Many informed businesses today are actively looking for ways to transform their business model or their culture to become more customer-centric, but many struggle to implement it or just don’t know where to start.
Insight: In a time where marketers are looking for different ways to keep customers loyal, many businesses have found that focusing on creating a positive experience for the customer not only keeps them loyal, it also drives revenue.
Data: Customer-centric companies are 60% more profitable compared to companies that are not focused on the customer.
Key Action Point: For businesses to thrive, developing a more customer-centric culture not only helps you build a stronger relationship with your customers, it also leads to greater revenue.
What Is Customer-Centricity?
Customer centricity is doing business in a way that promotes a positive customer experience from the beginning to the end of the sale, leading to repeat business, a loyal customer base, and, ultimately, an increase in business revenue.
It’s more than just tailoring the customer experience to make them happy in a single interaction, it’s all about putting the customer at the heart of your business’s culture and operations and making every touchpoint with the customer, at all stages of the funnel, a positive experience.
The Value of Having a Customer-Centric CultureMany companies today are still struggling to become customer-centric. In spite of the availability of rich customer data sources, they do not have the capacity to analyse what they mean and cater to customers effectively in a way that drives lasting change.
A report from the CMO council says that only 14% of marketers think customer centricity is a hallmark of their companies, and only 11% believe their customers would agree with that characterisation.
There’s a reason many businesses are turning their organisations upside down to become more customer-centric and often find themselves lost in between. If you look into why it fails to stick for many businesses, it all boils down to the lack of a customer-centric culture, to begin with.
Many companies that you see today are still focused on driving sales. But for customer centricity to thrive, it is essential to create a culture that is aligned with the customer — meaning, an understanding of the customer’s needs and wants and an internal drive to satisfy them so they keep coming back and even promote your business for you.
It is this mindset that needs to be ingrained and passed on from leadership and into the heart of every employee.
These statistics show how becoming more customer-obsessed can impact sales, increase revenue, and increase customer lifetime value.
Customer Service at the Core of Customer Centricity
According to a CEI Survey, 86% of buyers will pay more for a better customer experience.
70% of buying experiences are based on how the customer feels they are being treated. (McKinsey)
62% of global consumers have stopped doing business with a brand or organisation due to a poor customer service experience
A 10% increase in customer retention levels result in a 30% increase in the value of the company. (Bain & Co)
Customer Loyalty Leads to Greater Revenue
Loyal customers are worth up to 10X as much as their first purchase. (Salesforce)
Acquiring a customer is 6 to 7 times more expensive than keeping a current one. (Salesforce)
When it comes to sales, the probability of selling to an existing happy customer is up to 14X higher than the probability of selling to a new customer. (Salesforce)
Customer-Centric Businesses: Zappos and Zurich Case Studies
Many companies have successfully built a customer-centric culture. In the retail industry, Zappos stands out as a customer-centric and a customer-obsessed brand.
They have dedicated many years creating a culture around the customer and anticipating their needs. They are 100% committed to delivering customer value — even going so far as to letting go of employees who do not fit in this customer-centric culture.
In banks and financial services, customer focus has been increasing and have brought on a 52% increase in customer-centric jobs. Zurich is foremost in successfully implementing a customer-centric strategy where they put the customer at the centre of all their business activities.
This means making their customers feel valued and cared for by providing help when they need it. They created Zurich HelpPoint®, an insurance helpline, that allows the customer to use their insurance to finance any loss or damages to their vehicles or to claim in the event of needed repairs, replacements, or other necessary services.
Even better, Zurich HelpPoint® has also been set up to give support to internal customers in their time of need — Zurich’s IT and HR departments have been tasked to provide support to all Zurich employees.
Overall, Zurich employees embody the care and help they give to their customers through the support they give and get throughout their organisation. With customer-centricity ingrained in their culture, Zurich has been able to maintain its customer-centric strategy as its main competitive advantage.
Today’s business leaders need to understand that strategy and culture need to work together in order to be effective and successful. Implementing customer-centric strategies that are supported by a customer-obsessed culture is the best way to achieve customer centricity that lasts and gives you the best investment return.