Transform Customer Experience and Predict Behavior with Digital Twins of Customers
Mar 13, 2023
5 min read
Progress and innovation have undoubtedly transformed our reality. The internet has changed everything we do and how we do it. That’s why over the past years, our desire to experience the digital world has risen. Each year, we learn more and get a better understanding of how technology fits into our lives, from self-driving cars to ChatGPT. By 2023, digital experiences have become part of the evolution and the lines between our virtual and physical existence have become blurred.
Each one of us is generating and using an unprecedented amount of data online and reading your customer’s mind just got a lot more complicated than before.
Having a deep understanding of customers is fundamental to creating exceptional experiences and products. It’s time for new technologies that you can use to deliver improved experiences for your customers without tracking their every move. What if you’d know exactly how, when, and where to approach them to achieve the best-desired results? What if you could improve physical reality through simulations in the digital space?
What if we’d create data as if it were a digital twin—with no impact on people’s real identity and offering enhanced functionality?
If the previous questions got you curious, then keep reading to learn about the potential that Digital Twins of Customers have for your business and how to prepare for the next generation of digital innovation.
What are Digital Twins of Customers (DToC)
Digital Twins are a digital representation of a model that is connected in real-time with live data. A digital twin is capable of gathering sufficient data to replicate and forecast the customer experience (CX) and behavior. Until now, digital twins were mainly used in industries such as engineering, manufacturing, and healthcare to reduce time to market, enhance product quality and reduce waste. It’s about time we captured the great potential digital twins hold in predicting your audience’s behavior and the impact they can have on transforming marketing use cases.
A Digital Twin of a Customer is a digital representation of your customers that uses both online and physical interactions to simulate the CX and predict behavior. DToCs allow you to simulate with synthetic audiences to then be able to apply best practices to your physical customers.
Deploying DToC gives you the opportunity to understand and anticipate the behavior of your physical audience by examining the reactions of its Digital Twin in a virtual space. You won’t have to wait for your product to be released to find out if you have a good product-market fit. Nor would you have to launch multiple messages and channels to find the most successful launch path to your audience. You’d know in advance if you’ll be successful or what changes to make to get there.
Digital Twins are powered by your audience’s known attributes (Voice of Customer data, CDP data), Current Influences (Trends), Artificial Intelligence, and Behavioral Analytics. Businesses that rely on customer behavior data to generate behavioral insights outperform the competition by 85% in terms of sales growth and by more than 25% in terms of gross profit (McKinsey). The foundation of a successful, yet simplified customer-centric experience journey comes down to personalization, which is driven by behavioral data. So let’s look into some of the coolest use cases and benefits that DToC can bring to the table.
Companies can develop predictive models to anticipate customer behavior (buying patterns, churn risk) and become proactive in engaging their customers before it’s too late. You will no longer have to wait for feedback from your customers to improve offerings, instead, you can simulate customer reactions to new product designs and features to refine and optimize product development before launching to market.
DToC enables you to analyze the behavior and preferences of the digital twin of your customers to personalize communication, product recommendations, and customer experiences by taking into account the different needs of your diverse customers.
Additionally, DToC can map out the customer journey, identify key touchpoints and opportunities to improve the CX, and increase customer satisfaction. DToC’s can estimate the value of your customer for the business over a period of time based on patterns.
You can make sure to always be one step ahead: analyze your customer's digital twin to identify problems and pain points and improve customer service processes in advance. Detect fraud by comparing the behavior of individual customers to their digital twins and flagging any discrepancies. Find out which pockets of audiences you haven’t reached yet. Find which content type drives the most net new customers within your audience. Determine trends, influences, or data you should deploy today to attract more customers & optimize cost trends.
DToC can impact your business from sustainability to strategy to marketing and up to risk management. The benefits can be seen in all areas: cost, product development, customer satisfaction, retention, and more.
Even though digital twins of products or processes have been used for over a decade, current trends point towards expanding immersive experiences. It seems that the era of the Digital Twins is just beginning and the DToC’s popularity will keep rising as businesses start realizing exactly how much cost and effort they can save by enabling this new technology. Even more, brands will be able to differentiate themselves from competitors and surprise their customers by staying one step ahead and meeting needs that weren’t even there yet.