Customer in the Driving Seat, What Then for Business?
Introduction
Today’s customer is more knowledgeable and empowered. The time of businesses by the ‘terms makers’ and customers being the ‘terms takers’ is gone. For instance, customers now possess the power to share negative word-of-mouth (WOM) with thousands, if not millions, of users by the click of a button. Marketer-generated content (MGC) is less trusted by customers than user-generated content (UGC). In other words, customers now tend to trust what other customers say about a business than what the business says about itself. UGC such as social media posts & online reviews shape market perception about the brand in a significant way. The ‘million-dollar’ question is, what does this mean for business, how can businesses deal with the threats, and leverage the opportunities that come with this situation?
How should business adapt & thrive?
- Be truly customer-centric
It is critical for business to put the customer front and centre in all that it does. Businesses should move from mere talk to live customer centricity. Voice of customer (VoC) programs should become an important component of business strategy. An outside-in approach should replace the traditional inside-out approach of designing products and processes. When customers perceive that the business really cares about their experience and places importance on their feedback, they become emotionally attached to your brand. They become advocates of your business. Their power to influence others then works to your advantage as they spread positive word of mouth (WOM) and share positive online reviews.
2.Embrace personalisation
Personalisation goes beyond just addressing the customer by name. It should cut across all aspects of your relationship with the customer. The product/service you offer, the way you engage, the distribution channels, the language of communication etc now all must be customized to the individual customer, not to a group segment. The traditional customer segmentation, where customers with homogeneous needs are grouped together for customization is fast losing relevance. The ‘segment of one’ has become the reality. Artificial Intelligence (AI) has taken personalization capabilities to levels unimagined a decade or so ago. Investment in technologies that enhance & support personalization such as robust CRM systems is no longer a luxury but a necessity for business survival. The empowered customer demands that you treat them as an individual, otherwise they walk away and spend their ‘dollars’ elsewhere.
3.Build trust
Customers today only deal with brands that they fully trust. The innumerable options that the customer has today give them massive bargaining power when dealing with business. The business must deliberately invest in programs that ensure customer trust is earned. When choosing organisations they can entrust with their business, customers pay special attention to a whole lot of aspects. For instance, transparency in your communications, fair pricing models, adherence to your explicit or implicit promises, responsiveness to complaints/queries, ESG focus etc. When it comes to building trust, customer perception is everything. They rely on their perceptions when selecting brands to trust or not. More importantly for business, once customers decide that your not trustworthy, they do not just walk away, they ‘recruit’ other customers/potential customers in that same perception through negative WOM in the form of social media UGC & online reviews. Losing the trust of one customer results in much wider reputational damage. Business should inculcate a culture of treating each customer as special, treating them fairly, listening to customer grievances & taking immediate action to address those grievances in the fairest manner possible.
4.Be sensitive to changing customer tastes & preferences
Customer tastes & preferences are shifting at a rate never experienced before. Businesses that will survive should be right on pulse of such shifts. Predictive tools help businesses monitor customer behavioural movements, no matter how small, and effectively predict their future needs. Being ahead of the curve in that respect gives the business massive competitive advantage. Ways in which a business can keep track of the movements include monitoring transaction patterns of individual customers regularly, effective customer engagement & feedback harnessing and actively watching out for technological innovations in their current & industries. Businesses should be as agile as ever, otherwise customers move to other options the moment they feel the business offerings have become misaligned with their tastes & preferences.
Conclusion
With the customer holding the ‘longer piece of the stick’ in business relationships, businesses must always keep their ears on the ground for any changes in customer perceptions. Maintaining flexibility and quickly adapting to any movements & customer demands guarantees long term survival and growth. The customer must be taken as a partner in the business & treated with utmost care for them to keep supporting the business and being an advocate. ‘Injury’ to one customer can be so detrimental to the business as customers hold the power to influence others in the palm of their hands. By being truly customer-centric, embracing personalisation, earning customer trust and being sensitive to the ever-changing customer tastes & preferences, businesses can guarantee their success in this era where customers are in control.