What Is Customer Centricity?
Being a custom-centric business requires putting the needs of the customers first. Custom centricity prioritizes the customer’s needs when making business decisions. These decisions on delivery methods, products/services, and even branding decisions. All of the decisions are made with the goal of high customer satisfaction which, in turn, also nurtures greater brand loyalty.
For example, hospitality businesses tend to focus on customer centricity, as their hotel experience prioritizes the needs and satisfaction of its guests in every decision made. But, there are also product-based businesses that follow a customer-centric approach.
Retail businesses that sell products that perfectly suit the needs of their customers are a great example of a customer-centric business. For example, in a competitive market, a retail business can stand out from its competitors by offering a custom product that addresses all the demands of its customers. Its competitors, who may just offer a generic version of that product, will not be able to address all customer needs without customizing the product to suit customer’s demands.
Benefits of Customer Centricity
When businesses prioritize the needs of their customers above all else, they can see exponentially higher increases in revenue, customer retention, and brand loyalty. It can also boost businesses above their competitors by showing customers that their needs are addressed fully. High customer satisfaction rates can lead to numerous benefits including increases in brand awareness through customer recommendations, brand loyalty (which can result in more returning customers), growth above competitors, and improved product success.
Higher Customer Satisfaction Rates
Customer centricity focuses on the goal of boosting customer satisfaction rates. It is easy to measure the success of a customer-centric business through its satisfaction rates. High satisfaction rates create a positive ripple effect on how a business performs financially. If customers are satisfied, they will want to return again when their need for that business’s products or services arises. They are also more likely to recommend the business to others, creating a free trail of potential new customers to help grow the business and increase sales.
When focusing on customer satisfaction, it’s important to look at the products being offered. Consider whether they fully address customer needs, or determine how they can be improved. Quality control, product value, customer service, and meeting demand are all aspects that can lead to higher customer satisfaction.
Brand Loyalty
Actively listening to the needs and demands of customers is a huge part of what makes a customer-centric business successful. A trusting and lasting relationship between business and customer is built when customers see their needs being fully addressed. It makes them feel like their voice has been heard by your business, as you show that you care about creating products that are perfect for what they are looking for.
Trust is a fundamental part of loyalty. If customers trust a brand to consistently deliver on its promises and provide high quality products or services, they are more likely to remain loyal. Brand loyalty, in turn, means returning customers in the future.
Improved Position in a Competitive Market
Customer centricity creates a strategic advantage for businesses in a competitive market. In a crowded marketplace, where products and services can often seem similar, customer centricity provides an opportunity for differentiation. By focusing on understanding the specific needs of customers better than competitors, a brand can carve out a unique position within their market. This differentiation attracts customers who value personalized experiences and solutions tailored to their needs.
For example, in a competitive market, it can be difficult to sell sports products. Selling custom sports products, such as unique or custom branded golf gear, helps a business stand out from competitors, as customers won’t be able to find that same product anywhere else.
Increased Product Success and Profitability
Products are more successful in any market when they address all the needs of a customer. For example, imagine you are walking around a clothing store. You overhear someone browsing shirts that says, “I like this shirt, but I wish it had shorter sleeves.” It’s something that happens in any store. “I like this…but…” is not something that a business wants to hear. Customer-centric businesses prioritizes getting rid of the “but” in the situation. Addressing all customer needs means that customers find your product and like it without there being anything that would make them hesitant to buy it. Finding an ideal product that addresses all their needs will lead to higher profitability for your business, as there is not “but” preventing them from wanting to make a purchase.
Implementing Customer-Centric Practices in Product Development
Implementing customer-centric practices requires a strong understanding of both your customers and your industry. Getting to know other products in your market allows you to gain a stronger understanding of what is missing from your market. Oftentimes, a business will get an idea for a custom product because none of the products in their market are able to fully address a specific customer need. This is when developing custom products allows your business to gain a competitive edge.
How Do You Ensure That You Have a Customer Centric Approach?
The best way to ensure that your business follows a customer centric approach is by offering products or services that are customized to the unique needs of your customer base. You know your customer base and target audience better than anyone else. Ensuring that products/services are customized to addressing all their needs helps stand out from generic products in your industry. Customers feel heard by businesses who acknowledge and address their needs, making them want to return again and again.
IPS offers the perfect solution to businesses focusing on a customer-centric approach. We are a one-stop-shop for developing custom products at an affordable price. If you have an idea for a custom product to sell to your customers, contact us today to discuss the project further. IPS designs, prototypes, engineers, and manufactures products based on your ideas, so you have a product that stands out in any competitive market.