Digital Transformation, IoT and the Value Proposition

Digital is shaping the world. Shaping the communication, product & services and processes. The way consumer interact with a company diversify. Artificial Intelligence (AI) will find its way into many areas and the touch points with a customer will change. We communicate through influencers, the refrigerator, the smartwatch or the onboard display in a car. This needs to have different, micro-targeted communication. On a website we can place broad and huge information while on a refrigerator it’s less.

So how do we build a value proposition in this changing world? A value proposition is telling relevancy, quantified value and unique differentiation. Example:

Better customer relationship

Build a better long-term relationship of each single customer / user through understanding his pains and needs.

  • 1:1 targeted communication at the right time and right place
  • Reduce timing for setting up campaigns by x%, raise revenue by y% and gain z% more loyal customer
  • Build cross-channel (online & offline) user profiles and predict their next step / need

Let’s assume we are a provider of a marketing software solution and working with a telecommunication provider who has a huge problem because fix contract customer are moving to a competitor. His pain is on the one side revenue, but much more it’s about market share and long-term contracts they can calculate with. In the past the after-sales communication was less, just pure advertising (offers for a new mobile phone) with less relevancy for the customer. Beside this the only communication was if the customer came up with a problem.

For the telecommunication provider it’s time to change something. There are three groups of customers to work on.

  1. Those wo already moved to a competitor
  2. Those wo are thinking to move to a competitor
  3. Those wo are not thinking to move to a competitor

Three different approaches. First of all he need to understand why they are in one of this three groups and try to solve their pains. Then he needs to think about milestones they have reached, what brought them to this milestone and how he can move them to the next or the after next milestone.

Now we understand our user / customer it’s about start building new products and services around the core product (telecommunication), but it’s also need to think broader and build / use the platform to reach out with entire different services which are not within the core of a telecommunication provider. Products & services with an added value for the customer. This can be the deep integration within a car system and all the other equipment someone has to get a connected and seamless world. This added value can group three keep staying in group three, move group two to group three and helps to get group one back.

The refrigerator app is analyzing whats in, show it on the screen, recommends a shopping list. The mobile phone app (and the platform behind) from the communication provider is acting as the central hub which is collecting (and processing) this information and spread this out wherever needed.

With the added value we build an experience, we change from a customer journey to a customer experience.

We all know this big player. They stay for speed, process, community and trust. They build a platform and an experience to retain people in their ecosystem. This is what the telecommunication provider needs to build up.

Coming back to the starting situation of a marketing software vendor. He needs to connect to the platform of the telecommunication provider (or helps him build up the platform) to gain a better customer relationship and experience through his marketing and analytics (predictive) tools.


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