5 steps to creating a customer-centric culture

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At dragonfish consulting we passionately believe that true customer-centricity transforms business performance. But we also know that in large, complex businesses the journey isn’t easy, and it …

At dragonfish consulting we passionately believe that true customer-centricity transforms business performance. But we also know that in large, complex businesses the journey isn’t easy, and it probably starts with someone sticking their neck on the line and asking others to think differently. With this in mind we have developed a simple, 5-step process for helping businesses to become more customer-centric.

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  • 1. 5 simple steps to creating a customer-centric culture By Rich Webley, Co-Founder & Strategy Director
  • 2. www.dragonfishconsulting.co.ukwww.dragonfishconsulting.co.uk Turning customer insight into commercial advantage through building your business around your highest value customer groups What do we mean by ‘customer-centricity’?
  • 3. www.dragonfishconsulting.co.uk In most businesses, 80% of customers are barely profitable, propped up by a highly valuable 20% Prompted by this realisation, many already successful, complex (typically product & sales led) organisations are acknowledging that a critical part of sustaining competitive advantage is to capitalise on the connection between levels of customer-centricity within their business and profit. Why bother?
  • 4. www.dragonfishconsulting.co.uk What might get in the way? Ø  Insufficient executive alignment or buy in Ø  Disconnect between strategy & the operational behaviours required Ø  Conflicting priorities of different business units Ø  Individual targets misaligned with the right customer outcomes Ø  A gap between head office processes and the tools and support front line staff need to make smart, customer-centric decisions on a day-to-day basis Ø  Lack of understanding around the connection between employee behaviours & decision making, customer outcomes and financial success
  • 5. www.dragonfishconsulting.co.uk A simple, 5 step process to making your organisation more customer-centric: 1 ALIGN Starting at the top 2 UNLOCK Get to know your most valuable customers 3 APPLY Try one or two things differently (set to make a difference) 4 ENGAGE Involve employees at all levels 5 PRIORITISE Measure, learn & repeat See more detail on each step
  • 6. www.dragonfishconsulting.co.ukwww.dragonfishconsulting.co.uk Starting at the top Gain consensus within the executive team around the overall goal, a shared understanding of the reasons why, and ensure there is necessary executive support for the potential strategic, operational and behavioural change required to embed a truly customer-centric culture. 1: Align
  • 7. www.dragonfishconsulting.co.uk Map the end-to-end business process and customer journey with a view to finding practical ways to acquire instant and actionable customer insight – using a combination of existing customer data analysis, external data sources, and topping up with ad hoc customer research where there is a clear knowledge gap (avoiding large scale, time consuming and expensive research programmes). The overall goal is to identify your business’ most valuable customer segments, work out how to define them in a way that is useful and functional, and be clear on what these customers want, how, where and when they want it. Get to know your most valuable customers2: Unlock
  • 8. www.dragonfishconsulting.co.uk Identify one or two ‘customer opportunities’ (from step 2) in areas of the business or parts of the business process where there is clear potential to make a quick, measurable and difference, and demonstrate a real step change in performance as a result of customer-centric thinking. It is crucial to start small with a realistic chance of showing a commercial difference in a short space of time. A less cautious approach that attempts to change the entire organisation at once is far more likely to come up against a strong cultural resistance to change, and presents a greater risk that the process itself unintentionally destabilises business performance. Once clear on the customer opportunities, develop quick, pragmatic & measurable strategies that operationalise this fresh customer insight in ways that acquire or develop your most valuable customer groups. In practice this could mean anything from tweaks to product or service design through to re-inventing a call-center script, or developing practical tools that re- align the sales & marketing process to a fresh and more informed view of the customer journey. Try one or two things differently3: Apply
  • 9. www.dragonfishconsulting.co.uk A winning culture is one of engagement and individual contribution to an important mission and purpose. Making this purpose customer-centric and truly influencing day-today behaviours takes a combination of (1) tools & toolkits to support decision making, (2) training & capability programmes that build an understanding of the connection between employee behaviours, customer outcomes & financial success, and (3) reviewing reward & recognition packages to ensure they support (and are not at odds with) the right behaviours. Above all, stage is about ensuring employees at all levels have a shared understanding of the reasons why the organisation needs to become more customer-centric, what success looks like, and what it is going to take to get there. Employees need to feel part of the journey if change is going to stick. Involve employees at all levels4: Engage
  • 10. www.dragonfishconsulting.co.ukwww.dragonfishconsulting.co.uk Make it a priority that a clear set of customer KPIs are reported on and discussed regularly at executive level and are visible throughout the organisation. Establish some of the customer insight methodologies involved in step 2 as a continuous part of business as usual. Keep building, testing and refining customer strategies (step 3) and rewarding the right employee behaviours (step 4). Measure, learn & repeat5: Prioritise
  • 11. Thank you for reading We would be delighted to talk in more detail, share some success stories and discuss how some of these principles could relate to your business challenges. Email Sam Turner on sam@dragonfishconsulting.co.uk Or call her on 07970 625485