While major organizations and brands have long used the customer-centric strategy to promote customer loyalty, others are only now beginning to examine it and are unfamiliar with all of its components. This begs the question, how to define customer centricity in 2021?
Why is it difficult for companies to be Customer Centric ?
Other than market volatility and the rise of digital technologies. The varied outcomes can be attributed to a number of factors:
– Customer orientation continues to be the alibi for product-centric businesses. As it is fueled by marketing, digital marketing and research, it encourages behaviors that just stay on the surface. In other words leaders and decision-makers within a company needs to know that “Exploring and comprehending” is not the same as “describing, knowing, and measuring.”
– The lean strategy does not allow for the adoption of a customer-centric mindset. Rather, it emphasizes the process orientation by focusing on improvement rather than on the difficulties that consumers and employees face.
– Customer journey plays a key role in 2021 and is built collaboratively and thoroughly within organizations. However, they are frequently established based on the participants’ presumed and theoretical understanding of consumers and prospects.
– Print pilots are valuable for demonstrating that a more personal approach is viable, but they run into organizational challenges when scaling up.
What does it mean to have a lifetime value?
The question “How much do my customers bring me in the long run?” is asked in a customer-centric approach. Indeed, understanding and measuring a fundamental indication, the lifetime value, is critical for evaluating the profitability of your marketing and customer interaction initiatives and thereby segmenting your client base (or “customer lifetime value”). This metric represents the total discounted earnings predicted during a customer’s lifetime. It is the value that a client delivers to a business throughout the course of their “relationship.”
In order to determine the relevance of a marketing effort, this value is frequently compared with the cost of client acquisition. The lifetime value of a client varies substantially from one to the next. Thus, a client who purchases things regularly but with a lower average basket can be far more lucrative than a client who purchases things twice a year for large sums.
What is the lifetime value of a customer?
To figure out your CLV, you must first figure out your customer retention rate, which is the number of consumers that stay with you from year to year. For example, if 90 out of 100 clients stay with you from year to year, that means simply that your retention rate is 90%.
The Customer Lifetime Value calculation is as follows: 1/ (1-retention rate).
Remember that launching independent campaigns across one or multiple channels is one thing, but creating and coordinating all of those campaigns is another. That’s why it’s essential to have contact center technology that allows you to coordinate your strategy, process, and data in a single, streamlined dashboard.
How can you better listen to your consumers in order to keep them?
One of the most important aspects of a customer-centric culture is to listen to your consumers on a regular basis. Indeed, after consumer segmentation has been completed, analyzing feedback from various client segments, particularly the most profitable and loyal, would be quite intriguing.
As a result, you’ll be able to:
– Recognize what makes your most devoted consumers happy in order to convert “good” consumers to “great” consumers;
– Detect dissatisfaction risks among your most devoted customers and save money by preventing attrition;
– Examine the root reasons for discontent in order to develop action plans to improve the customer experience and thereby increase the number of loyal consumers.
A lengthy procedure
As you can see, a customer-centric strategy may help a company in a variety of ways, particularly in terms of client loyalty. It’s critical to remember that this is a marathon, not a sprint and that a strategy must be created steadily and appropriately.
The change to customer-centricity puts the set of values and beliefs that guide people’s actions to the test. It also calls into question the well-established procedures and methods of working that define an organization’s fundamental identity. Allow it time to breathe and develop a scaling strategy, since more widespread use maximizes value. Design is a team activity, therefore encourage involvement. Be patient and persistent in your approach, bold when required, and proud of all the small accomplishments you make along the road.