“Every company’s greatest assets are its customers, because without customers there is no company”. This Michael LeBeouf quote can be considered the core of what customer centricity is. Every organization revolves around its customers for its gains and profits. So, to ensure longevity and relevance every business should follow customer centric ideals.
Customer centric is not being only customer focused but a predominant principle that urges company to treat every single customer right and creating great and consistent customer experiences. Even statistically speaking, a Forrester study suggests that Companies that do well in customer experience outperform their competitors by around 80%.
What does being customer centric truly mean?
The simple and traditional meaning of customer centricity is the ability of people in an organization to understand customers’ situations, perceptions and expectations. The customer should be at the centre of all decisions related to delivering products, services and experiences to create customer satisfaction, loyalty and advocacy.
However, even though the base of the idea remains same there has been changes on what being a customer centric organization really means. Being customer-centric entails more than just saying the customer is top of mind. It is about truly understanding the customer, so you can anticipate their wants, needs and communication preferences, create meaningful experiences, and build lasting relationships with them. And that is easier said than done. In fact, according to a Oracle report, No matter what the discipline, industry, or company revenue is, over 90% of respondents agree that customer experience is a priority in terms of company focus.
In simple words being customer centric truly means creating a beautiful journey for your customer from the moment they discover your business until well after they’ve made a purchase.
What are the benefits of being a customer centric organization?
Well, throughout the customer’s journey, from awareness to purchase to advocacy, each interaction and stage benefits from a customer-centric approach. In fact PwC states that 65% of all consumers find a positive experience with a brand to be more influential than great advertising. In the era of digital everything an organization that is being built on their commitment to do what’s right for their customers becomes a definitive competitive differentiator.
Here are some of the benefits of being a customer centric organization.
- Helps in making regular customers as well as gain new customers.
A Twilio blog says that 60% of consumers report that they will become repeat buyers after a personalized purchasing experience. In fact, according to Forbes, 65% of respondents would become long-term customers of a brand if they can provide positive experiences throughout the customer journey. Customers who are satisfied with your overall experience will trust your company to come back again.
- Helps in creating the lifetime value of your customers.
Good practise of customer centricity can lead to great levels of customer satisfaction and when your customer is happy, their value will increase. In fact, Experian.com says that Loyal customers are worth up to 10 times as much as their first purchase. Customer loves personalization which is included in being a customer centric business. Dot digital shows that 49% of customers agree that they have made impulse purchases after an excellent, customized personal experience with a brand.
- Helps build brand loyalty and increase revenue.
Businesses needs to make profit to stay in business. Profits are created through constantly increasing revenues and with customer centricity you can achieve that. According to CEI survey, 86% of buyers will pay more for a better customer experience. But only 1% of customers feel that vendors consistently meet their expectations. Just as Robert Gately said, “People expect good service but few are willing to give it”. So, if your company provides good service then you’re already in benefit.
There are many other benefits of a customer centricity for any organization. It helps develops a far deeper and more ‘personalised’ relationship with your customers along with improving product development and customer service. Implementing a ‘Customer-Centric Culture’ is not easy and it often involves a complete shift in a company’s philosophy and mindset. However, it’s worth it when it’s done. Even a McKinsey research says that 70% of buying experiences are based on how the customer feels they are being treated. With appropriate strategies and effective training, you can thrive to become a customer centric company and your customer will start viewing your differently.