| OBJECTIVE OF THIS ARTICLE
In this chapter, we are going to look at Customer-Centric Strategy (CCS). We will also be looking at what an organisation needs to do in order to evolve into a Customer-Centric Enterprise. We will be looking at this under two main headings.
· acquiring new customers
· Retaining customers.
We will also talk about what you need to know about your profitable customers.
When we talk about CCEs, we are talking about ways by which an organization tries to do business from customers’ perspective. Whatever form an organization adopts in order to be customer-centric, it is always aimed at acquiring new customers, customer retention and increasing customer profitability.
If an entrepreneur wants to start a new business, he first has to think up the right idea. You have to make sure that you are producing what is needed by prospects rd customers in your vicinity. One thing you should know is that a portion of your resources should be committed to acquiring new customers for your products and services.
Once an organization acquires a new customer, they have a more serious task at hand, which has to do with retaining the customer and preventing loss of customers to competitors. In retaining your customers, you have to understand the relationship between the company the brand, the channel of distribution and the customer Competitors always try to draw away customers through innovation and incentives which are meant to draw customers from another life cycle.
A customer-centric enterprise must keep track of the satisfaction level of their customers through appropriate feedback mechanism aimed at knowing the response of their customers to their products and services. They should be able to suggest to customers more ways of deriving more benefits from the product. When an organization can increase the utilitarian benefits of their product, it will make customers come for more of such product/services.
In order to retain customers, organizations must come up with loyalty programs aimed at increasing the frequency and involvement level of the customer One of the ways of measuring this involvement is Life Time Value (LTV) which aims at assessing the profitability of customer over his lifetime with the organization.
Lifetime value is measured in terms of historical and projected lifetime value. It allows the organization to begin to allocate marketing resources by a segmented group and individual levels.
If a customer is perceived to be profitable, the enterprise will require five kinds of information to be gathered. These include:
- Customers’ want and needs
- Customer purchase cycle
- Customer interaction opportunities
- Customer profile
- Customer lifecycle
- Customer Purchase Cycle: This is the period between the customer’s first purchase and the next purchase. The organization must also take note of the likelihood of additional purchase and the nature of purchases made by the customer
- Customer Interaction Opportunities: Tm water to enhance customer loyalty, a customer-centric organisation must maximize interaction with the customer organisation. This is where touch points became necessary.
- Customer Profile: Any organizations that wish to relate and retain its customers when using customer-centric strategy must have a robust customer support services in order to have a formidable customer service. The organization must have enough information about their customers. It is might include it relationship they have, the size.
- Customer Life Cycle: The customer lifecycle of an organisation traces the lifetime of a customer as it relates to his product use. It starts with the use of the product to the time that the customer disengages or die as the case may be. The organisation must be able to predict the behaviour of its customers and predict his next move in order to prolong his stay in the organization’s Life Cycle.
The purpose of evolving into a customer-centric is not for profit motive but it can help in saving costs through the increased effectiveness of the organisations’ internal processes. If the internal process is well developed, it will increase the return on investment in a CRM initiative.
In this chapter, we have looked at the customer-centric strategy. We focused our attention on how to gain new customers and how to retain your customers. We also said that it is better to focus on how the organisation will not lose customers to competitors because it will cost more to acquire new customers than to retain them.
We talked about what you need to know about your profitable customers. These include:
- Customers need and want
- Customers purchase cycle
- Customers interaction opportunities
- Customers profile
- Customers Life Cycle
- Discuss the relationship between the Internet and CRM.
- Discuss CRM and Globalization
- Do you think CRM can work without technology or software?
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