Do you want to explore the possibilities of transforming your company into a consumer-centric business? This guide will explain some of the many benefits your business could enjoy if you switch from product-focused to consumer-focused.
This is a major decision that will affect every aspect of your company. However, the work you put in should pay off in the end. A study from Deloitte found that client-centric businesses are 60% more profitable than those that aren’t.
Keep reading to learn the definition of a consumer-centric business, why you should consider this strategy for your business, and how to overcome some of the challenges of transitioning to a customer-focused company.
- A consumer-centric business puts all its focus on its customers in every business decision.
- A customer-centered approach makes it easier to create loyal customers who will become advocates for your business.
- Businesses will need to make cultural changes and incorporate new technology as they transition from product-focused to consumer-focused.
What Is Consumer Centricity?
Consumer centricity is putting the consumer, or customer, at the center of every business decision. It is not simply thinking about customers while running your business, it is a deep understanding of your customers’ needs and preferences, sometimes before they even know them themselves.
As the image shows, a customer-centric philosophy has numerous aspects, including:
- Understanding your customers
- Designing the customer experience
- Gathering important metrics
- Empowering your front-line employees
- Creating customer-focused leadership
- Using a feedback system that delivers continuous improvement
4 Reasons Why Your Business Should Be Consumer-Centric
Some of the biggest, most successful brands in the world are consumer-centric. At the top of the list is Amazon, which has long been praised for its stellar customer service and dedication to customer satisfaction. These are some of the driving forces that have turned Amazon into the global superpower that it is today.
Another example of a successful customer-centric brand is the mattress company, Casper. It was founded in 2014. Within four years, it was earning $750 million a year in profit by delivering a customer-focused buying experience that eliminates common pain points. They also offer a money-back guarantee, so customers feel confident in their purchase.
In addition to growth potential, here are four key reasons why you should be a consumer-centric business.
1. Easier to Keep Existing Customers Than to Find New Ones
A frequently cited statistic is that it is five times as expensive to get new customers as it is to keep your existing ones. Customer retention is one of the most important goals of a consumer-focused business. When your customers are happy, they turn into loyal customers who keep coming back for more.
You can also apply the Pareto Principle, or 80-20 Rule, to your customer-centric approach. This rule states that 80% of your revenue comes from just 20% of your customers. Focus on that 20% and you can see big ROIs.
2. Gives Your Business a Hyper-Focused Purpose
When your company is completely dedicated to your customers, it makes it easier to make major business decisions. When you are considering a new process or policy, ask one simple question: “Does this help our customers?” If it doesn’t, then you should not make that change.
This video explores more details about the intentionality of customer centricity.
3. Turns Customers into Advocates
If your company delivers an unsurpassed customer experience, your customers will love working with you. When their expectations are exceeded, their needs are more than met, and they get outstanding service every step of the way, they are going to tell their friends and family about it. A consumer-centric company creates loyal customers who want to talk about your business.
4. Creates a Customized Experienced
We all want a shopping experience that feels like it was made just for us. You can give that to your customers through personalization.
Personalization is one of the simplest and most successful ways you can become more consumer-centric and make customers feel connected to your brand. You can create a customized experience using the following:
- Website cookies: When a customer visits your site, you can collect valuable information from them through cookies. Even basic information such as the time spent on your site, page views, and product views can help you cater to their preferences.
- Live chat or a chatbot: Customers want to get help when they need it. A live chat option is a common tool on most online shopping sites, but you can also use an automated chatbot to answer basic questions. This can lead to a live person if the issue needs more personalized attention.
Potential Challenges When Switching to a Customer-Focused Strategy
While changing to a consumer-focused business has amazing potential, it is not free from difficulties. You and your company will have to work through some trying times to adjust to a new mindset that is wholly focused on your customers.
Here are some challenges you may face:
- Making culture adjustments: As you adjust your business strategies, your company culture will need to change, too. Every person in the company will need to fully embrace the changes that come with customer centricity and help you maintain a long-term vision of the end goal.
- Changing from product-centric to customer-centric: You are proud of the products or services your business provides. However, when your products are the focus of your business, the customer experience may suffer. Many businesses with a product-centric approach end up with an ineffective “spray and pray” marketing strategy as opposed to an integrated marketing plan.
- Transitioning to new technology: As your business model changes, you may realize your old customer resources no longer work. You will need a new data management strategy that works with all your digital channels and does not get in the way of customer communication.
Transform Your Customer Experience with Televerde
Having a consumer- or customer-centric business strategy is one of the most important changes you can make to improve your profit potential.
If you are transitioning to a consumer-centric business plan, you need the right tools. At Televerde, we are experts in helping businesses provide a better customer experience. We offer solutions for customer retention, loyalty, engagement insights, and more.
Are you ready to transform your business with a modern, customer-focused approach? Contact us today and we will help you get started.