Definition: Customer centricity is a business philosophy where the customer’s experience and relationship is valued as the first priority. It places the customer as the cornerstone of the business model.
What Does Customer Centric Mean?
Customer centric companies worry about how its customers feel, perceive and enjoy the products or services they offer before, during and after the sale is completed. This philosophy revolves around an ongoing strategy to nurture and care about clients with a long-term relationship potential for the company. Customer centricity values these clients highly since they are currently faithful to the company and the brand.
By enhancing the company’s relationship with them they will be more inclined to increase their business volume and provide a high-impact word of mouth for the business too. In order to implement a customer-centric approach, the company must know its clients deeply. In modern days, information technology serves as the primary tool to do this.
By using Customer Relationship Management (CRM) software, a company can increase its level of customer knowledge, this will help the business identify the most adequate strategies to approach and nurture its core clients.
Example
Coffee Place Co. is a big coffee shop located in the hearth of the city of Sidney. The store offers its clients a wide variety of beverages including coffee, hot chocolate, and juice. The company’s marketing department have identified that 50% of the shop’s revenues come from a handful of clients. These clients are very regular and most of them work as assistants, in charge of buying drinks and food for their bosses and a bunch of staff members.
By identifying this trend, the head of Coffee Place’s Marketing Department decided to care for these individuals especially, since they are the ones making the decision of where to buy. The company decided to reward them for choosing Coffee Place as their first option.
In order to do this, they issued a VIP member card that allows them to place their orders previously through a text message; it also provides a 10% discount on each $20+ purchase and a weekly free beverage of their choice. By caring and nurturing these clients the company can increase their loyalty and guarantee that highly-important 50% of revenue.
