“A Satisfied Customer is the Best Business Strategy of all”- Michael LeBoeuf
Today, almost every brand claims to be a customer-centric but how many of them are? The harsh reality is that most of them are profit-centric and not customer-centric.
Ever wondered how some of the world-famous organizations like KODAK, COMPAQ, General Motors, PAN AM, NOKIA, HMT, General Motors who once used to be among the top market leaders are nowhere to be seen now.
You may assign numerous reasons to their failure, like poor management, lack of innovation, poor financial discipline, etc. but the key reason is the “lack of Customer Centricity”
WHAT IS CUSTOMER-CENTRICITY?
Customer Centricity is the strategy where you grow your business keeping in mind the customer’s needs and requirements, offering him the quality product at reasonable prices, and making them happy and satisfied. Taking every action considering its impact on its customer.
“Customer centricity is literally putting the customer at the center of everything you do.”- Jonathan Brummel
Sayings like the customer is the king, the customer is the only reason for our existence in the business are 100% true. It all talks about customer centricity. The most successful organizations in the world are those that are highly customer-centric.
Rightly quoted by Mahatma Gandhi
“A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.”- Mahatma Gandhi
THE PERKS OF BEING A CUSTOMER-CENTRIC ORGANIZATION
Customer-Centricity is not only favorable to the customers but also drives massive benefits to the Company and gives it a competitive edge over its competitors. It also allows you to step into your customer’s shoes so you can understand their pain points better and resolve their issues to the core.
Customer experience is the beating heart of a truly customer-focused business and defines your relationship with the customers.
Let’s have a look at a few benefits of customer centricity for a business organization.
- Customer-centric companies enjoy increased sales opportunities and make more profit than companies that do not focus on customers.
- They can retain more of their customers and attract new ones more easily.
- They build trust and credibility as the customers stay loyal to them.
- They gain the competitive edge to other competitors.
- Improved Business Outcome and Happy Customers.
- Such companies understand their customer journey and improvise their product and services leading to higher customer satisfaction and retention.
- Loyal Customer always refers such companies to their friends, families, and relatives hence reducing the cost of acquisition and increases brand value.
- Companies that work with customers to create value have also noticed a drastic improvement in their operational efficiency.
- Customer-Centric Companies have a high potential for increased growth, revenue, and profits.
- They master the challenging task of retaining existing customers.
ALARMING STUDY STATISTICS
70% of satisfied customers keep searching for new suppliers– claims a study, which is quite alarming and poses a big challenge for the organizational leaders.
As per a recent study, the following are the reasons why customers quit a relationship with a particular supplier.
- 3% move away giving no reasons.
- 5% develop other suppliers’ relationship.
- 9% leave for competitive reasons.
- 14% leave as they are dissatisfied with the product.
- 68% quit because of an attitude of indifference towards the customer by the owner, manager, or some other employees.
The research also says that the organization spends 6 times more time to get a new customer than to keep an old customer. Customer loyalty is worth 10 times the price of a single purchase.
“When a company’s customers are happy with the service and the product and served by enthusiastic and knowledgeable personnel, who are anxious to help, chances are that company will continue to enjoy the lucrative patronage of those customers for a long, long time” – Red Pop
TYPES OF CUSTOMERS’ REQUIREMENTS
Customer-Centric organizations understand all kinds of requirements of their customers. The customers’ requirements can be e divided into two major categories.
- The Explicit Requirements: These requirements are communicated, and are related to the product specifications, performance standards, and pricing.
- Latent Requirements: These requirements are generally not specifically manifested or expressed by customers but they exist, and they are considered to be understood Organizations generally commit a lot of mistakes in understanding these requirements. Generally, there is a gap in fulfilling the latent requirements of a customer.
– Mr. Parasuraman (famous marketing scholar)
- Tangibles:This is related to the tangible aspects which can be felt, seen, and touched by the customer like the decor and appearance of your office, Upkeep of the toolkit by an engineer, layout, and cleanliness of the restaurant seats, etc.
- Reliability: Whether your product is performing as per the committed standards or not? The promises and commitments made are honored or not? Also delivering the product and service on time adds to your reliability.
- Responsiveness:In case the customer is seeking some information, some service requirements, are you ready and willing to offer the services and fulfill his requirements in the shortest possible time?
- Communication:Every customer needs to be kept informed with the latest offers, discounts, and other important happenings. The information must be passed on to them at the right time and in their language. Keeping your customer well informed at all times not only makes your customer happy and wanted but also adds to the brand’s loyalty.
- Credibility:This is related to honesty and trustworthiness. There shouldn’t be any gap between what you say and what you deliver. Establishing trust and credibility is not a one-day job but a fruit of years of dedication and passion towards your work and your customers.
- Security:The customer wants to deal with a company where he feels physically and financially secure, where the confidentiality of his transactional data can be guaranteed and is not compromised at any cost.
- Competence:The customer wants to deal with skilled and knowledgeable employees. The employees need not be only knowledgeable, but they should also display their competence on the job and win the customer confidence in the first meeting itself.
- Courtesy:The customer expects is that they must be dealt with politeness, respect, care, and friendliness.
- Understanding: Customer assumes that you know their needs and requirements be it explicit or latent.
- Accessibility:Every customer expects that in case of need you should be easily approachable and contactable. Give customers multiple ways to get in touch. In case required he should be able to escalate issues to the senior management in the organization.
CONCLUSION
The customer-centric organizations spent their time, money, and resources in creating the product and services in such a way that there is no gap in meeting the stated and latent requirements of their customers.
To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.” – Don Alden Adams, President Watch Tower Bible and Tract Society of Pennsylvania
So let me ask you, how well your organization is geared to meet the challenges of the competitive world of tomorrow. How do you rate your organization in meeting the above-stated service dimensions?
The importance of being a customer-centric organization cannot be overemphasized. Become a customer-centric organization and win over your customers’ loyalty forever.
