2016 hails the new Age Of The Customer

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By: Wise Marketer Staff |

Posted on December 24, 2015

2016 will prove to be the most consequential year for companies adapting to digitally savvy, empowered customers, according to research from Forrester which identified the top ten critical success factors that will determine if companies thrive or fail in the so-called 'new age of the customer'.

Empowered customers are changing the market fundamentals for virtually every industry, forcing companies to reinvent their strategy and operations, and companies can either make the hard changes to dramatically improve their chances to win in the market or preserve old models and defer transforming their operations at the risk of failure, according to Cliff Condon, chief research and product officer at Forrester, whose top ten critical success factors for the coming year are as follows:

  1. Personalising the customer experience (CX)
    Customers will reward companies that anticipate their individual needs and punish those that have to relearn basic information at each touchpoint.
  2. Implementing multidiscipline CX strategies
    Companies that transform operations to deliver high-value, personalised experiences will drive a wedge between themselves and laggards just executing CX tactics.
  3. Disrupting leadership
    CEOs will need to consider significant changes to their leadership teams to win in a customer-led, digital market; CEOs that hang on to leadership structures simply to preserve current power structures will create unnecessary risk.
  4. Connecting culture to business success
    Those that invest in culture to fuel change will gain significant speed in the market; those that avoid or defer culture investments will lose ground in the market.
  5. Operating at the speed of disruptors
    Leaders accept that disruption is now normal and will animate their scale, brand, and data while operating at the speed of disruptors; laggards will continue to be surprised and play defense in the market.
  6. Evolving loyalty programmes
    Companies that find ways for customers to participate with their brand and in product design will experience new and powerful levels of affinity; companies that try to optimize existing loyalty programmes will see little impact on affinity or revenue.
  7. Converting analytics to customer value
    Leaders will use analytics as a competitive asset to deliver personalised services across human and digital touchpoints; laggards will drown in big data.
  8. Mastering digital
    Companies that become experts in digital will further differentiate themselves from those that dabble in a set of digital services that merely decorate their traditional business.
  9. Elevating privacy as a differentiator
    Leaders will extend privacy from a risk and legal consideration to a position to win customers; companies that relegate privacy as a niche consideration will play defense and face churn risk.
  10. Putting in place a customer-obsessed operating model
    Companies that shift to customer-obsessed operations will gain sustainable differentiation; those that preserve old ways of doing business will begin the slow process of failing.

"New market dynamics are in play for 2016 and the gap between customer-obsessed leaders and laggards will widen. The decisions companies make, and how fast they act, will determine if they thrive or fail in the age of the customer," concluded Condon.

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