4 Tactics Digitally Mature Organizations Use for Employee Loyalty
Today’s watchword is digital — it’s a part of everything we discuss, from AI to the deployment of big data initiatives to the design of IoT-based insight engines to the cloud-to-edge migration. But one area that is seldom discussed is the evolution of modern organizations to an enhanced state of digital maturity. The degree of an organization’s digital maturity is one of the most critical measures of its ability to create long-term customer loyalty.
After working with both large and small organizations all over the world, I have found the most digitally mature — those with extremely high scores on both employee and customer loyalty — share four key behaviors.
Commitment to Systemic Changes
Digitally maturing organizations commit to systemic changes around strategic initiatives. These include organizational structure — how we design ourselves internally to most effectively and efficiently anticipate and meet customer demands — workforce development, commitment to innovation and the cultivation of digitally centric cultures and digitally-catalyzed customer and employee experiences.
Related Article: The Rise of the Digitally Mature Organization
Skunkworks
In his book “In Search of Excellence,” business writer Tom Peters talks about organizations that support employees’ abilities to generate ideas, but then disappear into a small room in the basement without giving permission to test it on a small scale. If an idea doesn’t work, no harm, no foul. But if it does, it can be rolled out across the entire organization to generate large-scale benefit. This practice becomes important because it empowers employees to take initiative and act on their ideas. It embraces the Google philosophy that says, “If we don’t give our people permission to fail, then we don’t give them permission to try.”
Talent Magnets
Organizations with a commitment to digital maturity as an inherent part of their overall strategy tend to attract high quality talent, especially in today’s market where the bulk of new hires are digital natives. These workers want to use the latest and greatest digital tools in hand — and plenty of studies clearly indicate that when it comes to choosing whether to accept a job offer, the extent to which an organization embraces the incorporation of digital technologies into its daily operations is a decision criterion.
Digital Leadership
Finally, digitally mature organizations go out of their way to develop leaders who have a vision of what “digital” means as a core success element of their overall strategy.
Learning Opportunities
Related Article: Digital Transformation Is A Business Issue
There are countless organizations that exhibit a commitment to digital maturity, and while it’s easy to latch on to the obvious choices — Apple, Amazon, Netflix and Google — a less obvious example might be more instructive. Consider the case of Audi: The company competes ferociously against the likes of BMW, Tesla and Mercedes.n an effort to improve its brand presence and increase sales, the company created “Audi City.” These large-scale dealerships are located in the central business districts of major downtown cities and are open until late in the evening, unlike suburban dealerships that close earlier. Many Audi City locations serve food and drink, cater to professionals who work downtown and work late and provide guest speakers and subject matter experts on all things automotive.
They also have virtual reality-based simulators that allow a prospective buyer to experience the exact car they might want to purchase, including the sound of the exhaust system. The result? Sales went up 60% in these locations over more traditional dealership models.
There are numerous other examples, but the message is clear. The path to digital maturity — and the creation of a more loyal customer and employee base — is not about the deployed technology; it’s about first identifying the problem that the technology might solve. Loyalty is an essential element of a digitally maturing company, on both the employee and customer ends of the equation. Loyal employees are loyal because they feel valued by their employer; loyal customers are loyal for the same reason. The employer must demonstrate behavior based on a fundamental understanding of the nature of the relationship desired by both. That means “why” is a far more strategic question to ask than “what.” By starting with the nature of the problem at hand, you can more effectively select a digital solution to drive customer and employee loyalty.
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About the Author
Dr. Steven Shepard is the founder of Shepard Communications Group. A professional author, photographer, audio producer and educator with more than 40 years of experience in the technology industry, he has written more than 90 books and hundreds of articles.
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