According to a Forrester report, just 8% of enterprises qualify as fully customer-obsessed.
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For a company to be classed as customer-obsessed, it must be customer-led. While many companies may believe they are customer-led, they often fail to move into the ‘customer-obsessed’ bracket. Customer-led organisations benefit from higher revenue, increased employee engagement, and greater customer retention.
Why are more companies not customer-obsessed?
With statistics showing that customer-centric organisations are up to 60% more profitable than those that are not, it’s hard to comprehend why organisations wouldn’t do everything in their power to adapt to shifting trends. Most organisations believe they are customer-led, even when they are not, leading to missed opportunities.
Here are two main reasons why companies are missing out:
1. Misplaced focus
Forrester reports that in companies that are not customer-led, only 50% of leaders place a focus on the customer when it comes to decision-making about customer interactions. Business leaders often have a misplaced view that short-term financial benefits are more lucrative than long-term business health.
2. Lack of customer and buyer empowerment
Empowered customers are more interested in fulfilling their wish to be in charge of their own experiences. This has created a drive towards social experiences and values-based purchases. Brands that can’t adapt and evolve in line with this fall behind, and miss out on the benefits that being a customer-obsessed organisation brings.
‘Out-of-touch leadership, a lack of customer understanding, and entrenched business processes prohibit many companies from becoming truly customer-led.’ – Forrester
The advantages of a customer-obsessed organisation
In a nutshell, being a customer-obsessed organisation means putting the customer first, always.
Forrester describes customer-obsessed organisations as ‘making customer needs the primary driver of business decisions and balancing those needs with business strengths and goals.’
Customer-led companies enjoy a series of benefits:
1. Higher revenue growth
Forrester reports that ‘87% of respondents at customer-led companies estimated that their revenue grew in the most recent fiscal year compared to only 61% of respondents at non-customer-led companies.’ Customer-obsessed organisations consistently record higher year-over-year revenue growth.
2. Engaged employees
Employee engagement is extremely important in creating better customer experiences. Happier, more engaged employees create better results overall, for both the organisation and the customer. Forrester reports that 71% of leaders at customer-led organisations agree that employees are happy to work there, whereas only 35% of leaders at organisations that aren’t customer-led agree with the same statement.
3. Increased customer retention
With more engaged employees leading to happier customers, it’s no surprise that customer-led businesses see an overall increase in customer loyalty. With the customer at the centre of the organisation’s focus, it’s inevitable that the customer would then continue to use that business’ services to fulfil their needs or goals.
‘75% of executives at customer-led enterprises agree their customers like doing business with them, relative to only 27% of executives at enterprises that aren’t customer-led.’ – Forrester
Becoming a customer-obsessed organisation
Consistently listening to customers’ needs, adapting to them, and engaging with customers is key in the quest towards becoming a customer-obsessed organisation. This should be a constant goal.
‘As soon as you stop improving, a competitor that wants to improve will surely pass you by.’ – Forbes
Shifting the focus of leaders’ goals to customer impact ensures long-term financial benefits. By then harnessing customer insights, organisations can make strategic customer-focused decisions. Customer journeys should be at the forefront of all decisions, to create a successful, customer-obsessed organisation.
At redk, we have over 15 years of experience in digital transformation, working to advise on and implement technical solutions with our expert partners, creating the best outcomes for your business. We work hard to keep your organisation on track and ahead of the curve when it comes to being a successful customer-led business. Talk to us to find out more.
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CRM Transformation Practice at redk
Hideki applies over 15 years of experience in the field of CRM and Customer Experience to overcome business challenges in the customer cycle.