As a customer centricity champion, just like you I hope, I spend a lot of my time researching what customers want.
I’m always trying to understand exactly what their preferences are today, and where these may be going. My regular searches online 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.
Wikipedia, another online 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:
- A positive customer experience has been shown to increase both loyalty and advocacy. (>>Tweet this<<) 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.
- Adding value to a company also increases the ROI of its marketing investments. This is something that marketing is challenged to prove today, with the risk of seeing their budgets cut if they can’t. Luckily, what’s good for the customer is good for business. You can see many more facts and statistics in Forrester’s report “The Business Impact of Customer Experience” HERE.
- The third benefit is just as important to the growth of a business. Enabling differentiation in this complex world is invaluable in standing out from the competition. (>>Tweet this<<) In so many industries today product performance and services are almost identical, so how can you differentiate your brand? By your customer care, that’s how. And knowing exactly what your customers want. It has been shown that customers are willing to pay more for excellent customer service. Yes MORE for exactly the same product or service, so why are you waiting? You can read a summary of the American Express research that reported this finding HERE.
I would also add that to summarise what customers want today, it is a seamless experience from pre to post purchase, both on and offline. That’s how you deliver satisfaction, build loyalty and create raving fans.
The Importance of Customer Satisfaction & Understanding
There is no denying that customer centricity is important, no vital to growth and profitability. However some companies are (too?) hesitant to adopt best practices in this area, which concerns me for a number of reasons:
- Changes are happening too slowly in most organisations. If it is important for the business, then what is stopping companies from adopting a more customer centric approach? The longer they wait, the more they risk being beaten by a more customer friendly competitor. And this is why so many start-ups are stealing significant share from the major brands. It’s no longer (just) about product and service performance any more. It’s about how the customer feels about your brand. Niche brands have understood this better than anyone.
- Customers are complaining – a lot – about the way they are being treated. Why are companies not accepting these criticisms as the gifts they are? Acting promptly before the issue becomes a social media viral discussion is essential today and your complainers may even turn into advocates if delighted with the outcome. Complaints are also a wonderful (free) sources of innovation and renovation ideas. Find out what your customers are unhappy about and then propose a solution. You may even be able to charge more since the new offer will better meet their needs.
- Customer service is still being confused with customer satisfaction. Companies are happy when their customers say they are satisfied, but that is no longer enough. All businesses should be looking to surprise and delight their customers! Find more inspiration on this in “The Revolutionary Marketing Challenge is Not Customer Satisfaction.”
As mentioned above, the research that prompted this post was a Google keyword investigation of terms related to customers. Having seen the strong positive trend for the word customer, I then wanted to understand what it was about customers that was of interest to those searching online.
I found that both customer service and customer care showed almost identical positive trends. However, when I looked at customer satisfaction and customer understanding the trends were flat and worse, minimal. (You can see the trend graph below)
These trends suggest to me that companies search how to improve their customer service and care, but not about how to understand their customers or increase their satisfaction!
How can this be? Surely an interest in customer service should come from an increased understanding of how to deliver customer satisfaction? Well apparently not, at least for most people!
And this is when I realised that perhaps businesses are more interested in the process than the real benefit of customer connection. That is a serious flaw in their thinking in my opinion. Do you agree? Whether you do or don’t, please comment below.
To confirm my hypothesis, I looked into customer satisfaction levels and their trends. After all, many more companies are interested in customer service these days aren’t they? So you would think it should have a positive impact on customer satisfaction.
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According to the latest report from The Institute of Customer Service on customer satisfaction across Europe, retail, insurance and banking are the three best performing industries. This was a surprise to me because they used to be the most heavily criticised!
However this suggests that they have taken action, albeit because they had little choice, and are now leading the pack. But most other industries continue to ignore what their customers want. You can see the full Infographic overview below; click on it to see the full-sized original.
I then went back to Google to find ways which were suggested for increasing customer satisfaction. I found almost 100 million articles on how to do it, but very few on the results. While this is certainly a significant increase on the measly two million I found just a few years ago, it is still extremely worrying.
The increased interest in customer satisfaction is confirmed by the latest results of the US ACSI (American Customer Satisfaction Index) report. It shows customer satisfaction is stable after showing steady growth since the beginning of last year. That was the latest turnaround after more than two years of disastrous declines.
It has been proven that changes in customer satisfaction are a predictor of future consumer spending. So although we can rejoice at the return to higher levels, the latest stagnation suggests average future spending growth at best.
David VanAmburg, who is Managing Director at ACSI said recently:
“Customer satisfaction will need to increase for the economy to grow at a faster pace. It’s tough to pinpoint one cause of the stagnation, but unless it budges, the national ACSI score paints a dire picture for consumer spending growth.”
In the UK, which leads Europe in terms of customer satisfaction, levels also rose for the first time in four years, reflecting a more positive economy. However, that was before the Brexit vote and before the exit! I am looking forward to seeing whether the Brits’ optimism continues this coming year.
So what does a business need to do to deliver what their customers really want today and increase their satisfaction? There are seven facts that become apparent from this analysis:
- Businesses should always provide a positive customer experience and do whatever it takes to not only satisfy, but ideally delight their customers.
- Companies need to go beyond the mere process of customer centricity, to truly put their customers at the heart of the organisation, by adopting a customer first strategy. Read “What a Customer First Strategy Is (And what it’s not!)” for more on this.
- Customer centricity adds demonstrated value to a company; it should be a no-brainer for every single business, whatever the industry.
- Customer centric improvements are happening too slowly in most companies, especially when customers are becoming ever more demanding and verbose when disatisfied.
- Providing customer service doesn’t guarantee customer satisfaction.
- A positive customer experience always increases loyalty and advocacy.
- Excellent customer service enables differentiation and even higher prices.
In summary, people want businesses to listen and understand them. When a customer takes the time to contact a company because they are unhappy, or even just for information, they expect a satisfactory outcome as a minimum. Those organisations who go beyond, to deliver surprise and delight, will see their reputations improve, as well as an increase in their customers’ loyalty and advocacy.
Customers also want companies to be open and transparent. They want immediate, if not instantaneous, answers to their questions and criticisms.
They have a right to know the source of ingredients, the ingredients themselves, the country of origin, the charities the company supports, or the organisation’s policies on waste, water and sustainability. What customers really want today is to have their questions answered (almost) immediately, especially on social media. They expect things that go wrong to be put right – quickly, with an equally rapid explanation and apology.
So how are you doing? Are you living up to your customers’ expectations? Are you delivering what your customers really want? How have you made progress in this area in the past year or so? Please share your success stories below.
You know you can no longer wait; you’re getting left behind by those organisations – and competitors – who are taking action today! Take the C3C Evaluator™ quiz and find out exactly where your greatest opportunities lie.
For more ideas on how you can understand what your customers want even better, why not organise one of our 1-Day Catalyst Training Sessions? We have them on many areas of customer understanding and service, so you are sure to find exactly what you need to inspire and energise your team. Check out and download our brochures.
If you would rather talk through your specific needs first, so we can personalise the course just for you and your team, then feel free to book time in my calendar.
This post is an update of one that was first published on C3Centricity in 2011. The featured image at the top is from the book “Winning Customer Centricity – Putting customers at the heart of your business – One day at a time.”