Brands that have achieved customer centricity are 60 percent more profitable than those that haven’t, according to Deloitte.
Unfortunately, very few brands have. Indeed, even those considered the flag-bearers for customer centricity – like Amazon – receive bad press.
As such, it’s critical to take a step back, recalibrate, and reconsider what a customer-centric brand looks like.
Lee Jones, Director of Elev-8 Performance, does precisely that in the following video, sharing a definition of customer centricity, examples, and best practices.
A written rundown is also available below, hitting these critical points.
A Definition of Customer Centricity
Customer centricity is the art of putting the customer at the forefront of all decision-making.
It’s not just being transactional or reactive but consistently doing the right thing for customers throughout the business.
Moreover, in customer-centric organizations, everyone – from frontline employees to back-office staff – has the autonomy to make decisions that prioritize the customer.
Ultimately, it’s about creating an environment where people don’t need approval to do what’s best for the customer.
Customer centricity engrains this mindset throughout the business.
Examples of Customer-Centric Businesses
First Direct, Ocado, and John Lewis… there are many brands people perceive as customer-centric. Yet, three standout companies have taken customer centricity to the next level.
Amazon
While it doesn’t always receive glowing media coverage, Amazon’s CX is exceptional.
It’s easy to buy from them, it’s easy to complain, and if there’s a problem, the customer is a few clicks away from a resolution.
Additionally, Amazon’s staff has the autonomy to take action. For instance, service teams can remove products from the site with just one complaint.
Interestingly, Jeff Bezos was known for leaving an empty chair at board meetings to represent the customer, asking: “What would the customer think of this decision?”
That symbolic gesture speaks to Amazon’s commitment to customer centricity.
Southwest Airlines
A blindfolded passenger on any US domestic flight is unlikely to distinguish the airline they’re traveling with… unless it’s a Southwest Airlines flight.
After all, it has implemented several policies to embed a customer-centric philosophy within its business model and ensure differentiation from other low-cost airlines.
Its “Bags Fly Free” and “Flexible Ticket” policies are prime examples. Yet, there are several others. For instance, the airline allows its passengers to rebook at a lower price if the cost of the ticket they have already bought drops.
These practical policies help safeguard its customer-first culture.
Elsewhere, Southwest has a dedicated team of responders who forward customer compliments about a specific employee to them and their boss.
Reportedly, the team receives 7,000 of these compliments a month, and celebrating those helps to reinforce customer-centric thinking.
L’Oréal
L’Oréal combines unique in-store experiences with 24/7 customer service and a reputation for promptly answering customer queries.
Nowadays, that’s differentiative in itself. Yet, it also does an excellent job of embracing new technologies to close the gap with customers.
For instance, L’Oréal built a SkinConsult AI platform to address specific skin concerns and suggest products that best meet each customer’s needs.
Moreover, it’s leveraging digital experience technology to actively adapt its content plan to meet each region’s unique needs, preferences, and culture.
Lastly, it creates immersive experiences, such as augmented reality try-on features, that take the in-store experience into the digital world.
Each example highlights how L’Oréal puts customers at the heart of its innovation plans and actively aspires to create deeper connections.
3 Best Practices to Achieve Customer Centricity
Achieving customer centricity isn’t as easy as spreading the message: “Take the customer into account in every decision you make.” There’s much more to making that concept a reality.
Thankfully, the three following best practices can help brands turn the screw.
1. Accept that Customer Centricity Is Not All About Values
Many organizations get caught up in defining their values, spending months debating whether to use words like “care” or “empathy”. Yet, while values are critical, they’re only the starting point.
What matters is how those values come through in everyday actions. After all, a business can have the best-sounding values in the world, but if leaders aren’t living them, they won’t matter.
So, get those values in place, sign them off, and – from there – brands should fixate on embedding those values into daily behaviors.
To do this, leaders must role-model the values and tie them back to real actions and decisions, ensuring they consistently reflect in the organization’s everyday work.
2. Embrace How Team Climate Eats Company Culture for Breakfast
Two people could work in the same office and have polar opposite experiences of the culture based on their team or immediate leader.
What really matters is the team climate, the direct environment shaped by colleagues, and, most importantly, leaders. That’s what defines the day-to-day experience and enables customer centricity.
In creating a good team climate, leaders must go beyond just communicating goals through emails or PowerPoints. They need to make a personal connection with every individual.
Such connections ensure each team member understands the why behind the company’s customer-centric ambition and what that looks like in practice. This individual connection is crucial to creating alignment and fostering buy-in.
Another critical piece here is psychological safety. People need to feel safe to innovate and take risks. Again, that means that leaders must stay close to teams and customers.
Remember: great leaders don’t just role-model behaviors; they’re on the front lines, spotting and fixing the problems that get in the way.
Finally, frontline employees must feel free to do what’s right for customers. Empowerment means trusting that the team will make the right call, even if it disrupts the usual metrics.
3. Focus on the Things That Drive Performance
Businesses shouldn’t wait for their team climate to be perfect before focusing on performance. With this focus, especially in areas like customer complaints, that climate will follow.
Again, this starts with leaders taking ownership, showing their teams what good looks like, and providing the right training. In just doing that, they’ll likely create an environment where people feel much more supported.
Additionally, employees will start to feel more engaged, their capability will improve, and, as a result, the team climate will evolve.
When all this aligns, performance ramps up across the board, from customer satisfaction and net promoter scores to employee engagement and retention.
Ultimately, great team climates lead to great, customer-centric cultures, often in reverse of what people typically think.
Thanks to Lee Jones and the Elev-8 Performance team for sharing their perspectives and making this article possible.
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