| What does customer focussed or | | | | their value, needs and they listen to them |
| customer-centric business mean? | | | | - Customer centric business strategy: the business |
| Firstly, let's take a look at how customers | | | | is built around their core customers |
| attribute profit to a business; research has shown | | | | - Customer culture: employees live and breathe |
| that many businesses operate according the 20: | | | | their customers |
| 80 rule (Angel customers and Demon customers | | | | - Customer metrics: the business tracks its |
| by Larry Selden & Geoffrey Colvin). 20% of | | | | customers as part of key business performance |
| a business's customer base generates 80% of its | | | | tracking |
| profits. What's even more interesting is the 80% | | | | |
| of less profitable customers also contains a big | | | | How can I check if my business is customer |
| percentage of loss makers, which are costing | | | | centric? |
| businesses money by being on their books. | | | | Take a look at the questions below and answer |
| The 20:80 rule is only a rule and all runes can be | | | | them Yes or No for your business: |
| broken, and this is where customer focus comes | | | | 1. Do you have a clear idea of who your |
| in. By building a business around its' most valuable | | | | customers are and what are their needs? |
| customers, a business can change the ratio of | | | | 2. Do you know which of your customers are |
| 20:80 to a greater percentage of profitable | | | | most valuable to you? |
| customers; this is what's known as being | | | | 3. Does your business strategy / mission mention |
| customer centric or customer focussed. Valuable | | | | anything about your customers? |
| customers are part every aspect of | | | | 4. Do you hire / develop your staff with your |
| customer-centric business from its core strategy | | | | customers in mind? |
| to its day to day operations | | | | 5. Do you have a process by which customers |
| Why bother thinking about being customer | | | | and employees can give feedback and review / |
| focussed? | | | | act on this within your business? |
| 99.9% of successful businesses have one thing in | | | | 6. Do you have a customer complaints process |
| common, they're all customer focussed and | | | | which enables quick resolution of customer |
| customer-centricity forms a key part of their | | | | problems? |
| business strategy. They also have the following | | | | 7. Are all your employees empowered to deal |
| advantages over their less customer focussed | | | | with customer complaints? |
| competitors: | | | | 8. Do you know how satisfied or loyal your |
| - A profitable customer base | | | | customers actually are? |
| - Clear understanding of how to grow your | | | | 9. Do you provide specific services or incentives |
| business and profits, based on a deep knowledge | | | | for your most valued / loyal customers? |
| of your customers | | | | 10. Do you deliver what you promise in your |
| - An ability to respond quickly to your customer | | | | advertising / marketing to your customers? |
| needs and changes in your business environment | | | | So let's take a look at how your business did: |
| - A faster, more efficient organization, as | | | | - Customer Nirvana: if you scored 10, you're all |
| everyone beats to the same drum | | | | good and just need to keep doing what you're |
| - Better protection in downturns, due to more | | | | doing. |
| loyal customers | | | | - Doing well: if you scored 5-10, you're in pretty |
| In the next few pages, we'll show you how you | | | | good shape and just need to refine your |
| can evaluate your business for customer | | | | customer focus within your business |
| centricity and take steps to become customer | | | | - Must do better: if you scored less than 5, its |
| centric. | | | | time to hit the drawing board, and look at what |
| What's under the hood of a customer focussed | | | | you need to do to make your business more |
| business? | | | | customer-centric. |
| | | | In part 2, I'll be giving you an insight into how to |
| | | | build a customer focussed business. |
| - They know their customers: they understand | | | | |