Most successful businesses put a real emphasis on building stronger relationships with their customers. There are various ways in which businesses try to build stronger relationships, some common ways are:
- By keeping all the customers happy
- Increasing the customer support
- By being loyal to customers
Now not by any means, I will say that these strategies are not fruitful and they will hinder your growth. what I will say is that these are not enough to meet the need and demands of so rapidly changing world. Any product or service in the world is just a click away from customers and just implementing the strategies above won’t give you any strategic advantage. You will just be one out of millions of options the user has.
So, what is the optimal choice that small business owner has? The choice is being customer-centric! So what is the customer-centric approach? Peter fader in his book (Customer Centricity: Focus on the Right Customers for Strategic Advantage) says:
“Customer centricity is a strategy that aligns a company’s development and delivery of its products and services with the current and future needs of a select set of customers to maximize their long-term financial value to the firm.”
In this article, I will be discussing that what customer centricity is? And how it is vital for your small business growth?
So, what is customer-centricity?
Customer centricity is not just customer care
Customer centricity is often confused with customer-focused or just customer care. No, it is very different from them.
Customer centricity is a strategy that aligns a company’s development and delivery of its products and services with the current and future needs of a select set of customers to maximize their long-term financial value to the firm.
Now, the words to focus on here are selective customers. Selective customers are those customers that you can best satisfy and delivers the most value to you. A data-driven approach is needed to identify the right customers.
Customer centricity is a gradual process that takes time
Customer centricity does not mean overnight success; it does not even guarantee long-term success as well. So now you might be wondering if it does not guarantee anything then why it is important? Because if it’s implemented in the right way it can truly transform the business for the next years to come.
The goal of the customer-centric approach is the same as other approaches
Every strategic model that businesses build is to create the most profit for the company, customer-centric is no exception. The goal is to make lots and lots of money for the longer run
Customer centricity is not just about shrinking the customer pool
One of the most common misconceptions that people have is that customer-centricity is just about shrinking the size of the customer base. No, it is not, it’s allocating the company resources in the most efficient way possible.
Now as you have understood what customer centricity is, here are the following benefits that it gives to your business.
Customer centricity can allow your company to better understand the true cost (and value) of new customer acquisition, help you better understand where your company should look for new customers and can increase the number and quality of referrals from your existing customers. IT can also help you to build more sound marketing strategies for your customer acquisition.
Customer centricity is all about understanding your most valuable customers and build relationships with them. It also allows you to maintain longer relationships at a low cost.
Customer centricity can boost the frequency with which your customers purchase a particular product or service from you, allow you to sell more varied products to your customers via cross-selling, allow you to realize a price premium from your best customers for an existing product or service, and allow you to up-sell your best customers to higher-margin products or services.
The following benefits can help you to achieve long-term exponential growth considering if applied in the pure customer-centric way as possible. Also, customer-centricity is a gradual process that typically delivers you the desired results in the long run.
If you’re looking to get yourself a marketing department that will help you to be innovative, and that too in a much more cost-effective way, get in touch with us today.
And if that’s not enough to convince you, why not request a free consultation that we can give you a taster of what we do?