“The customer is always right” is not just a phrase, but the main principle of many large companies. Today, the market is overflowing with offers, and consumers can choose from a variety of products in any area. To succeed in such conditions, a business must correctly understand and meet the needs of customers.
In this article, we tell you everything about customer focus: why it is so important and how to improve it. We will analyze the main types, principles, and examples of customer-oriented companies.
What is customer focus?
Customer focus is the ability of a company to understand and satisfy the needs of its customers. This approach contradicts such ideas as “You can sell everything” or “A good product will always find a buyer.” In these cases, the company first creates a product and only then thinks about how and to whom to sell it. Customer focus does not begin with sales, but with understanding what the customer wants.
Let’s look at an example. Two pizzerias decided to increase their customer focus:
Pizzeria 1 assumed that customers wanted cheap pizzas. They set low prices, and the number of orders actually increased. However, the quality of service declined. Employees began making mistakes in orders, and the wait became longer. As a result, customers were not satisfied.
Why is customer focus necessary?
Customer focus allows companies to grow and develop. Let’s look at 5 reasons why businesses should care more about customers:
A competitive advantage appearsNowadays, there is huge competition in almost every market. Therefore, it is becoming more difficult for a company to stand out due to price or functionality. High-quality service, attention and care for the client – all this is difficult to copy. With the help of customer focus, a brand has the opportunity to declare itself and provide a competitive advantage.
Increased customer loyalty and retentionCustomer focus will help increase loyalty. If customers are satisfied after contact with the brand, they will definitely come back. There is also a chance that they will recommend the company’s services or products to their friends. A satisfied customer is the best advertisement.
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Income increasesAnother plus is increased revenue. Loyal customers buy more and more often. Invesp research says that retaining existing customers is 5 times cheaper than attracting new ones. According to Pareto’s law, 80% of an organization’s future profits come from just 20% of current customers. Deloitte Research’s study “Capital Management: Digitalization is Changing Customer Service Like Never Before” confirms that a customer-oriented business earns 60% more than one that does not focus on the target audience .
Communication is improving
When a service is customer-focused, people are more willing to leave reviews, take surveys, and fill out questionnaires. All of this is necessary for business development. This way, a company can easily get information about what needs to be improved. Microsoft’s State of Global Customer Service report confirms that 77% of consumers are more loyal to brands that ask for and listen to customer feedback.
Employee engagement is growing
Customer focus is also important for increasing team motivation and engagement. In companies where customers are a priority, employees are more engaged. They feel that their efforts help people. They see positive results from their work and receive gratitude from customers. This increases their job satisfaction and motivation.
Types of customer focus
Customer focus can be divided into two main types: employee (internal) and business (external). Let’s talk about each category in more detail.
Customer focus of the employee
The first person who influences the quality of interaction with the client is the manager who communicates with him. Therefore, the head of the company must pay attention to internal customer focus. Here, the following aspects of working with employees play a major role:
- Training for the sales department.
- Employee motivation.
- Corporate culture of the company.
- Feedback from employees.
It is important that the seller follows the rules of communication with clients. The client’s requests should be a priority for him, even if they sometimes do not correspond to corporate interests.
Sales managers who are customer-oriented usually sell more. They have a loyal and regular customer base. That is why companies often remind their employees that it is the customer who pays the money, not the manager.
Customer-oriented business
External customer focus is an approach in which the company primarily seeks to work with customers on a long-term basis. The policy of such companies involves sales scripts or clear rules for communicating with customers. For example, the regulations may specify how to greet customers when entering the store: a smile, eye contact, and personal address by name if the customer is known.
But it’s not all about instructions. It’s important for managers to teach their employees how to communicate with customers correctly.
External customer focus means that the company strives for long-term relationships with customers.
Remember: you need to take care of your customers without forgetting about your employees. A successful company knows how to combine external and internal customer focus. This helps to simultaneously satisfy the needs of both customers and team members.
Principles of customer focus
Customer focus is the priority of customer interests. The main goal is to turn each customer into a regular buyer who not only regularly returns for purchases, but also recommends the company to their friends.
There are five basic principles of customer focus:
Empathy and understanding
One of the principles of customer focus is empathy and deep understanding of customers. The Way2wei study “Emotional Intelligence for Business” states that in 70% of cases, sales in a company decrease due to the fact that employees have low emotional intelligence . Therefore, it is important to be able to see the world through the eyes of the buyer, to understand their needs, values, and desires well.
Caring and responsive
The goal of any business is to make the customer’s life easier. You need to perceive customer problems as challenges, not as a burden. If a customer expresses dissatisfaction with the quality of a product or service, this should be a signal for action. It is important not only to correct the error, but also to think about how to prevent the same problem in the future.
Freedom of action
Employees should be able to make decisions quickly. Therefore, the manager should always encourage initiative at work. Remove bureaucracy so that employees can respond quickly and effectively to customer needs.
Individual approach
Customers are more likely to buy from companies that offer a personalized experience. Remember that customers always appreciate receiving birthday greetings and personalized offers.
The desire to surprise
Exceeding customer expectations is a way to stand out from the competition. For example, Apple often offers unexpected innovations and makes spectacular presentations. This makes the customer experience unforgettable.
How to understand if a company is customer-oriented
A customer-oriented company cares about its customers at every stage of interaction. This can be seen in small details: a user-friendly website interface, good quality packaging and other important aspects. Customer satisfaction with the product and brand, ease of ordering, positive reviews – all these are signs of customer focus.
Different niches have their own criteria for checking customer care. For example, for e-commerce, the following are important:
- Intuitive website interface or user-friendly platform.
- Several ways to contact: phone, email, chatbot.
- Prompt order processing.
- Payment in one click.
- Delivery is fast and convenient.
- Product descriptions with photos, videos and reviews.
- Quality materials.
- Clear terms of return and exchange of goods.
- Personalized recommendations.
The checklist for a customer-centric company is shown in the image below.
For example, if you own a bookstore that specializes in classic literature, you shouldn’t expand your selection to include modern bestsellers, even if it will attract a new audience. And if you own a high-end restaurant, you shouldn’t introduce a budget menu if your customers ask for it.
Compass
Compass is a corporate messenger that puts customer needs first. When a user contacts support, they are communicating with a real person, not a bot. In checklist: como se posicionar bem no google em 9 pontos? addition, the chat with the support service is already built into the messenger. You can get an answer very quickly. This allows you to quickly and efficiently resolve user issues from the first interaction with the product.
Compass is ready to help everyone, even if the person does not plan to use the messenger in business. For example, there was a case when a student contacted support. He had to complete a task to compare corporate messengers. The support employee not only told the student about the functionality of Compass in detail, but also acquainted the student with the company’s plans for the future.
Zappos
Zappos is known as an online shoe store. The customer is always a priority here. If the desired product is not available, employees search for it from at least three competitors. Then they tell the customer where to make the purchase.
In one case, one of the employees helped a customer order a pizza at night. Thanks to this approach, 75% of purchases at Zappos are repeat orders.
Cartier
In Cartier jewelry boutiques, the customer will always find a consultant who speaks his language. If such a specialist is not available, the store provides a free translator. So each customer feels confident and comfortable.
Southwest Airlines
The airline stands out in the market due to its approach to customer service. Southwest Airlines does not charge a fee for changing flight plans. It also allows passengers to take two suitcases on board for free.
T-bank (Tinkoff)
Tinkoff can be considered one of the most customer-oriented companies in Russia. The client can contact the bank’s support at any time of the day. The company provides many useful tools on the website for free.
How to make a company more customer-oriented
If a company decides to become more customer-focused, it should study two rules.
Rule 1: Provide quality basic service
Explore the product
The company’s product or service must meet the declared my numbers list parameters and quality. Analyze the product in terms of design, packaging, content or other parameters. A detailed study of the product will help you understand where improvements are needed. Provide only reliable information about the product. This way, the client will definitely make the right choice.
Optimize your website
Make sure the site is easy to order and provides accurate product information. Buyers should be able to easily find the product they need and quickly contact a manager if needed.
Strengthen support
The support service should be accessible and ready to quickly resolve any issue. Employees should be responsive and proactive.
Appreciate feedback
Ask your customers to leave honest feedback. Collecting and analyzing this data will help you find problems and optimize processes. You can also conduct regular customer surveys.
Conclusion
Transitioning to a customer-centric business model is a long and difficult journey. However, even small changes in service can significantly help both your employees and customers.
