SKYROCKET YOUR PROFITS: MASTER THE ART OF CUSTOMER CENTRICITY
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SKYROCKET YOUR PROFITS: MASTER THE ART OF CUSTOMER CENTRICITY

By Pouria Nehrir

In a competitive market, prioritizing customer needs is not just the right thing to do—it’s the profitable thing to do. Yet, too often, businesses fall into the trap of focusing on Cost Per Acquisition (CPA) without considering the long-term value of Customer Lifetime Value (CLV). Let me first quickly explain CPA and CLV before we continue:

  • CPA (Cost Per Acquisition) : refers to the cost of finding a new customer, such as marketing and sales expenses.
  • CLV (Customer Lifetime Value): on the other hand, represents the total revenue a business can expect from a customer throughout their relationship.

As an Operations Manager working with diverse, valuable clients, I’ve learned that a patient, forward-thinking approach to customer relationships can transform a company’s bottom line. Here’s how you can do it too.

The Cost of Ignoring CLV

As Operations Manager, I had to set a monthly meeting with all our active clients, I had to listen to them and try to support them. At the beginning, I was just following the instruction by arranging the monthly meetings, but slowly I start to see the results and our sales team started to receive orders for new installations, upgradation for current active sites or totally new project form the same clients or their referrals.

Nowadays, customer acquisition costs are rising. According to a report by HubSpot, acquiring a new customer is 5–25 times more expensive than retaining an existing one. Yet, many businesses continue to focus their strategies solely on short-term gains, neglecting the substantial long-term revenue potential of fostering loyal customer relationships.

Transitioning From CPA to CLV

Customer Lifetime Value is not just a metric—it’s a mindset. It requires businesses to:

  1. Listen to Customer Pain Points: Engage with your clients regularly. Monthly discussions or feedback sessions can reveal actionable insights that drive improvement.
  2. Tailor Solutions Strategically: Address client concerns with honest and professional solutions that not only solve immediate issues but also anticipate future needs.
  3. Deliver Consistently: Consistency builds trust, and trust is the foundation of long-term relationships. @Shep Hyken: Consistent and predictable customer experience is your competitive advantage.

My Approach: Listening, Strategizing, and Building Trust

I’ve worked closely with clients across various industries. I’ve seen firsthand how addressing pain points and designing forward-thinking strategies can turn transactional relationships into partnerships. For example, holding monthly strategy meetings with clients has helped me reveal their real needs, opening doors to deeper collaboration and higher profitability.

This approach has consistently led to stronger client loyalty and higher CLV. Instead of chasing short-term gains, I’ve focused on building trust, demonstrating patience, and showing clients that their success is my priority.

Actionable Chart: Building a CLV-First Strategy

Here’s a practical framework for shifting your focus from CPA to CLV as below:

Action Chart

Real Success Stories

A Harvard Business Review study (research done by Frederick Reichheld of Bain & Company (the inventor of the net promoter score)) found that increasing customer retention rates by just 5% can increase profits by 25–95%. Similarly, Amazon’s obsession with customer satisfaction has allowed it to dominate markets globally, demonstrating that customer-centricity isn’t just a strategy—it’s a competitive advantage.

Start Today

Adopting a CLV-focused approach doesn’t require going through a complete overhaul of your operations. You can always start small:

  • Schedule a client meeting to discuss their current pain points. And LISTEN to them.
  • Review your customer retention metrics. For this you need to at least Identify Key Metrics to Track, use some Analytics Tools, Conduct Customer Surveys, Monitoring Lifetime Value and …
  • Encourage your team to think beyond transactions and focus on relationships.

In the long run, the shift to customer-centricity will not only build stronger partnerships but also drive sustainable profitability.

Now let me know if "Do All Customers Deserve to Be the King?" write your experience in below! #BusinessGrowth #CustomerExperience #customercentricity #customercentricleadership #growth

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