How Customer-Centric Marketing can Help your Business Grow

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how Customer-centric Marketing can help your business

What is Customer-centric Marketing? 

Customer-centric marketing is the culture and strategy of putting clients and customers first. Customer-centric marketing, also known as customer-centricity, prioritizes customer experience, leading to brand loyalty. 

Marketing today now revolves a lot more around customers and consumers, and it has given rise to the need to understand the customers beyond statistics and data. It focuses on serving customers more than product features and benefits. 

Getting a business idea is just a step in the business operation cycle for so many entrepreneurs. Determining if customers will resonate with your Solution is an entirely different game.

What’s a Customer-centric Organization

Businesses that operate customer-centric strategies ensure customers are the core of their ideologies, operations, and philosophies. Customer-centric companies believe that their clients are the primary reason they exist, and they use every means at their disposal to keep the client satisfied. 

Working out customer-centricity sounds easier than done. There’s no doubt the enormous data being generated today, and that’s at the disposal of business. 

But making sense of the data and fine-tuning it to serve the goal of your brand can be the most challenging call because people are dynamic. 

Customer-centric organizations:

  • Don’t just talk about keeping customers top of mind. They understand their client and anticipate their wants, needs, and communication preferences to create meaningful experiences.
  • Create a culture that empowers employees to make win-win decisions that favor the company and the customer.

According to Informatica, customer-centricity is as much a strategy as it is a culture. To be recognized by the customer’s final decision-maker, it has to be ingrained in an organization. 

Why Your Business Needs Customer-Centric Marketing 

Why is customer-centricity important to your business and brand? Because customers are what makes a business. Any company that can not make its clients happy would find it challenging to retain them. And what is a business without customers?

Every business must integrate customer-centricity into their marketing process because:

  • Everyone patronizes brands that make it easy to do business with them.
  • According to PWC, one in three customers will leave a brand they love after one bad experience.
  • Consumers have increasing options and an easier path to walk away from any brand.
  • The big idea of customer centricity is customer loyalty and retention. 
  • In 2014, Harvard Business Review underscored that acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.
  • Customer-centricity done right results in your customers trusting they will not only get what they want and need. Still, they will also experience enjoyable and frictionless service, including boxless returns, order online/pickup in-store, immediate refunds, fast delivery of online orders (sometimes same-day or even 2-hour). These experiences delight and build trust that helps retain customers for the long haul.
customer-centric marketing

How To Measure The Benefits Of A Customer-Centric Culture 

When it comes to investing money for marketing campaigns, it is recommended you focus on these two metrics:

  • Customer value
  • Customer acquisition

When combined, these two focal points can help your organization decide how much of your resources can be profitably allocated against a particular customer or set of customers.

It is one thing to serve potential customers and pay the business in return. Keeping that balance will guarantee profitability in your industry.

Read Also:

How to Attract The Right Audience in 6 Simple Ways

Top 7 Deadly Marketing Mistakes to Avoid and Boost Your Sales

Why Measure Customer-Centricity?

A vital step to building a customer-centric strategy and culture is agreeing on the key performance indicators (KPIs) and metrics that your business measures to determine what is working and what needs to be improved.

You measure to manage. Customer-centric marketing, sales, and service efforts must align with measurable KPIs.

Using customer metrics such as retention rate, propensity to churn, customer satisfaction (CSAT), customer effort score (CES), and wallet share will keep your efforts on track. 

In addition to tracking metrics such as revenue by product or channel, you must capture and measure customer behavior, sentiment, value, and other critical customer-centric metrics.

Customer Lifetime Value (CLV) is one of such metrics you must measure.

CLV measures the value of a customer over the entire relationship it has with a business or brand. It is a critical indicator of how well marketing and other tactics work to establish long-term, highly profitable customer relationships. When CLV is tracked accurately, you can spot early signs that a customer might churn. CLV data makes it relatively easier to perform customer segmentation for targeted promotions and other offers.

Net Promoter Score (NPS) is another important way to measure customer-centricity. NPS is quite popular and is used more by consumer-facing brands and asks: “How likely is it that you would recommend [brand] to a friend or colleague?” It is a common predictor of growth and measures the brand’s overall perception. 

How to Build a Customer-Centric Culture

How to Build a Customer-Centric Culture

  • Instill Empathy as Operational Value

Not many businesses know how to empathize with their customers. Customer empathy is the ability to find out what emotional needs a customer has, pinpoint the “why” of that need, and present an effective solution to meet the demand.

Slack spends tons of hours dissecting customer messages to understand them further. An excellent social listening and monitoring software would suffice at this point. With a social monitoring tool, your business can track the sentiment of your customers and have your PR team swing into action fast.

  • Have a Customer Journey Template

A customer journey map allows you to “walk in your customers’ shoes” by traveling with them as they interact with your company. Research-based and focused on desired outcomes from the customer’s perspective, you’ll see their needs at each interaction, how well you meet them, and where opportunities for improvement lie.

Read Also:

How Your Company Culture is Affecting Your Employees

How Best to Retain Value in Your Workplace

  • Pay Attention to your Customers

Paying attention to your customers is not about satisfaction surveys or asking “the ultimate question” to track a Net Promoter score. We can’t rule that option off as this can be part of the equation. However, the limitation is that it hardly sheds light on the problems or delights that drive those scores—listening to your customer means asking them what they think–and why. Then acting on it.

  • Make your Customers part of the Solution. 

Facilitate direct interaction with your customers. Get them involved in the design process of products and services. As much as possible, don’t make decisions about what your customers might want or need without taking their point-of-view into account. Also, consider employing ways employees can interact with customers directly, even in “back office” functions. After all, every employee impacts the customer experience somehow, even indirectly, so every employee can benefit from interacting with customers to understand them better and learn about their successes and challenges.

  • Take data gathering and storage seriously.

Most established companies keep customer data in silos across the enterprise: sales data in one bucket, marketing data in another, product and service somewhere else, and digital data in another entirely. All of this customer data needs to be integrated and easily accessible across your organization, so employees can truly “see” the relationship between you and your customer and make decisions as a result.

Democratize customer insight, though this is one of the toughest challenges big companies face and an essential solution strategy if implemented. Every employee must understand the organization’s customers. Access to customer insight should be available across all departments.

  • Orientate Customer-Centricity from the Recruitment stage

From the very first interaction with prospective employees, your organization should make thinking about customers and their needs a priority. The social media management platform, marketing, and human resources executives can collaborate to do this.

During the interview process, hiring managers must ask every candidate questions to gauge their customer orientation regardless of their role. This practice not only assesses candidates to ensure every new employee is aligned to customer-centric thinking, but it also sends a clear message to everyone — recruits and hiring managers alike — about the importance of customer experience at the company.

  • Empower and reward your employees.

I often ask business owners how certain their employees can patronize their brand. In the quest to be more customer-centric, never forget that your employees are the front liners. They boast a wealth of insight about customers and internal operations and can quickly improve customer experience through one-on-one interactions and behind-the-scenes decision-making. So companies should not have reward structures tied only to revenue versus meeting customers’ needs. Employee empowerment must also be considered to make the decisions required to meet those customer needs.

Conclusion

Customer-centric marketing begins with the brand, from vision to mission to strategies and execution plans. 

Guest Author Profile

This highly engaging and very resourceful article was written by Nnenna Ewa of TechpreneursHub.

Nnenna Ewa is a vastly experienced digital marketer who shared readily applicable ideas on how businesses can leverage digital marketing to grow and expand their businesses.

Guest Post by Nnenna Ewa of TechPreneurs Hub
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