With the rise of digital, more and more industries and established businesses are losing their competitive edge and are becoming, sometimes slowly but surely, commoditised. They are seeing their customer relationships being stripped away from their hands to of platforms or brokers and can only compete with price or availability. It’s much harder to create value for customers if you only provide instrumental value. This is where providing great customer experiences come in as a strategic priority, it makes your customers spend more (time or money) with you and the products or services you offer. It makes it harder to swap to a cheaper alternative. It has become such an important paradigm and also a battle-field that you need to know how to navigate.
From user-centricity to value-centricity
Looking into the past how business development has been sped up and supported by the rise in digital there are very few companies and industries that can continue offering business-as-usual, the thinking of “If you build it they will come”. User-centered design surfaced the customer into front and center but we’ve noticed in our experiences that this might easily lead to ruining the balancing act of business goals vs. customer challenges. User-centricity without clear business case in mind usually ends up annoying the very users you’re trying to delight. Also you might end up spending 1 meur capex in an app where you can’t buy anything (real story).
We’re talking about value-centered design, where both of these aspects need to be clearly defined but also clearly balanced. We believe that transformative customer experiences can be built and measured through revenue metrics. So how does that work? We’ve developed a very simplistic framework to build our hypotheses with, focusing on both commercial and satisfaction metrics.
Optimise existing revenue generation: how can we unlock more value through optimising existing commercial propositions, optimising conversion, lowering acquisition costs and retooling loyalty loops?
Create new revenue opportunities: in a horizon-based thinking model what new opportunities could be found on the concentric circles of core businesses, adjacent business (e.g. aggregation models) and platform businesses (e.g. enabler models)?
Enable cost savings: how can business process outsourcing help in saving operational costs; what processes take up a lot of manual labour that could be automated via algorithms and digital tools to serve your customers more personally and efficiently?
Enhance customer satisfaction: how to understand the jobs customers want to fulfil even better and measure those on commercial (conversion, revenue, churn) and satisfaction metrics (NPS, CSAT et al) and combine these two?