In addition to an intense focus on risk, our analysis revealed Transformed organizations pay more attention to understanding and engaging with their customers in new ways (see Figure 8). They appear to be responding more pervasively to a profound market shift, namely the explosion of new customer expectations generated in part by our digital, social and mobile marketplace. Likewise, Transformed organizations are also seizing the competitive advantage created when they understand their customers as individuals and engage them in more “authentic” or personalized ways.
FIGURE 8: Focused on Customers
Transformed organizations are learning to use customer analytics that yield something better than broad statistical averages. Instead of segmenting customers along two or three dimensions — sales and interactions, for example, or income, age and geography — they are analyzing a broader set of customer dimensions. These dimensions can include everything from transactional patterns to psychographic profiles of how customers prefer to shop, their likelihood of product purchases and their cumulative value to the company. The result is a highly individualized understanding, otherwise known as a “market of one,” making authentic customer engagement possible.9 As one Australian respondent in the financial services industry noted, “As interactions become more electronic and distant from staff interactions, insight to customer behavior and needs is increasingly essential.” Analytical insights and actions help restore the sense of a personal relationship that human tellers once provided, he said. Transformed organizations are putting analytical insights like these into the hands of customer-facing employees. Two-thirds of them support these employees with insights to drive sales and productivity compared to one-fourth of Aspirational organizations. Many organizations, for example, are learning to anticipate customer needs by understanding what customers actually do when they go online. Pfizer Inc., a global biopharmaceutical company, has taken this approach. “What’s really changed this past year or so, as we continued to evolve to a digital interaction and multi-channel model, is the sheer magnitude of data we collect directly about our customers.