The age of the customer has well and truly arrived and it will be the companies that recognise this that will get ahead in 2016.<\/p>\n
That\u2019s the key takeaway from a recent report from US-based Forrester Research, which has named the 10 critical success factors that will determine \u201cwho wins and who fails in the age of the customer\u201d in 2016, reports B&T.<\/p>\n
While Forrester says many companies are developing and executing strategies that centre on customers, \u201cthe problem is one of magnitude and speed\u201d.<\/p>\n
\u201cMany companies have underestimated the magnitude of change needed to operate a customer-obsessed business and the speed required to catch up to dynamic customers and disruptive competitors,\u201d Forrester says.<\/p>\n
And the gap between the \u201ccustomer-obsessed leaders\u201d and the laggards will only widen in the new year, the research firm says.<\/p>\n
\u201cLeaders will take on the hard work of shifting to a customer-obsessed operating model; laggards will aimlessly push forward with flawed digital priorities and disjointed operations,\u201d the report says.<\/p>\n
Here are Forrester\u2019s 10 critical success factors that will help your business get ahead in 2016.<\/p>\n
1. \u201cPersonalisation is the new bar\u201d.<\/p>\n
In 2016, the companies that will get ahead are the ones that deliver a high level of quality, personalised experiences, says Forrester.<\/p>\n
\u201cCustomers expect to be treated as individuals in their moment of need,\u201d the company says.<\/p>\n
\u201cThey expect that each encounter will be informed and enriched by current and accurate information about their accounts, history and preferences. They will reward companies that can anticipate their personal needs and wants \u2013 and punish those that clumsily have to relearn basic customer details at each encounter.\u201d<\/p>\n
2. \u201cSmall CX thinking will destroy financial results\u201d<\/p>\n
Delivering high-value, personalised experiences means thinking big when it comes to customer experience (CX), says Forrester.<\/p>\n
Rather than focusing CX work on only \u201cconstructing customer journeys\u201d, Forrester says successful companies will focus on \u201cdriving change above and below the visibility line: from aligning the brand promise to transforming operations\u201d.<\/p>\n
3. \u201cWho leads matters more in 2016\u201d<\/p>\n
Traditional leadership structures need to be broken down in 2016, according to Forrester.<\/p>\n
\u201cLeading companies will have CEOs who drive change and can put the right person in the right role to take on a rapidly changing market,\u201d Forrester says.<\/p>\n
\u201cLaggards will try to maintain old leadership structures while compensating for gaps with titles that have little real authority and unworkable governance structures.\u201d<\/p>\n
4. \u201cCulture is a critical path to business success\u201d<\/p>\n
Having the right culture is no longer just a luxury, says Forrester.<\/p>\n
\u201cCulture fuels change; it is not a by-product of change,\u201d the company says.<\/p>\n
\u201cCulture drives speeds and efficiency, creating instincts, norms and new muscle memory to shift to a customer-obsessed operation and work at the speed of dynamic customers and disruptive competitors.\u201d<\/p>\n
5. \u201cTraditional companies stand up to disruptors\u201d<\/p>\n
Disruption is now the norm for many businesses and leaders will need to fight back against the disruptors in 2016, according to Forrester.<\/p>\n
\u201cLaggards will hold on to legacy business practices, respond poorly to market threats, and witness a dangerous gap form between themselves and their customers,\u201d the company says.<\/p>\n
6. \u201cLoyalty programs focus on participation\u201d<\/p>\n
Gone are the days of loyalty programs that simply offer coupons or discounts, Forrester says. Customers now want to participate and share a purpose with a brand, such as helping to design the pair of shoes they want to buy.<\/p>\n
\u201cIn 2016, loyalty programs will increasingly do things with their customers, not simply for their customers,\u201d Forrester says.<\/p>\n
7. \u201cAnalytics becomes a key competitive weapon\u201d<\/p>\n
In 2016, it won\u2019t be enough to just access big data, businesses will increasingly need to use algorithms and analytics to anticipate and deliver value to their customers.<\/p>\n
8. \u201cDigital dabbling is a fatal strategy\u201d<\/p>\n
Leading companies will \u201cembed digital into all parts of the business\u201d in 2016, while laggards won\u2019t look deeper than \u201cshiny, front-end digital objects\u201d.<\/p>\n
9. \u201cPrivacy is moving from niche to value prop\u201d<\/p>\n
Customers care about their privacy and are willing to act to protect their privacy more than ever, according to Forrester.<\/p>\n
In turn, leading companies are now starting to think about protecting their customers\u2019 privacy as more than just a legal or risk factor and instead as a marketing goal.<\/p>\n
10. \u201cOperations becomes the nucleus of value\u201d<\/p>\n
The final factor that will be critical to success in 2016 is developing a \u201ccustomer-obsessed operating model\u201d, says Forrester.<\/p>\n
This involves four core principles: \u201cobsessing\u201d about the value and personalisation of customer experiences; using analytics instead of big data to deliver those experiences; moving at the same pace as customers and disruptors; and applying this logic across all the functions of a business.<\/p>\n","protected":false},"excerpt":{"rendered":"