The consumer products industry is transforming into the consumer outcomes industry. Digital leaders are transforming products into services, and creating value by competing as digital ecosystems to deliver outcomes instead of products.
Delivering outcomes is when consumers are satisfied with the overall result of an omnichannel customer experience. This can be achieved by creating a seamless experience for the consumer through many touch points such as mobile apps, telephone or online customer service, payment systems, delivery options, and bricks-and-mortar locations.
Consumers are calling the shots
In the digital economy, consumers are now in charge. They call the shots, they increase the speed of business, and they want personalized service across multiple channels – now.
According to the recent SAP eBook, The Digital Economy: Reinventing the Business World, three key forces are reshaping the customer experience:
- Consumer power. Consumers have immediate and easy access to product information, availability, pricing, quality reviews, and a choice of multiple sources.
- Customer journey. A customer’s path to purchase is no longer linear or time bound. The journey is now a real-time, dynamic route to an outcome.
- Real-time engagement. Companies that can sense, analyze, optimize, and respond to customer needs in real time, enable new opportunities to customize consumer outcomes.
Digital eliminates the guesswork
Traditionally, companies have predicted customer trends and produced products based on those predictions. Digital technology helps to eliminate the guesswork (and cost) of predicting future trends.
Now, innovative companies are developing and delivering personalized outcomes using a digital ecosystem of business partners, while collecting valuable customer data at the same time.
Companies use technology to deliver outcomes
In the cosmetics industry, gone are the days of predicting fashion or color trends. Now companies have the ability to instantly create the products – and outcomes – that are currently in demand.
A cosmetics company can invite customers to virtually try on makeup using a face-recognition app on their mobile phone. When the customer finds a look they like, they can automatically purchase the cosmetics on their phone, and have the makeup delivered to their door.
Another example is a mobile app that allows customers to create customized makeup. Using a smartphone camera, they can take a picture of any color and then create makeup based on that color using color coding and 3D printing. The app’s automatic payment and delivery options complete the cycle.
Source: SAP, The Consumer-driven Digital Economy
These days, companies can no longer focus simply on product, price, quality, or convenience. Businesses should aim to deliver the outcome of a simple, personalized experience that leaves the customer feeling good about the transaction, and ultimately the company.
For an in-depth look at how the digital era is changing consumer trends and the business landscape, download the SAP eBook, The Digital Economy: Reinventing the Business World.
For more information on the omni-channel customer experience, and the multiple factors driving digital transformation, download the SAP eBook, Digital Disruption: How Digital Technology is Transforming Our World.
Take a closer look at another industry in the midst of digital transformation. Download the SAP eBook, Connected Care: The Digital Pulse of Global Healthcare.