Doing what’s best for customers won’t always make them happy

What does it mean to be a customer-centric company?

That seems to be the question of the week. It started off with one of our subscribers emailing in the question, followed by two reporters wanting my take on this now-popular phrase for their interviews.

MEANING OF CUSTOMER-CENTRIC
If you Google the words “customer centric” (or “customer centricity”), you will encounter many definitions from different sources that are all very similar. I actually much prefer using the term “customer-focused” over
“customer-centric.”

A general definition of a customer-centric or customer-focused company or organization is one in which everything revolves around the customer. In other words, all decisions that are made – the good ones, bad ones and tough ones – always keep the customer in mind.

Every new system being put into place, every new line of merchandise being developed, every new location being planned, every website change – in one word, everything – warrants a discussion about how it will impact the customer.

In addition, all employees recognize their role in the customer’s experience, even those employees who never have direct contact with a customer.

A couple of examples will make this point. After hearing multiple requests from customers, a manufacturer decides to add a new colour to a line of merchandise.

Why? It’s a reasonable request and won’t cost much to set up for the new colour. As a result, the customers are happy because of the extra choice.

The company’s decision was made because they knew their customers were asking for it. The company listened and responded. It was obvious that the decision of adding another colour would make a positive customer impact. This one was easy.

TOUGH DECISIONS
But, what about a tough decision that a company knows will not be received well by the customer, such as a price increase?

Raising prices may not make the customer happy, but what will happen if the company doesn’t take this action? If the price doesn’t go up, in order to continue to sell the same product profitably, something else may have to give.

Not raising the price might mean a compromise in quality or service. The choice to raise prices, even knowing the customer will not be happy, may have to be done.

Or maybe it’s a decision about something behind the scenes that the customer won’t see, but that still may have a negative impact on the customer – maybe even worse than their concern over a price increase.

These decisions are always made with the customer in mind, even if we understand they are not going to be positively received by the customer.

Customer centricity shouldn’t be a concept that is simply bantered around. It should be woven into the very fibre of your company’s culture. Every employee must be a part of this culture that permeates the business. The best companies do this.

So, if you haven’t already done so, make the decision for your company to be customer-focused.

It will positively impact your customers, your employees and your bottom line. •

Shep Hyken is a customer service expert, keynote speaker and New York Times bestselling business author. For information, visit www.hyken.com. For information on The Customer Focus customer service training programs, go to www.thecustomerfocus.com. Follow on Twitter: @Hyken.