Despite the data showing that investing in customer service drives better business results, building a truly customer-centric company still takes courage. True customer centricity requires a deliberate commitment to principles that put customers first and foremost in all decisions. It’s not easy, and it doesn’t always come naturally. But if you succeed, it will directly and positively impact your bottom line.
What does it mean to be customer centric?
Being customer centric means focusing every aspect of your business on customer needs and interests, prioritizing customers’ long-term successes over short-term business goals. It’s about making decisions that benefit customers, rather than just focusing on the bottom line. Customer centricity spans across marketing, sales, product development, and support.
Relational vs. transactional service models
Transactional companies focus on single, one-off interactions with customers, while relational companies aim to develop long-term relationships. Relational companies prioritize understanding customers’ needs and recommending solutions that meet those needs. They prioritize long-term customer satisfaction over short-term revenue generation.
Why is customer centricity important?
Data from various studies show that customer centricity improves financial performance and provides a competitive advantage. Customers are more willing to spend money with companies that deliver excellent service. Increasing customer retention rates leads to increased profits. It’s also more cost-effective to retain existing customers than to acquire new ones. The return on investment from creating an outstanding customer experience more than pays for itself. Additionally, building a customer-centric company empowers employees to make good decisions and do their best work, resulting in a strong company culture.
Examples of customer-focused behavior
There are many real-life examples of customer-focused behavior. Blue River Technology changed its business strategy based on customer feedback and received $13 million in funding. MeUndies engages customers with delightful autoresponders. Disney provides personalized experiences and collects extensive customer data to improve its services.
8 best practices for building a customer-centric company
- Invest in customer service: Prioritize your support team and empower them to deliver exceptional service. Treat them as revenue-generating professionals and measure customer happiness instead of metrics like first response time.
- Get everyone in the company involved in support: Whole company support allows all employees to understand customers’ needs and challenges. It fosters empathy and leads to better decision-making and customer loyalty.
- Actively solicit customer feedback: Regularly collect customer feedback to improve your products and services. Your customers often know what they want, and their insights can help you create a product that they love.
- Sweat the small stuff: Paying attention to the details and going the extra mile highlights that you care about your customers. It sets your company apart from the competition and creates a positive customer experience.
- Treat your company culture as an asset: Prioritize customer-centric values from the top down. Hire people who align with your values, trust your team to make decisions, establish good communication, and show gratitude for their intentional work.
- Structure your business to enable customer centricity: Build a company culture that values employees by paying them well, empowering them, and creating a positive work environment. Happy employees lead to happier customers.
- Personalize your experience: Use customer data to create personalized experiences, customized newsletters, and tailored support responses. Showing customers that you appreciate and understand their needs fosters loyalty.
- Meet your customers where they are: Make it easy for customers to reach out to you and provide support through their preferred channels. Take as much work and effort off the customer’s plate as possible.
How do you measure customer-centric culture?
While there isn’t a direct metric to measure customer-centric culture, you can look at lagging indicators that indicate the impact of your choices on customers. Metrics like customer satisfaction score (CSAT), net promoter score (NPS), customer happiness, churn rate decrease, retention rate, customer lifetime value (LTV), and engagement can provide insights into the effectiveness of your customer-centric approach.
The benefits of customer centricity
Building a customer-centric company is good for your customers, your employees, and your bottom line. It improves customer satisfaction, increases profits, and provides a competitive advantage. By prioritizing customer needs and interests, you differentiate yourself from the competition and foster a strong company culture. Customer centricity should be a growth strategy that resonates with customers and sets your business apart.