critical enabler in the Digital Transformation process as a pillar for fast growth. However, data as a company asset is about to face critical corporate and regulatory challenges that should be addressed.

Just to name a few:

• Data fragmentation across numerous complex technology stacks and inconsistent data governance leading to poor analytics and AI as a core capability
• Inability to grasp the full benefits of the “Move to Cloud strategy” by relooking at the entire corporate data value chain (e.g., data refactoring)
• Intensification of the EU regulatory framework in the context of data and AI

FUTURE CONSUMER.NOW: What will shape the future consumer?

Digital transformation materializes in both improved brand equity and business value creation under a so-called Marketing Transformation umbrella program.

It requires a new approach to innovation and strategy where data is the only way to develop a sustainable competitive advantage, where pricing or services are no longer relevant and appealing enough without the “hyper-personalization” value proposition. From Data-driven rapid prototyping and A/B testing methodology to real-time personalized products or services offering, customer analytics will now rely on your intimate customer needs.

No doubt, it raises the bar for the entire business as an overarching standard to satisfy customer or client appetite, and ensure future relevance for today in a disruptive market environment.

We often forgot that Customer Value Management is the catalyst of data monetization in most businesses.

CVM is a mix of methodologies and practices derived from marketing, applied mathematics, data engineering, sociology capturing and leveraging value from customer data (usage, purchase, behavior) to optimize all key steps in the entire customer lifecycle journey to improve value for both perspectives: buyer (client, customers..) and service/product seller.

Practically, the CVM approach starts with driving customer acquisition, unlocking the full value of the customer (improving stickiness, engagement, purchase..), up to the mitigation of retention across all relevant channels. Ultimately, all customer interactions are recorded in CDP and CRM platforms and worked together by applying one-to-one marketing to understand customers and treat them as individuals with hyper-personalized offers and best-in-class customer experience. 

The challenge is always to determine and properly quantify the intrinsic value generated (e.g. incremental revenue) on both sides: buyer and service/ product sellers.

As the famous management wisdom says, you only get performance in what you measure. The latter is even more important in the context of CVM. We often observe recurring biases in the CVM performance analysis, particularly Telecom and FMCG industries offering Below-The-Line discounted plans or products, while the marketing department only looks at the number of plans sold and product gross revenue as key performance indicators, as opposed to net incremental revenue versus control group to assess the intrinsic commercial performance or the margin impacts. The challenge is the result of the fast-changing skillset in the marketing department but in the entire company. Those see rapidly evolving challenges and solutions towards data analyst and data engineering, along with new platforms (Databricks, TImi...) paving the way towards the new sciences of marketing driving revenue.

The growth in the amount of information at your disposal makes it increasingly possible to build up a detailed customer view (CDP) with a multidimensional approach, different information sources within the organization, such as marketing, product and service data, are linked to the financial data and a detailed 360° view of the customer emerges. This picture is not only based on a snapshot of the return per customer, but also on the return during the entire relationship (Customer lifetime value).

In customer value management, the aim is to offer the right product at the right price to the right customer at the right time, but also with the best cost, margin and customer lifetime value… The real customer-centricity is to differentiate customers that drive sustainable margin for the business that you should be treated with the best possible customer experience and services…