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

The New Qualities for Customer Service Excellence

The current pandemic has clearly highlighted those companies who care about their customers and who provide them with customer service excellence.

If you claim to be customer centric are you sure you’re truly walking the talk and not just talking about customer service excellence? Many companies are and the pandemic has brought them into the spotlight.

A few years ago I was prompted to question this of the local Swiss cable company Cablecom. It had been desperately trying to address a long-term deficit in customer service excellence versus its main competitor Swisscom.

Swisscom has made customer service their MSP (main selling point or value proposition) and they are renowned for putting their customers first. Cablecom, on the other hand, had, until then, been trying to win customers through aggressive price cutting. In today’s connected world, especially when internet connection is concerned, dissatisfied customers will be quickly heard – across the net.

Back to the incident that prompted this post. After a few days of being ignored by Cablecom – my perception at least because my emails and phone calls were not being answered – I’m somewhat embarrassed to say that I resorted to Twitter.

It is more than five years ago that Twitter was first referred to as today’s call centre. Social media usually guarantees a quick response whereas contacting customer services through the usual channels often results in nothing.

 

What makes a great customer care centre?

Customers these days expect a response in minutes or hours rather than days. Recent research shows that 88% of customers expect a response from your business within 60 minutes, while 30% expect a response within 15 minutes or less! How good is your own customer service?

Most call centres today are a frustrating if sometimes necessary experience for customers to endure. In many cases, they are automated, with an often long and complex self-selection process of button pushing to arrive at the department one needs – if you are lucky that is!

Usually, the result of all that effort is just a recording that either announces that the department needed is not open at the moment, or that the collaborators are currently busy and to please stay on the line at best, or to call back later most often.

We are next subjected to music supposedly designed to calm our nerves, interspersed with messages suggesting alternatives to waiting on the line: going to the website to find a solution, to check their available FAQs, to complete a contact form, or to send an email. And then, of course, to add insult to injury, we hear the infamous message about our call being important to the company! Really? If so you’re not showing it, you’re not walking the talk.

Companies that have understood customers’ frustration with help-line queues have found alternative solutions, such as arranging a callback or providing sufficient staff to cover the busiest times, or at least to be available when the customer is most likely to need support.

Today there is no excuse for a consumer goods company to not be ready to help their users when they need it the most; for example:

  • Early morning or late at night for personal care products
  • Breakfast, lunch and evening meal times for food manufacturers
  • Evenings and weekends for TV and technology products

Whilst in a few cases, there may be customers who use Twitter to jump the call centre queues, in most cases, it is a customer’s final cry for help after being frustrated by long waits on their careline calls, or self-service selections that led nowhere.  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

The New 7Ps of Customer Service Excellence. Are You Following Them All?

If you claim to be customer centric are you sure you’re walking and not just talking the talk of true customer service excellence?

Last year I was prompted to question this of the Swiss cable company Cablecom. It had been desperately trying to address a long-term deficit in customer care versus its main competitor Swisscom. Swisscom has made customer service their MSP (main selling point or value proposition) and they are renowned for putting their customers first. Cablecom on the other h and had, until then, been trying to win customers through aggressive price cutting. In today’s connected world, especially when internet connection is concerned, dissatisfied customers will be quickly heard – across the net.

Back to the incident that prompted this post. After a few days of being ignored by Cablecom – my perception at least because my emails and phone calls were not being answered – I’m somewhat embarrassed to say that I resorted to Twitter.

It was more than a year ago that Twitter was first referred to as today’s call centre. Guy Clapperton, author of “This is Social Media” wrote an interesting post about this in 2011 and surprisingly this idea was actually questioned at the time. Today, I would argue that it is much, much more than this.

Today’s call centres are a frustrating, if sometimes necessary experience for customers to endure. In many cases they are automated, with an often long and complex self-selection process of button pushing to arrive at the department one needs. Usually the result of all that effort is just a recording that either announces that the department needed is not open at the moment, or that the collaborators are currently busy and to please stay on the line. We are next subjected to music supposedly designed to calm our nerves, interspersed with messages suggesting alternatives to waiting on the line: going to the website to find a solution, to check their available FAQs, to complete a contact form, or to send an email. And then of course to add insult to injury, we hear the infamous message about our call being important to the company! Really? If so you’re not showing it, you’re not walking the talk.

Edison recently ran some research showing the patience that we have or rather don’t have today, on social media. Convince & Convert published some of the first results in an interesting article showing that companies must react immediately to customers using social media. One in five expect an answer within 15 minutes and 42% within the hour. For reference, when Guy Clapperton wrote his post almost three years ago, the level was almost half that at just 25%.

Companies that have understood customers’ frustration with help-line queues have found alternative solutions, such as arranging a call back, or providing sufficient staff to cover the busiest times, or at least to be available when the customer is most likely to need support.

Today there is no excuse for a consumer goods company to not be ready to help their users when they need it the most (>>Tweet this<<); for example:

  • Early morning or late at night for personal care products
  • Breakfast, lunch and evening meal times for food manufacturers
  • Evenings and weekends for TV and technology products

Whilst in a few cases, there may be customers who use Twitter to jump the call centre queues, in most cases, it is a customer’s final cry for help before “going under”. Continue Reading

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