Providing excellence in service is a must for companies in a globalized world and an extremely busy market. And, to get a foolproof service, you need to invest in customer centric. But calm down! This is not a dirty word! Continue reading that we will unravel its meaning.
Did you know that 81% of companies with high capacity and competence to provide excellent customer service are performing better than the competition?
And how about this: 66% of consumers switch businesses because of poor service!
Yes, customers no longer wish to have only support and their doubts answered, but rather to establish a durable relationship with the brands. Attending well is a competitive advantage!
More than answering, it is fundamental that companies develop a culture of customer-oriented service. And that means putting the customer at the center of your strategy.
But how to do that? The answer, of course, is customer centric. Continue reading and understand everything about this concept!
What is customer centric?
Customer centric corresponds to a corporate practice of centralizing corporate strategy on the customer and their needs.
This means not only offering a great service to him, but also providing a great experience from the stage of awareness of the prospect, through the journey of shopping to the after-sales.
Customer centric is a strategy based on placing the customer first and allocating it at the core of your business. This position mainly aims at the loyalty of customers and, consequently, the increase of profits.
By putting the customer at the center of your business it is possible to collect, mainly through tools such as CRM software, inputs that offer a global view on consumer needs. That way, it’s easier:
- Get insights to improve products, services and service;
- Set customers’ Lifetime Value and thus segment them according to the level of purchase and spending with your brand.
How to become a customer centric company?
There is no cake recipe so that your company becomes, overnight, adept at customer centric.
But there are certain stances and trends that managers must pursue so that the organization’s efforts are gradually geared toward building a better customer experience.
According to a Deloitte study, among the main strategies that should be adopted to practice customer centric are:
- Establishment of customer-led leadership in order to build a customer-driven culture by inspiring employees;
- Understand the profile of the client and their needs based on information and data collected, not only on “achism”!
- For this, it is worth betting on a CRM and collecting preferences and habits of each customer – and thus personalizing products and services to deliver more value;
- Empowering staff to make decisions and solve customer problems, reducing bureaucracies that often generate negative experiences;
- Use and analyze relevant indicators capable of measuring the efficiency of the service rendered;
- Use customer feedback to get continuous improvement in service and the products and / or services offered – for this, it is worth using social networks and real-time service.
Besides these factors, an indispensable attitude for a company to be adapted to the customer centric is to invest in omnichannel service.
In the reality of fierce competition and communication in the “palm of the hand”, customers want to have their doubts and needs answered quickly and easily, regardless of the contact points used.
Remember that it does not matter to the customer how the service of your company is organized.
He wants to be seen as a unique person, with needs, which must be resolved quickly, regardless of the channel used. He wants an easier and more pleasurable experience.
That’s why it’s important to invest in social networking, calling system, online chat, email, SAC and more!
The challenges to adopt customer centric
A customer centric company is one that wants to anticipate the needs of customers and surprise them with new releases and novelties.
A brand that puts the customer at the center of their strategy is the one that develops products and services, as well as a culture, that aim to offer the best experience while working towards their goals.
In this way, it is possible to list four basic challenges for a company to have its customer centric routine:
- The passion for the customer and the conviction that it comes first: customer centric companies need to believe that customer satisfaction dictates their success and therefore they want to see solutions through the eyes of the customer;
- Total focus on the needs of customers, to develop products and services that are capable of supplying them;
- Seek to build lasting relationships with clients and thus maximize your experience;
- Plan and adopt a strategy to prospect and retain profitable and loyal customers.
It is vital that companies see customer centric not as a concept but as a mission that needs to be embraced throughout the organization. Every measure needs to have a clear goal: to delight customers.
Customer centric is more than planning, educating and measuring, but transforming the mindset of all employees to promote better solutions for customers.
Thus, empathy becomes the watchword for an organization that wants to place the customer at the center of its strategy. The premise is to put yourself in the customer’s shoes!
How to measure the success of a customer centric strategy?
Are you already taking several actions to practice customer centric? Great! Now, it’s time to measure whether your strategy is succeeding. Understand how:
Churn is an English language expression that indicates the cancellation of a service.
Churn is a consequence of the customer’s complete experience with your brand, so keeping it stable is a service mission.
The financial impact of high churn on organizations is exponential and becomes very significant in the long run.
To calculate churn, use:
Churn = Number of customers canceled at the end of the month / number of active customers at the beginning of the considered month
Multiply x 100 if you want to convert the result to a percentage
To start tracking churn, you’ll need at least a control infrastructure. It can even be a spreadsheet with the list of customers coming in and out and you can already measure it.
Some related metrics are Net Churn, which is how much churn represents in monthly revenue loss and the average churn time, which evaluates the average time in months for a customer to cancel.
Lifetime Value (LTV)
Lifetime Value, or value of life of the client, corresponds to a profit for the company during the retention phase.
Dessa form, or Lifetime Value (LTV) measures or profit that sua organização obtém from a determined client.
To calculate this indicator, it is enough to paste or value of the average ticket and multiply the hair tempo of retention two clients.
LTV = average order value x customer retention time
LTV assists in the comprehension of its client portfolio and, as such, segmenting the agreed dates with each submitted behavior.
Net Promoter Score (NPS)
NPS, or Net Promoter Score is a metric to guarantee the satisfaction of two clients of companies in any industry or segment.
NPS is a simple question for the clients: “From 0 to 10, what is the probability of recommending us to your friends and colleagues?”
According to the reply, clients are devided in three groups:
- Promoters: Your clients that respond from 9 to 10 are clients that love your products and services. They are able to recommend your company to their friends.
- Neutrals: Customers who respond 7 or 8. They will not leave your product, plus neither will recommend it.
- Detractors: These are the customers who have indicated 0 to 6 the likelihood of recommending your brand. These are the ones you need to be aware of and act quickly because the possibility of a customer in this category becoming a churn is high. Understand the reason for this negative feedback and act with urgency!
To calculate, use the following formula:
NPS =% client promoters -% customer detractors
Investing in customer centric is no longer an option for businesses, but an essential attitude to stay in the market!
Remember that customer centralization is different from product centralization! The centralization of the product begins with the development of a solution that responds to the customer’s need and then reaches the maximum number of customers with the same need.
Client centralization begins with the individual customer and aims to satisfy the needs of this customer in all points of contact with his brand and as much as possible.
Becoming a customer centric company is an arduous task, which requires the commitment of the leaders, an engaged team and, of course, a quality service. But do not be discouraged, because winning customer preference is a huge benefit!
In order for your company to be more and more adept to the customer centric, it is essential to have customer service focused on customer success.