Customer centricity has always been present in the strategy of companies, but the digital era has brought with it a mentality of immediacy, making providing good experiences key to retaining customers. It is not enough to sell a product, you have to create a long-lasting and trusting relationship with the customer. It is not just about selling products or services, but about making their lives easier and creating a lasting relationship. In this context, artificial intelligence (AI) emerges as a powerful tool for defining a digital strategy that is truly differential.
The challenge: beyond the sale
Many companies fall into the trap of using their digital channels solely as sales platforms. It is necessary to sell, of course, but it cannot be the only thing. I once read that ‘people like to buy, not to be sold to’. Until a few years ago, the situation was the other way around, since it was nice to go to a department store and have a salesperson come and talk to you about the benefits of a product until you bought it.
Today this is not the case, there has been a social change. Customers are looking for experiences that make their lives easier, what they buy is a transformation, not the product and service itself. By this I mean that they are not looking to be bombarded with offers. Digitalisation has made it very easy for consumers to switch from one provider to another, so when faced with a bad experience, customers do not hesitate to look for alternatives that are potentially more satisfactory. Therefore, a bad experience can lead to the loss of customers, who will not hesitate to look for more satisfactory alternatives.
Customer loyalty
In such a competitive market, customer loyalty has become a primary objective, because the cost of customer acquisition is much higher than the cost of retention. It is more profitable to keep an existing customer and develop them than to acquire new ones. Companies that do not prioritise customer experience in general, and in their digital channels in particular, run the risk of losing customers to competitors that do. The key is to understand that a good experience retains customers and turns them into brand ambassadors, willing to recommend it to others: is there cheaper and more profitable marketing than word-of-mouth marketing originating from satisfied customers? Think of some of the world’s largest companies by market capitalisation; those that spring to mind include Apple and the user experience of its devices, or Amazon and the unbeatable ease of its purchasing and after-sales processes.
The solution: a digital channel as a customer touch point
When someone wants something from a company, they perceive it as a ‘single entity’. A consumer does not want to know whether they have to go to window A or B. For this reason, having a digital channel that is the ‘gateway’ to customers is fundamental and an excellent customer experience is critical to differentiate yourself. As an example, we can refer to another of the big players, Netflix, which is where it is today based on a strategy of building an unparalleled experience for the consumption of series and films.
Our success story
At Telefónica we have been working hard on this for years, making our My Movistar, Vivo, My O2 and Mein O2 applications better every day, a clear success story in the group, as they are already used by more than forty million users every quarter. The customer has always been at the forefront of our team’s mind, so we are constantly on the lookout for new ways to make their lives easier; with this leitmotif in mind, we try to apply AI to get to know our customers better and provide them with experiences that are better adapted to their needs.
Therefore, we analyse user behaviour within applications; as a result of this analysis, we will be in a position to offer customers experiences that are more relevant and better adapted to their needs and preferences. This analysis will allow us to offer more personalised and relevant experiences, tailored to the needs and preferences of each user.
A specific example of personalisation is as follows: if a customer has had technical problems in the past, the app can prioritise proactive technical support, offering solutions before the customer has to request them, such as proactive alerts about potential problems with their service. All of this contributes to a richer and more satisfying customer experience.
Digital product strategy: a structured approach
In order to do all of this, you need to implement an effective digital product strategy. A useful example of how to do this is to follow a structured model such as the one proposed by Roman Pichler, whom I particularly consider a reference. This model focuses on defining a clear product vision, setting strategic objectives and creating a roadmap to guide the development and implementation of the strategy:
- Product vision: defining a clear and compelling vision that describes the purpose of the product and the value it will deliver to customers in the long term.
- Strategic objectives: set specific, measurable objectives that align product development with the vision and customer needs, which will help us to fulfil our vision.
- Product roadmap: create a detailed plan that outlines the features and enhancements that will be implemented over time to achieve the strategic objectives.
This structured approach helps ensure that all decisions and actions are aligned with the product vision and objectives, and that a constant focus on the customer experience is maintained.
Conclusion
In a world where artificial intelligence will be increasingly present in our lives, it is essential to harness its potential to define a differential digital strategy. It is not just about selling more, but about offering an experience that builds customer loyalty and turns them into brand ambassadors. At Telefónica, we are committed to this approach, putting all our efforts into making our applications ‘top of class’, using AI and other technologies to continuously improve our customers’ experience.
Personalisation and loyalty are key to success in today’s digital environment. By using AI to better understand customers and deliver experiences tailored to their needs, companies can not only increase sales, but also positively impact their bottom line. Customer experience should always be a priority, and it is our duty to harness the potential that a tool as powerful as AI provides us with to maximise the achievement of our goals.
