First, add the code from configtransfrom to your App_Data\tools folder, the binaries and postdeployment command are stored here. Secondly add a web.azure.config to the project, with the build action set to Content. Lastly, update the release definition and add the postdeployment task to the Web App Service Deploy.
The line in the postdeploy.cmd that does the magic is:
"%WEBROOT_PATH%\App_Data\tools\configtransform\SlowCheetah.Xdt.exe" "%WEBROOT_PATH%\web.config" "%WEBROOT_PATH%\web.azure.config" "%WEBROOT_PATH%\web.config"
To see all other available environment variables run 'set' from the kudu console.
Offcourse the source is available on Github: https://github.com/luuksommers/sitecore-azure-configtransform
Happy transforming!
Luuk