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The Customer-Centric Core
If I had to ID one element of the customer-centric company that really works, I would call out experience. Our 1to1 Weekly story asks this week, what is the secret for customer-centric companies? But I don't think there's an acutal secret. It's right out there for everyone to see. The companies that achieve consistent financial results have a unique customer experience. The reason Lexus outsells Lincoln is the customer experience from the dealer to the contact center to the TV commercials. The reason Virgin Mobile continues to grow when its rivals are consolidating is the customer experience that's geared toward the way its target audience (kids) use cell phones. It's pretty simple. The customer experience is the brand promise and the value proposition.
The question was, "What do you think is the secret to creating a truly customer-focused enterprise?" Quite frankly, if I knew the real secret then I'd be a rich man!
The challenge or opportunity is changing the pre-existing corporate culture to adopt the notion of earning the customer's trust, celebrating the first time resolution of their problems and meeting, no, exceeding their needs. The underpinning is ensuring that the organization focuses on managing employee satisfaction and reengineering compensation as it relates to taking on the accountability for the customer experience. Easier said than done!
Biggest obstacle to overcome to be customer centric is not in tools, compensation, information, etc. tangible things - It is being honest and objective.. is our company's mindset to do business internal or external driven: Do we start from internal ROI when we plan new model/offering or from customer value/benefits, Do we try to find research information what is validating our current way of doing business or try to find information which is really driving changes, Are we selling outputs of our manufacturing process or inputs to customers' business/life, When developing sales process are we developing sales process or customer's buying process, Are we measuring things in e.g. customer satisfaction survey which are important to us or to the customer, Do we define the business we are in from our manufacturing capabilities or from the category customers are buying our products...and list continues. When you have true customer centric mindset everything just clicks; tools, compensation, required information to run business.
We're looking at our customers like at any investment project that is going to pay you back over time. Once it stretches in time, NPV and LTV are the good measures telling us whether our business engine is efficient enough vs. would be simply depositing our capital somewhere else, say at 5%. Virtually, ROC does the same thing referring to customers. There isn't a magic wand to create a customer-focused enterprise (CFE). To be pro-CFE, you're bound to work well with three things: customers, their data and cash flows.
I think, customer centricity starts with the voice on the reception desk, and it goes till to the CEO who has the courage to take an angry customer call immediately and not divert him/her as a problem to head of customer services to be recalled in the next 24 hours - in most cases never.
The secret does not lie how sophisticated CRM systems you have or how well you calculate ROC; but how well you use this information to create continuous opportunities to approach your customers personally-meaning face to face or with real voice-. How well your sales reps or relationship managers access and use this data to bring truly customized solutions to that specific client.
Those companies which makes the customer centricity as a prerequisite in their personnel hiring process not only for customer contact positions but also for technology, operations, security positions; make real difference and create their own secret.
Regarding your question: What do you think is the secret to creating a truly customer-focused enterprise, I have a proven answer. I have worked for large multi-billion dollar corporations and small companies. In addition, I have owned a couple of businesses. Assuming the company has a quality product or service and has a solid operating foundation it boils down to compensation and communication.
Compensation: Every employee must have some of their compensation tied to the customers willingness and desire to buy which is equal to customer satisfaction. When an employee, whether an order puller, customer service or sales knows that their actions create (or loose) customer loyalty they all become customer centric.
Communication: Once every employee is tied to keeping and attracting customers it is much easier to help all employees see the vision and mission of the company of which is typically customer centric itself.
Enabling tomorrow's Consumer Centricity by giving-up the Control of communication, Listening, respecting Privacy and rewarding both Attention and Loyalty, which all together will help rebuild Trust.