Where Are You With Customer-Centricity?
Customer-focused companies have the highest average three-year growth in sales. Only 13% of organizations achieve this level of customer-centricity, though.
More companies become aware of customer-centricity and its role in their growth. Does everyone understand it right? And how do you succeed in turning customer focus into excellent customer experiences?
In this first post of a series about customer-centricity, we will unearth what the concept involves.
What is Customer-Centricity?
The real deal is to make customers the core of your strategy and operations. A customer-centric organization is driven by needs and preferences of their customers. You collect user insights and use them to design and deliver delightful experiences. Such efforts gain customer loyalty and long-term healthy customer relationships.
When the customer-centric approach brings in loyalty, you can cut the cost of customer acquisition as well as product development. Understanding how customers use your products and services allows you to prioritize features cost-effectively. The risk of making expensive mistakes also goes down. You achieve a competitive edge and differentiate yourself from competitors.
An organization doesn’t become customer-centric in one big jump, though. It is a journey with different stages of maturity. Our Customer-Centricity Assessment will help you find out where your company is on that path and what your next steps should be.
Three Stages of Customer-Centricity Maturity
An organization typically goes through three stages before reaching customer-centricity maturity: building the foundation for customer-centricity, gaining customer insights, and engaging with customers.
Level 1: Begin With the Foundation
You are aware of customer-centricity, but it is time you acted.
Maybe you have thought of becoming customer-centric. You talk about it during company meetings or even have it written down. Those are the foundational steps towards an organizational culture focusing on customers. Building such a culture is vital, but what you need now is a concrete plan with clear actions.
To focus more on customers, you need to know what they want, uncover their hidden preferences and aspirations. Start listening to their feedback. It will help if you give them a voice by putting in place a Voice of Customer (VoC) solution.
Level 2: Take the Next Steps
You are moving toward being customer-centric, but there’s room for improvement.
It could be that you have started observing your customers, through quantitative data. You gather usage, heat maps, visits, clicks, etc. Knowing customer behavior is the start, but you’ll want to find out why they do what they do.
We recommend collecting both quantitative and qualitative data for better insights. Only then you can turn customer data and customer feedback into meaningful interactions.
Level 3: Engage With Your Customers
You are on the top of your game because customers are the start and end points driving all actions. You would have to work to stay there, though.
Being customer-centric will soon stop being a differentiator but mainstream. It means you need to stay ahead of the curve. We recommend meaningful engagement with customers. You need to collect their insights proactively and continually and adjust your strategy as soon as things change.
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The Role of Data Collection, Management & Processing
Customer data is the key here. Collecting the right data in the right ways to identify your customers’ real wants and needs. You also need a data management process to turn these insights into a strategy that brings richer customer experiences. We will discuss this topic further in our next post of this series.
In the meantime, take our Customer-Centricity Assessment. It will point you in the right direction of being a more successful organization.