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How to Create a Customer-Centric Strategy for Your Business?

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How to Create a Customer-Centric Strategy for Your Business

Every customer wants to be informed and valued by the business. 96% of customers stated that the company’s customer service is important for them to maintain customer loyalty 🤝. 

So, businesses are moving towards customer-centric strategies to have a competitive edge in the market and improve the company’s growth 📈.

A customer-centric business strategy involves placing the customer at the heart of any company’s goals. This approach can transform any business from a startup to a well-established one. 

In this blog, we will cover every detail of customer-centric strategies, including their definition, importance, and best practices for creating a customer-centric business. 

🔑KEY HIGHLIGHTS

  • Customer centricity refers to planning and making business decisions by focusing on the customer’s wants, needs, and preferences. 
  • A customer-centric approach to business helps create new products, improve business efficiency, and increase customer loyalty. 
  • To create a customer-centric company, get every employee involved, innovate a new culture focusing on customer insights, and invest more in customer service. 
  • Businesses can measure customer service performance with KPIs like net promoter score, customer calls answered over time, and customer churn rate. 

What is Customer Centricity?

Customer-centricity is a business strategy where customers are the center of any business decision. This approach’s primary objectives are to provide a positive customer experience and establish long-term relationships. 

For instance, the secret behind Amazon’s success is that Amazon applies customer-centricity. Amazon prioritizes customer needs and preferences and only shows the products that the customer needs and wants. It does this by analyzing customers’ browsing and purchase history. 

Also, Amazon offers hassle-free refunds and return policies that enable customers to increase their trust in them. This makes them a truly customer-centric brand. 

Why Customer Centricity is Important for Business? 

Customer centricity lets brands focus on their audience’s wants. Even if consumer behavior changes, a company with a centric approach adapts and modifies its products to meet the consumer’s needs. 

Here are some of the importance of customer centricity for your business:

Create Better Products for Your Customers

A customer-centric approach makes understanding the customer’s needs and wants easier. With better customer data, you can build products that customers love that provide customer value. 

We have seen many examples of businesses trying to be product-centric and focused on enhancing the quality of a product regardless of customer demands. This approach resulted in a high-quality product that was not innovative and did not focus on meeting customer demand, which negatively affected customer success. There is still no point in possessing a product with high-tech qualities if you can’t build a customer-centric organization. 

Let’s take an example, 

In the early stage, Blackberry smartphones were dominant in the smartphone market. Later, they focused only on their existing key features, which were keyboards and email capabilities. They ignored the need to understand customers’ evolving needs like touchscreen and app functionalities. 

But, keeping all these things in mind, customer-centric companies like Apple and Samsung recognized the change in customer wants and preferences. They innovated their products with touchscreen interfaces and provided multiple app options. 

Result? We all know. Apple and Samsung smartphones are the most popular and successful ones in the market. And, I wonder if someone still remembers the Blackberry smartphone? 

Improve Efficiency Through Customer Feedback

Customer-centric companies understand the power of customer feedback in improving efficiency. By actively seeking and implementing customer input, these companies can continuously improve their products and services, empowering them to stay ahead of the competition. 

If your customer often faces a common problem, consider making a video on “ how to solve that specific problem.” Address pain points and work on improving them as soon as possible. After making a video with solutions, consider adding a link to every message, such as a newsletter, email, or in-app message. 

Customer-centric organizations anticipate customer needs to provide a delightful customer experience through customer information, which makes it one of the important customer-centric metrics.

Increase Customer Loyalty

High-quality and unique products are often factors that attract buyers, but this is not enough to engender customer loyalty. A customer-centric company maintains great customer experiences that are aligned with quality products, which allows it to reduce its customer churn, or the rate at which customers stop doing business with a company. 

Nowadays, every product maintains quality and competes to provide the best functionalities. But what allows customers to choose one? An excellent customer experience from the company’s support teams always enables customers to select their provider and reduces business customer retention. By following customer-centricity, a company can maintain effective customer retention management.

Best Practices to Create Customer-Centric Strategy for Business

Now that you have learned why customer-centric strategy is important for your business, let’s explore how to create a strategic customer-centricity to enhance your business growth. 

Create Customer-Centric Strategy for Business

Here are some strategies to establish a customer-centric business: 

1. Get Everyone Involved

Every company divides its teams for each role and task, which is why not every team member can interact well with customers. This is the reason that the majority of customer-centric companies have started engaging whole team members in customer support systems and services

For instance, if you are a software engineer in the company and can learn about customer feedback, you will definitely consider the customer’s complaints, requests, and common issues while creating the product. This also allows you to innovate ideas based on customer data that can work like magic to gain customer success over time. 

Involving everyone in the customer service team allows each team member to step away from their work for a while and actively listen to the people using the product. Good feedback motivates and empowers employees to create better engagement and products, whereas complaints help find room for improvement. 

This results in providing each team member with customer data, which allows them to better understand what customers think and what their requirements are. This ultimately contributes to the company’s growth and provides customer value.  

2. Customer Centric Culture

It’s not that easy to establish a customer-centricity model if you are new at this. One decision focused on customer wants does not make your business a company focused on a customer-centric culture

It is a culture to be built among every team member that allows businesses to provide exceptional and consistent customer experiences. 

You’ll be required to know how your business is regarding customer satisfaction and how you can improve it. A customer-centric culture is made by figuring out the possible ways to enable the best consumer experience. Some of the ways are:

  • Records: Create a record of your customer’s requirements to get an in-depth insight into their needs.
  • Track customers: Check if the customers are satisfied with the company’s functionalities and track their best and worst experiences. 
  • Target: Be sure that all your employees have a clear insight into whom they are targeting. 
  • Observing performance: Start analyzing customer experience and look for points that need to be improved. 

3. Deep Customer Insights

Deep customers data are important for creating a company with customer-centricity because they enable businesses to understand customer needs and pain points. Personalization becomes easier and more effective after understanding customer needs, which lets customers perceive customer-centric experiences. 

Your company can provide a personalized experience according to customer behavior that leads to higher customer satisfaction. 

Deeper knowledge and putting customers preferences at prioritiy helps businesses to provide better customer journey optimization. This involves identifying pain points, challenges, trends, evolving requirements, and providing an easier path within the customer journey. 

Also, after understanding your company’s customer perception, every effort and investment put in increases the chance of gaining higher customer lifetime value. 

4. Metrics & Measurement

You will have to measure customer experience metrics to achieve constant improvement and create a company aligned with a truly customer-centric approach. Businesses can know customer preferences and needs by tracking customer interactions and behaviors systematically. 

To analyze customer experience, measure customer engagement metrics and KPIs such as customer satisfaction score, customer churn, customer loyalty, customer retention rate, and customer effort score.

Also, collecting customer feedback is equally important to establishing a company with customer-centricity principles. We will discuss this in depth below. 

5. Customer Feedback Analysis

How do you know what your customers feel about your company and services? The answer is simple: collect customers’ feedback. These collections of customer experiences are a stepping stone to business growth because they help maintain customer-centricity and improve products and customer service reps. 

For instance, in 2007, Dell launched the IdeaStorm platform, where customers could share their suggestions and ideas. Dell reviewed the popular ones and then implemented the best of them to modify their existing services. The result? A development in laptops pre-installed with Linux that allows them to respond directly to customers’ demands boomed them in the market, giving them a high competitive advantage among more companies. 

This example doesn’t mean that your company should start a feedback platform. However, you can collect your customers’ feedback through multiple digital channels, such as customer surveys, reviews, and social media posts. This is important in the customer-centricity model. 

6. Personalize Experience

Customer centricity also includes providing a personalized customer experience. You can use any information you have about your customers to do this. 

For example, you can customize the newsletters or add additional personalized recommendations that allow your existing customers to improve customer’s experience.  

When a customer reaches out to you with trouble accessing your online services, respond quickly to solve their problem. This increases the chance of repeat customers. You can also add information on how the other self-help services such as online portal can be used in helping customers solve their problems and meet their requirements.

This customer-centricity principle makes your customer feel valued, which increases the number of loyal customers. 

7. Treat Your Company Culture as an Asset

A customer-centric company needs to value its customers and employees. Creating empathetic relationships with other customers first requires establishing the same environment within the company. 

When employees feel valued, they are willing to put in extra effort to ensure customer satisfaction. This ecosystem fosters happiness within the company and with customers.

Here’s how you can treat your company culture as your asset: 

  • Reward performance: Who doesn’t want praise and appreciation? Create an environment that values excellent service and rewards employees who go beyond or above the average and put in more effort. 
  • Hire suitable people: Evaluating potential hires requires not only talent or skill but also a positive attitude to serve with a humble approach to the customer base. Consider hiring a team player with an enthusiastic mindset to provide customer support. 
  • Trust team: Encourage employees and let them feel they are contributing to the company’s ideas. 
  • Show gratitude: Your business must regularly show appreciation to employees for contributing to customer success. 

8. Invest in Customer Service

One important factor of customer-centric companies is that they never see customer support expenses as their cost but as an important factor in generating more revenue. 

As a customer-centric company, investing in a support system is the force that drives its growth and sets it apart in the market. Your customer support team is always close to the customers and helps to solve problems regularly. Without a doubt, customer service experience directly affects each company’s decision. 

To create an effective company with customer-centricity, you can invest in these terms for better customer service:

  • Paying well to agents engaged in customer service support.
  • Only hire excellent people with smart communication skills.
  • Treating rights to all professionals according to their professions.
  • Investing in providing self-service options support.
  • Ensuring the work-life balance of customer support agents.

These investments create more opportunities for agents to have excellent proactive conversations, solve queries, and establish long-term relationships. 

Conclusion

A customer-centric approach not only contributes to satisfying customers but also leads to higher company revenue. By understanding customers’ needs and preferences, businesses can create better products, win customers’ trust and loyalty, and transform their business. The ultimate objective of this approach is to provide customers with a feeling of value, which increases their long-term relationships with customers. 

To implement this strategy, businesses need to involve every employee to provide a collective customer-centric culture, gain deeper insight into customer data, and invest more in increasing happy customers. Companies need to measure customer experience analytics and analyze the customer’s feedback, which is important for consistent improvement. These practices can lead to building an effective customer centric business strategy that helps achieve business growth. 

FAQ

Why is a customer-centric strategy important?

A customer-centric strategy is important because it helps businesses achieve loyal customers, financial growth, and a greater competitive edge when handling new customers.

How can I get started with a customer-centric strategy? 

Here are 8 ways to get started with a customer-centric strategy.

  • Get employees involved in the company.
  • Establish a customer-centric culture.
  • Learn more about customer’s preferences from customer data.
  • Measure customer experience metrics and KPIs.
  • Collect feedback from customers. 
  • Personalize customer’s experience to gain customer happiness.
  • Encourage your company employees.
  • Invest in experienced customer service reps. 

What tools can help me create a customer-centric strategy?

To create customer-centric strategies, you can use the following tools:

  • Customer Relationship Management ( CRM ) software: Salesforce, Zoho CRM and HubSpot
  • Customer Feedback Platforms: Google Forms, SurveyMonkey, and Qualtrics
  • Social Media Monitoring Tools: Brad24, Meltwater, and Hootsuite
  • Analytics Tools: Google Analytics, Mixpanel and Qlik
  • Customer Journey Mapping Tools: Microsoft Visio, Smaply, and Lucidchart
  • Customer Support Software: Zendesk, Help Scout, and Salesforce Service Cloud, 

How can I measure the success of my customer-centric strategy?

You can measure the success of your customer-centric strategy by conducting surveys to collect customer feedback. Besides this, you can consider measuring customer service metrics such as net promoter score, customer churn rate, and customer effort score.

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Dinesh Silwal

Dinesh Silwal is the Co-Founder and Co-CEO of KrispCall. For the past few years, he has been advancing and innovating in the cloud telephony industry, using AI to enhance and improve telephony solutions, and driving KrispCall to the forefront of the field.

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