Customer Retention through Customer Centricity
Customer centricity is becoming increasingly important as a competitive differentiator. The various customer retention activities should be well orchestrated and aligned with other customer value management processes.
Improving the customer journey and customer experience
While the business world becomes more efficient and customers obtain additional tools for transparency and insight, many former “back office” and operational tasks are more visible to the outside world today.
With management's eagerness to more directly improve the customer experience while keeping cost under control, efficiency and impact are key considerations for customer value management.
Organizational divide and disconnect hinders effectiveness of customer focus
A common evolutionary problem is the remoteness and disconnect between the various disciplines that impact customer retention and customer satisfaction. This results in inefficiencies, misalignment and duplications.
For example, win-loss analysis might be done and understood by the Sales department but the learnings don’t find their way to the originators of the errors that led the customer to award a business contract to the competition.
Or value propositions simply reflect the expert opinion of the commercial units but fail to include the voice of the customer and the win-bid analysis bit from a customer perspective.
Customer centricity is not measured and managed as a business value
But the inefficiencies and lack of impact won’t stop there. Many companies lack a complete understanding of the real cost-benefit equation of the customer relationship.
Moreover, short term results hardly contribute to strategic developments of the customer interaction long term. Fragmented measurements and lack of aligned metrics never allow for a transparent, meaningful customer excellence measurement.
When management wants to shift the organization towards a truly customer centric machinery, how would they measure and steer the activities and people involved?
Set up the organization for competitive advantage
Passionate customer advocates alone cannot maneuver around a fragmented organization that means well but is ill equipped to eat, drink and sleep customer centricity.
A truly customer centric organization requires a philosophy, a culture that cherishes the moment when the customer decides against the competition for good reasons.
It also requires the confidence that management leads the way, carries the banner of customer value and puts the tool box in place for everyone to perform against that customer centric vision.
Part 2 → The REAL Customer Centricity and Customer Value →→