When a brand goes above and beyond for a customer, you can tell as a consumer because it feels...different. If going above and beyond for customers were so simple, every company would do it; nevertheless, this is not the case. Why? Well, it's difficult to do! When it isn't ingrained in the foundation of your business, it can be challenging to give every consumer an incredible experience.
Customer-centric companies stand out from the rest because they prioritize the customer experience above everything else. They focus on understanding and meeting customer needs to deliver an excellent customer experience, which drives loyalty and advocacy.
Customer-centric companies use customer feedback to inform their decisions and create better products or services. They also focus heavily on customer service, ensuring all inquiries are addressed quickly and efficiently. Customer Centric Companies understand that customer experience is critical to success, and they strive to create experiences that will keep customers coming back.
Why Is It Important to be a Customer-Centric Company?
Devotion to improving the customer experience from the customer's point of view is known as customer centricity. Being customer-centric is a dedication to putting customers first. This means that everything you do must be focused on the demands of your customers.
First and foremost, a customer-obsessed firm shows this kind of focus in every single action. Every decision is made with the buyer in mind, from how to handle customer complaints to the little things that make people happy.
Second, a customer-centric company also fosters an environment in which its teams constantly strive to provide more and better customer service. This is very significant since it ensures that the business will continually improve.
Finally, focusing on the customer generally creates a greater flow of recurring business. The likelihood that a customer will return for a second, third, or even hundredth time increases when they are sure they will receive a high-quality product and excellent customer service.
7 Actions That Distinguish Customer-Centric Companies From Others
Although many businesses claim to be customer-centric, few actually are. All business decisions and strategic moves at customer-centric organizations are made with the customer in mind.
Here are a few things that actual customer-obsessed companies do differently, making them extraordinary in their game.
1. Customer-Centricity Starts at the Top
According to the employees, 66% of senior managers and 56% of CEOs engage in customer experience-related tasks.
Customer obsession begins at the top, with executives aware of and concerned about their people and processes. When the CEO prioritizes consumers before profits, this impacts the company as a whole.
Getting executive leaders on board is one of the most challenging obstacles for CX experts and change agents. This is especially true when they are still looking for the immediate financial benefits of investing in customer experience.
However, CEOs of customer-centric businesses are aware of the necessity to develop compelling customer experience programs and prioritize customers. Implementing CX initiatives is made simpler by executive support.
For example, former CEO and current Executive Chairman of Amazon, Jeff Bezos, was known for leaving a meeting room empty to symbolize the consumer. He constantly spent time in the contact center and engaged with consumers because his goal was to make Amazon the most customer-obsessed firm in the world.
Bezos's choice was based on the customer's needs, which established the tone for the rest of the business. Subsequently, future leaders are likely to carry on their customer-centric legacy.
2. Customer-Centric Companies are Data-driven
Highly data-driven organizations are 3X more likely to feel that their decision-making has improved significantly.
Customer Centric Companies are data-driven. Their data churn out information that is important for making decisions. They examine it, share it with other departments, get insights from it, and eventually base better business decisions on those insights.
As a result, even when customers don't express it explicitly, these businesses recognize their underlying demands. Then, they assess who they connect with, how frequently they engage with them, the communication channels they use, and the content they communicate once they get customers' attention.
This way, these businesses are adept at surfacing possibilities to satisfy their customers through product recommendations or individualized discounts. They can focus on what matters to these customers since they understand the "why" behind their moves.
These days, customers are more willing than ever to try new things. This allows businesses a lot more leeway to experiment and attempt to plan meaningful interactions with their customers.
However, customer hyper-abandonment of experiences and brands at the drop of a hat makes this hyper-adoption a double-edged sword.
Building customer connections requires understanding "why," better decision-making based on consumer data, and providing advantages to customers by foreseeing their needs and wants.
3. Solid, Ingrained Customer-Centric Culture
The overall culture of an organization plays a tremendous role in its organizational and financial goals. It is the backbone of its very foundation. In fact, strong cultures led to a 4x boost in revenue growth.
To develop a culture of customer obsession, what begins at the top with CEO buy-in must trickle down to the rest of the organization. Leaders set the organization's mentality. Employees at all levels will put consumers over other aspects, such as profits when they follow their customer-centric leader and culture.
Regardless of seniority or responsibilities, every employee knows how their work affects customers in a customer-centric culture. They understand the impact of what they do on the overall customer experience. They are motivated and empowered to provide the best possible customer service.
For instance, Disney's well-known, customer-centric culture dates back to Walt Disney himself. As its employees spread Disney magic to every visitor, they look forward to going to work each day.
Every employee is taught on the first day of training that they aim to make people happy. Regular training is provided to staff members, so they have the most excellent skills to assist consumers. To give customers beautiful experiences, they are known to go above and beyond.
Disney employees do it genuinely, wanting to spread the enchantment of Disney rather than because they have to. That is a customer-centric culture's strength.
4. Customer-centric Businesses Take Action on Customer Feedback
40% of customers share bad reviews on social media, while 52% of customers who had a negative experience posted about it. 56% of customers claim that a company's response to a review changed their opinion of the company.
Customer obsession involves two parties. If a business doesn't routinely communicate with its customers, it can't just claim to know what's best for them.
In addition to appreciating the value of feedback, customer-centric businesses include feedback loops in their operations and use them to enhance their goods and services.
Companies today have many options for connecting with and getting customer feedback, including anecdotally through social media, focus groups, and in-person meetings, as well as statistically through surveys and data.
customer-centric businesses collect the data from these sources and ensure the feedback reaches the individuals who can actually change things.
For example, TD Ameritrade, an online broking company, gives customer reviews a lot of attention. The business employs AI to examine prevalent topics and sentiments in contact center calls.
The company modifies its messaging and strategy to prevent problems from occurring in the first place if the algorithm detects that customers are frequently frustrated or overwhelmed with particular issues.
TD Ameritrade has more data from customer calls thanks to AI. The organization uses feedback information to drive a customer-centric strategy and continuously enhance the customer experience.
5. Customer-centric Businesses Innovate
30% of companies that offer digital experiences saw an increase in consumer lifetime value.
Customer-centric businesses keep ahead of the curve with cutting-edge ideas for products and services. This is because consumer trends and wants are constantly shifting. They undergo ongoing digital transformations to provide customers with smooth and practical digital solutions.
These businesses provide their customers with goods and services that not only enhance their lives but also provide value. These innovations are not merely new and shiny; their foundation is in what is best for the customers.
Samsung, for instance, uses consumer input to guide its TRIZ problem-solving process when it releases new products. This methodology looks for discrepancies between customers' desires and available technology to determine where innovation efforts should be concentrated.
After gaining a greater understanding, Samsung contacts the pertinent business, scientific, or technological organizations that can supply the knowledge and resources required to carry out the innovative project.
6. Personalization Strategy Stands Out in a Customer-Centric Company
85% of brands feel they offer personalized customer experience, whereas only 60% of customers agree.
Companies that put their customers first comprehend them on an individual and a group level. Instead of taking a one-size-fits-all strategy, they look for ways to personalize the experience for each individual, such as connected contact centers that eliminate the need for customers to repeat themselves, individualized advice, and one-on-one interactions.
Customer Centric Companies are proactive, seeking ways to solve problems and assist customers. These businesses address issues before they happen; they reach out to customers with potential services before they realize they need them instead of functioning as the cleanup team to solve problems.
For example, Nordstrom, the American luxury departmental store, encourages customers to go above and beyond. It equips them with the freedom and resources they need to deliver excellent service that meets customers' demands precisely. Thus, Nordstrom has long been praised for its outstanding customer experience.
Nordstrom is renowned for its personalized approach. Its personalization efforts extend through its app and robust loyalty program, which offers tailored benefits like free changes and in-home stylist consultations. Moreover, it provides the human touch and items such as handwritten thank you cards. This leaves no questions about why Nordstrom customers are so devoted to the business.
7. Constantly Re-Engineered Systems & Processes
Customers frequently interact with other businesses that offer them value-added services and capabilities. To keep up with the ever-changing customer demands, Customer-Centric Companies are constantly rethinking and reimplementing their processes with their end consumers - not just their business stakeholders.
They exhibit scaled agility inside their teams and throughout the entire company. This covers the design, funding, and delivery of services to your consumers in their time of need by marketing, finance, and business departments.
There was a time when monolithic systems had a use. But now, it would be best if you met your consumers' needs when they arose. That moment might occur digitally, but it might also happen while they are speaking with one of your salespeople or a customer care agent on the phone.
customer-centric leaders continuously re-engineer their systems to provide capabilities and micro-services that can be put together into need-based moments determined by customers' journeys.
Final Thoughts
Many businesses have been forced to reevaluate their operating models and change toward a customer-centric focus due to companies such as Amazon, Starbucks, and Netflix fundamentally revolutionizing the consumer experience.
By anticipating customer needs, a company obsessed, empathetic, and proactive for customers will naturally be robust to market fluctuations. Their devotion to the customer sets them apart from the competition.
These customer-centric businesses know what it takes to consistently elevate their standards and go above and beyond to meet and exceed specific consumer expectations. As CX leaders, they are also skilled in thinking creatively and innovating by fostering a customer-centric culture and constantly updating processes.
The success of their business depends on CX. At each touchpoint, the obsession with the customer is present.
Read More: 10 New Year Resolutions to Improve Customer Experience in 2023