Customer engagement drives new business strategy

 

Businesses that adapt their strategic plans frequently are often far better placed to take a larger section of the market when the opportunity presents. In the digital age, now more than ever, conditions are changing before our eyes in rapid and sometimes unpredictable ways.

It is important to have a business strategy that is adaptive, dynamic and able to be changed at whim – because why should a strategy be a stagnant unchangeable text? A mailable strategy is important for all companies, but it is especially necessary for digital and technology organisations. The macro conditions for technology businesses change on a sometimes daily basis, and getting the right strategic mix is essential for growth.

Innovation projects

Customer engagement is driving new growth across technology and service provider (TSP) businesses, according to a new survey by Gartner, Inc. The recent survey looked at 501 CEOs from Western Europe and North America. These CEOs were at the helm of TSPs with annual revenues from between US$10 million to more than US$1 billion.

The study found that differentiation was quite low between all these companies, with only 5 per cent of technology vendors “very or extremely effective” at differentiating themselves. The research shows that differentiation is continuing to be a major issue for TSPs, and many are turning to innovation projects that are customer engagement focused.

Gartner’s research vice president Todd Berkowitz claims that their recent research shows a correlation between a positive customer experience and growth.

“Customer engagement received the highest investment from an innovation standpoint with 42 per cent of TSP CEOs listing it as one of the top two priorities, ahead of new products and services and significantly ahead of internally focused activities,” said Mr. Berkowitz.

This corresponds to Forbes research which found that simplifying a customer experience was an effective and measurable way to increase customer retention. The Forbes study’s main finding was that it is important for businesses to realise the growing power of the customer.

The importance of a clear strategy

The companies that Gartner surveyed were all aware of their failings and successes to a fairly certain degree. The drive towards a customer focused strategy is a decision that can only come from knowledge and information that is understood by many.

While there are many competing philosophies that exist, when it comes to the strategic planning of any business the process should be clear and uninhibited by overly complex charts and graphs. Pictorial graphs offer a much clearer, more direct way to communicate your company’s strategic direction to the whole team. For more information on how your company can grow its market share by using strategic planning software, talk to StrategyBlocks today.