First wave: economy of products and services
E-commerce has been around for about 20 years now. Put simply, it’s the process of shifting your existing business model into the digital world. Most organisations treat e-commerce as a channel to market. However, contrary to popular belief, multi-channel doesn’t always work. It can result in a multiplication of cost, fragmented experiences across different channels and in the worse case scenario, damage to the brand.
We believe organisations need to think beyond channels. Instead, they should focus on the customer and aim to deliver a valued experience while helping them achieve their desired outcomes. It’s about bringing digital to the heart of your organisation.
Second wave: economy of outcomes
Music is a good an example here. Going back a few years, we used to buy a tangible product: the record. Jump forward in time, and it was all about purchasing the album for our iPod. Nowadays, we buy a service that streams music to us – wherever we want and whenever we want it. We’re not buying a product; we’re buying the outcome.
And this is the critical difference. Leading-edge organisations (both B2C and B2B) are engaging customers with technology to understand and help them achieve their desired outcome. This isn’t just by selling them products and services. Digital technology allows you enable the outcome. This in turn creates greater customer engagement and loyalty, and for longer. To do this requires a new mindset, new capabilities and a new relationship with customers. One which is founded on unprecedented levels of trust.
Third wave: economy of wishes
Consumers’ digital identity is becoming more and more valuable to organisations. In the future we predict that consumers will give businesses permission to interrogate their data. That way, companies will be able to provide a better, more personalised service. Put simply, it’s like the consumer saying “here’s my data, what can you offer me that’s better or cheaper than your competitor”. We call this the economy of wishes.
Please watch the video below.