Build For Change

How can businesses survive and thrive in the age of demanding customers armed with the power of social media and constant connectivity?

1. Generation D is the customer of tomorrow, and they mean business.

Today’s youngest consumers, known as Generation D, are unlike any previous generation. They are informed, demanding, and wield immense power thanks to social media and digital platforms. For businesses, they represent a unique challenge, since failing to meet their expectations can lead not just to lost loyalty, but organized efforts to discredit a brand online.

Generation D values authenticity, transparency, and efficient service. If they encounter bad service, misrepresentation, or a product that fails to deliver compared to its competitors, they won’t just turn away—they might rally others to criticize the brand publicly, causing what the book refers to as a "customerpocalypse." This makes it more important than ever for businesses to understand and address their needs before disaster strikes.

An example can be found in Nokia’s downfall amid competition with Apple. Nokia criticized Apple’s iPhone in their marketing rather than focusing on improving their own offerings. Generation D and C customers, instead of being persuaded by Nokia’s words, gravitated toward Apple for its innovative approach, leading to Nokia’s decline.

Examples

• Nokia’s failure to modernize while criticizing competitors’ innovations severely damaged their standing.
• Generation D uses platforms like Twitter and Reddit to amplify collective grievances about poor service.
• Businesses like Tesla have thrived by directly addressing customer complaints swiftly and transparently.

2. Data is powerful, but interpreting it properly is even more crucial.

Businesses today have access to immense amounts of data through customer transactions, search histories, and interactions. While this can provide insights into past behaviors, data alone cannot predict future needs, desires, or trends.

Sony serves as a cautionary tale of failing to anticipate shifting customer needs. Once dominating the personal music market with the Walkman and Discman, they were overtaken by Apple and its iPod, which catered to modern desires for portable music and seamless online purchases. Relying only on historical data, Sony didn’t foresee these changing demands and suffered significant losses.

To properly use data, companies must engage in continuous learning and forecasts. Vodafone, for example, uses data from customer behavior to develop personalized daily offers, which are refined via testing and feedback loops. Such thoughtful use of data ensures they stay ahead of evolving consumer needs.

Examples

• Sony’s leadership in portable music failed due to an inability to predict evolving digital consumption habits.
• Vodafone’s personalized offers demonstrate the value of blending data with smart experimentation.
• Big Data fails when treated as a static blueprint rather than an active, evolving tool.

3. Simplicity and accessibility are the keys to winning customers.

Generation D desires processes that are easy, quick, and efficient. Streamlining customer interactions is not about adding technology for the sake of modernization; rather, it’s about designing systems that work for the customer.

A great example is BB&T Bank’s initial online account process. Hoping to attract digitally savvy customers, they moved account creation online but retained long, clunky forms. Customers grew frustrated, and satisfaction levels dipped. By redesigning their approach with automation and integration, BB&T ensured customers had a simpler, faster experience online or in banks, cutting costs while improving satisfaction.

Effortless, intuitive systems foster trust and loyalty, while clunky or outdated setups drive frustration. Outside-in thinking—starting with what customers want and working backward—is crucial.

Examples

• BB&T’s shift to automated account systems reduced complications and boosted satisfaction.
• Businesses with seamless e-commerce experiences, like Amazon, win loyalty globally by focusing on customer ease.
• Poorly integrated apps or forms alienate tech-savvy generations quickly.

4. IT system failures often stem from poor collaboration.

Many companies experience setbacks with their IT systems because business teams and developers operate in silos. Miscommunication leads to impractical designs that developers execute literally, resulting in systems that fail to meet user needs.

These broken systems, called zombie systems, limp along ineffectively, burdening both employees and customers. Left unresolved, such systems force employees to create makeshift solutions, like manual workarounds, which drain productivity and morale.

For example, customer service departments may end up juggling disorganized spreadsheets and multiple screens just to process a simple transaction. Avoiding this requires businesses to bring IT and business personnel together to jointly design processes that work for real users.

Examples

• Zombie systems result when IT and business teams don’t work cohesively.
• Manual systems emerge when users have to bypass poorly designed tech completely.
• Shared understanding between developers and business managers is key to creating functional systems.

5. Collaborative innovation leads to effective systems.

The best way for businesses to succeed technologically is to foster cooperation between IT experts and business thinkers. Combining their unique perspectives leads to systems that understand and address business needs while being technologically sound.

The concept of hybrid vigor is useful here—melding two distinct skill sets to create something stronger. Many companies now establish innovation centers where teams blend technical expertise and business insight for better systems. Telstra, for instance, boosted customer satisfaction with improved service times thanks to such collaborations.

Specialized roles, like Chief Process Officers (CPOs), can further reinforce this coordination by overseeing the integration of customer needs into business operations. Telstra’s CPO-driven processes slashed delivery times and heightened customer happiness.

Examples

• Telstra’s CPO role enabled a 70% reduction in order-to-delivery times.
• Innovation centers unite IT and business minds to develop functional systems.
• Collaborative design prevents zombie systems from forming in the first place.

6. Customer needs are constantly shifting—businesses must adapt.

The needs of Generation D aren’t static, and businesses must embrace change to meet evolving expectations. Past successes provide no guarantees; continuous innovation is necessary.

Sony’s fall from dominance in portable music due to their reluctance to evolve serves as a stark warning. Similarly, companies like Nokia struggled because they clung to outdated strategies rather than embracing shifting trends influenced by new technologies and customer priorities.

Constantly testing, iterating, and updating products or services—like Vodafone’s daily offers—can help businesses stay relevant and connected with their target audiences. A proactive and flexible mindset builds trust and safety nets against obsolescence.

Examples

• Sony failing to adapt from CDs to MP3 formats marked their decline.
• Vodafone’s responsive daily specials show how adaptability secures customer loyalty.
• Businesses that invest in customer trends maintain a competitive edge over static competitors.

7. The customer journey should be seamless.

Digital transformations often fail not because businesses lack technology, but because they don’t unify customer processes. Customers today expect consistency across all touchpoints—whether they’re interacting in person, online, or via mobile apps.

Failing to provide this seamless experience, as BB&T initially did with convoluted online services, risks alienating customers. In contrast, retailers like Amazon lead the way, offering smooth integrations between browsing, purchasing, and returns, which builds loyalty.

By focusing on the customer journey and eliminating unnecessary complications, businesses can simplify interactions and enhance satisfaction.

Examples

• BB&T’s redesigned online process united in-person and digital account setups.
• Amazon’s seamless services create unmatched convenience for users worldwide.
• Broken or inconsistent customer journeys confuse users and drive dissatisfaction.

8. Strong customer experiences rely on smart organizational design.

Departmentalized, inside-out structures harm businesses attempting to meet modern customer expectations. Such top-down approaches are ineffective against Generation D’s demand for rapid responses and coherent service.

Instead, businesses should adopt outside-in perspectives, putting customer desires at the forefront. This shift enabled BB&T to rebuild its online processes; by eliminating divisions between teams, the bank created unified workflows that worked better for both customers and employees.

Redesigning internal structures improves communication, efficiency, and ultimately, the customer experience, helping businesses thrive in today’s competitive environment.

Examples

• Disconnected departments complicate coordination and slow down service improvements.
• Outside-in perspectives guided BB&T’s successful recovery after initial failures.
• Integrated structures ensure faster decision-making and problem-solving.

9. Social media amplifies accountability.

Social media has given Generation D a megaphone to praise or criticize businesses, making transparency and accountability non-negotiable. Companies unwilling to listen and engage with customer feedback quickly lose trust.

Tesla’s direct communication with its consumer base stands as a positive model. By addressing complaints openly and fixing issues rapidly, the company maintained goodwill. In contrast, businesses that ignore digital outrage risk spiraling into public relation crises.

A proactive presence on digital platforms helps brands control narratives and rebuild trust after setbacks.

Examples

• Tesla takes customer complaints seriously, quickly implementing solutions.
• Viral posts about poor service expose companies unable to meet expectations.
• Businesses that listen and respond online build lasting trust with consumers.

Takeaways

1. Shift your processes from an inside-out to an outside-in perspective by putting the customer first in every decision.
2. Unite IT and business teams to collaboratively design seamless systems that work smoothly for both employees and customers.
3. Use data proactively, constantly revisiting it to predict and respond to changing trends rather than relying solely on past patterns.