How to Measure Customer Centricity the Right Way

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As a customer-first strategist (just like you I hope), I spend a lot of my time searching how to better measure customer centricity for my clients. I also do a lot of analyses on what customers really want today. I’m always trying to understand the exact solutions customers need, desire and dream of having.

My regular searches include customer service, customer satisfaction, customer care and similar topic areas. Google is my best friend! However, I recently came across some surprising facts, which prompted this post. I believe they show a serious problem in the business of looking after our customers today. Read the article and then let me know whether or not you agree with my analysis.

CUSTOMER CENTRICITY

Wikipedia, another online friend of mine, doesn’t have a definition of customer centricity! If you look up the term, you get redirected to customer satisfaction!  Try it for yourself and see.

My other go-to source for definitions is  businessdictionary.com which defines customer centric as:

“Creating a positive consumer experience at the point of sale and post-sale.”

It then goes on to say

“A customer-centric approach can add value to a company by enabling it to differentiate itself from competitors who do not offer the same experience.”

Now although I find the definition limited, since it refers only to sales and post-sale activities, I do like the fact that it mentions three important elements of customer centricity:

  • A positive customer experience
  • Adds value to a company
  • Enables differentiation

This clearly identifies three huge benefits of becoming (more) customer centric:

1. A positive customer experience has been shown to increase both loyalty and advocacy. As we all know, it costs five times more to acquire a new customer, as it does to keep a current one. Therefore loyalty is an incredibly valuable benefit for a brand.

According to recent research by Bain & Company, along with Earl Sasser of the Harvard Business School increasing customer retention by just 5% can increase profits by between 25% and 95%. OK a very wide range, but I’m sure we’d all be happy with even a 25% increase in profits, wouldn’t we?

One further piece of research, this time from Marketing Metrics, shows that the probability of selling to an existing customer is 60 – 70%, whereas the probability of selling to a new prospect is less than 20%.

Clearly placing more attention on keeping our current customers satisfied brings greater rewards than going after new ones. And yet that is what most companies set as a priority. Any ideas why?

2. Adding value to a company also increases the ROI of its marketing investments. This is something that marketing is constantly challenged to prove these days. With the risk of seeing their budgets cut if they are unable to provide convincing arguments to their bosses.

Luckily, what’s good for the customer is good for business. Continue Reading

What Customers Really Want – And How to Give It To Them Today!

As a customer centricity champion, just like you I hope, I spend a lot of my time researching what customers want. And in this period of reset, understanding our customers has become more important than ever before.

Just a few short months ago, I didn’t think that it would have been possible for customer-centricity to become any more important. But things happen and now everyone is fighting to keep their businesses afloat. So the new and constantly changing desires of our customers have become a top priority for us all to follow.

I’m always trying to understand exactly what our customers’ preferences are, and where they may be going. My regular searches online include customer service, customer satisfaction, customer care and similar topic areas. Google is my best friend!

A couple of years ago, I came across some surprising facts, which prompted this original post. But recent changes have made it important for me to update it once again. At the time, the analysis showed a serious problem in the business of looking after our customers. Today it is clear that any organisation that hasn’t spent the past few years putting things right, will most certainly be suffering in this post-pandemic business crisis. Read further and then let me know whether or not you agree with my analysis.

 

Customer Centricity

Wikipedia, a faithful friend of mine, doesn’t have a definition of customer centricity! If you look the term up, you get directed to customer satisfaction! Unbelievable isn’t it?  Try it for yourself and see.

My other go-to online resource for understanding terms is businessdictionary.com, which defines customer centric as:

“Creating a positive consumer experience at the point of sale and post-sale.”

It then goes on to say:

“A customer-centric approach can add value to a company by enabling it to differentiate itself from competitors who do not offer the same experience.”

Now although I find the definition somewhat limited since it refers only to sales and post-sale activities, I do like the fact that it mentions three important elements of customer-centricity:

  • a positive customer experience
  • adds value to a company
  • enables differentiation

This clearly identifies three huge benefits of becoming (more) customer centric for any and every business:

1. Positive customer experience has been shown to increase both loyalty and advocacy.  As we all know, it costs ten times – if not even more – to acquire a new customer, as it does to keep a current one. Therefore strong loyalty is a valuable benefit for a brand.

However, with much of supermarket shopping going online – there was a 161.4% increase on March over February – loyalty takes on a whole new meaning. Customer experience is now far more to do with the online ease of ordering than that of store shopping. Unfortunately, most supermarkets didn’t prepare for such an onslaught.

2. Adding value to a company also increases the ROI of its marketing investments. This is something that marketing has been challenged to prove in recent years, with the risk of seeing their budgets cut if they can’t. Continue Reading

Fundamentals of a Customer First Strategy For Every Industry

Every industry strives to improve their customers’ experience with their products and services. Adopting a customer first strategy is therefore in many company objectives. Unfortunately it rarely goes beyond the theory in most organisations, so I decided to help out with these six suggestions.

Hospitality is perhaps one of the most visible industries where customer satisfaction, or lack of, is quickly shared with the world.  It is true that without satisfaction, customers will not return to a hotel or restaurant. And they will almost certainly share their (bad) experiences with anyone who will listen.

Hospitality is also one of the industries that receives the most comments online, thanks to TripAdvisor and other booking sites. There is no hiding from their clients for hospitality! While I empathise, it’s not all bad news. This is because it also means that great service will also be more quickly seen online. Therefore you can make changes and see the results almost immediately, or at least far quicker than in most other businesses.

However, despite this, I believe that the hospitality industry has a lot it can learn from consumer packaged goods (CPG). In fact most other industries could benefit from taking a look at some of CPG’s best-in-class processes.

Both the hospitality and CPG industries have their customers at their heart. They are both founded on pleasing and hopefully delighting their clientele in the quality of the products and services they offer. However, as the world changes, customer demands do too and companies need to stay current if not ahead of these requirements in order to ensure continued growth.

 

#1. From ROI / ROR to ROE

There has been a lot of talk recently on moving from a return on investment to a return on relationships. Whilst I agree with the importance of relationships, I believe that what we should be talking about is engagement. Be honest, other than the popular book that started talking about brand love, who wants to have a relationship with a brand?!

Brands that have a high following and loyalty have found a way to consistently engage their fans and keep them coming back. They become involved and interested in the brand, the product, their website, even their communications. Coca Cola and Red Bull are great examples of this. You should also check out another post entitles Increasing Impact & Engagement through Advertising Testing.”

 

#2. Build Relationships with Strangers

While the hospitality industry is based on serving and satisfying its guests, in today’s connected world, it also needs to consider people who are currently strangers – but who could potentially become clients.

These might be the friends of current guests, which for example the Rosewood Mayakoba resort in Mexico tries to attract.

 

 

These are just six of the many ideas I shared during a presentation I gave to the faculty of a world- renowned hospitality school. If you are interested in seeing the full talk, I am happy to share it. Just email me with your details and what your biggest business challenge is currently in adopting a customer first strategy. Continue Reading

What Consumer Goods Companies Can Learn From Healthcare. 7 Lessons of Customer Service Excellence

If you work in consumer goods you probably think you have nothing to learn from healthcare, right? After all, you have consumers in your industry name and well healthcare’s reputation is not that great.

But think again. I was recently in a clinic for surgery and was surprised by how customer (patient) centric they are.

I remind my clients that exceptional customer service examples can come from anywhere! So they keep their eyes and ears open and find inspiration everywhere. Do you? If not, then these lessons will come as your wake-up call so you start opening your eyes to new possibilities. Do this every day and your business will only get better.

 

Background

Before I give you the lessons I learned, I think I owe you a little background to what led up to this list.

I had been suffering from a bad back for a while. Unfortunately, not so unusual for those of us who spend too many hours at our desks. However, one morning I tried to get out of bed and fainted as an explosive pain shot down my back to my right foot! I was totally immobilised in three seconds flat!

Now living alone I realised that this was serious as I couldn’t move. Luckily my mobile was by my bed so I called the emergency services who immediately sent an ambulance. I ended up spending a night in a local University Hospital for the first time in my adult life.

However, the story doesn’t end there. Two days later I fell down the stairs because my leg had become partially paralysed. Another visit to the emergency room, an ankle brace fitted, a consultant’s assessment, an MRI scan and finally emergency surgery the following day.

All these experiences of hospitals and doctors gave me the superb opportunity to see the health service from the patient’s perspective. I work a lot with the Pharma industry but luckily have never been a patient, at least until now.

As you probably know, actually becoming your customer and seeing the market from their perspective, is one of the exercises I suggest to better understand them. How often do you do it? Ever?!! You really should, because you’re missing out on a valuable – and free – experience.

Perhaps surprisingly, this incident showed me that many of the practices of the nurses and doctors that I witnessed in my heavily sedated state, are easily transferable to any business. This is why I decided to share them with you.

So here are my seven learnings about customer service excellence:

 

1. Introduce yourself

Customer service excellenceEvery time someone came to my room, they introduced themselves and explained why they were there. Over the course of the days I spent at the hospital and then the clinic, I saw many different doctors, nurses. cleaners, waiters etc. I appreciated that they themselves always started by introducing themselves and stating what their responsibility was in caring for me.

How you can apply this idea: In business, we often forget to introduce people in meetings and when we do, we forget to explain their responsibilities, why they are there. Continue Reading

What a Short Hospital Stay Taught me About Customer Experience

Examples of exceptional customer experience can come from anywhere! You know that. You keep your eyes and ears open and find inspiration everywhere. So do I.

But last week, I had the fright of my life. I returned from visiting my family over the festive season, with an ever-increasing pain in my lower back.

OK, so sitting all day is not good for my posture. I suppose I deserve to finally pay for all the hours I spend in front of a screen every day.

Anyway, it got so bad that I visited the doctor on Wednesday, who gave me painkillers, anti-inflammatories and a muscle relaxant. I took them all that evening, but when I got up the following morning, I fainted from a sudden intense pain. A half hour later I managed to crawl out of bed to take my pills, then hobbled back again to wait until they took effect.

A couple of hours later when I tried to get up, I again fainted with the pain, but now also had the new sensation of an explosive flame which shot down my back to my right foot! I was totally immobilised in three seconds flat!

I was in agony, so all I could do was to return to my bed. However, the mattress no longer offered any relief and I whimpered like a tortured animal as I suffered continuously from these now double injuries.

Living alone I realised that this was serious. Luckily my mobile was by my bed so I called the emergency services who immediately sent an ambulance. All this to say that I ended up spending a night in a hospital for only the second time in my life.

However, the story doesn’t end there. Two days later I fell down the stairs as my leg had become partially paralysed. Another visit to the emergency room, an ankle brace fitted, a consultant’s assessment, an MRI scan and finally emergency surgery the following day.

All these experiences of hospitals and doctors gave me the superb opportunity to see the health service from the patient’s perspective. I work a lot with the Pharma industry but luckily never became a patient, until now.

As you probably know, becoming your customer and seeing the market from their perspective is one of the exercises I suggest to better understand your customers. How often do you do it? Ever?!!

I learnt a lot about how to excel at customer experience from all my visits. Surprisingly, many of the practices of the nurses and doctors that I witnessed in my heavily sedated state, are easily transferable to any business. This is why I decided to share them with you.

So here are my seven learnings about excellence in customer experience:

 

1. Introduce yourself

Every time someone came to my room, they introduced themselves and explained why they were there. As the first establishment, I stayed in was a University Hospital, there were tens if not hundreds of staff on duty, so I rarely saw the same person twice over the 24 hour period I was there. Continue Reading

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