Loyalty, Retention & Engagement First.
Given that each of us are in fact customers, we all bring experiences as customers, and most often the ones that remain etched in our memories are those that are less then favourable …
So what is a customer mindset and why is it so critical to adopt for businesses and when hiring people in your organisation?
Essentially, a customer mindset is a desire to meet the needs of your customer and a customer design centred approach to how a business is structured, delivers products / services, engages firstly with customers and what that experience feels like for those who engage, is directly linked to success, profitability and culture …. don’t take it from me … check out the research…
Frederick Reichheld of Bain & Company (the inventor of the net promoter score) shows increasing customer retention rates by 5% increases profits by 25% to 95%.
The three leading causes of customer churn.
- The probability of selling to a new prospect is 10-30%.
- The probability of selling to an existing customer is 60-70%. (Marketing Metrics)
- 80% of your future profits will come from just 20% of your existing customers. (Gartner)
So how do you even start to test your customer mindset and whether this is culturally ingrained in your organisation?
Key questions to ask around customer mindset:
- Do people understand what you are trying to achieve and who their customer’s are?
- Do you hire according to a customer mindset and ask questions around people’s customer focus at interview stage?
- What language do people use when they talk about the business and their roles – Is this about the customer and service experience?
- How do people feel about the business and about referring family and friends?
- What is the response when something goes wrong in terms of a customer experience and what is the level of ownership from individuals?
- How do people measure if they are doing a great job and is this linked to customer experience/ measured against this?
- How do people/ the business gather data/ insights and link this to business decisions and actions, that take into consideration and align to what your customers are telling you matters most?
What are some of the key benefits of adopting a business model and mindset that focuses solely around the customer experience?
- Stand out from your competition and win market share
- Develop loyalty with customers, who will not only stay with you but refer others as a result of their experiences
- Build a brand that connects with customers and with whom they want to be aligned and are truly connected with
- Position yourselves as an agile business, who listens to customers and is therefore able to evolve and change as your customer needs evolve and change and stay ahead of the curve for relevancy and engagement
What have you got to lose?
Listen to your customers, connect and engage and develop your offerings and engagement around what they are telling you. Listen to what they/ the insights and data tell you will work and then create loyalty and value at every step of the journey, making your customers part of your success / celebrating and involving them!
To find out more or discuss exceptional and talented folk that can help you navigate this landscape in your business and visit us at: www.fusionpartners.co.nz
Michelle & Wayne are Co-Directors and Founders of Fusion Partners, delivering consulting and recruitment services.