Foundations and Advantages of a Customer-Centric Strategy

Today, dissatisfied customers go directly to the competition! Social media and the wide variety of new technologies have disrupted the norms and have completely redefined the relationship between brands and their customers. Consumption patterns have evolved and the demands of informed consumers towards brands have increased considerably. Today, if you really want to differentiate yourself from your competitors and sustain your business, being customer-centric is an absolute priority. We break down this new paradigm for you.

What is a Customer-Centric Strategy?

This approach consists of placing the customer at the heart of your business strategy. It’s about constantly listening to them in order to successfully identify their needs and desires, but also to anticipate their pain points.

Implementing a customer-centric strategy involves collecting as much data as possible, to then make each of your decisions by systematically evaluating their impact on your customers.

What Are the Foundations of a Customer-Centric Strategy?

1- Understanding the Evolution of Consumer Behaviors

The world is changing, society is becoming increasingly complex, and consumer behaviors are evolving. They are no longer simple buyers, but full-fledged humans who demand that brands take into account their deep needs and aspirations. Thus, every company that wishes to adopt a customer-centric strategy, that is, totally centered on the customer, must ask itself the following questions: Who is today’s consumer? What has changed for these individuals and what is important? What are the major trends in purchasing behaviors?

Studies and observations by marketing professionals reveal that in 2021, consumers:

• Are in search of meaning, values, authenticity but also social justice, economic and environmental;
• Consume in a more responsible manner;
• Expect brands to be more human and offer them a caring experience that is truly useful;
• Have an omnichannel purchasing attitude. They can research online to buy in-store later and vice versa;
• Are more economical and look for promotions for each product or service;
• Favor brands that are committed to creating a better world.

2- Defining Your Personas

Today, companies can no longer be content with being vaguely customer-oriented, but must more than ever put themselves in their targets’ shoes.

Now that you have a good understanding of the evolution of today’s consumer behaviors, it’s time to focus on those you wish to target!

In a customer-centric approach, identifying your personas well is essential. This will allow you to relevantly define your communication/marketing operations at each stage of the customer journey.

Personas are fictional, stereotypical people who represent a typical profile of target buyers. To define them, you must embody each of your different marketing targets into a typical person, thinking in detail about their name, first name, age, gender, profession, hobbies, needs, desires, deep motivations, objectives, issues, behaviors, etc.

Thanks to this work, you will also be able to identify the potential blockers for each persona and thus find solutions to overcome them.

3 – Think About the Customer Journey in an Omnichannel Way

The consumer does not differentiate the experience with a brand based on the channel used. You must therefore offer an exceptional experience to your prospects and customers at every stage. It is important to think about this journey holistically and without discontinuity.

The shopping experience can begin on social media and end in-store. Or, it can start in-store and finish on your website.

To help you visually represent the journey of each of your personas, you can use a “customer journey map”.

This tool allows you to describe all possible customer touchpoints with your brand (website, store, mobile app, social media, etc.) throughout the process (before, during, and after). Keep in mind that there are as many customer journey maps as there are personas.

With this visual representation, you will be able to identify your customers’ pain points, correct them, and optimize the customer experience across all channels.

4- Develop a Customer-Centric Company Culture

To be truly customer-centric, the customer must be at the center of your strategy at every stage of the customer journey, from the first contact to the purchase, and beyond. For this to be possible, it requires a profound transformation of your organization’s operations.

This customer centricity approach must be understood and embraced by every member of your company. More than a vision or direction, customer centricity must become a true company culture!

Also, each of your employees, regardless of their department (administrative, IT, marketing, customer service, purchasing, human resources, etc.), must prioritize the customer.

This company culture must be instilled by management and then regularly conveyed through concrete actions to each member of your company.

To do this:

• Recruit employees who share your vision;
• Train your employees in customer-centric culture so they understand the impact of each of their actions on customer satisfaction;
• Set goals for them to motivate them to always prioritize the customer and reward them for their work;
• Give them the opportunity to continuously contribute to improving the customer experience.

5- Focus on Your High-Value Customers

The goal of a customer-centric strategy is to make your customer your absolute priority. All your decisions must be made based on information gathered about your customers, in order to best meet the needs and desires of your target audience. However, for this strategy to be profitable, as this obviously remains the primary goal of any business, focus only on your best customers.

Thus, determine who are your high-value buyers, i.e., the most profitable and loyal ones. Concentrate all your efforts on them, as they represent the best source of growth for your business.

You can identify your best customers using the Customer Lifetime Value (CLV).

This KPI corresponds to the sum of profits generated throughout your relationship with your customers. It helps define the most profitable customer segments based on the revenue each of them generates.

You can then focus all your attention on those with the highest Customer Lifetime Value and, if necessary, reorient your marketing actions to retain them in the long term.

6- Continuously Collect Data to Optimize Your Product and Service Offering

Data collection is the foundation of any customer-centric strategy! Indeed, to be able to make each of your decisions based on your customers, you must know them inside out and collect as much data about them as possible.

The data you collect from your website, email campaigns, social media, marketing and communication campaigns, as well as customer reviews and feedback from company members in contact with customers, such as salespeople, can be particularly useful.

Once collected, it is necessary to clean, exploit, and qualify each piece of data. Based on the strategic objectives you have set, and through continuous analysis of this valuable information, you will be able to implement the right actions.

Why Implement a Customer-Centric Approach?

• Improve Your Customer Knowledge

A customer-centric approach requires “being fully attentive” to your customers. By giving them a voice, by analyzing their opinions, actions, and reactions, you refine your understanding of their needs and expectations, thus improving your customer knowledge. Customer-centricity allows you to “constantly be in a process of” improvement and personalization of your customers’ experience.

• Establish Your Market Position

Online, competitors are becoming more numerous. That’s why adopting a customer-centric approach is becoming imperative for every company that wants to stand out and sustain its business. Placing your customers at the heart of your business is “the element that will make a difference and prevent them from turning to the competition as soon as dissatisfaction arises. By being” attentive to their needs and expectations and constantly seeking to improve the customer experience, you establish a close relationship and trust with your customers, which is now essential to distinguish yourself and gain market share.

• Retain Your Customers

In a customer-centric strategy, it is advisable to identify your best customers and focus on them. Thus, the more you refine your knowledge of these customers, the more you can offer them a personalized experience. As a result, the better their experience with your brand, the more their satisfaction increases, and the more they will want to buy again, until they become loyal.

• Seize Growth Opportunities

By placing your customers at the heart of your approach, you are attentive and base your decisions on concrete feedback.

Thanks to their experience feedback, whether positive or negative, you can more easily identify new development opportunities for your business!

• Increase Your Revenue

Finally, one of the main objectives of implementing a customer-centric strategy is obviously to increase your revenue! By being completely focused on the needs and desires of your clientele, your actions are more relevant and have more impact.

Your very good customer knowledge allows you to offer a successful purchase journey and an optimal user experience, which increases satisfaction of your customers and encourages purchases.