Why it is time to rethink buyer persona development in an era of digital transformation. Transforming how we understand customers today.

1. Rethinking
Buyer Personas
In An Era Of
Digital
Transformation
TonyZambito

2. Rethinking Buyer Personas In An Era Of Digital
Transformation
Illustration by Louis Prado
In the past five years, we have seen exponential disruption each year in multiple
markets. Digital technologies and resulting transformation turning markets literally
inside out. Fundamentally reshaping markets in five years’time compared to the fi y
to seventy years it may have taken to build up a market.
Take for instance the iconic yellow cab, a fixture in New York City for decades. In the
past few years, the yellow cab companies have been unable to stem a rapid decline
from the onslaught of Uber,Lyft,Juno,Via,and otherride platforms. Revenues falling
by as much as 40% and many drivers switching to Uber.
To think digital transformation is primarily a consumer phenomenon is a fallacy. The
introduction of the cloud has uprooted many B2B businesses whose foundations
were built on hosted premise so ware. Cloud-based applications are creating new
business models enabling not only entry into existing markets but the creation of
new markets.
Rethinking Buyer Personas In An Era Of Digital Transformation

3. Rethinking Buyer Personas In An Era Of Digital
Transformation
Understanding Customers Has Changed
In this era of disruptive digital transformation, customer behaviors in B2B and B2C
markets are radically changing. Making the need fororganizations to understand
customers a centerpiece of their growth strategies. One means for the last sixteen
years to understand customers and buyers have been the use of buyer persona
development. It is time to rethink buyerpersona development in this new era of
digital disruption.
When the concept of buyer personas was first launched in 2001, the world was a very
different place.
Since that time, there has been a significant upheaval in what was once an
indication of a stable corporate order. During sixteen years, we have seen more than
half (52%) of the Fortune 500 at the start of the new millennium merge, be acquired,
orgo bankrupt. And,more than half of those still existing are losing money.
Developing a deeper understanding of customers has been and is becoming a
stronger strategic aspect of growth. New business models and customer behaviors
mean companies must adapt or be another statistic in the next ten years. It also calls
for new thinking when it comes to buyer persona development and gathering
insights.
In this article, let us walk through 4 specific trends a ecting a need for rethinking
buyerpersonas:
Rethinking Buyer Personas In An Era Of Digital Transformation

4. Rethinking Buyer Personas In An Era Of Digital
Transformation
1 – TheBuyer Is Also TheUser andTheUser Is Also TheBuyer
When the concept of personas was first introduced, they were introduced on the
foundation of informing design strategy. How to design products and services that
were user-friendly and enabled users to fulfill their goals. Buyerpersonas were an
outgrowth of this founding principle of understanding goals and goal-directed
behaviors. In this case, the focus is on understanding the goals of buyers to inform
overall marketing and sales strategies. Sixteen years ago, particularly in B2B, the line
between user and buyer was more like a gap. Today, many buyers are also users and
power users. And, conversely, many users are buyers. The era of digital
transformation has fused notions of a buyer and a user into one. Approaches rooted
in old principles of product marketing and purchasing forbuyer personas are
outdated.
2 – Market-basedvs. Account-based
In the 1980’s, the idea of major and national accounts gained traction in sales.
Account-based sales were the rage in the ‘80s ‘90s. and early 2000’s. In the last two
years, we have seen the concept of account-based marketing take hold. Which, is
not very di erent in thinking from when the idea of “account-based” was first
introduced. And, buyer personas are sought to identify the roles to target for
account-based marketing. The era of digital transformation is making this a flawed
concept.
Why?
Rethinking Buyer Personas In An Era Of Digital Transformation

5. Rethinking Buyer Personas In An Era Of Digital
Transformation
Sixteen years ago, organizations were staunchly hierarchal. Largely driven by a
workforce of layered middle management, manual processes, and arcane approval
policies. What we are seeing today, enabled by digital transformation,is companies
and divisions within large enterprises, operate like markets. Entrepreneurial and not
within the conventional large organizational reporting structures of the past. Where
the proverbial org chart was a mile long. Acting inter-dependently and
intra-dependently with other divisions as both suppliers and purchasers to succeed
in theirown markets.
This flaw can have a dramatic impact. Here is one voice of a VP, Sales for an $8b
entity:
“This is going to sound harsh but I honestly am convinced we lost one of our largest
customers due to going overboard on account-based marketing. We overly focused
on how we thought decisions were made up the chain and missed out on how the
customer was really operating. Basically, we wound up focusing on the wrong
people and didn’t get it right.”
If persona development is approached in this same way,the result may very well be a
flawed picture and understanding of customers.
3 – TheRiseof theDigital Platform Economy
In the past five years, we have seen the emergence of a rapidly growing platform
economy. Creating new platform-based markets, business models, infrastructures,
and ecosystems. Altering and reorganizing how people and businesses work,
compete, create value, socialize, interact, and ultimately earn profits. Proving to be a
major force behind an accelerated pace towards globalization on many fronts.
History may look back at the rise of the platform economymuch in the same way
history has treated the Industrial Revolution.
Rethinking Buyer Personas In An Era Of Digital Transformation

6. Rethinking Buyer Personas In An Era Of Digital
Transformation
Platform-based models have had a dramatic impact on consumer-oriented markets.
Some of the well-known examples include Uber, Amazon, and Airbnb. Since the
arrival of the Internet, B2C digital development has served as a forerunnerfor B2B.
We are already seeing and can predict that growth in B2B digital platforms will
accelerate. Some of our oldest institutions are seeking ways to develop platforms
specifically for ensuring the success of their customers. A case in point is John
Deere’s My John Deere Operations Center. Enabling connected farm operations
amongst equipment,fields,and personnel.
The notion of buyers as di erent from users, once again, is being drastically altered.
The way people and business engage in work activities and decisions will need to be
viewed through the lenses of an emerging digital platform economy. Pre-Internet
conventions related to understanding buyers and customers through the lenses of
buying criteria and separation between buyers and users can no longer apply in a
digital platform economy.
4 – Digital InteractionWill Matter MoreThanContent
When personas first began, specifically user personas, they did so within the context
of what was then called interaction design. Which looked at the design of products
or services in terms of human interaction with computers. In the era of digital
transformation and the emergence of the platform economy, more than ever,
organizations will need to pay heed to how it designs its interaction with its
customers in the future.
Rethinking Buyer Personas In An Era Of Digital Transformation

7. Rethinking Buyer Personas In An Era Of Digital
Transformation
Much attention has been paid to content marketing and more recently customer
experience in the past five years. However, many organizations are attempting to
grow through these means without attending to what matters first and foremost –
the design of digital interactions, environments, and systems. The results have been
a decline in content marketing e ectiveness. Problematic is the putting on of new
clothes for older concepts, such as content marketing and then trying to shoehorn
them into less than optimal digital interactive environments.
As the era of digital transformation evolves and the platform economy expands, the
desire for truly interactive environments will grow. Organizations stuck in neutral on
thinking that producing more content to absorb is the path to growth will be le with
the one thing they dread – no people orbusiness interacting with them.
Rethinking Buyer Personas
These four trends are reshaping the concept of how organizations will need to
understand customers to survive in the eraof digital transformation.
What executive leaders will need to adopt is a market development mindset going
forward. Focusing on addressing existing markets undergoing radical change. And,
embarking on new market development initiatives to stay competitive in a digital-
centric environment.
Rethinking Buyer Personas In An Era Of Digital Transformation

8. Rethinking Buyer Personas In An Era Of Digital
Transformation
As we rethink persona development for understanding the customer of today, the
need arises to understand networked market ecosystems. More specifically, digitally
networked market ecosystems. Where account-based and role-based thinking is
replaced by market-based and ecosystem-based thinking. Whereby the emphasis is
not on a separate buyer or user personas but on networked market personas and
theirinteraction in a digital market ecosystem.
An important outcome and concept forbusinesses to now considerare:
As digital transformation increases exponentially, the need for human insights will
increase exponentially.
Rethinking Buyer Personas In An Era Of Digital Transformation

9. Rethinking Buyer Personas In An Era Of Digital
Transformation
If you will like help on how to get your organization ready for adapting
persona-based human insights to digital transformation, go to my So
Helpful page
and schedule a time to talk!
This article originally appeared here:
---------------
Tony Zambito is the Founder and Creator of Buyer Persona
Development. As the conceptualizer of buyer personas and buyer insights
research, Tony has helped organizations to achieve a deeper
understanding of their customers.
For insights on marketing, market strategy, buying behaviors, and
personas, sign up for articles by Tony Zambito
here: http://eepurl.com/bsCZyz
Get more insights on the website www.tonyzambito.com.
Rethinking Buyer Personas In An Era Of Digital Transformation
Rethinking Buyer Personas In An Era Of Digital Transformation

10. Rethinking Buyer Personas In An Era Of Digital
Transformation
Rethinking Buyer Personas In An Era Of Digital Transformation