In a very globalized and technological market, with an increasing offer of products, services and new business models, companies that do not put the customer at the center of their business strategies will see their chances of success decrease drastically.
The co-founder of RD Station, a reference company in digital marketing and author of the book “Customer Acquisition Machine”, André Siqueira, explains: the greater the number of products on the market, the greater the competition, and the greater the competition, the greater the power of the customer, who can bargain among the numerous suppliers, seeking the best cost-benefit.
According to Siqueira, in this dispute for customers, companies are increasingly pressured from a financial point of view, expressed by indicators such as Customer Acquisition Cost (CAC) and Lifetime Value (LTV). The first, explains Siqueira, refers to all the amount invested in marketing and sales to co-opt a customer and ends up being more expensive because there are many other companies vying for the potential customer’s attention.
The second, which represents the expense of each customer throughout its lifetime purchasing the company’s products, is harmed, because the company cannot raise the price of the product, at the risk of losing the customer to the competitor.
“So, the organization that is not able to experience the customer as a priority will be threatened”, says Siqueira. And it is from this struggle for survival that the “customer centric” culture gains more and more strength, which is nothing more than a company putting the customer at the center of its strategic, tactical, technical and operational decisions.
A study by Deloitte, one of the largest professional services organizations in the world, proves how adopting this concept as a business strategy is beneficial for companies today. According to the company’s survey, “customer centric” companies are 60% more profitable than “product centric” companies.
According to Siqueira, in this shift from a traditional company focused on the product to an innovative company focused on the customer, the philosophy becomes to serve customers, with all decisions being made from it (outside-in) instead of be to sell products to those who buy them (inside-out). And the product journey is no longer that of the sales process to become one that goes from customer learning to customer loyalty. “In the culture of this new company, sales are not celebrated, but satisfied customers”, he says, emphasizing that the ability to retain customers, keep them loyal, becomes the great differential of a company that intends to be a winner.
In addition to increasing customer retention, the “customer centric” culture brings other benefits to organizations, such as: transforming customers into brand promoters; reduce CAC and lifetime value, two major challenges in a highly competitive market; and increase competitive advantage.
For the company to be able to put into practice with excellence the necessary changes that aim to place the customer at the center of the business, it needs some care. According to Siqueira, the basis of all actions is the excellent understanding of the customer. “This understanding should not be average, based on a standard design or guesswork, but intentional.” Some software can help with this task by collecting and storing relevant data and information about customers.
Mapping the customer’s purchase journey and listening to what they have to say about the company are also good strategies to get to know them better. According to Siqueira, to understand how the experience serves the consumer and where it can be improved, the Net Promoter Score (NPS), a customer satisfaction methodology that assesses their degree of loyalty, is a good tool.
In addition, he states that the company must strengthen the positioning of the brand, through clear and direct communication of its strengths, in order to maintain the same audience. “Positioning is not speech, it is practice.”
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