The rapidly shifting landscape of consumer expectation around how brands are meeting their needs continues to be a challenge for brands and this has only been accelerated by the situation with the global pandemic.
Brands have been investing heavily in digital transformation programs in order to meet the gap between consumer expectations and reality head on, however, despite the investment, the gap is widening at an accelerated pace.
The ability to meet the expectations of consumers and deliver an optimal experience is key for brands to increase share of wallet and new customer acquisition and of course, retain customers and build brand loyalty. Even with heavy investment, without clarity on how to close the gap digital transformation programs will continue to fail.
The most common failure point that I’ve observed over the last five years with transformation programs is brands taking the approach of investing heavily in new or replacement platforms without a clear strategic view of what they need out of their martech and adtech ecosystems in order to surface a single view of their customers. This digital replacement approach is expensive, time and resource intensive and ultimately leads to wasted investment.
One of the other failure points in delivering a digital transformation program is siloed business units. This is where the term ‘digital’ can be misleading. Even though the strategy and workload may be focused on a digital ecosystem, in order to successfully operationalise the outcomes of the program it needs to be sponsored at an executive level, with the value and impacts to each business unit mapped, timelined and coordinated across the business. Every consumer touchpoint (offline and online) needs to be planned for in order to ensure that consumers receive a consistent and frictionless experience.
Digital transformation, is in essence, organisational transformation and it needs executive sponsorship – both in budget and support. Your board or C-suite will need a clearly thought out and planned out strategy, budget, timeline and value proposition before they will commit resources and investment against a large scale program.
Quite often with a digital transformation program, the journey from being a business with nascent digital maturity to a fully mature, multi-moment business (navigating through the four stages of digital maturity) can seem like a long and expensive journey. This is where many programs fail before they really start to realise any value against the investment.
Over the course of a three, four or five year program of work, team members change, even the executives sponsoring the program may leave the business. Market forces can shift – bringing the investment into question. Ultimately, without a roadmap in place that clearly articulates smaller, tactical initiatives (realising tangible value quickly along the way) that is mapped to the longer term vision and strategy, you will find that the long term vision and goals will likely fail.(more…)