Customer relationships are the driving force of your business. In this hyper-competitive world, your business needs to appeal to a customer’s heart, as much as it does to their minds and wallets. A customer-centric approach helps to build on customer relationships and enhances customer loyalty. But how can you adopt more customer-centricity in your business model?
Why a customer-centric approach?
Over the past few years, innovations such as increased knowledge sharing, better technology, and the lowered costs of marketing tools have made customer acquisition a lot easier. But many businesses experience, that although acquiring customers becomes easier, retaining them becomes harder. The reason behind this is that companies traditionally still spend more time on customer acquisition. They adopt a sales-centered or product-centered approach and are more driven by the desire to focus their attention on building and bringing products to the market rather than the customers that purchase their products. At first, this strategic decision may seem more profitable, but because of the lack of focus on providing positive customer experiences, this approach often fails to maintain long-lasting relationships. In a recent study from KPMG*, it was found that 88% of CEOs are concerned about their customer loyalty. Because how can you know if a customer has had a positive experience with you? And how can you ensure this customer returns to your business instead of a competitor’s?
Building relationships with customers in current market trends is the most important aspect that an organization should focus on. When companies shift their focus to a customer-centric approach, they become more successful in providing positive customer experiences throughout the entire customer journey, enhance customer engagement, and in the long-run enforce company growth.
How to become customer-centric?
Simply put, an organization becomes customer-centric by placing the customer at the core of its business. However, to successfully implement a customer-centric approach a company’s culture and its core values must be aligned. It is only then, that the company can deliberately cultivate the necessary mindset and values within their employee experience to build on a customer-centric approach. It requires a process of business transformation across the entire organization.
One way to do so is to operationalize customer empathy. It is only upon understanding your customer, that you can help them fulfil their needs and deliver products with an improved user experience. Companies spend a lot of time analysing the volume, velocity, and variety of customer data. Never have marketers known so much about their customers, but on the other hand, never has there been such a big increase in customer switching. Big data can provide you with all the information you want to know about your customer, but it is worthless without real customer empathy. With customer-centricity, empathizing with customers becomes your day-to-day job. Your main priority becomes collecting feedback from multiple customer sources and channels. This feedback helps you identify patterns and behaviours. Only then, you can synthesize your customer-data to make customer-centric decisions.
The Benefits of a Client-Centric Approach
When applied correctly, customer-centricity has a huge business value. Customer-centric companies are 60% more profitable than companies that don’t focus on customers and 84% of companies that work to improve their customer-centricity report an increase in their revenue, according to Deloitte**. The approach becomes your weapon in fostering customer relationships. One advantage of customer-centricity is that it allows companies to identify gaps and opportunities, such as unfulfilled customer needs. Building on such insights can lead to stronger unique selling propositions, that help attract and retain customers more efficiently. Moreover, with a better understanding of your customers, you can build better customer experiences. With your new, emotional connection to your customer, you can now fully grasp the needs and wishes of your audience. When translating such insights to redesign your customer journey, you can provide better customer experiences along all journey stages. This can significantly increase your customer satisfaction and customer loyalty.
Are you searching for ways to improve your business’s customer experience through a customer-centric approach? NECXT can help you redesign and optimize your customer journey. NECXT provides new perspectives on customer experiences from leading global organizations and helps clients to incorporate them. With 160 years and 120 companies of combined experience and a global reach, NECXT inspires and activates. Contact us to learn more about our workshops and consulting services.
* KPMG – The truth about customer loyalty
** Deloitte – Wealth Management Digitalization changes client advisory more than ever before