Understand what a Customer Centric strategy is and how to create one – WAU
Ensuring the satisfaction of your consumer is essential to succeed in such a competitive market. It is no wonder that many companies are investing in the Customer Centric strategy, which seeks to centralize all strategic planning in the customer experience, increase the loyalty rate and, thus, achieve better results.
The digital transformation has completely changed the relationship between companies and consumers. Currently, in order to be successful in such a competitive and disputed market, it is essential to invest the necessary resources so that user experience with your brand is the best possible.
Thus, the concept of Customer Centric – or, in a free translation, Organization Centered on the Customer – is gaining more and more space within different companies. With actions aimed at greater consumer satisfaction, the goal is to achieve greater loyalty and thus an increase in sales.
So, how about better understanding what this strategy is and what you need to do to start it within your company? Just continue reading this article to know also what are the main challenges when implementing this concept in an organization and some successful examples. Check out!
What is it to be Customer Centric?
A company that is considered Customer Centric has as main characteristic the centralization of all strategic planning at the client. That is, everything that is carried out within that organization aims to provide a satisfying experience for its consumer.
From the first moment of contact with the user – still a potential consumer -, through the different stages of the purchase journey, until the post-sale. All conversion strategies are designed in a way that the customer feels at ease with your brand from the first to the last moment.
From a detailed study of behavior – by deciphering what preferences, desires, goals and difficulties are, for example -, it is possible to apply these changes in practice and, thus, ensure that the impact is positive. Whether to improve a service or launch a new product, the focus is the customer.
The main objective when applying Customer Centric techniques is to increase the loyalty rate of your business. Consequently, your company will be able to record better results at the end of each month.
An example? Imagine that you run an e-commerce that sells women’s clothing and accessories, but you notice a desire in your persona to be able to have an experience in a physical store, it’s time to evaluate the feasibility of this project.
After all, the focus needs to be on the customer and not on your initial planning to focus only on online commerce, for example.
Now, if you own a traditional cafeteria and notice that the number of sales is decreasing, perhaps it is time to invest in technology to meet the demand of your audience.
How important is the concept of Customer Centric?
It may even seem a bit of an exaggeration to turn your strategic actions to the customer’s opinion or need, right? However, the market requires companies to adapt quickly and leave initial planning behind if the consumer profile indicates a different direction.
In the hypothetical case above, your initial planning could be not to have a physical store to avoid expenses or even facilitate its management. However, if your consumer demands a space to try on clothes and accessories, you must at least consider this option to make the customer experience even better.
After all, studies indicate a direct relationship between customization and conversion, with 86% of users pointing to an exclusive and personalized service as a major factor in their purchase decision process. How can we ignore numbers so favorable for those who care about the customer experience?
It is important to emphasize that the focus on the consumer must be taken into account at all stages. A negative experience is enough for the customer to rethink the decision to buy with your brand in the future: according to some research, 58% of users do not return after a bad experience.
Therefore, ensuring that the customer feels comfortable and at ease when relating to your company – at all stages – is no longer becoming a differentiator and becoming an obligation for anyone who wants to succeed in the market. The price of not worrying about every detail can be high.
What are the main challenges of this strategy?
Although fundamental to the success of companies today, applying strategies focused on Customer Centric is not a simple task. After all, the main challenge of this concept is to understand – at best, anticipate – the consumer’s desires and demands.
The main difficulty faced by those who want to place the customer as the centerpiece of the organization, is precisely to implement this culture among all sectors and employees of your company. It is not enough to offer the highest quality product at the best price if the service, for example, leaves your customer dissatisfied.
It is necessary to ensure that all components of your organization, from the highest level to a newly hired intern, have this awareness. Ensure that each customer contact with your company is a satisfying and unique experience. That a call to complain about something becomes a positive evaluation after the problem is resolved.
In addition, there is a difficulty in carrying out strategic planning aimed at the consumer experience. Often, the idea of the company is to follow a path – whether for financial or strategic reasons – and it is necessary to know how to adapt to what the customer is looking for.
In other words, being able to leave a more advantageous strategy for the company aside in exchange for planning that prioritizes the customer and, at least in the short term, does not offer the same benefits.
After all, the concept of Customer Centric is long-term, with clearer results appearing after a long period of loyalty and strengthening of the relationship with the customer.
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Post-sale objections: how to get around to retain customers
What actions to take to become a Customer Centric company?
Now that you have understood what Customer Centric is, what are the main characteristics of this strategy and the main challenges to be faced, it is time to put some actions into practice.
Therefore, we have separated some tips for your company to put the customer in the center of attention in the right way. Check out!
Have customer-oriented leadership
To create a culture that values the customer experience, the first step must be to have leaders – that is, decision makers – who have this thought. Count on leaders who understand the importance of valuing the consumer and how it can positively impact within the company.
Based on decision makers who invest in strategies with this focus, it is possible to establish a culture, at different levels of the company’s hierarchy, in a healthy and productive way.
Understand your customer
To provide the best possible customer experience, you need to know in depth what your desires, challenges, goals and behavior in general are. You can use CRM (Customer Relationship Management) tools, for example, to make this task more efficient.
Only with a complete analysis of the profile of your consumer, it is possible to be sure when customizing the services and products offered. After all, only by understanding what he is looking for, you can adapt your company.
Invest in different relationship channels
Nowadays, the possibilities of communication between companies and consumers are many. Therefore, a differential for the customer may be the diversity of channels available for contact. In other words, ensure an omnichannel service, which allows contact through the channel of the customer’s preference.
Empower your employees
By offering autonomy to your employees, it is possible to eliminate bureaucratic processes within your organization. Thus, you can guarantee an agile solution of problems, making sure that the customer is not dissatisfied with a long service, for example.
Furthermore, with autonomy, your employees feel more comfortable making decisions that benefit the consumer experience. Using creativity and different resources to make processes more efficient.
Track your performance
As we said earlier, the work of the company that focuses on Customer Centric does not end when closing a sale. Monitoring the performance of your strategies is vital for your customer to remain, in fact, satisfied with the service and / or product offered.
Use feedbacks to improve
In addition to regularly monitoring the performance of your strategies, you need to be aware of the feedbacks provided by your consumers. From them, it is possible to establish constant improvements in your service.
What are the main metrics for measuring work?
Even after putting strategic planning into action for the consumer experience, the work is not over yet. It is essential to remain focused on the same objective: loyalty. For this, you need to monitor the performance of your strategies to achieve that goal.
How? Using some metrics that can indicate whether your planning is, in fact, being efficient and, if not, what is needed to improve. To make your job easier, we have listed the main metrics for you to keep an eye on.
One of the most feared expressions of any administrator is Churn, which represents the cancellation of a service or contract. There is no point in attracting new customers in large quantities if, on the contrary, other of your consumers are leaving your business, generating a high Churn Rate.
Lifetime Value (LTV)
Another important metric to monitor closely is the Lifetime Value (LTV), which measures your company’s profit in relation to a certain customer. That is, what were the profits generated for your business from the moment that user became a consumer of your brand.
Net Promoter Score (NPS)
To measure the level of satisfaction of its consumers, few metrics are used as much as the Net Promoter Score (NPS).
The idea of this tool is to decipher the percentage of customers that are part of the group of “brand promoters”, “neutral” or “detractors”. Which allows you to better understand who is thinking about leaving your business and who is satisfied with the service offered.
Which companies are examples of Customer Centric?
To give you an even better idea of what Customer Centric is, we have separated two companies that can be considered examples when it comes to consumer experience. Check out!
From investments in Customer Centric strategies, the North American fast food chain has come to better understand what its consumer is looking for.
Whether by its actions on social networks or even in the deep study of customer behavior, McDonald’s was able to overcome the competition of some brands that were beginning to challenge their domain.
With the analysis of Big Data, for example, the company realized that its customers missed healthier options on the menu and, thus, started to make breakfast items available at other hours of operation as well.
Another example is the possibility for customers to place their order for a totem in physical stores, making their actions more digital.
Hilton Hotels & Resorts
The Hilton hotel and resort chain started investing in customer loyalty programs, with campaigns that guarantee points for those who use the company’s services. A program similar to that of miles, in which the consumer accumulates points that can be redeemed for discounts and other benefits on the network.
Even with a mastery of its market, the company identified this demand from its target audience and, therefore, decided to invest in a reformulation of the program. That is, even with customers already satisfied with the service offered, Hilton managed to generate even more value for its brand, and focused on providing the best possible experience for its consumer.
Now that you understand what it is to be a Customer Centric, the main challenges and how to implement it in your company, how about checking out other rich content that will help you provide the best experience for your consumer? Download our Customer Success Guide ebook and learn how to ensure your customer’s success!