Digital Maturity, Drivers, and Deployment
In 2021, companies will continue to be physically distanced from their customers and prospects. Virtual appointments, sales presentations, meetings, negotiations, etc. will continue. Many companies will interpret the rise of “virtual” as the need to initiate or double-down on digital “transformation” – but beware the broad and amorphously defined digital transformation. In 2021, market leading companies will be clear-eyed about their digital maturity and laser-focused on select digital evolutions that drive Marketing, Sales, or Customer Success outcomes. Market leaders integrate these digital deployments under their Revenue Growth Office, to ensure interlock with the commercial functions.
The digital strategy provides a clear assessment of a company’s digital maturity and the optimization of digital deployment across the enterprise—with a focus on revenue growth. When digital is deployed correctly, it will accelerate the execution of key revenue growth initiatives. It will also typically reduce costs while increasing effectiveness. By engaging a Digital Maturity Assessment companies can fully understand the effectiveness of the current digital deployment and adjust the deployment and re-prioritize as necessary. In 2021, don’t be afraid to kill well-meaning digital initiatives with low expected return. Determine the best allocation of digital dollars and execution efforts across such areas as: Digital Channel Execution, Digital Customer Journey Enhancement, Digital Process Optimization, and Digital Sales Enablement.
Digital Channel Execution
Many companies are right to think of digital as a channel via which to engage and interact with customers. This is more than digital marketing – seamlessly transactions are key. Market leading companies design, optimize, and operationalize a robust digital channel with the right set of customer experiences. Market leaders avoid designing experiences that customers won’t care about, or that the company can’t execute. To support successful transacting in the digital channel, market leaders focus on the subset of processes that impact customer experience and drive sales effectiveness and/or efficiency.
- What It Is – Leveraging digital as a channel to drive revenue, sales effectiveness, and/or sales efficiency.
- Why It’s Important – The digital channel can support new revenue (transaction) streams and/or lower a company’s transaction costs on existing revenue.
- How to Use It – To optimize the channel, work backwards and forwards from the point of transaction. Focus on the subset of processes that impact customer experience and drive sales effectiveness or efficiency. Don’t design experiences within the channel that customers don’t, or won’t, care about.
Digital Customer Journey Enhancement
Market leaders pick their spots. As they seek to enhance their digital customer journeys, market leaders identify and focus on the key “moments of truth” within the journey. Market leaders understand that if they get the moments of truth right – removing friction and delighting customers – then their customers will have a favorable view of the entire experience. Said another way: moments of truth have an exponential impact on the entire customer journey. Market leaders also avoid the trap of thinking digital and digital technologies automatically enable highly customizable and bespoke digital experiences for their entire customer base. Rather, market leaders understand the ROI of digital customer journey enhancement and, frankly, do not over-invest in digital when there is limited return. In making their ROI calculations and investment decisions, market leaders are informed by a clear customer segmentation.
- What It Is – Improvement of uniquely digital customer journeys – this goes beyond the digitization of physical customer experience.
- Why It’s Important – Digital channels and favorable digital experiences are no longer differentiators, they are the expectation.
- How to Use It – Selectively enhance digital customer journeys via a focus on moments of truth and with a clear understanding of ROI.
Digital Process Optimization
Market leaders apply digital to key internal processes across sales, marketing, and customer success. The objectives are to reduce costs, improve customer experience, improve employee experience, and drive revenue. And market leaders don’t digitize costly, inefficient, or sub-par processes. They optimize processes either before or in parallel to digital execution.
- What It Is – Internal process optimization via digital.
- Why It’s Important – Supports key drives of revenue growth across sales, marketing, and customer success.
- How to Use It – For maximum ROI, don’t digitize sub-par processes.