Benefits of customer-centricity and how a data-driven approach can help
Customer-centricity is not a simple concept. It is something that must be nurtured and communicated to all levels of an organization. It takes conscious effort to place the customer at center of all decisions and actions. Without being customer-centric, you can’t provide a seamless customer experience. This article will focus on the benefits of being customer-centric. If you want to understand how to transform your organization into a customer-centric one, check out out the 11 steps!
In just a few years, customer-centric business practices have become essential. It pays to be customer-focused to stay relevant, beat the competition and retain mindshare. Customers can now switch between brands by choosing from a variety of products and services. UX has become the most important differentiator and competition has spilled across industries with brands from various industries competing for UX. Users expect seamless shopping experiences, no matter if they are looking for the best shoe or the best insurance plan.
To offer exceptional customer experiences and personalize them, brands must understand their customers better than ever. It is vital that customers are accurately identified and categorized according to their journey. To further enhance this understanding, it is possible to create custom segments that can provide personalized content and offers. The 360-degree view of a customer is based heavily on gathering data from all channels and sources. This data is then analysed to give actionable insights that can be used to create authentic and personalized engagement. Data collection and analysis are key.
Data-centricity can help promote customer-first culture
Although customer data is vital for building customer understanding, there are still many questions about how to collect and use it. Brands must be open about what data they collect and how that affects end-users. To ensure consistency in compliance and authentication between departments, processes must be established.
Another big problem is that only 16% of organizations classify their data as being very high quality, according to multiple reports. What does this mean for the remaining 84%? Bad data is inaccurate, incomplete and duplicate data. This can lead to poor insights and an ineffective user experience. You must ensure that you have access to high-quality data in order to make data-driven decisions and to leverage it in your initiatives and strategies.
Many customer-centric companies are already using big data to develop a set of capabilities and principles that will help them manage their data. Some organizations have a large data pool that can load and store huge amounts of data. Others rely on cloud warehouses. Don’t worry if your brand’s data pool grows smaller. The principles will still apply regardless of the tech stack used or the complexity, size and frequency of business processes.
With many verticals moving online, the demand for data analysis has increased with an increase in data volumes. There will be an increase in demand to create intelligent customer engagement platforms as more companies realize the importance of data collection, enrich data, remove silos and make useful insights easily available. To find the right platform, it is important to fully understand its capabilities.
Customer-centricity requires data capabilities
If you’re still on the fence, here’s a stat that will put things into context: The median fortune 1000 companies could uplift revenue by over $2 billion/year only by increasing data usage by 10%! Understanding the capabilities of an intelligent engagement platform is essential to enable customer-centricity. A good engagement platform will allow your company to collect data, analyze it, reduce costs and share it with customer-facing functions in order to take action.
Here are some of the most important capabilities.
- Data identification and consolidationUsing intelligent tools to find customer data, its location, and the type of data it is belonging to, the past is gone. Because customer data can be found anywhere in your system, and may fall under multiple categories, this step is critical. It is important to find data that can be used for analysis and provide actionable insights.
- Data enrichmentEnsure that the data at your disposal are accurate and complete. A better data set will allow for better insight, which can lead to improved engagement and a better personalized experience. Enriching data can improve its quality by eliminating irrelevant, incorrect, or incomplete information. Data enrichment can be achieved through automated processes. The goal is to promote accurate information flow throughout the organization. Correctly enriched data can be used to identify factors that influence purchase, such as preferences, likes/dislikes and behavior/attitude/motivation, spend pattern, limit, location, preferred communication channels, and so on.
- Data delivery and managementAfter you have completed identifying, classifying and cleaning the data, it’s time to combine all information to create a consolidated customer overview that can be used across channels and regions. Intelligent engagement platforms have data integration capabilities that allow data to be delivered to the systems and applications that require it. Management of sensitive information Personal identifiable information (PII) must be managed in accordance with regulations like GDPR, KYC or HIPAA. This will help build trust and ensure a steady flow in data.
- Get actionable insightsOnce you have identified and cleaned the data, it is time to create a single customer view that can be used to develop customer-centric strategies and campaigns. There are many possible teams, ranging from CRM to marketing automation to sales and customer success to finance and human resources. Trusted data that comes from one source of truth is a key element to their ability to collaborate. It is essential to have a consolidated repository that contains customer data, which can be used for campaign management and marketing analytics functions.
Data-driven customer-centricity: Benefits
A data-driven approach can improve the customer-centricity of an organization by increasing visibility and understanding. This will benefit all departments of the company, viz. This will have a positive impact on sales, marketing, and customer success, among other areas. Here’s a quick summary of the benefits of customer-centricity using data:
- Increased execution speed due to consistent, accurate, and consolidated customer data. This is a single source of truth which positively impacts customer experience
- Integration of customer data across channels and from different sources is possible, ensuring connectivity between cloud and on-premises apps.
- Automated data management and centralization make it cost-effective
- Better cross- and up-sell via better segmentation and recommendation, enabled by a clearer understanding about preferences, intent, other interaction data
- Customer retention and loyalty can be improved by anticipating churn, engaging customers through personalized recommendation and increasing customer loyalty
- Chatbot conversations are more relevant and help with decision-making
- Text communication has a higher acceptance rate due to better targeting and being sent at the right time.
- Data-driven insights, segmentation and personalization can improve campaign efficiency.
Although customer-centricity may not be a perfect science, technology and data play an important role in ensuring that the company’s customer-centric vision is shared at all levels and by all stakeholders, from customers to employees. Brands can be data-centric by breaking down silos, improving data quality, complying to regulations, and creating a consolidated view of customers. This will help increase retention and reduce churn.
Customer-centricity is essential in sales, marketing, and customer success.
Customer-facing teams can interact with customers using clean, accessible, and enriched data. Each of these data requirements can be mapped to marketing, sales, or customer success. Let’s look at how each customer-facing function can use data to deliver more customer-centric experiences.
- MarketingFor any marketing strategy, the pray-and-spray approach is no longer effective. It is crucial to understand the consumer behavior on digital channels, whether it’s acquiring new users or retaining those you already have. A data-driven marketing strategy is a way to make this happen. This includes targeted lead generation, segment-specific campaigns and personalized content that will provide a better user experience and build loyalty.
- SalesSales teams must have a complete view of all customer interactions in order to be efficient. Only then will they be able understand the best product to sell to the correct client at the right time and through the right channel. The sales team can adapt their pitch based on the marketing offers that are attractive to the user, open service requests, and positive or negative Net Promoter Score (Net Promoter Score). Sales can gain a complete view of the customer to improve upsell opportunities and cross-sell opportunities, determine the best course, and identify hierarchies that will lead to increased account penetration.
- Customer SuccessYou can provide a snapshot of your user profile to enable customer success teams to predict and identify churn earlier and take proactive steps to stop it. This helps you to upsell, since the customer success manager can identify any leaks in your client’s system and map out a product offering.
Data-backed interactions enable customer-facing staff to provide better customer experiences, think customer first, pitch more confidently, and make informed decisions without the need for intervention.
Customer-centric organizations have many benefits
Because it allows you to put yourself in the shoes of your users and solve their real problems, customer centricity can bring huge business benefits. Customer experience is at the heart of any customer-focused company. It defines the relationship you have with your customers. Here are some statistics that will help you understand the benefits of being customer-centric before we dive into the details.
Let’s now dive into the many benefits of having a customer-centric mindset across all verticals and geographies.
- Customer journey holistically understood from beginning to endBusinesses can be customer-centric and understand how customers interact at different stages of their journey, from onboarding to repeat purchases. User satisfaction is determined by their ability to identify the stage at which they are, what transactions were made, and how they can add value and personalize each stage. It is important to understand why customers leave and how you can retain them. Don’t forget about the churned customers. Instead, understand why they are leaving. This two-way feedback interaction may encourage the customer to return to your services in the future.
- Sales opportunities increaseAccording to some reports, businesses that offer customer support at the decision-making phase have reported increased sales opportunities. Customers often struggle to understand the buying process before they make a purchase. Understanding the offerings can help you feel more confident and make faster decisions. It is important to find the areas that need frequent support.
- Reduced cost of serving: Customers who don’t use your product in the way they promised will not make a purchase. This is a waste of money and can lead to resentment towards you brand. Businesses must provide an onboarding process that is clear and transparent, with a thorough understanding of the features and capabilities. This will avoid customer churn and poor strategy. Customers who work with businesses to create value also see a dramatic improvement in their operational efficiency.
- Ability to adapt to changing customer requirementsCustomer-centric businesses have the advantage of being able to spot customer behavior changes and provide aligned experiences. This not only increases customer satisfaction and adds value, but seals you as valued business partners for life. Failure to do this will lead to being left behind.
- Better business resultsCustomer-centricity is basically about connecting the customer experience to your core business and communicating concerns from sales or operations to improve outcomes. You can see the whole picture and make informed decisions to improve or address certain outcomes.
- Trust and credibility are builtTrust will be built by building trust with your customers through consistent, empathic, and value-added interactions. Your customers will trust you more if you can keep your promises and provide value consistently. This will increase your credibility and build confidence in your business.
- Referrals are increased and acquisition costs are reduced: Customers will continue to refer you to their family and friends if your brand continues to add value to their lives. Your budget can be adjusted to reflect the inbound leads if you have brand loyal customers who rave about your business. This will lower acquisition costs over the long-term.
- Reduction in employee frictionEmployees can work together towards a common goal by setting clear customer-centric metrics. It helps to clarify who is responsible for solving customer problems, which in turn reduces friction and stress among employees
- Increased retention, loyalty, and lower churnYour customers will be loyal and continue to engage with your business if you put customer-first. You will see an increase in retention and loyalty, as well as a decrease in churn. To understand why customers are sticking around, you should continue to take satisfaction surveys and get feedback. This will help you to improve your customer-centric approach. Your business will be better able to weather economic uncertainty, black swan events and other threats if you retain customers.
- Potential for higher growth, revenue and profitsBuzz and business growth will be possible thanks to the steady stream of inbound leads coming from customer advocates. Success breeds success and all aspects of a business enjoy stability, so the revenue generated keeps adding to the bottom line.
Customer-centricity also has other benefits, including customers staying loyal during difficult times, easy attracting new users and differentiation from the competition.
What is a customer-centric culture?
Customer-centricity is about keeping customers at the heart of all business decisions, no matter how simple or complex. Customer-centric organizations must be able to hear the customers’ voice.
Companies that believe in customer-centricity invest time understanding customers by conducting surveys, creating user personas and mapping user journeys. This allows them to deliver a more customized and personalized experience to their end-users. Customers are disappointed and frustrated when companies go with their gut instincts and not take into account customer feedback and cues.
All of the world’s top brands are customer-centric. Slack, Hilton, Southwest Airlines (Swiss Airlines), Chick-fil-A and USAA, among others, have all developed customer understanding concepts. Technology can be a facilitator for the culture you are building, but understanding the basics of customer behavior is just as important. Only by understanding the customer can you communicate that understanding and weave it into your business’ fabric.
Let me end with this last data point. A Deloitte survey found that customer-centric businesses are 60% more profitable than those who focus on products alone.
If you’re still on the fence, this very compelling stat ought to push you over the line and get started on choosing the right engagement platform that lets you build customer-centricity in your business.
- Understand how MoEngage can help you build a customer-centric culture in your organization
- Build or buy: Which is better for an intelligent engagement platform? Find out here
- How do you select the right engagement platform? Here are 10 questions to help
- Do you choose a point solution or an integrated one? Check out what we found
- Here are six signs to understand that your organization needs an engagement platform urgently!
- Find out how the changing consumer needs reshaped the modern purchase funnel
- Here are six ways in which an intelligent engagement platform helps modern sales and customer success teams!