4 stats that show being customer-centric pays, literally!
A decade ago, if you had preached customer centricity to the general public, chances are that you’d have been the odd one out. Back then, although the customer-centric business approach existed on paper, not many businesses were keen on testing its practicality. And the fact that customers had fewer choices meant you could get away with a mediocre service.
How times have changed! Every modern-day business or brand, irrespective of size and scale, is slowly turning heads towards their customers. Considerable effort is being put with the goal of making the customer central to all business processes and policies.
But shifting to a customer-centric mindset isn’t simply about making your customers happy. There’s another dynamic to it that deals with winning the competitive market race, improving your bottom-line and scaling up as an organization!
If you’re still doubtful that a customer-focused approach might not do the job, here are 4 stats that will make it easier for you to decide!
1. In the United States, the estimated cost of customers switching due to poor service is $1.6 trillion. (Source)
To paraphrase this, losing customers does terrible harm to your business, in terms of revenue loss as well as the cost involved in luring new customers.
Ask yourself: why do customers switch companies? In most cases, it’s because of unmet expectations and frustrating and ignorant service.
The only way you can hold onto your existing customers is if you cater to their expectations precisely. This requires that you place yourself in the shoes of the customer, clearly understand their perspective and their pain-points. A deep understanding of your customers ensures that at any point of time, you can solve their problems in the most efficient way.
2. Loyal customers are 5x as likely to repurchase, 5x as likely to forgive, 7x as likely to try a new offering, and 4x as likely to refer. (Source)
At the heart of customer-centricity is customer loyalty. By delivering great experiences consistently, customers can make out that you actually care about them and their needs. This bond soon translates into loyalty. Companies, in the past, have tapped into this feeling and built their own cult following that still is growing strong – the most obvious example is Apple.
This stat clearly proves that customer loyalty has multiple benefits. Not only do loyal customers give you repeat business, but they are also more likely to forgive your mistakes and stick by your side even during the hard times!
3. 7 in 10 Americans said they were willing to spend more with companies they believe provide excellent customer service. (American Express Survey, 2011)
One of the reasons why many businesses turn a blind eye towards customer experience or customer service is because they don’t understand its importance. They still believe that they can get away by offering huge discounts, and thereby make up for all the ill treatment of customers.
But, we’re no longer living in the 1990s or early 2000s. Today, the core differentiator that gives you a sharp edge over your competitors isn’t the price, or the quality or features of your product. It is the experience and the service you deliver.
Customers want that delightful, truly outstanding service. And they’re willing to pay EXTRA for it. So, what’s stopping you from giving customers what they want?
4. Customer-centric companies are 60% more profitable compared to companies that are not focused on the customer. (Source)
The biggest motivation to create a customer-centric culture is the affect it has on your bottom-line. At the end of the day, no matter how much a business is delighting its customers, it needs to make money. Profit is what dictates the course and sustainability of your company.
So, is becoming customer-centric profitable? YES! A small caveat here though: you need to participate in the marathon and not the sprint because customer centricity is all about creating those long-lasting experiences for your customers. In most cases, immediate returns are very hard to quantify.
In the age of the customer, you don’t need any more persuading to prioritize the customer above anything and everything. But that isn’t to say that becoming customer-centric is the end of the road. Even the best of brands like Apple, or Amazon still flounder and make mistakes. But the very fact that consumers stick by their side at all times shows why customer-centricity is the most important trait you need to cultivate.Become A Customer Centric Brand