In the world of business, 30 per cent of CEOs feel that 70 per cent of their top management is out of touch with customers.
In a study conducted by IBM based on findings from conversations with 4,000 CEOs, CMOs, CFOs, CIOs and other leaders from 70 countries and 20 industries across the globe, the world’s largest tech company points to top management disconnect with regard to technology and tools.
Three key trends are keeping the CEOs awake at night. Extending customer influence, fusing the digital with the physical experiences and how to enhance customer experiences are areas that they are focussing on.
We found out that enterprises are increasingly viewing customers as key stakeholders in determining their future and embracing a collaborative model of working.
For instance, the study found out that 43 per cent of CEOs now include customers in the development of business strategies and this number is expected to jump to 60 per cent within the next 3-5 years.
The aspect of intersection between the digital world and physical world is fast becoming the leading edge of innovation, which is a break from the past. Top management should realise how important it is to blend these two worlds.
So, are these executives making an attempt to engage with customers digitally?
Our research found out that top management does intend to use digital channels much more extensively to engage with customers in the future and they’ve already embraced the shift. Having said that just 36 per cent of enterprises have an integrated digital and physical strategy.
Further, 16 per cent of CMOs say their organisations have a digital strategy and 87 per cent expect to have them in the next 3-5 years.
Do you think this strategy would get them success in these tough times?
About 54 per cent leaders believe customers must be understood and engaged as individuals rather than categories or market segments, which was the case in the past. Further, 76 per cent of CXOs hope and want to understand their customers much better in the future.
Some organisations are literally pulling customers into their boardrooms to encourage collaboration practices.
A significant number of CEOs have taken steps to make their enterprises more transparent in the past 12 months. And more than half claim customers now have a major influence on their organisations.
That influence goes far beyond a say in developing new products and services; its input into the strategy of the business. Yet one third of CEOs worry that the rest of their top management team is out of touch with customers.
When it concerns social media, how do you gauge the intent of top management?
Our study indicates that there is intent now. For example, in 2012, 16 per cent of CEOs said their organisations used digital channels as a key means of interacting with customers. Flash forward now and that number has grown to 51 per cent.