Do-s and Don't-s of Customer Centricity


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The shortest ever CRM training course - a 2-page 'cheat sheet' for the aspiring Chief Customer Officer :)

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Do-s and Don't-s of Customer Centricity

  1. 1. 2'! ” . 'l‘! h‘t"ll‘ Adjust your mission and vision statements. It the Customs. " c rnensvon is your chosen s'roteg"c: dscir: we. state it bcloy and clearly. Ccmrrur-‘cote widely to the world bu‘ first and foremost inside your organisation. Segment your customer base. Start with the customers’ value. and stc't smple. Wile-re. ‘ you lacv; Customer data, suck to abide. it and improve data quality. Align your organisation structure with the segmented customer view. Dittc~rr; r~. r customer groups reque ditterent approaches. processes and skills Are your sees and mc'keting still organised by product line or lurrllory? Consider creating segmen' management r. r"ts. Make good use or technology i' is a powurlul crlablcl of cuslorru ct. -ntrlcity. Contact management too 5. consc"d-cited customer data environrnents. Gt'lOlyltCCl applications and morl<-4.-ling aalcmalion solul ons a create customer—centric copatfties that would iustity the ‘ti-vestment in technology. Create new performance measures. Monitoring "Idicatcr; I"-: e soles/ rever-age. market share or product porttc o is no longer enough. Spa. -cillc muasurcs cm: needed to rellec‘ the segmented view of the customer base. the focus on customer experience and many more -new criteria for customer CL"llllCli‘, ‘. Study the behaviours. attitudes and demographics ot your customers — these C'(. : important ed-caters of customer needs and ot'en predictcrs at customer value Seek '0 understand those Expect a brand new mission statement to make you a customer-centric company. It is only the start ol 0 long and cord journey: be prepcred to go all the way to -wvtere you want to be, engag ng all luncwons O'id stake hold~; ;.'s. Overcompllcote the segmentation A Ony segment has to be manageable to. size. any segmental on structure must be dctionaole. enable decisions and irrpact. tteorganlse too often, and for the sake ot it. A: your segmentation advances and includes needs r‘. addition to value, you don't have to keep ChC"»; 'l'r‘. g structures ldsmpting operations}. new segments and s-. lb~scQ'r‘Ict‘. ls can 0: 'tandl-: d by virtual teorns. Expect technology to build customer relationships for you it won't. Unless appropriate strateg es and processes c'e in place. technology will remae an expensive way to even tsrthe' deteriorate cuslcrnc-r" -: xpA; ."llu"Cc. Do not Ut'ldefeSl"hOie "he importance o" synczhrctrsed. rtolistic capc: b"'ties trroughoul the bus W655. Throw out the old pertorrnance measures — i’ was never said that d custorrer-centric company Should no‘ be etficievit and Crc~0'~'_' st'. G'r: hc~'. dr_'<r returns. These cnlerzo w" persist, cI"_: }rIeo with the new objectives Cad '". harmony with a host 0‘ new pcr"c-rrndncc r-icasurcs. Confuse behaviours and attitudes with needs. Often explicit and irrpli-cit prr: tcrr; -nccs ind ca‘-: needs. It in doubt about the true (care) needs of customers. try to see how they fit statements "ice
  2. 2. correlations and ‘ldlCOllVl_'= fL'7ClTlC"‘: "‘ as of demographics and behaviours with va'ue and needs. Try to understand the true value of your customers. As you progress along your tourney transaction history [customer revenue] will not suffice to understand value. You would look into rte. ‘ va'. lL- [profitability considering all kno-. vn costs] and future (potential yo ue. Empower employees. particularly customer-facing statt for proactive relationship-building. By purposeful communication of strategic goals and educaticn ". custom-at-centric approaches. all employees are to be gyen active rc es in enhancng the Cuslomur uxpurlcricc and value. They should be encouraged and appraised in line with the prnciples at customer centricity. Set clear goals for achieving a defined state of customer ceritrictty by a certain point In time You don‘t have to use the Round l'Ti<. 'lODhCl'lC ‘bcis-:5‘. bu’ it is important that you have a clear idea of a quantum change over a rnanarzeobe period. with well-defned capab "ties and performance in all ctr-as at that dcsl-ad s‘ate_ Encourage and seek to create customer loyalty. It Is well known. 'tSllrtCllvC-Iy. anecdote y, and through systematic research. that loyal customers are more p-'ot'itobe and the" numbers and degree of loyalty irrpact the success [or otherwise] at a bus "ess. Communicate and engage all stakeholders in the process. Entities such as employees. suppliers. partners. and sharehc-Voters are all part at the same picture and Merdependent with customers. They C'u o’-so diffuuril within each »-_'nlily and should be treated differently (even segrnented! ). They c'sa get value as some of their needs a'e satisfied by your business and arc. in a sense, customers. too. “Gfvc "llr-: lp me to. .. or “Saw. - me. .." True needs eas"'y comp-‘ete such sentences. Rely on the customers‘ past buying patterns. Exlrapolol "g historic value is not the best way to predict l'T£-'. - future. Increasingly‘ complex modelling will r; :r‘-olslc you to consider customer propensities. loyo‘ty and overall contftoution to the business. over their lifetime. Allow anyone in the company to say (or think) ‘this is not my Job/ responsibility‘ Becorrng a customer centric C/ gClfllSOliDl1 depends on thu- orchestrated efforts 0‘ everyone r~. the crganisati-on, inclucng back-office and support functions. A‘ gnment is key to the success. as goal C(JpObllll| ~'_'S in some areas can be rendered use‘ess by underperfcrmance in otner c'eas Assume that your project/ programme were completed, you ‘got there’. Reaching a higher state. any state 0‘ customer cuntilcity does not mean a finished job | ‘no more eltort']. While there are Clea‘ targets. the iourney is perpetual’. as is the endeovov ‘or on-go’-lg imoroyc-mcnt and ‘no continuing effort to maintc n the acheverrients. Think of loyalty as the tenure of a customer (duration of the relationship). There may be customers who stayed with you for yeo's and caused losses c the t'°nel You need to co'efuIly define loyol'y and build your loyalty actions towards satisfying the delinit on. Umlt your change management efforts to the marketing. sales and customer service functions. the journey to customer centrcity requires massive effort and change in custor'r*er~facing functions but also dcpunds on every other area — within and outside the bus. "loss. A comprehensive customer cenfricity programme covers each function and cntity a coo-ro 'lOlCd way.