The customer experience before, during, and after the sale matters because it impacts customers’ overall opinion about your brand and their decision to stay with you! And behind great customer experiences is a strategic customer-centric business approach, which not only enhances customer loyalty but also boosts your brand's reputation and profitability. 

This guide is a practical resource that will equip you with the knowledge of what customer-centricity is, why it is essential for the customer experience, and, most importantly, how you can create a customer-centric culture for your business.


Customer experience requires dedicated client-centric strategies. And Clootrack helps in forming better strategies with actionable customer experience insight


The Power of Putting Customer Experiences First!

Do you want to grow your business? (You must be wondering who doesn’t!). 

Unfortunately, many companies still overlook the opportunities customer experience offers. They wait for customers to tell them what they want, a strategy that snatches growth opportunities and significantly decreases their brand value. 

Competing solely on product features and services is not enough. In fact, as per a Gartner report, nearly 80% of organizations are using CX, or customer experience, as a differentiator. 

‘How you deliver’ for your customers has become as important as ‘what you deliver’!

In the current market, where customers have abundant choices, businesses that prioritize customer satisfaction stand out. A customer-centric culture is more than just an ethic. It's a necessity. It fosters loyalty, trust, and positive word-of-mouth, which is crucial for long-term success. Companies that ignore the value of a positive customer experience risk losing relevance and market share. 

But what is a customer-centric approach? How is it a growth strategy? What are its implications, and does it affect your return on investment (ROI)? 

Let’s find out!

What is the Meaning of Customer-centric Approach in Business?

A customer-centric or client-facing approach prioritizes customer needs and preferences in every aspect of the business. It involves understanding customer expectations and consistently exceeding them. This approach requires shifting from a product-focused mindset to one that values customer experiences and outcomes.

In simple terms, customer-centricity places customer experience at the core of every business decision, strategy, and action. 

It is often perceived as a shift in brand culture or mindset, but in reality, it is a comprehensive business strategy that goes beyond simply considering what customers are seeking. 

Become a customer-centric business leader with Clootrack’s CX insights.



For representation only   Different Levels of Customer-Centricity

Why is Customer-centricity Important for Your Business Growth?

Renowned CX expert Shep Hyken says, ‘Customers notice everything,’ and with growing competition, they expect more. They want brands to deliver impeccable and personalized experiences. Think of customer-centricity as a growth strategy, not just an organizational cultural value.

Here are some of the top benefits of being a customer centric business:


Top Benefits of a customer-centric business approach in improving customer experience

  • Meeting and Exceeding Customer Expectations

Consumers today are looking for more than just innovative products or services; they are looking for experiences. They want to feel appreciated and understood by the brands they associate with. By adopting a customer-centric approach, you can meet and exceed these expectations, creating memorable and positive experiences that foster loyalty and repeat business. Personalized interactions, timely responses, and a deep understanding of customer needs are all critical components of this strategy.

  • Enhancing Customer Loyalty and Advocacy

A customer-centric culture breeds loyalty. When consumers feel that a brand genuinely cares about 'what they need' and goes the extra mile to make them happy, they are more likely to become loyal patrons. Loyal customers generate consistent revenue and act as brand advocates, promoting the business through word-of-mouth and social media. This organic promotion is invaluable and far more credible than traditional advertising.

  • Driving Innovation and Improvement

Customer-centricity drives innovation. Businesses can spot gaps in their service and product offerings and find opportunities for new products or services by continuously seeking feedback and listening to customer needs. This proactive approach to improvement ensures that the company remains relevant and profitable in a constantly evolving (digital) market. Innovation driven by customer insights is more likely to succeed because it addresses real needs and pain points directly.

  • 2x Revenue and Profitability

A focus on customer experiences directly impacts the bottom line. Happy customers are more likely to return and are less price-sensitive, leading to increased revenue and profitability. Moreover, acquiring a new customer base costs significantly more than keeping an existing ones. By prioritizing satisfactory customer experiences, you can reduce churn rates and maximize customer lifetime value.

  • Building a Strong Brand Reputation

With social media dominating our everyday lives, brand reputation and online perception are everything. Customers can share their interactions and experiences with the world through online reviews, social media ratings, and other easily accessible platforms. A customer-centric approach ensures that these shared experiences are positive, enhancing the brand’s reputation. A strong brand value attracts new customers and fosters credibility and trust in the market.

  • Better Employee Engagement and Satisfaction

When employees see the direct impact of their work on customer satisfaction, they are more engaged, motivated, and invested. Empowered employees who feel valued and understand the importance of their roles are more likely to deliver impressive service, creating a positive feedback loop that benefits both the customers and the organization.      

According to PwC, with growing AI usage, 59% of consumers feel companies have lost the charm of a human connection in the customer experience. The best way to revive this connection with your customers is by offering a superior employee experience.                                                                       

Creating and adopting a customer centric strategy for your business

Are you customer centric or customer friendly?

The perfect time to adopt a customer-centric approach is now! However, being customer-centric does not mean simple customer friendliness. It is a full-fledged growth strategy that requires implementing and fostering organizational change.  

Peter S. Fader, the co-author of The Customer Centricity Playbook and Customer Centricity and a Wharton marketing professor, points out that most companies today are primarily customer-friendly rather than customer-centric. Although these terms sound similar, there is a significant difference between them.  

Conducting careful customer analysis and understanding the results at a granular level is crucial for customer centricity. It involves identifying the most valuable customers and understanding their preferences, communication choices, expectations, and purchase motivations. 

By prioritizing customer-centricity over customer-friendliness, your brand can enhance its ROI and provide more personalized customer experiences.

Good customer experience is worthy of a premium price

Signs Your Business Needs a Customer-Centric Strategy


  • Declining Customer Satisfaction

Reports suggest that following a negative customer experience, 89% of consumers switch to a competitor.

If your customer satisfaction scores are falling, it indicates that your current approach isn't meeting customer needs. Frequent complaints and negative feedback are red flags that a more customer-focused strategy is required. 

  • High Customer Churn Rates

Brand loyalty and value will remain strong if customers find enough value to stay. That is a critical sign that your business needs to immediately focus on understanding and addressing customer pain points. 

Nearly 51% of customers are willing to spend more for impressive customer service and experience. 

  • Stagnant or Declining Sales

Is your sales growth stagnant or declining? It may indicate that your products or services no longer resonate with customers. A customer-focused approach can help you realign your offerings with market demands.

  • Increased Competition

Differentiating your business through superior customer experiences provides an impactful advantage in a highly competitive market. In a recent Clootrack survey on real-life revenue growth examples of CX, DeAnn Campbell, a retail strategy expert, shared how Armstrong Alliance Consulting gained an impressive 58% boost in higher-ticket items by implementing a holistic customer experience strategy. 

So, if your competitors are gaining market share, it's time to enhance or reinvent your customer strategy.

  • Expansion or New Market Entry

As a business begins to scale, maintaining a customer-first focus can help manage and sustain growth. Rapid expansion often leads to operational challenges that can impact the customer experience. By embedding customer-centric practices, business leaders like you can ensure continuous delivery of consistent, high-quality experiences even as they grow.

How to create a customer-centric strategy for delivering an excellent customer experience? 

Here are a few key steps to create a customer-first experience at your organization and use them to achieve your financial goals.

#1 Study & Understand Your Customer Base

Before creating a customer-centric strategy, you must deeply understand your customers. That involves segmenting the customer base, creating detailed personas, and identifying key pain points and expectations. 

Use the following to gather your customer insights data:

  • Customer experience analytics
  • Customer feedback surveys (for example, NPS or Net promoter score)
  • Direct feedback from client servicing teams
  • Social media insights and analytics tools
  • User testing results
  • Website analytics tools
  • Customer behavior insights (for example, order and transaction history). 

Customer experience insight tools like Clootrack in improving customer satisfaction

#2 Align with Business Goals

A customer-first approach strategy should align with your broader business objectives. Whether the aim is to increase market share, improve customer retention, enhance ROI, or drive innovation, the strategy must support these goals while keeping the customer at the center.

You can use insights like:

  • How to offer more tailored experiences based on customer segments
  • Future anticipation and data-led predictions based on customers’ past spending and behavior trends.
  • What will significantly improve the customer experience with smaller efforts?
  • How can you grow your ROI by optimizing the impactful customer relationship areas?

#3 Engage All Levels of the Organization

Successful customer-centric strategies require buy-in and dedicated efforts from all levels of the organization. Leadership must champion the initiative, but involving frontline employees (interacting directly with customers) is equally important. Comprehensive training and clear communication are essential to achieving this. Additionally, co-create strategies with your teams to foster a sense of shared responsibility and accountability. 

#4 Leverage AI Technology and Data

Leverage technology to foster a customer-centric approach. Utilize CX analytics platforms, Customer Relationship Management (CRM) systems, and customer service platforms to gain deeper insights into customer behavior and preferences. These tools enable personalized experiences and efficient responses to customer needs.

#5 Develop a Clear Implementation Plan

Develop a clear plan that outlines specific actions, timelines, KPIs, and responsibilities. Regularly monitor progress and adjust the strategy based on feedback and results.

For instance, if customer feedback indicates that their checkout experience was terrible, you can review your entire payment process, simplify it, reduce drop-offs and re-directions (if any), improve the page speed and content quality, and automate or expedite the whole process. 

And don’t forget to measure the effectiveness of your actions by constantly monitoring customer data and satisfaction levels. 

How to measure the effectiveness & success of your customer centric strategy

Positive customer experience improves customer retention

Implementing a Net Promoter Score (NPS) and an Employee Net Promoter Score (eNPS) can help you measure the effectiveness of your efforts. These two metrics are straightforward yet impactful in analyzing customer as well as employee satisfaction insights.  These customer centric metrics can help you make fail-proof future decisions backed by actionable insights. 

What is Net Promoter Score (NPS)?

Net Promoter Score (NPS) is widely used to gauge customer loyalty and satisfaction. It simply poses a straightforward question: “On a scale of 0 to 10, how likely are you to recommend our product/service to a friend or colleague?

What is Employee Net Promoter Score (eNPS)

Employee Net Promoter Score (eNPS) applies the same NPS methodology to measure employee satisfaction and engagement. The critical question is: “On a scale of 0 to 10, how likely are you to recommend our company as a workplace to a friend or colleague?

Some other effective customer experience data you should monitor are:

  • Customer satisfaction, or CSAT score: How satisfied are your customers with you? It includes your brand, services, customer service, products, etc. 
  • Customer effort score, or CES: How easy is it for your customers to complete actions, and how have your actions affected this ease?
  • Customer support: Are your customer support metrics improving? 
  • Sales value: How are your sales numbers? Do you see good growth since implementing your actions?

These actionable steps can create a more responsive, customer-focused, and engaging environment in your organization that supports sustained growth and success.

Bottom Line

Creating and enacting a customer-centric strategy is not a one-size-fits-all approach or a one-time activity.

It requires careful consideration of the specific context and timing for each business and requires continuous revisits. Recognizing the signs that indicate the need for such a strategy and understanding the critical stages in business growth can guide effective implementation. 

Focusing on the customer enables you to not only survive but thrive, ensuring sustainable growth and a loyal customer base. The future belongs to those who put their customers at the heart of their operations, continuously striving to meet and exceed their expectations.

Read Next:- 5 Things Leaders Do To Promote Customer-Centricity Using Customer Data!