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How To Move From A Product-Centric to A Customer-Centric Organisation - PART 1

Hello and welcome

My name is Bram, and in this video, we are going to discuss

how to move from a product-centric, to a customer-centric organisation

Since there is quite some ground to cover I cut this video into multiple parts.

Initially, we will dive into the following three aspects:

What is customer-centricity What is product-centricity AND

How do product-centric companies differ from customer-centric ones

We will also have a part where we only focus on the steps necessary to make that change

happen!

That video will be all about how you can make the shift to a customer-centric organisation

Back to part one

Back in the day, most multinational corporation and enterprise companies relied on product-centric

approaches and focused their efforts on developing new products by leveraging technology or specialized

skills.

These days, however, companies are increasingly seeing the value of adopting a customer-centric

approach and putting their customers at the heart of all they do.

So What Is Customer-Centricity?

In a nutshell, customer-centricity refers to the act of putting your customers at the

core of your business.

This means that your business objectives, goals, and mission should revolve around the

idea of creating a positive experience for your customer, and/or delivering value to

them.

Generally speaking, customer-centric businesses believe that their clients are the primary

reason that they exist, and they’re happy to go the extra mile to keep their customers

happy.

Some Examples of customer-centric companies include Amazon and Zappos.

There are plenty of strategies that customer-centric companies rely on, but all these strategies

fall into three broad categories: 1. Customer development

2.Customer retention 3. Customer acquisition

So let’s start with Customer development. Firstly, customer development is all about

making your existing clients more valuable.

Here, companies analyze their data and identify patterns to come up with cross-sell and up-sell

opportunities.

This helps them increase the Average Order Value (AOV) and Lifetime Value (LTV) of each

customer.

Note that customer-centric companies do not aggressively up-sell customers just to hit

their sales goals.

Instead, they make it a point to only up-sell customers when it makes sense, and when it

results in a win-win.

Number 2: Customer retention With customer retention, companies basically

engage and cultivate their customers so that these customers stick around for the long-run.

Again, this helps the company increase its customer LTV.

One major benefit of investing in customer retention is that it helps companies increase

productivity and save cost.

Acquiring a new customer can cost up to 5x more than retaining an existing customer,

and the success rate of selling to an existing customer is 60% to 70%, as compared to the

success rate of selling to a new customer, which is 5% to 20%.

Number three: Customer acquisition

Finally, customer-centric companies also take great pains to fine-tune their customer acquisition

strategies so that they acquire the right type of customers.

More specifically, these companies tend to focus on acquiring customers based on behaviours

instead of demographics.

For example, a customer-centric company might use a tracking code and their CRM system to

keep an eye on their leads’ behaviour and actions taken on their website, and reach

out to leads who have engaged in certain actions, say, viewed their Pricing page five times

in a single session, or downloaded three different lead magnets from their site.

Being customer-centric vs having good customer service

Some companies mistakenly equate being customer-centric with having good customer service, but in

truth, customer-centricity is so much more than that.

Think about it this way: truly customer-centric companies offer their customers a great experience

throughout their buying journey, and delight their customers at every touchpoint.

If you’re hard at work optimizing your support strategy, that’s great, but don’t just

stop there.

You should also try to improve your other interactions with your customers, and think

about how you can create a better overall experience for said customers.

Thank you very much for watching, and please share a like if you feel this video contributed to your learnings.