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Digital Product Entrepreneur
Employees brainstorming ideas to create a customer-centric approach in their business.
The power of a customer-centric business model is not to be underestimated. According to a survey from California Review Management, businesses touting mature customer focus experienced revenue growth at a whopping rate of 2.5X compared to those with an immature focus. Customer-centricity can permeate all facets of an organization, influencing everything from employee engagement to talent recruitment and retention.
However, an unsettling narrative often arises as tech companies scale up: their customer focus begins to blur. Amid the whirlwind of internal emergencies, tactical power struggles, and relentless pursuit of ambitious business targets, the customer is reduced to a mere afterthought.
Conversations gradually center more around internal team dynamics than customer needs. Strategic thinking is redirected towards process management, robbing the focus from innovating solutions for customers.
Employees brainstorming ideas to create a customer-centric approach in their business.
All startups aim for growth – stagnancy is synonymous with doom. And as startups grow, so do their teams. Expertise pools expand, each focused on their slice of the business cake. The mission is straightforward: amplify the impact of a fantastic product.
But with an increase in experts comes a surge in opinions, and complexity skyrockets. Roadmaps designed by product leaders may unintentionally prioritize internal alignment and resource constraints over customer needs.
Leaders dart between meetings, their understanding of the problems they're solving barely scratching the surface. This shallow grasp might mimic customer-centricity but barely suffices. Incremental solutions derived from surface-level understanding won't help you stand out.
When customer-centricity truly flourishes, it's akin to a well-oiled machine. As an illustration, consider Tom Willerer's experience at Opendoor, a digital real estate platform. To encourage users to choose Opendoor over traditional real estate agents, the company conducted numerous user interviews to understand the problems their target customers faced. They sorted these issues into over-served (already addressed in the market) and under-served ones.
Opendoor uncovered that a major under-served issue was the struggle to secure a home after making an offer. So, they came up with a program converting buyer offers into all-cash offers. This innovation not only resolved a pressing customer problem but also bolstered customer loyalty, propelling Opendoor to its billion-dollar run-rate status.
Customer-centricity encourages teams to develop and retain empathy for their customers. This empathy sparks insights that aren't apparent at first glance, fueling the creation of products that customers don't just like but love.
Determining whether your company has lost its customer focus can be tricky. But some self-reflective questions can serve as a barometer of your customer centricity. For instance, how often are your product managers, CEO, CPO, CTO, and CMO interacting with customers or reviewing raw customer data?
In the realm of company culture, are customer insights shared regularly during team interactions? Do your leaders mention specific customer problems influencing the business strategy?
There's no 'correct' answer to these questions. But if your answers lean towards "not as often as I'd like," don't panic. It's a common detour businesses take while scaling.
To revive the customer-centric spirit within your organization, we suggest starting with product development. Why? Because your product or service is the physical manifestation of your brand promise and your understanding of your customer.
Here's how you can recenter your product development process around your customers:
Activities to Prioritize
Activities to Operationalize
Activities to Ritualize
In our tech-powered world, digital tools can serve as a bridge between businesses and customers. One such tool is online scheduling meeting apps, such as MeetMe. These apps not only streamline scheduling but also provide opportunities to interact with your customers in a more personal way.
For example, as a product manager, I found MeetMe to be an excellent tool for scheduling customer interviews. Instead of the back-and-forth email chains to find a common slot, I would simply share my MeetMe link. Customers could then choose a time slot that works best for them. It's user-friendly, efficient, and it puts the customer in control, reflecting the customer-centric culture we're trying to cultivate.
To deepen the engagement, consider personalizing the messaging in your scheduling app. Add a brief note thanking the customer for their time, or provide some context about the meeting. Small touches like these can enhance the user experience and show customers that you genuinely value their input.
While journeying towards a more customer-centric business model, it's essential to be vigilant for potential pitfalls. As the company scales, it's easy to prioritize internal processes and overlook the needs of the customer.
Be wary of falling into the trap of surface-level customer understanding. As mentioned earlier, true customer-centricity requires a deep dive into customer needs and behaviors.
A shift in focus towards internal dynamics, coupled with a reactive approach to tackling problems, can quickly derail your customer-centric goals. Ensuring consistent, meaningful interactions with customers can help prevent this derailment.
Nurturing a customer-centric culture may feel like a herculean task. But remember, the journey is as significant as the destination. Every step towards becoming more customer-centric, no matter how small, is progress. After all, a business that loses sight of its customers loses sight of its purpose.
We'd love to hear from you! Have you used online scheduling tools like Meetme to maintain a customer-centric approach in your business? Please share your experiences and learnings with us