Posted in Marketing and Strategy Terms, Total Reads: 404
Definition: Customer Centric
A customer centric approach is the one in which the customer is at the core of everything from product development to the after sales service. A customer centric approach is one which caters to the needs, problems, wants and concerns of your customers. It is also required that the company should try to build a forging relationship with the customers to get mutual benefits.
In other words, putting customer first to get maximum return from all your marketing efforts will be called Customer centric approach.
In Customer centricity a business should focus on segmenting the customer base, identify the best customers and cater to the needs of best customers.
A business should
• Commitment to Customer Success
• Encouraging Customer Innovation
• Engaging with Customers from the Get Go
• Customer commitment from the Top Down
• Inculcating a Customer-Centric Culture
• Recognizing the Customers across All Lines of Business
• Framing Processes and Policies from the Customer’s Point of View
• Evaluating What Matters to Customers
Measurement of Customer centricity
The churn rate of a company should be low as it said that acquiring new customer costs 5 times more than keeping existing customers. Also, it is said that a 2% increase in the customer retention will have same effects as cutting costs by 10%.
The customers have become more selective and can compare between different products on the internet. A long-term relationship has become crucial for any brand to achieve higher customer lifetime value. The organisation needs to provide customers respect, great service and a cherishing experience.
The customer centric approach focuses more on the highly valued loyal customers and the company tries to spend more on retaining those customers. In this approach the company leaves the untapped and non-marketed customers group.
A company should have a good mix of both customer-centric as well as customer focused approach to yield better and promising results for both brands as well as customers.