What is customer centricity?
Customer centricity is the philosophy of putting the customer at the center of everything you do as a business. This means making decisions based on what’s best for the customer, rather than what’s best for the bottom line.
It’s a shift in mindset that can be difficult to implement, but it’s worth it: businesses that are customer-centric are more successful and have happier employees.
Why is customer centricity important?
There are a few reasons why customer centricity is so important:
1. It’s good for business:
Businesses that prioritize their customers are more successful than those that don’t. In fact, according to a study by Forrester, customer-centric businesses are 60% more profitable than those that aren’t.
2. It’s good for employees:
Employees who work for customer-centric companies are happier and have less turnover. In fact, a study by Bain & Company found that companies with a strong customer focus had half the employee turnover of their competitors.
3. It’s good for customers:
Obviously, putting the customer first is good for customers! When you make decisions based on what’s best for them, they’ll be happier and more likely to stick around.
Source: SupperOffice
How can I make my business more customer-centric?
There are a few ways you can make your business more customer-centric:
1. Train your employees:
Customer centricity starts with your employees. Make sure they understand the importance of customer service and always putting the customer first.
2. Set up systems and processes:
Put systems and processes in place that make it easy for your employees to put the customer first. For example, you could have a “customer happiness” metric that employees are measured on, or you could give customers the ability to provide feedback directly to management.
3. Listen to customers:
One of the best ways to become more customer-centric is to simply listen to your customers. Pay attention to their needs and wants, and adjust your offerings accordingly. You can do this through surveys, customer service calls, or social media monitoring.
4. Empower employees:
Empower your employees to make decisions that are in the best interest of the customer. This means giving them the ability to go above and beyond for customers, even if it means going against company policy.
5. Put customers first in decision-making:
When you’re making decisions about your business, always put the customer first. This might mean making some sacrifices in terms of profitability, but it will pay off in the long run by happy customers who stick around.
Customer centricity examples:
Here are a few examples of companies that have successfully implemented customer centricity:
1. Amazon
Amazon is the quintessential example of a customer-centric company. They’re focused on delivering an exceptional customer experience, from start to finish. They make it easy for customers to find what they’re looking for, provide free shipping and returns, and have a no-questions-asked return policy. They also proactively reach out to customers to resolve any problems.
2. Zappos
Zappos is another great example of a customer-centric company. Like Amazon, they focus on delivering an exceptional customer experience. They offer free shipping and returns, and have a 365-day return policy. They also have a call center where customers can speak to a real person 24/7.
3. Apple
Apple is another company that puts the customer first. They design their products with the customer in mind, and make it easy for them to use. They also provide excellent customer service, both online and in-store. And they’re always looking for ways to improve the customer experience, whether it’s through new products or features, or simply by making sure their stores are clean and welcoming.
4. Nordstrom
Nordstrom is a high-end retailer that goes above and beyond for its customers. They offer free shipping and returns, and have a no-questions-asked return policy. They also have a team of personal shoppers who can help customers find the perfect item, and they offer alterations and tailoring services. Nordstrom also has a concierge service that can help with anything from booking a hotel to making restaurant reservations.
5. Costco
Costco is a warehouse club that’s known for its low prices and great selection. They’re also known for their excellent customer service. Employees are always willing to help, and they go out of their way to make sure customers are happy. Costco also has a generous return policy, and they’re always looking for ways to improve the shopping experience.
Customer centricity approach:
1. Understand your customers:
The first step to becoming more customer-centric is to understand who your customers are and what they want. Take the time to get to know them, and find out what their needs and wants are.
2. Put the customer first:
Once you understand your customers, make sure that you put them first in everything you do. This means making decisions that are in their best interests, even if it means sacrifice for your company.
3. Deliver on your promises:
It’s not enough to just say that you’re customer-centric – you need to deliver on your promises. This means following through on your commitments, and always doing what’s best for the customer.
Customer centricity strategy:
1. Define your customer segments:
The first step in creating a customer-centric strategy is to define your customer segments. This will help you to focus your efforts on the customers that are most important to your business.
2. Create customer personas:
Once you’ve defined your customer segments, create customer personas for each one. This will help you to understand their needs and wants, and how best to communicate with them.
3. Develop targeted messages:
Now that you know who your customers are and what they want, you can develop targeted messages that speak to them directly. Make sure that your messages are relevant and interesting, and that they address the needs of your customers.
4. Deliver an exceptional experience:
The key to becoming customer-centric is to deliver an exceptional experience. This means going above and beyond for your customers, and always putting their needs first.
5. Measure and improve:
Finally, you need to measure the results of your customer-centric strategy, and make improvements where necessary. Always be looking for ways to better serve your customers, and make sure that they’re at the center of everything you do.
Customer centricity model:
The customer centricity model is a framework that organizations can use to become more focused on their customers. The model has four key components: customer needs, customer journeys, customer touch-points, and customer feedback.
1. Customer Needs:
The first step in becoming more customer centric is to understand what your customers need from you. This requires research and analysis to determine what your customers are looking for and what they value most.
2. Customer Journeys:
Once you understand your customers’ needs, you can start mapping out their journey with your organization. This includes all of the steps they take, from awareness to purchase and beyond.
3. Customer Touchpoints:
Every interaction your customers have with your organization is a touchpoint. Touchpoints include everything from your website to customer service interactions. It’s important to understand how your customers interact with you at each touchpoint so you can optimize their experience.
4. Customer Feedback:
The final step in the customer centricity model is to solicit feedback from your customers. This helps you understand what’s working well and what needs to be improved. Feedback can be gathered through surveys, interviews, focus groups, or other methods.
Organizations that adopt a customer centricity model are better able to meet the needs of their customers and create a superior customer experience. This leads to higher levels of customer satisfaction and loyalty, which can translate into increased sales and profitability.
The customer centricity model is a valuable tool for any organization that wants to become more customer focused. By understanding your customers’ needs, mapping their journey, and optimizing their experience, you can create a competitive advantage and drive long-term success.
Product centricity vs Customer centricity:
Product centricity is the traditional approach to marketing, where the focus is on developing and selling products. The customer’s needs and wants are secondary to the company’s goals.
Customer centricity, on the other hand, is a more modern approach that puts the customer at the center of everything. Companies that take a customer-centric approach focus on understanding their customers’ needs and wants and then developing products and services to meet those needs.
So, which approach is better?
There are pros and cons to both approaches. Product centricity can be successful if you have a unique product that meets a specific need or want that your target customers have. However, this approach can backfire if your product doesn’t live up to the hype or if your target customers’ needs and wants change over time.
Customer centricity, on the other hand, is a more flexible approach that can help you keep up with your customers’ changing needs. It’s also more likely to result in customer loyalty and repeat business.
Overall, customer centricity is the better approach for most businesses. It allows you to build better relationships with your customers and create products and services that they really want and need.
Impact of Customer centricity:
There is no denying the fact that customer centricity has a huge impact on businesses, both positive and negative. Let’s take a look at some of the most notable impacts of customer centricity:
–
Positive Impact:
1. Boosts Customer Loyalty and Retention Rates
Customer centricity helps boost customer loyalty and retention rates by ensuring that customers always have a positive experience with your brand. When customers feel valued and appreciated, they are more likely to stay loyal to your brand and continue doing business with you.
2. Increases Sales and Revenue
happy customers tend to spend more money with brands they trust and feel positive about. Therefore, by making your customers happy, you can actually increase your sales and revenue.
3. Creates a Competitive Advantage
In today’s competitive business landscape, customer centricity can give you a major competitive advantage. By putting your customers first, you can differentiate your brand from the competition and win over the hearts (and wallets) of consumers.
4. Drives Innovation
often, the best way to innovate is to listen to your customers and figure out what they need and want. When you’re focused on making your customers happy, you’re more likely to come up with new and innovative products and services that they’ll love.
5. Improves Customer Satisfaction Levels
perhaps the most obvious benefit of customer centricity is that it leads to improved customer satisfaction levels. When customers feel like they’re being treated well and their needs are being met, they’re much more likely to be satisfied with your brand.
–
Negative Impact:
1. Can Be Costly
one of the downside of customer centricity is that it can be costly. Implementing customer-centric initiatives often requires businesses to invest more money in things like customer service, research, and marketing.
2. Requires Constant Effort
achieving and maintaining a high level of customer centricity is not easy – it requires constant effort from businesses. In order to keep your customers happy, you need to continuously monitor their needs and expectations and make sure you’re meeting them.
3. Can Lead to Unhappy Employees
if not managed properly, customer centricity can actually lead to unhappy employees. This is because employees may feel like they’re being asked to do too much or that they’re not being appreciated.
4. May Not Be Right for Every Business
customer centricity isn’t right for every business. In some cases, it may not make sense from a financial or logistical standpoint. Before implementing any customer-centric initiatives, make sure you weigh the pros and cons and decide if it’s right for your business.
5. Can Backfire If Done Wrong
finally, it’s important to note that customer centricity can backfire if it’s not done correctly. If customers feel like they’re being ignored or mistreated, they will likely take their business elsewhere. Therefore, it’s important to be thoughtful and strategic when implementing customer-centric initiatives.
Customer centricity is a hot topic in the business world right now, and for good reason. There are many benefits of customer centricity, but there are also some potential drawbacks. Before making any changes to your business, make sure you weigh the pros and cons and decide if customer centricity is right for you.
Customer centricity solutions: The challenges and how to overcome them
The challenges of customer centricity can be many and varied, but there are some common themes that organisations face. These include:
1. Lack of customer insight:
Without a deep understanding of who your customers are, what they want and need, and how they behave, it is difficult to deliver a truly customer-centric experience. This requires organisations to have access to robust data and analytics tools to help them glean insights about their customers.
2. Siloed organisation:
Organisations can often be siloed, with different departments working in isolation from one another. This can make it difficult to share information and deliver a coordinated customer experience. To overcome this, organisations need to break down silos and promote collaboration across the business.
3. Lack of customer focus:
It can be easy for organisations to become too focused on their own goals and objectives, rather than on the needs of their customers. This can result in a poor customer experience, as customers feel that they are not being listened to or understood. To avoid this, organisations need to ensure that they have a clear customer focus at all levels of the business.
4. Inadequate technology:
Technology plays a critical role in enabling organisations to deliver a customer-centric experience. However, if technology is not up to scratch, it can create frustration and hinder the delivery of an optimal experience. To avoid this, organisations need to invest in robust and reliable technology solutions that will enable them to meet the needs of their customers.
5. Poor data quality:
In order to deliver a customer-centric experience, organisations need to have access to high-quality data. However, if data is inaccurate or incomplete, it can lead to poor decision-making and a suboptimal customer experience. To overcome this, organisations need to ensure that they have robust data management processes in place to maintain the quality of their data.
6. Lack of customer engagement:
A customer-centric experience relies on organisations being able to effectively engage with their customers. However, if engagement levels are low, it can be difficult to build relationships and understand customer needs. To avoid this, organisations need to make sure that they are proactively engaging with their customers on a regular basis.
7. Poor customer service:
Customer service is a critical part of the customer experience, and if it is not up to scratch, it can have a negative impact on the overall experience. To avoid this, organisations need to ensure that they have a robust customer service offering in place that is able to meet the needs of their customers.
8. Lack of customer centricity culture:
A customer-centric culture is one where everyone in the organisation is focused on delivering an excellent customer experience. However, if an organisation does not have a customer-centric culture, it can be difficult to deliver a consistently positive experience. To overcome this, organisations need to make sure that they have a strong customer-centric culture in place.
9. Unclear value proposition:
In order to deliver a customer-centric experience, organisations need to have a clear understanding of the value that they are offering to their customers. If the value proposition is unclear, it can make it difficult for customers to understand what the organisation is offering and why they should use its products or services. To avoid this, organisations need to make sure that their value proposition is clear and concise.
10. Lack of measurement:
Without effective measurement, it can be difficult to determine whether an organisation is truly customer-centric. This makes it hard to identify areas for improvement and can prevent organisations from making the necessary changes to become more customer-centric. To overcome this, organisations need to invest in robust customer experience measurement tools and processes.
Customer centricity in marketing:
In today’s market, customers are more powerful than ever. They have access to a wealth of information and can easily compare products and services to find the best value for themselves. As a result, businesses must put the customer at the center of their marketing efforts if they want to be successful.
Customer centricity is very important in marketing. Your marketing should be focused on attracting and retaining customers, rather than just getting new ones.
To do this, you need to understand your customers’ needs and wants, and then craft messages that speak to them directly. You also need to make sure you’re delivering on your promises, so that customers will continue to trust you.
Finally, you need to track your customer relationships closely, so that you can identify any problems early on and address them quickly. By paying attention to your customers, you can ensure that they’ll stick around for the long haul.
Customer centricity in banking:
The banking sector has been under immense pressure in recent years. With the advent of new digital players and the ever-changing customer expectations, banks are struggling to keep up. In such a scenario, customer centricity has emerged as a key differentiator for banks.
Customer centricity is all about putting the customer at the heart of everything you do. It is about understanding their needs and desires and then delivering products and services that meet those needs. In the banking sector, customer centricity is even more important because of the nature of the business. Banks deal with people’s money – something that is very personal to them. Hence, it is essential for banks to build trust with their customers and keep them happy.
There are many ways in which banks can become more customer-centric. Here are a few:
1. Know your customer: It is important for banks to really know their customers – who they are, what they want, and what their pain points are. This can be done through regular interactions and feedback sessions.
2. Be available when the customer needs you: In today’s digital world, customers expect banks to be available 24/7. This means having an omnichannel presence so that customers can reach out to you through any channel of their choice – phone, email, social media, etc.
3. Personalize the experience: Customers today expect a personalized experience from brands. This means banks need to go beyond the traditional one-size-fits-all approach and customize their products and services according to the individual needs of the customer.
4. Be transparent: Customers today are more informed than ever before. They have access to a wealth of information at their fingertips. Hence, it is important for banks to be transparent in their dealings with customers. This includes being upfront about fees and charges, as well as any terms and conditions that may apply.
5. Deliver on your promises: In a highly competitive market, it is not enough for banks to make promises – they need to deliver on them as well. This means ensuring that the products and services they offer meet the customer’s expectations in terms of quality and value.
6. Build a relationship of trust: As mentioned earlier, banks deal with people’s money – something that is very personal to them. Hence, it is essential for banks to build trust with their customers. This can be done by always behaving in an ethical and responsible manner.
Customer centricity in supply chain:
Supply chain is one area where customer centricity can make a big difference. This is because the supply chain is the backbone of any business and plays a critical role in delivering products and services to customers. Hence, it is important for businesses to ensure that their supply chain is customer-centric so that they can meet the ever-changing needs of customers.
There are various ways to make the supply chain more customer-centric. One way is to ensure that the supply chain is agile and can quickly respond to changes in customer demand. This can be achieved by using technology such as big data and analytics to track customer demand patterns and then making necessary changes to the supply chain accordingly.
Another way to make the supply chain more customer-centric is to involve customers in the planning and execution of the supply chain. This can be done by setting up a customer advisory board or panel which can give input on various aspects of the supply chain such as design, operations, etc.
Customer centricity in supply chain is important because:
-The supply chain is the backbone of business and play a critical role in delivering products and services to customers
-Changes in customer demand can be quickly tracked and responded to using technology
-Customers can be involved in the planning and execution of the supply chain
Thus, customer centricity is a key aspect that needs to be considered when managing a supply chain. By making the supply chain more customer-centric, businesses can improve their customer satisfaction levels and overall performance.
Customer centricity in the digital age:
How to make sure your customers stay satisfiedDigital age customer service is all about keeping your customers happy. It’s important to make sure they feel valued and appreciated, so they’ll want to continue doing business with you.
There are a few key ways to do this:
Make it easy for them to reach you: Provide multiple channels for customer support, including phone, email, live chat, and social media. Make sure someone is always available to answer their questions or concerns.
Be responsive: Respond to customer inquiries as quickly as possible. If you can’t solve their problem right away, let them know you’re working on it and give them an estimated time frame for a resolution.
Keep them informed: Keep your customers updated on your latest products and services, as well as any changes or updates to your company. If you have a blog or newsletter, make sure to include relevant information that would be of interest to them.
Say thank you: Always express your appreciation for their business. A simple “thank you” can go a long way in making your customers feel valued.
By following these tips, you can create a customer-centric culture within your organization that will result in happier, more satisfied customers.
Customer-Centric Management
The goal of customer-centric management is to make sure that the needs and wants of the customer are always the top priority for a company. This type of management requires a deep understanding of who the customer is and what they value. It also means creating a company culture that puts the customer first in everything that is done.
This can be a challenge for companies, especially if they have been in business for many years and have developed practices that may not be customer-centric. But, it is important to remember that the customer should always come first, and that anything else is secondary. Here are some tips on how to create a customer-centric culture:
1) Always put the customer first: This may seem obvious, but it is important to always keep the customer in mind when making decisions. Every decision made should be based on what is best for the customer, not what is best for the company.
2) Communicate with customers: Customers should always feel like they are being listened to. Make sure to create channels for customer feedback and act on it. This will show customers that their opinions matter and that the company is constantly trying to improve based on their input.
3) Train employees to be customer-centric: It is important that every employee understands the importance of putting the customer first. Customer-centric training programs can help instill these values in employees.
4) Measure success by customer satisfaction: One of the best ways to ensure that the customer is always being put first is to measure success by customer satisfaction. This will help keep everyone focused on making sure that the customer is happy.
5) Continuously improve: Always be looking for ways to improve the customer experience. This can be done by constantly evaluating feedback and making changes based on what customers are saying.
Creating a customer-centric culture can be a challenge, but it is important to remember that the customer should always come first. By following these tips, you can create a culture that puts the customer at the center of everything that you do.
Customer centricity quotes:
“A satisfied customer is the best business strategy of all.”
-Michael LeBoeuf
“The goal as a company is to have customer service that is not just the best but legendary.”
-Sam Walton, Founder of Walmart
“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”
-Sam Walton, Founder of Walmart
“You’re never going to please all the people all the time. But if you focus on pleasing just a few people, you’re likely to make them very happy – and they’ll spread the word.”
-Tony Hsieh, CEO of Zappos
“There is no such thing as a no-risk customer.”
-Harvey Mackay, American businessman and author
“The key to successful marketing is to find out what people want and then give it to them.”
-John Wanamaker, American merchant and religious leader
“The customer is the most important part of our business.”
-Lee Iacocca, former CEO of Chrysler Corporation
“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.”
-Jeff Bezos, Founder and CEO of Amazon.com
“A company’s most valuable asset is its customers because without them there would be no sales or profits.”
-Anonymous
Glossary:
Customer centric organization: A customer centric organization is one that puts the needs of its customers first. This type of organization typically has a strong customer focus and strives to provide the best possible customer experience.
Customer relationship management: Customer relationship management (CRM) is a term that refers to the process of managing and developing relationships with customers. CRM software is
Customer lifetime: The customer lifetime is the total amount of time that a customer spends with a company, from their first purchase to their last.
Customer value: Customer value is the perceived worth that a customer places on a company’s products or services.
Important customer centric metrics: Important customer centric metrics include customer lifetime value, customer retention rate, and customer satisfaction score.
Customer centric brand: A customer centric brand is one that is focused on providing a great customer experience. This type of brand typically puts the needs of its customers first and strives to create a positive customer journey.
Customer centric marketing: Customer centric marketing is a type of marketing that focuses on creating a positive customer experience. This type of marketing typically puts the needs of its customers first and strives to create a positive customer journey.
Customer centric best practices: Best practices for customer centricity include creating a customer-centric culture, developing a deep understanding of customers, and designing customer-centric processes.
Customer lifetime value: Customer lifetime value (CLV) is a metric that measures the total amount of money that a customer is expected to spend with a company over the course of their relationship.
Customer data: Customer data is information that pertains to a company’s customers, such as contact information, purchase history, and demographics.
Great customer service: Great customer service is service that exceeds the customer’s expectations and leaves them with a positive impression of the company.
Positive customer experience: A positive customer experience is an experience that meets or exceeds the customer’s expectations.
Customer behavior: Customer behavior is the way that customers interact with a company, its products, and its services.
Customer journey: The customer journey is the path that a customer takes from awareness to purchase.
Actionable insights: Actionable insights are insights that can be used to improve the customer experience.
Customer’s perspective: The customer’s perspective is the way that the customer sees the world.
Communication preferences: Communication preferences are the ways that customers prefer to communicate with a company.
Product centric approach: A product centric approach is one that focuses on the product first and the customer second.
Marketing tactics: Marketing tactics are the ways that companies use to reach and engage customers.
CRM software: CRM software is software that helps companies manage and develop relationships with customers.
Personalized campaigns: Personalized campaigns are campaigns that are tailored to the specific needs and interests of the customer.
Automatically connected: Automatically connected means that the CRM software is able to connect with the customer automatically, without the need for manual input.
Nurture relationships: Nurture relationships means to foster and grow the relationship between the customer and the company.
Brand advocacy: Brand advocacy is when customers speak positively about a brand to others.
Resolve identities: Resolve identities means that the CRM software is able to connect with the customer automatically, without the need for manual input.
Digital channels: Digital channels are channels that are used to reach and engage customers that are online.
Final decision maker: The final decision maker is the person who makes the ultimate decision about what product or service to purchase.
Improve personalization: Improve personalization means to make the customer experience more personalized and tailored to the customer.
Purchase decisions: Purchase decisions are the decisions that customers make about what products or services to buy.
Meaningful experiences: Meaningful experiences are experiences that are impactful and memorable for the customer.
Positive experiences: Positive experiences are experiences that meet or exceed the customer’s expectations.
Omni channel: Omni channel is a term that refers to the use of multiple channels to reach and engage customers.
