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Is Your Business Growth Strategy Customer-Centric?

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Posted by John Beveridge on Jan 22, 2014 9:00:12 AM

Is Your Business Growth Strategy Customer-Centric.jpg


When I was growing up, they had a word for people who constantly said, "that's not fair!" The word was crybaby. Don't get me wrong - I'm not part of the too-big-to-fail crowd. None of my 4 grandparents were born in the United States and all of them worked hard in labor-intensive jobs to help my parents get through college. Both of my parents got Masters degrees and worked hard as teachers and administrators to help me and my 3 brothers get through college. We all had to earn everything we got - no jobs because Daddy knew the president of the company. One thing we were all taught - nobody owes you anything and you need to earn everything you get.

This ethos has been with me all of my life. I'm thankful for every customer I've ever had and have never given any customer less than 100%. They finance my life, why wouldn't I? Despite the fact that we have an "actual unemployment rate of 37.2%", I've had a few terrible customer service experiences lately that have left me scratching my head. This is speculation, but I'm not sure that bad customer service experiences and a growing sense of entitlement aren't related.


Growth strategies for entrepreneurial businesses

If you haven't heard of Coursera, I highly recommend you check it out. Coursera provides high-quality courses taught by professors from some of the top schools in the world. One more thing - it's free! I'm currently taking a class called Grow To Greatness: Smart Growth For Private Businesses taught by Professor Ed Hess of the University of Virginia Darden School of Business based on his book of the same name. I've learned some new things and have had many things that I've learned over my 30-year business career reinforced.

Professor Hess's research has shown that a relatively small percentage of companies have consistent, above-average growth over a long period of time (less than 4%.) Those that do share a set of common traits:

  1. They have a strategic focus - they target a market niche and focus on it relentlessy.

  2. They have operational excellence - they take pride in the quality of their product/service and have processes in place to ensure quality is consistent.

  3. They operate in an environment of constant improvement.

  4. They are CUSTOMER-CENTRIC.

  5. They have high employee engagement - employees are committed to the mission of the company and the company is committed to helping employees succeed.

 


Is your company customer-centric?

I doubt anyone would say, "No, my company isn't customer-centric, we care about ourselves first, last and in the middle." Everyone thinks they are customer-centric. But do your customers agree with you? Let me share a few examples to illustrate my point.

I am a customer of a growing company who has had several years of success after starting-up in the mid 2000's. They publicly group their customers into tiers (platinum, gold, etc.) What message does this convey to new customers that haven't reached the higher tiers? Does it say we care about you? As a customer who's not in the higher tiers, I can't get people to return my emails or phone calls. Five customers that aren't being treated well and spread the message around can outweigh hundreds of "platinum" customers as this company struggles to make the transition from hot start-up to competing head-to-head with enterprise competition with deep pockets.

I've read several articles recently with the premise the customers isn't always right. Here's my take on the subject. Before accepting a new customer, you need to promise yourself that they will always be right. If you have questions about the suitability of a customer, don't take them on! If you think they might not be right, fire them! As long as you're taking their money, they're right. 


Are your employees customer-centric?

We've seen that highly engaged employees are a key element to consistent, above-average growth. The question you need to ask is "does every employee that represents my company value our customers as much as I do?" If they don't, impress upon them the importance of the customer and give them one chance. Then get rid of them. I don't want any of my employees or sub-contractors diluting my brand and value proposition by providing poor customer service. Everybody makes mistakes, but if it's an attitude rather than a one-time mistake, they need to go.


How do you know if your company or employees are customer-centric?

This is an easy one: ASK YOUR CUSTOMERS! Institute a formal customer-feedback process that solicits input on how well you've met the customer's needs and asks how you can serve them better. Don't make it a pro-forma exercise, make it a priority from the top down.

Have your top management reach out to customers to let them know how much you appreciate their business and ask how you can improve. It's surprising how much a simple thank you can affect a customer's impression of you. It's even more surprising how rarely you hear a vendor thank a customer for their business!

A formal stewardship review or customer-service feedback session is a great opportunity to ask satisfied customers for referrals. When a customer tells you that they're happy with how you're company has helped them, it's natural to ask, "Do you know of any other companies that might benefit from working with us?"


Research shows that a customer-centric philosophy is an essential element to your business growth strategy. This is even more important in today's continuing tough economic environment; companies are increasingly evaluating business relationships and they have options. Ask yourself if your company is truly customer-centric. More importantly, ask your customers if your company is customer-centric.

 

Topics: Marketing Strategy

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