What Does It Mean to Be Customer-Centric? Will It Pay Off?
The word “customer-centric” is thrown around in a lot of boardrooms. But what does it mean to be customer-centric? And will it pay off?
What Is Customer-Centric?
Customer-centric is a strategy that involves creating the best experience for the customer for a meaningful, long-term business relationship. In this strategy, the customer is at the core of the business’s decisions and operations.
Providing a positive customer experience helps the business achieve customer satisfaction. Once the customer is satisfied, the chance for a repeat purchase is high. This behavior, when repeated, builds customer loyalty and drives sales results.
Overall, being customer-centric is necessary for companies especially when the business environment is competitive. It helps them distinguish themselves from the other brands. It also ensures long-term business success.
What you should know:
Customer-centric is a strategy focused on enhancing customer experience.
It helps businesses set themselves apart from the competition, drive down business costs, build customer loyalty, reduce customer churn, and improve overall sales.
Using technology is necessary to implement a customer-centric approach. It helps businesses run smoother workflows. It facilitates faster information exchange. And it helps businesses generate insights faster.
Benefits Of Being Customer-Centric
Being customer-centric has multiple benefits to businesses. Here are a few:
Lower business costs
For businesses to drive sales, they must acquire new customers through lead generation tactics. But these tend to be costly. Spending on ads to gain a wider audience reach, giving discounts, or other promotional activities, to name a few examples, are expensive to run.
Compared to having existing customers make repeat purchases to gain sales, lead acquisition tends to drive costs higher. This need to acquire new leads is eliminated when the business successfully runs on customers making repeat purchases.
Reduces customer churn
When customers are dissatisfied with a business, they tend to leave the business and choose the competition. This is wasted sales potential and is often measured by the rate of customer churn. Reducing customer churn improves sales performance, which, in effect, improves profitability.
When a business focuses on the customer experience, it ensures that the customer is satisfied with the service from the start of their journey towards the end of the sales process. This reduces the chances of customers churning.
Builds customer loyalty
Aside from reducing customer churn, being customer-centric ensures that customers get to stay, make future purchases, and recommend your products and services to others.
Customer loyalty helps the business gain a wider reach through recommendations and referrals. For example, when a customer is satisfied with your product or service, they tend to introduce your brand to others on occasions when a need arises.
How to Be Customer-Centric
One of the popular ways to be customer-centric is to use a Customer Relationship Management (CRM) software. The software is designed to help businesses get to know their customers more, gain data and information, and craft a workflow that enhances their services.
CRMs are known to help businesses gather information about their potential and existing customers. They do this by using landing pages, for example, to prompt website visitors to fill out a form and get their contact information.
Or by providing feedback loop mechanisms that help customers smoothly provide feedback at strategic points of the sales process (e.g. when closing a deal or after the customer makes a purchase).
They can also help businesses tailor their content and send content via email automatically, based on a schedule. This is important especially when the business runs a drip email marketing strategy.
Learn more about drip email marketing here:
Customer-centric Through Tech
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