Customer centric is a way of doing business with your customer in a way that provides a positive customer experience before and after the sale in order to drive repeat business, reduce churning rate, increase customer’s retention and enhance customer loyalty and profits. And a customer-centric company is more than a company that offers good service. If a company only pay attention to products it brings to market rather than the customers that buy those products, it’s only a matter of time and technology before the competitors will bring something newer, shinier, and more affordable to the market. The companies that stand out are those that make their customers have a sense of being cared for.
Building Customer Centric Culture: What Does It Take?
If your business isn’t focusing on customer centricity, it’s time to start doing some research into how to get things going. Creating a customer centric company takes more than putting your efforts and making an investment on goods and services, customer service operations and systems but making customers feel important and having a sense of being cared for.
However, it is imperative for any business trying to build a customer centric culture to pay attention to the below:
- Responsive to Customers: When customer responsiveness is a priority, you’ll find that opportunities to serve your clients increase, while problems and service issues decrease. Failing to meet deadlines or ignoring customer inquiries can increase client dissatisfaction with your company and spur them to investigate your competitors’ services.
- Engaged with Customers: Creating an emotional bond that drives advocacy behaviour. Don’t wait for the “we need to talk” phone call to find out what your customers think about your company. By understanding the characteristics of an engaged customer, you can determine:
- Which customers are primed to do more business with you
- Which customers you need to re-engage to retain them
- Inspired by Customers: Think deeply about what customers are trying to accomplish in their business and personal lives, and create new ways to add value by developing new solutions to solve problems before customers ask! Letting them have the wow experience by moving them from the moment of misery to the moment of magic.
- Targeted on Customers: A target market is a broader group of potential customers defined by ranges. For example, for your business, a target market might be a certain income bracket. This is the group that’s most likely to purchase the product your business has to offer.
How to measure the success of a customer centric company?
Not every organization will have the same customer metrics to measure customer centricity. However, the two most important customer centric metrics that should be carefully monitored are churn rate and customer lifetime value.
The churn rate, also known as the rate of attrition, is the percentage of subscribers to a service who discontinue their subscriptions to that service within a given time period. For a company to expand its clientele, its growth rate, as measured by the number of new customers, must exceed its churn rate.
Acquiring new customers is getting more difficult. Therefore, more companies are investing in keeping existing customers instead of trying to find new ones.
Companies with a high retention rate grow faster. The key to success is to understand why people leave, and why people remain customers.
Customer lifetime value (CLV)
Customer Lifetime Value (CLV) measures the profit your organization makes from any given customer. It’s a prediction of the net profit attributed to the entire future relationship with a customer. For a customer-centric business, the most valuable asset is the customer. The profits generated during the retention phase are often known as customer lifetime value or CLV. Customer Lifetime Value (CLV) measures the profit your organization makes from any given customer.
The shift towards imbibing a true customer centric culture is both complex and long but being a customer centric organisation is the Holy Grail towards unlocking the true potential of customer value.