How to Create a Customer Centric Business – 7 Expert Tips for Beginners

When we look at the big companies in the world, they all have one thing in common—all are customer centric businesses. Amazon and Zappos always excel at understanding and meeting customer needs. Their commitment to customer value is solid. 

Just like them, more businesses are focusing on customer centric initiatives. A survey by Econsultancy found that,

58% of respondents see being customer centric as the most important trait for a digital-native culture.

Deloitte also found that,

88% of companies consider customer experience their biggest competitive advantage.

If you want to build a customer centric business, you should put customer experience first. And you must do this both before and after the sale. 

However, building a customer centric strategy takes time. To make it quick, you must learn some expert tips.

The Importance of Creating a Customer Centric Business Model

You are probably wondering, “Why should I make my business customer centric?” Well, there are plenty of reasons for that. As said earlier, a lot of businesses are shifting toward customer centric models. This strategic approach is the key to sustainable growth and long-term success.

Let’s look at the following reasons to build a customer centric business model.

Helps You Understand Your Customers

You should have ideas on every step of your customer’s journey. A customer centric approach defines what drives your customers toward buying your product or service. It helps you understand their needs, preferences, and challenges.

By adopting a customer centric approach, you can customize your interactions to exceed their expectations. This personalized touch is crucial for keeping them. Moreover, it can turn them into brand ambassadors eventually.

So, don’t just constantly replace your lost customers. Instead, you can build a loyal base that promotes your brand.

Increases Customer’s Loyalty and Attracts New Ones

When customers have a great experience with your company, they will likely return. Results from a survey indicate,

Happy customers are 3.5 times more likely to make repeat purchases.

Nowadays, word-of-mouth marketing is very powerful. Often, satisfied customers share their good experiences with friends and family. This works effectively in bringing new customers to your business. Plus, you can avoid extra marketing costs.

Identifies Growth Opportunities

No doubt, you will need customer feedback to grow your business. A customer centric business model prioritizes customer feedback. It helps you maintain an open communication with your customers. This is an excellent way to discover new product ideas, service improvements, and features that customers want.

After analyzing customer feedback, you can highlight opportunities for product bundles or better marketing strategies. As a result, your business will evolve with customer needs and market trends.

Increases Sales Potential

Trust plays a big role in buying decisions. When customers trust your business and are happy with their past experiences, they will certainly buy from you again.

Research shows that,

Your sales team has 14 times higher chances of selling to a happy existing customer than a new prospect

This trust and satisfaction make the sales process smoother. As a result, closing deals will become easier.

Fixes Operational Issues

To build a customer centric business, make sure your system captures customer feedback quickly. Additionally, it should act accordingly. This proactive approach helps you spot and fix operational issues like –

• Confusing user guides
• Complicated contracts
• Problematic onboarding processes

Therefore, you must address these problems to enhance the overall customer experience. This will make your business more efficient and user-friendly.

Reduces Silent Dissatisfaction

Normally, unhappy customers don’t complain. They just leave and don’t come again. This is called silent dissatisfaction. According to a recent study,

Only 1 in 26 unhappy customers will share their negative experiences

This silent dissatisfaction can hurt your business. So, prioritize customer satisfaction and address their issues proactively. This is probably the only way to prevent silent dissatisfaction. In addition, it will help you in keeping more customers.

Ensures Cost-Effective Customer Retention

Believe it or not, it is much cheaper to keep existing customers than to get new ones. Research shows,

Attracting a new customer will cost 6 to 7 times more than keeping a current one

The process of finding new customers is called lead generation. Usually, it involves the following.

• Market research
• Personalized marketing campaigns
• Follow-ups

But, it can require a lot more resources depending on the market competition. Also, it will depend on your current brand value. So, getting new customers can be challenging.

On the other hand, retaining a customer is less costly and gives better returns. Therefore, it is a smarter strategy than lead generation.

Increases Profits

Business consultants suggest boosting customer retention rates by just 5%. Why? Because it can increase profit from 25% to 95%. This indicates the importance of following a customer centric strategy for profitability.

So, no matter what, you should focus on maintaining customer satisfaction and loyalty. This is the best way to drive significant growth in revenue. Plus, it can improve overall business performance.

7 Pro Tips for Creating a Customer Centric Business

You should plan carefully to build a customer centric business. It takes a thoughtful approach in addition to that. To strengthen your approach, you will need some expert tips.

On that note, let’s explore the following tips for building a business that truly focuses on customers.

Tip 1: Provide Top-Notch Customer Service

To keep up with the competition, you need to provide exceptional customer service. To ensure that, you need to offer value beyond the initial purchase. Implement proactive customer service features. This will let your customers solve problems on their own. So, these features will reduce the need for direct support and cut down on wait times.

In addition, leverage technology to improve your customer service operations. Here are some useful tools:

• Business Process Management Systems (BPMS)
• Customer Relationship Management (CRM)
• Enterprise Content Management (ECM)
• Analytics

These tools help you understand customer needs better. Plus, you can deliver personalized experiences more efficiently by using these tools.

Tip 2: Understand How Your Customers Make Purchases

In current times, customers have a complex journey before making a purchase. Often, they use multiple devices and channels. A customer centric strategy acknowledges this and aims to personalize their entire journey.

To understand customers’ purchase process, collect data at every touchpoint and analyze their behavior. Use this information to customize your interactions. In addition, make offers to fit their specific needs and preferences.

Overall, a customer centric approach creates a smooth experience for customers at every stage of the purchasing process.

Tip 3: Hire the Right Team Member

No one can deliver a better customer centric experience than your employees. Therefore, you must hire team members who prioritize customer satisfaction. For instance, you can hire those with backgrounds in customer service or human resources. They will better meet your customer needs.

Provide tools, training, and authority to your employees whenever necessary. These will help them make customer-friendly decisions. In addition, try to acknowledge their efforts to improve customer satisfaction. Accordingly, foster a culture of recognition and reward.

Tip 4: Provide Personalized Customer Experience

No matter what, always aim to create a pleasant and personalized customer experience. It will keep them coming back for more. These are some hints to personalize your customer service:

• User-Friendly Interactions: Ensure your website and services are easy to use. Simplify selection options and make information easy to find. A smooth experience helps customers complete transactions quickly.
• Relevant Content: Customers like recommendations tailored to their needs. Use data to understand what they like and offer personalized content.
• Speed: A fast website is key. First impressions count, and a quick-loading site keeps visitors engaged. A fast-loading website will encourage your customers to stay longer and make purchases.

Tip 5: Set Clear Goals

Without setting clear goals, you can’t expect to create a customer centric culture. Sometimes, you need to do your best to exceed customers’ expectations. So, your team should be well aware of the company’s goals. In this case, you can apply the following practices.

• Listen to Feedback: Pay attention to what customers say. After that, find areas to improve based on their feedback. Focus on changes that will make them happier.
• Raise Awareness in Your Team: Make sure everyone knows their role and what’s expected of them. Once your employees are aware of their roles, they can offer smoother operations and better service to customers.
• Track Progress of Your Employees: Keep an eye on relevant metrics to track employee performance. In this regard, Net Promoter Score (NPS) can help you see how they are doing. Check these scores regularly and use the feedback to keep getting better.
• Build an Aspiring Team of Employees: Encourage your team to be champions for your customers. Show them how to put customers first in everything they do. Make them believe in your customer centric values to get amazing results.

Tip 6: Keep your Customers Happy

You should consistently go above and beyond to keep your customers happy. Keep in touch with your customers regularly. This is vital for building a customer centric business. To gather and use customer feedback, you can follow the tips below.

• Use Different Platforms: Gather feedback from various sources. In this case, you can use chat, email, phone calls, social media, and review sites. Each conversation gives valuable insights into what customers think and want.
• Listen Up: Pay attention to what customers say and spot common issues they face. Feedback can uncover pricing concerns or difficulties with the buying process.
• Make Changes: Use the feedback to improve your products and services. Regularly review and act on what customers tell you. This way, you can satisfy their needs.

On top of that, you can reward loyal customers. Implement programs that encourage behaviors that drive business growth, such as –

• Repeat purchases
• Positive reviews
• Referrals

If required, use points systems or give surprise rewards. These activities will build strong customer loyalty and turn satisfied customers into brand ambassadors.

Tip 7: Measure Your Progress in Terms of Customer Satisfaction

As said earlier, to build a customer centric business, you must satisfy your customers. This is the crux of creating such a business. There are various metrics to measure how you are doing for customer satisfaction. But, the following 3 always work effectively.

Churn Rate

It shows how many customers leave your business within a specific time. To measure the churn rate, divide the number of clients who left in the last year by the total number of clients during that time.

It is very important to keep a low churn rate. Find out why your customers leave to lower churn rate. Then, take action to fix those issues. Common reasons for high churn include:

• Not getting enough help from customer support
• Lack of self-service options
• Not feeling rewarded for being loyal

Net Promoter Score

It indicates how much your customers like your product or service. Also, it measures how likely customers are to recommend your product or service to others. Ask the following question to your customers to find out Net Promoter Score, or NPS.

How would you recommend our product or service to others on a scale of 0 to 10?

Based on the answer to this question, you can group your customers into the following 3 categories.

• Promoters (9-10): These folks really like what you offer. They’re likely to tell others about it, boosting your brand. They’re your biggest fans!
• Passives (7-8): These customers are satisfied but not super excited. They might switch to another option if they find something better.
• Detractors (0-6): These customers aren’t happy. They could spread negative feedback about your brand, hurting your reputation.

Keep in mind that a higher number of Promoters means your business is doing well. NPS is very simple to measure. It gives you clear ideas about customer loyalty and satisfaction.

Customer Lifetime Value

In short, it is regarded as CLV. It helps you measure the total amount of money a customer brings to your business over time. So, you can decide how valuable a particular customer is in the long run. To calculate CLV, follow these steps:

• First, figure out how much money a single customer spends in a year.
• Estimate the average time a customer sticks with your products or service.
• Subtract the investment you made to acquire the customer from the total he/she brings in.

Suppose, you have a customer who spends $5,000 a year. Also, he has been using your product or service for 10 years. Thus, he has brought a total of $50,000 to your business. If it costs you around $1,000 to get that customer, then the CLV will be $49,000.

Simple, right?

How to Create a Support Team That Puts Customers First?

Customer centricity must be reflected in your support team as well. It can keep your customers happy, sticking around, and telling others about your business. You may have learned the tips for creating a customer centric business.

But how do you create a customer centric support team? That’s when you need to apply the following strategies.

Recruit Passionate Customer Service Providers

The first step in building a customer centric support team is to hire the right people. The support team member must be dedicated and hard-working. He must always give priority to customer satisfaction. To find someone like that, look for the following characteristics.

• Empathy: Seek candidates who can understand and relate to customers’ feelings, especially when they are upset. Customers feel valuable when you show empathetic responses.
• Communication: Look for someone in your support team who makes clear communications. He should not use complex terms and make explanations easy.
• Patience: The support team member must stay calm when dealing with upset customers. Team members who keep their cool can turn tough situations around.
• Conflict Resolution: Look for candidates who can resolve issues effectively. This skill can prevent problems from getting worse.
• Active Listening: Support team members should listen carefully and respond thoughtfully. Such qualities can solve problems quickly.
• Emotional Intelligence: He/she should try to understand and respond to customers’ emotions. This habit can make more positive interactions. So, look for candidates who excel in this area.

Provide Necessary Tools and Courses to Train Your Support Team

Don’t be cruel in providing your support team with the necessary tools and training. Without them, you can’t build an efficient and effective support team. Here are some essential courses and tools to make your support team customer centric:

Adequate Training

Keep your team members updated with regular training sessions. As a result, they can receive product knowledge and customer service techniques. Training can always enhance their skills. So, they will remain more confident in their roles.

Help Desk Software

These tools can centralize customer information and ticket management. As a result, your team members won’t juggle multiple tabs.

Automation Tools

These are handy to streamline repetitive tasks. Therefore, your team members can spend more time on fixing complex issues. So, automation tools can boost the overall performance of your support team.

Give Incentives for Your Support Team

From time to time, reward your team member for their hard work. You need to keep your support team members happy as well as your customers. Occasional rewards can make a big difference in their morale and performance.

Here are some ways to reward your team members:

• Announce your team’s successes in meetings or newsletters.
• Encourage team members to share their experiences and tips for keeping customers happy.
• Regularly check progress and give feedback to keep your team motivated.
• Showcase high CSAT (Customer Satisfaction) scores and other milestones to boost their spirits.

Final Notes on How to Build a Customer Centric Business

If you have come this far, you must have learned the best tips for creating a customer centric business. It can be tough, but it is totally worth it. Always focus on what your customers need. This will make them happy and loyal, which is crucial for business growth.

If necessary, make thoughtful changes to do your business. Remember, every change should make your customers’ experience better. Sometimes, small tweaks in your strategies can make a big difference.

Now, ask yourself, “Am I ready to make a customer centric business?” We will leave the answer to you.