Customer migration, from one system or product to another, is inevitable for any organisation wishing to improve its proposition or grow its business. Migration is highly complex and you wouldn't be human if you didn't approach it with some trepidation.
Most organisations embark on these journeys without prior experience, while some may have, unfortunately, encountered stumbling blocks that negatively impacted both their customers and business in the past.
As a team we have supported many businesses to successfully de-risk and accelerate complex migrations. We understand the challenges and common pitfalls. We’d like to share some insights and strategies on how to navigate customer migration successfully. While some may seem straightforward, too many organisations miss them in the heat of the planning cycle – shortcuts are made and opportunities are missed.
Understanding the complexity
While no two migrations are exactly the same – and it is important that organisations recognise this – there are consistent themes and considerations that will be relevant to almost any customer migration.
Complexity around the migration of data is one example. Whether it involves transitioning internal platforms or moving data between external parties (e.g. as the result of M&A activity), data must be moved accurately and securely without compromising customer privacy. Other common themes include legal/regulatory requirements for both parties, data definitions, customer communication strategies and product harmonisation or simplification.
Understanding and early planning around these key themes and maintaining a customer centric approach will help minimise the likelihood of any detriment to customer experience. However, planning for the possibility of such a detriment to customer experience is just as important.
Underestimating the complexity and failing to plan for potential issues can lead to service disruptions and data loss. The repercussions can be commercial (such as increased customer attrition), reputational (through media focus), and legal (if legal and regulatory requirements are not met).
De-risking and accelerating customer migration
Whether you are undertaking a product, channel or whole-of-customer migration, there are steps that you can take early to de-risk a customer migration:
Define a compelling future state. The foundation of any migration is having a clear vision of where you want to take your customers. This includes having a compelling Customer Value Proposition (CVP) for the new product or service. It might involve new features, competitive pricing, or a more robust digital offering. The aim is to maximise the benefits and customer retention and potentially customer growth.
Segment impact assessment. Understand how different customer segments will be affected during and post-transition. This knowledge enables you to predict and plan for various customer responses. It also opens up the opportunity to engage and reactivate dormant customers by demonstrating the benefits of the migrated product or service, thereby reducing attrition and increasing future product usage.
Create a frictionless transition path. Identify and resolve common data complexities, such as outdated customer contact information, early in the process. This prevents delays and communication obstacles, both in terms of data migration and customer interaction. Meticulously plan for the ‘unhappy’ customer path, not just the ideal transition.
Align objectives and delivery model. A migration office, overseeing all aspects of migration should be established. Ensure all teams and organisations involved in the migration share aligned objectives and define an operating and delivery model that supports them. The key objective of any migration should be to minimise customer impact, ideally through an automated, zero-touch process. However, even where this method of migration is achieved for the majority of the cohort (‘happy path’), there will likely remain a cohort of customers that are unable to be migrated via the ‘happy path’, and will require additional support.
Accelerate key decisions. Front-load critical decisions in your migration plan to avoid unnecessary delays. This includes defining a clear product roadmap and outlining an escalating process and treatment plan for customers who do not migrate according to the initial plan.
Support complex customer cohorts. For more complex customer cohorts, like dormant or unresponsive customers, build checkpoints and actions into your plan to ensure they are adequately supported. Even if these customers are not active users of the migrating product or service, they may still hold value. Taking a whole-of-customer, value-based approach to communication is essential in these cases.
- Communication strategy. Develop a comprehensive communication strategy to encourage migration and ensure success. It should target both non-migrated and new customers and provide clear timelines, escalating nudges, and reminders of the benefits for the customer. Effective communication can ease the transition and foster customer goodwill.
Customer migration is indeed a complex journey, but it's one that can yield great benefits when approached with diligence and foresight. By understanding the complexity, de-risking the process, and maintaining a customer-centric focus, you can not only survive but thrive through migration.
Remember, migration is not just about moving data; it's about moving your customers to a better future state, one that aligns with their needs and expectations. So, embrace this challenge with confidence and seize the opportunity for growth and improvement.
