As oil and gas companies reinvent, they need to pivot from being commodity businesses to customer-centric businesses. From businesses that meet energy demand to businesses that solve problems.
To become intensely customer-focused, leaders are taking a more balanced and well-reasoned approach to customer engagement than laggards. They have, for example, built stronger experiences across the customer lifecycle—from discovering new customers to making it easy for customers to log-in, order and pay for products. In this way, they are creating high barriers to customer defection. By contrast, only four percent of laggards are taking actions to re-engage with customers. And only seven percent are prioritizing support and replenishment to strengthen relationships.
Leaders in Customer focus on creating differentiated experiences by actively responding to preferences and improving customer segmentation.
Reinvention leaders believe their efforts to customize products and services will deliver significant results.
Of leaders expect their focus on customization to boost revenue by at least 10% (vs. 38% of laggards).
Of leaders expect their focus on customization boost margins by at least 5% (vs. 44% of laggards).
Importantly, leaders are balancing their digital investments to continually improve experiences across the customer journey—from discovery to engagement to retention. Additionally, they are better at responding to customer needs:
60 percent are investing in digital technologies to understand, segment and measure their customer relationships and analyze customer data to forecast trends.
76 percent are customizing products, services or formats based on customer feedback.
62 percent are personalizing products and services for unique customer segments.
Leaders believe their investments in customization will pay off. We tend to agree.
Think (and act) like a leader
Manage customers, not molecules. In the new era of oil and gas, value will be derived from the strength of your customer (B2B or B2C) relationships, not the commodities you sell. Prioritize engaging with and expertly serving the customers who will ultimately dictate the path of your reinvention. Create a CX / BX management function with a voice in your organization’s strategic decision-making.
Solve problems. Rethink what you know about your current and future customers and the challenges they face. Understanding their needs, values and growth strategies will be critical to building intimacy and delivering value.
Monetize new products and services. The oil and gas market is evolving to address changing customer preferences, needs and behaviors. Reshape your portfolio to provide the products and services your customers will want—and will be willing to pay for.
Create high barriers to defection. Achieve customer “stickiness” by investing equitably across the customer lifecycle. Create a seamless experience that consistently satisfies B2C and B2B customers and gives them no reason to look elsewhere for products or services.