With an ever-quickening rate of technological change and new platforms emerging just as fast, it can be tough for businesses to adapt. Rather than reinvent the wheel, legacy businesses should strive to be themselves.
When it comes to digital transformation, legacy businesses are in a uniquely tight spot: they must consider how to provide new, innovative experiences while retaining the character, image and customer relationship that have worked so well thus far. In some cases, rigid brand standards and internal reluctance to change can squander customers’ relationship with even beloved brands. So how does one invest in digital transformation without losing what made them unique and successful?
Take stock of customers’ needs and how you can meet them.
The first step in adopting a digital strategy is to keep a customer-centric focus. How can digital platforms add value for them on top of your existing IP and products? Which of your customers’ needs are unmet given the channels that are available to you today? In addition to focusing on customer habits and needs, you should keep an eye on competition for inspiration, benchmarks and to see where possibilities lie. Are there any ways you can provide an even better experience than them?
When envisioning the experience that you want to give customers, avoid a common pitfall that befalls some brands: the dubious assumption that digital transformation solely involves a flashy site or app. In fact, digital transformation is a multifaceted process that will require you to restructure the way you do business. So rather than just invest in a new website or app experience, you’ll need a much more integrated approach to how your core message is amplified across several touchpoints, media and other messaging. This also means restructuring your team a bit. One example of changes you might implement includes marrying your marketing and IT teams to ensure a smoother user experience on the web.
Use your stature to your advantage—but don’t be afraid of change.
Old habits die hard, but legacy businesses have one advantage over newer ones: decades of cultural relevance and consumer trust that they can draw upon when asserting themselves in a digital space. Take, for example, one of the most iconic toy brands of all time: LEGO. When children’s attention shifted from physical toys to smartphones and iPads, LEGO wasn’t going to go down without a fight. The big, bad wolf of digital media failed to huff, puff and blow the LEGO-brick house down. Instead, the Danish toymaker chose to follow the wind and invest heavily in apps, videogames and film. The digital transformation effort has proved so successful that it’s today regarded as the “Apple of toys.”
Niels B. Christiansen, LEGO CEO, mentioned in the LEGO Play Well Report 2018 that “today’s children are seamlessly merging what’s real and what’s virtual, reinventing play in ways people of my own generation could never have envisioned.” This inspired the brand to similarly blur the lines between physical and digital experiences. “We at LEGO are embracing that fluidity in play,” added LEGO CMO Julia Goldin, “and we want to have a bigger role in a child’s development” both online and off.