Leading Digital_ Turning Technology into Business Transformation ( PDFDrive )

30 LEADING DIGITAL
beyond websites and mobile apps to truly transform the customer
Âexperience and how you steer customers effortlessly through it.
Delivered properly, an engaging customer experience creates value
for both customers and firms. It drives retention and stimulates customer
loyalty. But delivering a differentiated customer experience in
large organizations is a complex task. Why? First, customer expectations
have increased substantially; of the 150 executives we interviewed
early in our study, 70 percent highlighted the ever-rising tide of customer
expectations as a key driver for change. 1 Second, integrating new
digital channels into existing operations can be organizationally challenging.
Third, these digital interactions force an evolution in culture—
new clock speed, new decision-making methods, new rules—that can
run counter to the way large traditional companies have managed
customer relationships. So, like our Beginners or Conservatives, you
can choose to do only a few experiments here and there. Or, like our
Fashionistas, you can invest in every new shiny object that’s available.
But you would be missing the big prize.
Despite the challenges, huge benefits are available to those companies
that create compelling customer experiences.
LEADING THE DIGITAL REBIRTH
OF AN OLD ICONIC BRAND
In 2006, when Angela Ahrendts took the helm at Burberry, the company’s
top-line growth was significantly behind its peers. 2 While the
overall sector was growing at around 12 to 13 percent a year, Burberry’s
growth was only 1 to 2 percent. The company was not keeping pace
with the rapid development in the luxury goods market, neither in terms
of innovation nor in terms of products and services. Burberry was up
against tough competition from much larger French and Italian peers,
each of which had multiple brands and many times the company’s own
revenue and profit. Something had to be done to reverse this trend.
Burberry’s management team began by asking itself a fundamental
question: “What is our vision?” From there, the team members began