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Stuvia - Koop en Verkoop de Beste Samenvattingen For digitally transforming incumbents, achieving high growth is also important, but not at the cost of profitability Week 2: The Age of Continuous Connection (Siggelkow & Terwiesch, 2019) Thanks to innovative technologies that enable frequent, low f...

Stuvia - Koop en Verkoop de Beste Samenvattingen For digitally transforming incumbents, achieving high growth is also important, but not at the cost of profitability Week 2: The Age of Continuous Connection (Siggelkow & Terwiesch, 2019) Thanks to innovative technologies that enable frequent, low friction, customized digital interactions, companies today are building much deeper ties with customers than ever before. Thereby they address customers’ needs the moment they arise instead of waiting for customers to come to them. Old approach: Buy what we have Companies used to interact with customers only episodically when customers came to them. The traditional customer journey can be broken down into three distinct stages: 1. Recognize: when the customer becomes aware of a need. 2. Request: when he or she identifies a product or service that would satisfy this need and turns to a company to meet it. 3. Respond: when the customer experiences how the company delivers the product or service. - Example: Customers can often experience a lot of inconvenience in this model (e.g., having to wait a long time in a store for individual cartridges, only to find out that they are out of stock, so you have to buy a multipack because you need to finish your printing today). The new approach: Companies can address customers’ needs the moment they arise— and sometimes even earlier. With these new connected strategies, firms can build deeper ties with customers and dramatically improve their experiences. The following strategies are identified: 1. Responding to desires: This strategy involves providing customers with services and products they have asked for and doing so have asked for and do so as quickly as possible (quick delivery, minimal friction flexibility, and accurate execution). - Example: You can instruct Alexa to order a particular product, and she will manage the rest of the rest of the customer journey for you. That is responding to your desire. 2. Curated offering With this strategy, companies get actively involved in helping customers at an earlier stage of the customer journey: after the customers have figured out what they need but before they have decided how to fill that need. - When you order toner cartridges online, the site automatically suggests the correct one based on what you have previously purchased, saving time in finding the right toner you need for your printer 3. Coach behavior 7 Gedownload door: matsmolenberg | [email protected] Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. ¤ 912 per jaar extra verdienen? Stuvia - Koop en Verkoop de Beste Samenvattingen Both previous two strategies require customers to identify their needs in a timely manner, which (being human) we are not always good at. Coach-behavior strategies help with this challenge, by proactively reminding customers of their needs and encouraging them to take steps to achieve their goals. - Example: a printer itself tracks the number of pages it has generated since David last changed the toner and sends that information back to the manufacturer, which knows that he will soon need a new cartridge. So, it might email him a reminder to reorder. At the same time, it might encourage him to run the cleaning function on his printer a suggestion that will help him avoid later inconveniences. 4. Automatic execution Customers give a company permission to take care of something, and from then on, the company takes care of everything. Allows companies to meet customers' needs even before they realize of that need (without customer involvement). - - Customers should be comfortable with the constant flow of data from their devices to companies. This varies from person to person: some people do not like that a company knows everything about them, some do. Companies do need to show that they can be trusted. Example: when buying your printer, you authorise the manufacturer to remotely monitor your ink level and send you some new cartridges whenever they get low. Repeat In addition to the three stages: recognize, request, and respond. There is a fourth stage: Repeat. Which is fundamental to any connected strategy because it transforms stand-alone experiences into long-lasting, valuable relationships. The repeat dimension of a connected strategy helps companies with two forms of learning. 1. Allows a company to get better at matching the needs of an individual customer with the company’s existing products and services. - Example: Disney sees that a customer like ice cream more than fries, and theatre performance more than fast rides. Information that then allows the company to create a more enjoyable itinerary for him. 2. Companies can learn at the population level, which helps them make smart adjustments to their portfolios of products and services. - Example: If Disney sees that the general demand for frozen yogurt is rising, it can increase the number of stands in its parks that serve frozen yogurt 8 Gedownload door: matsmolenberg | [email protected] Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. ¤ 912 per jaar extra verdienen? Stuvia - Koop en Verkoop de Beste Samenvattingen Both of these loops have positive feedback effects. The better the company understands a customer, the more it can customize its offerings to her and vice versa. The importance is that you as a company should think about connected strategies, before others in your industry beat you first. 9 Gedownload door: matsmolenberg | [email protected] Dit document is auteursrechtelijk beschermd, het verspreiden van dit document is strafbaar. ¤ 912 per jaar extra verdienen?