How Customer Data Will Define Competitive Strategies

A new book explores ways companies can view and nurture revenue-generating digital customers.

As companies reimagine products and services for the digital world, customer data is the linchpin for creating fresh revenue streams and architecting new offerings.

To attract and retain a new breed of digital customer, retailers are rethinking strategic priorities and developing new marketing, revenue, and profit-generation business models. But the traditional constructs of competitive strategy don’t hold up when building business models around data and digital ecosystems, said Mohan Subramaniam, author of the new book, “ The Future of Competitive Strategy: Unleashing the Power of Data and Digital Ecosystems.”

The four tiers of digital transformation

Companies don’t just flip a switch between old-style business models to data and digital ecosystems. Rather, Subramaniam defined four levels of digital transformation that, based on business strategy, require different levels of digital consumer engagement. He offered these specific examples:

Source: Auto Service World

How to nurture a data-driven customer

Subramaniam outlined several steps for attracting and retaining this new class of digital customers:

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The IDE explores how people and businesses work, interact, and prosper in an era of profound digital transformation. We are leading the discussion on the digital economy.

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Addressing one of the most critical issues of our time: the impact of digital technology on businesses, the economy, and society.