How can Digital Leadership guide the Customer Journey?

An
Exploratory Study
Ibtissam El Attoti, Joyce van Ee, Suzie Joku and Benny M.E. De Waal
University of Applied Sciences Utrecht, Netherlands
ibtissam.elattoti@student.hu.nl
joyce.vanee@student.hu.nl
suzie.joku@hu.nl
benny.dewaal@inter.nl.net
DOI: 10.34190/MLG.19.064

Abstract: If organizations start to digitize, they must engage with a digital transformation. Therefore, an organization
should have the right competencies to deal with a digital transformation. However, currently, it is not known which digital
leadership competencies are needed to guide an organization with improving its customer journey as a digital
transformation. Hence, this paper consists of an explorative study based on interviews with five experts to find out how
digital leadership can guide the customer journey. The experts are employees within five different organizations. The
interviews showed some interesting results. First of all, several competencies of digital leadership were mentioned by
various experts. A lot of these competencies corresponded with each other. In the interviews, the following competencies
of digital leadership were mentioned the most: Collaboration, Self-direction, Lifelong learning and Flexibility. Secondly, it
seems that digital leadership influences the customer journey. Some of the competencies of digital leadership could be
used to guide the customer journey. From the interviews with the experts, it appears that the digital leadership
competence Information management plays an important role in enhancing the customer journey.

Keywords: Digital leadership, Customer journey, Customer experience, Competencies, Exploratory study

1. Introduction
The rapid progress in the field of digitalization affect an organization. An organization that is prepared for a
digital development can benefit from several advantages. The productivity, quality of service and the needs of
customers are well-known (Edmead, 2016). Digitizing processes causes changes to the organization and its
processes (Markovitch and Willmot, 2014). When an organization starts to digitize, it faces a digital
transformation (Bloomberg, 2018). Digital transformation is a topic that is becoming increasingly important for
organizations. Kotarba (2018) describes digital transformation as: 'Modifying or adapting business models as
the consequences of innovation and progress in technological processes that influence the behaviour of the
consumer'. A digital transformation is not easy. Certainly not if (digital) external developments must be
followed, in relation to the customer journey. Many want to, but do not know where to start and do not want
to get bogged down in operational details (Markovitch and Willmot, 2014). The research report written by
Solis and Littleton (2017) explains that only a third of the companies that have been surveyed have completely
mapped their customers’ journey to define and prioritize digital transformation strategies.

In this paper, the main question is: How can digital leadership guide the customer journey? If organizations
start to digitize, they must engage with a digital transformation. An organization must face several questions if
they want to know how to deal with a digital transformation. Furthermore, most customer journeys have
changed with the invention of internet and other new technologies. In this digital era, it may be needed to
have digital leadership in your organization. Currently, it is not known which competencies of digital leadership
are needed to help organizations with enhancing their customer journey.

In this exploratory study, the focus is on the customer journey and the digital customer experience which can
be used to lead an organization in a digital transformation. At present, no comparative studies are known that
address the issue of competencies which an organization should have in order to improve a customer journey
within digital transformations. Organizations with digital leadership competencies know when new
technologies are needed to deliver the highest and best quality services for customers. After all, a happy
customer is a repeat customer, which can be reflected in the revenue of an organization.

In the next section we discuss the theoretical background of the research question. After that, the research
method in Chapter 3 will be explained. In Chapter 4 the results of the interviews with the five experts will be
presented. Finally, in Chapter 5 you can read the conclusion and discussion.

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2. Theoretical background

2.1 Digital leadership and competencies

Nowadays, organizations struggle to keep up with digital developments (Deloitte, 2017). Leadership is
constantly developing, especially with the rapid development of current digital trends. The management of the
non-technical aspects of digital transformation need more attention (Van Looy, 2015; Alter and Recker, 2017).
An important non-technical concept is the willingness of users to accept and adopt the digital transformation.

If users are directly involved it increases their buy-in and reduces resistance to change (Vom Brocke et al,
2014; De Waal and Batenburg, 2014). These trends create a gap between the current mode of leadership and
the mode necessary towards the future. To keep up with these trends, the aspects of leadership must shift
towards digital leadership (Legner et al, 2017). The report of the Global Human Capital Trends (Deloitte, 2017)
shows that only five percent of the organizations that participated in the research feel that they have strong
digital leadership within its organizations. Nonetheless, 72 percent of the respondents indicated that they
would engage in or start to develop a program concerning digital leadership. What exactly is digital leadership?
The research by Deloitte (2017) has shown that there is no unambiguous definition of the term digital
leadership. The lack of an unambiguous definition causes different concepts concerning digital competencies.

Digital competencies are essential for people and organizations to keep track of developments and innovations
of processes and products (Van Laar et al, 2017). Capgemini (2018) defines digital competencies as ‘the use of
technology to change how the company interacts with customers, operates internal processes, or defines its
business model’.

Extensive research by Van Laar et al (2017), in which 75 articles were included, shows that the most
mentioned digital competencies are: Information management (n=31), Critical thinking (n=30) and Creativity
(n=29). The other digital competencies are: Problem solving, Collaboration, Communication, Technical, Self-
direction, Lifelong learning, Ethical awareness, Cultural awareness and Flexibility.

2.2 The customer journey

Because of digitalization, (potential) customers can reach for and initiate contact with companies via an
increasing number of different channels (Lemon and Verhoef, 2016). This provokes an increasingly complex
journey. According to Lemon and Verhoef (2016), the customer journey consists of three stages.

Figure 1: The customer journey and the customer experience (Lemon and Verhoef, 2016)

As shown in Figure 1, each stage is connected to the behaviour of the customer. The three stages are:
1. Pre-purchase: the first stage covers all aspects of the customer’s interaction with the brand, category,
and environment before a purchase transaction. This stage is also known as the orientation phase and
describes the experience of a customer from the beginning of the need, goal or impulse recognition to
considering the fulfilment of that need, goal or impulse with a purchase.
2. Purchase: the second stage encompasses all customer interactions with an organization and the
environment during the actual purchase. Features of this stage are choosing, ordering and paying. This

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stage is considerably the shortest of all three, nevertheless this is an important stage because an
organization makes a sales turnover during this second stage.
3. Post-purchase: the third and final stage covers all the customer’s interaction with the environment and
organization after the actual purchase. This stage is characterized by behaviours such as usage and
consumption, repair service and after sales. Aftersales can be provided via a voucher code or mail
updates (in the form of a newsletter). This stage tries to create a positive association with an
organization for the customer. Moreover, this stage is very important for an organization because it
can provide a sustainable and profitable relationship with the customer. In this stage, the product
becomes a significant touchpoint. A customer can decide whether he / she wants to return the product
(or service), to purchase again in the future or to purchase similar products / services in the future. A
customer’s response of satisfaction or dissatisfaction can result in positive or negative Word-of-Mouth
advertising. This can have a major effect on the return of an organization. Especially in today's digital
era it is easy to communicate and spread opinions.

The digital customer experience offers customers a choice of channels that are time and place independent
and help create a holistic customer experience that goes beyond the purchase of a product or service (Heavin
and Power, 2018; Straker and Wrigley, 2016).

2.3 The relationship between digital leadership and customer journey

Recent research, by Capgemini (2018), shows that organizations take steps in digital competencies around the
customer experience. In the survey, 43 percent of the organizations indicate that they use mobile channels to
sell products or services. In 2012, for comparison, 23 percent said they would use it.

The number of touchpoints between an organization and its customer is increasing (Interaction Design
Foundation, 2018). Especially with the development of new smart technology. Monitoring these touchpoints is
essential. The customer experience plays a significant role in influencing a customer's preferences, which
subsequently has an impact on the choice for a purchase (Foroudi et al, 2018). Parise, Guinan and Kafka (2016)
examined that personalization can induce a rich customer experience. Personalization offers products or
services based on the search and buying behaviour of the customer. This takes online activities into account,
for example: product comparisons and stated preferences for products. Besides, personalization is a result of
analysing customer data. It is important for an organization to have the right knowledge about how a customer
should be served at one of the numerous touchpoints. analysing data can provide insight into the needs of the
customer at the numerous touchpoints.

In addition, research by Roubini ThoughtLab (2017) shows that digital leadership should provide a ‘seamless
omnichannel customer experience’. Omnichannel means that customers can use different channels any time
they want. This means that all channels must seamlessly merge into each other so that there is a completely
transparent process. A seamless omnichannel customer experience means that digital leadership ensures to
provide customers with a seamless and pleasant (shopping) experience without complications. Whether
they're interacting online from a desktop or mobile device or by telephone. This research also shows that
digital leadership is responsible for another crucial point in the customer journey: the digital on boarding. This
process must be integrated smoothly into the customer journey so that customers hardly notice that they are
in the middle of the on boarding process.

Figure 2: Onboarding channels (Roubini ThoughtLab, 2017)

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The customer journey currently changes in line with the developments in the digital age. However, the
question is to what extent does digital leadership influence the customer journey. In the current digital world,
there are several paths that lead a customer to a brand or an organization (Westerman et al, 2014). According
to Westerman et al (2014) digital leadership has to reimagine the customer experience. This means that digital
leadership must check whether the current service can be 'smarter'. Among other things, analytics can make a
big contribution to this. Having knowledge in analytics is therefore a requirement for digital leadership, as is
also apparent from section 4.1 (the Technical competence).

As shown in Figure 2, online channels are relatively more important than offline channels. Because customers
are increasingly using online channels, it is important that companies respond to this.

2.4 The conceptual model

The conceptual model of the research is depicted in Figure 3. As discussed earlier in this paper, there are
several competencies of digital leadership. In the digital age, digital leadership should have a relation to the
customer journey. The conceptual model shows that digital leadership must have some of the competencies,
in order to be able to lead the customer journey of an organization. In the next section we describe how the
explorative study is conducted to find out which competences are needed.

Figure 3: Conceptual model

3. Research method

3.1 Data collection

We chose to interview people for this explorative study, because qualitative research enables to find the
underlying perceptions of the experts. The competencies of digital leadership to lead the customer journey
have been mapped out by an explorative study in which five experts took part. The data is collected by
conducting semi-structured interviews with five people from five different organizations. The interviews were
conducted by telephone in week 44 and 45 during 2018. The questions are based on the results of the
literature review and on how the organization applies this data within its business operations. The purpose of
the interviews was to compare the statements of the experts with the results found in literature. In Table 1 an
overview has been made of the five organizations in which the experts (respondents) work.

All experts work within an organization at strategic level. Various sources showed that successful digital
transformations are managed at a top-down level (Westerman et al, 2014). That is why we chose to interview
people who work on a strategic level within organizations for this study. Furthermore, the five companies in
which the experts work(ed), are or have been undergoing a digital transformation. The experts were initially
approached by email. This email introduced the researchers and gave a brief explanation of the subject of the
research. During further contact, agreements have been made about the date and topics of the interview. The
interviews were all taken by telephone.

Each researcher had their own role during the interviews. Researcher 1 spoke at the beginning of each
interview to become acquainted with each other. Furthermore, Researcher 1 got deeper into the topics of the
report and interview. Hereafter Researcher 2 took over from Researcher 1. Researcher 2 asked all the
questions that were formulated beforehand. Researcher 1 followed the conversation and offered support
when needed. Researcher 3 observed the whole conversation and took notes of the conversation. This made it
possible for Researcher 1 and Researcher 2 to easily read back statements the interviewee said earlier.

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Table 1: Description of organization and experts

Respondent Branch Number of Type of Age of Function of Experience in

organization employees company organization respondent this function

1 Consultancy 2 Profit 10 years CEO 10 years

strategic
business

2 Source 1700 Non- 150 years Product 7 years

information profit owner
property

3 Tourism 3000 Profit 70 years IT-Director 6 years

recreation

4 Products 200 Profit 9 years Marketing & 3 years

primary Communicati
education on Manager

5 Online 900 Profit 65 years Manager 1 year

warehouse Digital
Category
Growth
Enablement

The questions were formulated objectively to ensure that the answer of the expert was not biased.
Advantages of an interview over the telephone are for example that nobody has to travel and it is easier to
make appointments, even outside working hours. Another advantage is anonymity, the interviewer and the
expert have not met (Saunders, Lewis and Thornhill, 2016).

3.2 Analysing procedure

To correctly process the collected data, an audio recording of all interviews was made with permission of the
experts. The recordings were made with two devices, where one served as back-up. The interviews were
transcribed in Microsoft Word. The sound recordings have been delayed with VLC Media Player. This made
transcription easier. The written versions of the conversations are open encoded (Saunders et al, 2016). In the
coding, if an expert addressed or described something multiple times, it is reckoned as one time. For example,
if an expert mentioned a competence of digital leadership several times, it is noted that the expert mentioned
the competence once. The number of times the same competence is mentioned by one expert is not noted.

Furthermore, the method of coding was done per question and not per respondent. This was done because it
was easier to work with the same objective per question. The collected data has been treated confidentially,
by storing it with a password. Only the content-related researchers have had access to this data. The database
of the interviews with the experts are not included in this paper for privacy reasons.

3.3 Validity procedure

To examine the main question of this paper, five interviews were separately conducted with five experts.
There are four aspects of validity that are applicable for this explorative study: construct validity, internal
validity, external validity and reliability (Yin, 2009).

To ensure the construct validity, various scientific sources and perspectives have been used to describe the
constructs (digital leadership and customer journey). Furthermore, we tried to guarantee the internal validity
by conducting interviews with different experts. One expert per organization is interviewed. For all that, the
opinion of one employee can be different than another employee. That is why we cross-checked the
transcripts and we checked matching statements which were made in different interviews. Moreover, this
research was carried out at various organizations. From profit to non-profit organizations, but also from
organizations with more than 3000 employees to organizations with only 2 employees. This protected the
external validity. To govern the reliability, the same interview protocol was used for each interview, a
transcript of the interview was sent to the experts for approval and a database was created. Several questions

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were main topics and from these topics we went deeper into the reactions of respondents. This has been done
to find out why experts gave certain answers.

4. Results

4.1 Competencies of digital leadership

Previous literature already showed that there is no unambiguous definition for the concept of digital
leadership. Various sources indicate different conceptual descriptions. This is not only apparent from the
literature, but the practical research shows the same. It also appears that most respondents have difficulty
seeing digital leadership as a possible function or role within an organization. Nevertheless, Respondent 1 and
5 sketch a visionary type such as the CEO, CIO and/or other chief. This places more emphasis on leadership
skills than on digital skills. There is an overlap between the competencies that were previously mentioned in
Chapter 2 and the competencies of digital leadership to lead a customer journey according to the experts. In
Figure 4 an overview has been made of the competencies that have been appointed by the experts that
correspond to the competencies that have been previously named.

Figure 4: Competencies of digital leadership

Figure 4 shows that the Self-direction competence, as it is mentioned in the literature, is mentioned most in
practice (the percentages are derived by the number of times the competencies were mentioned in the
interviews). This competence is continued by Collaboration, Lifelong Learning and Flexibility. A feature that has
not been named in the literature but that came out the interviews, is that no one should be forced on digital
leadership. One must feel good about the competencies of digital leadership. As Respondent 3 says: ‘You have
to have fun’. Digital leadership is not there to change a company to a digital organization, but to use
digitalization to be a better organization (Westerman et al, 2014).

4.2 Customer journey and the relationship with digital leadership

All experts indicated the importance of the customer journey and of the customer experience. All say they are
busy with the customer journey. The organization where Respondent 2 is working tries to use as many online
surveys as possible. Also, to engage with the target groups ‘... to see what those people find important, what
they need, how they experience the things we have and how we can improve things.’ Respondent 5 also states
that the organization is constantly occupied with questions such as: ‘Does the organization have the best
marketing expression for the target group? What inspires the customer? How does a customer want to pay?
Which delivery and return options are desired?’ Respondent 3 even says that within the organization one
cannot even imagine how to work without the customer journey. This organization is active in the tourism and
recreation sector and currently have 93% online bookings, compared to 64% 6 years ago.

This study shows that everyone is under the assumption that digital leadership can influence the customer
journey in all three stages (see Figure 1). Respondent 1 finds that you must influence people on different
perspectives and have to be aware of this. This refers to the various online and offline channels in which
customers are active. In addition, according to Respondent 4 within the organization, the brand experience has
been raised by the digital age. Also generating leads has become easier: 'Because previously you have
stimulated your customers online, as well as in orientation phases. That is a huge profit for the organization. It
takes a lot more time and money to have an account manager to approach a lead, than customers that already

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have a warm feeling with us through our marketing activities.’ To create a warm feeling for marketing
activities, respondent 4 finds that digital leadership is required.

To the question 'Does digital leadership also influence the customer journey?' Respondent 5 answered: 'Yes
continuously. Each board member has a department that focuses on a touchpoint of the customer journey.’
Respondent 5 indicated that the entire management of the organization consists of people who have a
background in digital data and / or e-commerce. Moreover, within this organization digital leadership is seen
at the level of the CEO. Respondent 3 also shared a very striking comment. Respondent 3 thinks that the
customer journey has no direct influence on a digital transformation. Conversely, the digital transformation
would have an influence on the customer journey according to Respondent 3.

Figure 5: Competencies of digital leadership in customer journey

In Figure 5 an overview has been made of the competencies of digital leadership that are needed in relation to
the customer journey according to the experts (the percentages are derived by the number of times the
competencies were mentioned in the interviews).

Respondent 1 says that especially the competence Ethical awareness is relevant for the customer journey 'You
can only create a good customer journey if you know your customer really good'. Respondent 1 also states
that for digital leadership it is important to understand in which situation someone is, whether they are further
away from the solution or when they are near. Other competencies that Respondent 1 believes are important
for a customer journey are: Creativity, Information Management and Self-direction. Respondent 2 mainly
discussed the competence Information Management. For Respondent 3, Information Management and
Technical are required competencies for digital leadership to lead a customer journey. Respondent 4 mentions
the competence Collaboration 'If you want to achieve something, it is not possible by working from just your
own department, there has to be a shared responsibility.' Other competencies Respondent 4 has mentioned
are: Critical thinking and Self-direction. Respondent 4 explains: 'As a leader you have to have a dream of where
you want to go. What is the ideal situation that enables us to achieve that customer experience to the optimal
level?'. Respondent 5 emphasizes the importance of the competencies Problem solving, Communication and
Information management. The other three competencies (Lifelong learning, Cultural awareness and Flexibility)
have not been mentioned by the respondent in combination with the customer journey. The competence
Information Management plays the biggest role in the customer journey, this competence is therefore
mentioned the most by respondents.

5. Discussion and conclusion

For this paper, the following question has been investigated: How can digital leadership guide the customer
journey? The questions have been examined with an explorative study with five experts. These experts work
within an organization at strategic level.

One of the most important results are the different definitions of digital leadership and as a consequence
different competencies are attributed to digital leadership. This causes a lot of discussion within the literature
and also in practice. However, the competencies of digital leadership, according to the experts, correspond
with what the literature outlines. For example, it is important for digital leadership to have skills such as
Information management, Critical thinking, Creativity, Problem-solving, Collaboration, Communication,
Technical, Self-direction, Lifelong learning, Ethical awareness, Cultural awareness and Flexibility. During the

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interviews with the experts, the competencies Self-direction, Flexibility, Lifelong learning and Collaboration
were mentioned the most.

According to the experts, digital leadership could have a lot of influence within organizations. For instance,
digital leadership can influence the customer journey. Due to the current digital era, there are several new
online channels that are part of the customer journey. According to literature, digital leadership needs to
respond smartly to, among other things, a seamless omnichannel customer experience and the digital on
boarding process. Furthermore, the explorative study with the experts shows that certain competencies of
digital leadership are required when it comes to the customer journey. The experts think that the competence
Information management plays an important role when it comes to enhancing the customer journey.

It also appears that the customer journey has a lot of influence on the internal processes of an organization.
Various processes within the organizations of the experts are adapted to the customer journey to respond
better to the needs of the customer.

During this explorative research there were also some limitations. First of all, the research question mentions
quite a number of terms that stand alone, namely: competencies, digital leadership and customer journey. The
concepts that are part of the research question are currently very popular. But when the terms competencies,
digital leadership and customer journey are combined in various search engines, limited information can be
found. At the moment there are no studies comparable with this exploratory research (according to the
authors’ knowledge). Of course, there is researches on the different concepts that are included in this study,
but non that combine all concepts.

Secondly, the different concepts caused a lot of ambiguity among the respondents. This could be due to,
among other things, the fact that the different concepts that are used for this research are relatively new to
the respondents and there is no unambiguous definition of the concepts in the literature either. On multiple
occasions during the interviews it was needed to explain and clarify different terminology and concepts to the
respondents. That is because these concepts have not found their way into the organization yet.

Thirdly and lastly, this research is focusing on a small number of organizations in the Netherlands. The input of
this explorative research is useful but not enough experts took part in this research. Therefore, it is not
possible to generalize the outcomes of this research. We suggest further research with more experts within an
organization, and more interviews within each sector. Besides, confirmation of the outcomes can be done with
the help of a survey. In this way, triangulation of data makes it possible to see if this paper does not consist of
incidental results.

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