Buzzword customer centricity - why many talk about it, but only few do it
Fabian Lenz
Leiter User Experience @ HUK-COBURG | Usability Engineer, UXQB, Agile Leader
In today's business world, there is hardly a phrase that is used as often as “customer centricity”. Whether at conferences, in corporate mission statements or in advertising campaigns - customers are supposedly always the focus. But how often is it just rhetoric, and how rarely is customer centricity actually put into practice?
Customer centricity: more than just a buzzword
Customer centricity means consistently placing the customer at the center of all company activities. This includes not only marketing and sales, but also product development, customer service and also strategic decisions.
In reality, however, many companies are far from actually working in a customer-centric way. Decisions are often made primarily from an internal perspective, whether for cost reasons, because of existing processes or out of fear of change.
Why is it often just lip service?
Organizational silos: Many companies are organized into departments that often work in isolation from one another. This structure makes it difficult to adopt a holistic perspective and see the customer as the connecting element.
Lack of empathy: True customer centricity requires empathy - the ability to empathize with the needs, desires and challenges of customers. However, this perspective is often overshadowed by internal priorities.
Measurable KPIs vs. real customer needs: Companies tend to focus on easily measurable KPIs such as sales, conversion rates or customer satisfaction metrics. However, these figures rarely give a complete picture of whether customers' needs are really being met.
Lack of long-term vision: Customer centricity often requires investments in systems, processes and culture that only pay off in the long term. However, many companies focus on short-term success and thus miss the opportunity to build sustainable customer relationships.
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How can true customer centricity be achieved?
Customer-centric corporate culture: A corporate culture that focuses on the customer must be actively promoted. This begins with the company management, which exemplifies customer centricity and anchors it in all areas. Employees must understand that customer centricity is not a project, but a fundamental component of their actions.
Fact-based decisions: Instead of making assumptions about customer needs, companies should continuously collect and analyze data. Qualitative methods such as customer interviews and observations complement quantitative approaches such as surveys and usage analyses. This combination enables a comprehensive understanding of customer needs.
Empathy workshops and training: Employees can learn to put themselves in the customer's shoes through targeted workshops and training. Practical exercises such as customer journey mapping or role plays help to better understand the customer's perspective and derive concrete measures from this.
Breaking down silos: Breaking down departmental silos is crucial to creating a consistent customer experience. Cross-functional teams that work together across disciplines can ensure that the customer is taken into account in all processes and decisions. Regular coordination and common goals promote collaboration.
Customer-centric KPIs and metrics: Companies should not only focus on financial metrics, but also develop metrics that are directly linked to the customer experience. Examples include the Customer Satisfaction Score (CSAT), the Customer Effort Score (CES) or the time it takes to solve a customer problem. In addition, UX metrics such as Task Completion Rate, Time on Task or System Usability Scale (SUS) etc. provide valuable insights into the quality of interaction with digital products and services. They help to uncover weaknesses in the user experience and implement targeted improvements.
Long-term mindset: Customer centricity requires patience and the courage to invest in long-term initiatives. This means, for example, introducing new technologies to better serve customers or optimizing processes that may be costly in the short term but more effective in the long term.
Feedback integration: Customer feedback should not only be collected, but actively integrated into decision-making processes. Regular feedback loops help to incorporate the customer perspective into product development, service and strategic planning.
Conclusion
Customer centricity is not a state, but a continuous process. It requires courage to question traditional approaches and the willingness to engage with customers again and again. Companies that take this seriously will not only reap more loyal customers in the long term, but also sustainable success.
The question remains: Is your company truly customer-centric - or is it just a buzzword?
Building innovative products for trade fair management and logistics/transportation
1 个月nice summary, Fabian. One addition to "empathy". The best way to "learn" empathy is by really observing customer interviews. They make you humble and will force you to put yourself in your customers shoes. It is not about reading summaries or watching 5 minutes video-highlights, but about putting the time into observing customer interviews. LIke this, from observing interviews to becoming empathic to becoming customer centric is like a great flywheel for customer centricity.
Consumer Strategy Advisor and Speaker | Helping CEOs & founders crack consumer centricity to drive growth, profitability, and loyalty. | Retail - Fashion - Luxury - Beauty
1 个月Fabian Lenz, great article. I wholeheartedly agree with you. It is imperative that management starts to better understand that consumer centricity is a company-wide initiative, not just something for CX teams. This is no small feat!
Building the world's first Digital Customer Twins. | Founder @ experial | PhD in Consumer Research
1 个月Great article! Thanks for sharing, Fabian! :) I would like to add one more relevant point to the "How can true customer centricity be achieved?" paragraph: -> Giving every employee access to instant customer feedback at any time. Only when all the decisions across a company are aligned with the customer perspective, true customer centricity can be achieved!
Experience Design Leader
1 个月I agree Fabian Lenz it‘s almost always a buzzword that employees don‘t understand. Also not understood is that becoming customer-centric is a huge transformation for siloed organizations. This must be started step by step from by top management and stretched over the whole company. I can recommend the book https://www.oreilly.com/library/view/the-experience-centric-organization/9781492045762/ Unfortunately, c-level executives rarely read this kind of books.
Managing Partner | MarketingTechLab GmbH | certified Business Coach
1 个月Well summarized Fabian Lenz I Like to add one thought: User Experience & Customer Experience & Employee Experience are summarized in #humanexperience. We at MarketingTechLab are partnering with Spikes. Together we can measure emotions and transform the insights into concrete activities on Organizational, Process and Tech Level. If you are interested… ?????? #lessbuzz