By now, every CEO knows that a stronger customer focus is the answer to many of their business challenges. Why therefore do so many companies still struggle to adopt a customer-first strategy and culture?
Read on for my own thoughts and perspectives on what should be a top company objective which results in proven business success.
I provide answers to the seven main reasons why companies fail to adopt a customer first strategy; which one are you struggling with today?
1. The CEO has stated it as a company objective but has not detailed what nor how the organisation will change
While it is essential that a customer-first strategy has a board-level sponsor, it is important that every employee understands their role in making it happen. It should not be treated as just another project but as a long-term company top 3 objective.
When this happens, every division is obliged to see how they will be impacted and what part they will play in meeting it. This is one area where the CEO can’t set it and forget it. He/she needs to be regularly informed of progress and then ask “awkward” questions to ensure that everyone is truly embracing it. Without company-wide support, it will never succeed.
In August of last year, the Business Roundtable, which is an association of over 180 CEOs leading US companies, agreed to put people before profits. They specifically said they would be:
- Delivering value to our customers.
- Investing in our employees.
- Dealing fairly and ethically with our suppliers.
- Supporting the communities in which we work.
With many organisations now struggling with the impact of covid-19, it will be interesting to see whether they will have all moved forward on these objectives one year later. For more details on this announcement I suggest you read the Forbes article.
2. The organisation has not fully embraced the strategy
As mentioned above, everyone has a role to play in satisfying and delighting the customer. It is not the job of marketing, sales or market research alone to understand their needs. It is vital that each employee thinks customer first and ensures that every action and decision they make is customer centric.
One easy way to do this is to ask this question at the end of every meeting:
“what would our customers think of the decision we just made?”
If there is something they wouldn’t like or you know that you yourself wouldn’t approve of, then it needs to be reconsidered.
I would also suggest reading the recent post “7 Ways to Deliver Awesome Customer Service.” It includes seven recommendations so that everyone in an organisation can treat the customer with the respect and great service they deserve.
7. They think it costs too much
While this may be the perception, in reality, it costs a lot more NOT to adopt a customer-first strategy. It makes both business sense AND customer sense.
There has been so much research done on the impact of adopting a customer- first strategy that there is no doubt that it provides a positive ROI (return on investment):
- Walker found that 86% of buyers would pay more for a better experience.
- Genesys showed that improving the experience for customers is the key to increasing retention, satisfaction and sales.
- Deloitte and Touch claim that customer centric companies are 60% more profitable.
- Bain & Company research shows that increasing customer retention rates by 5% increases profits by between 25% and 95%.
These numbers should be sufficient to convince every CEO that a customer-first strategy is worth investing in. In fact, it is an essential strategy every CEO would be wise to adopt, no matter what industry they are in.
So what are you or your CEO waiting for? Did I miss a different problem you are currently facing? What other challenges have you faced or are now facing in adopting a customer-first strategy? Please let me know by adding your comments below.
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