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A Customer-Centric Approach: Why Putting the Customer First is Key to Success

Customer-Centric Approach - 2 female workers and a male smiling at the office.

Customer-Centric Approach

Customers come first!

Around this belief revolves the philosophy of the Customer-Centric Approach, which can bring potential growth to your company.

An unhappy customer is one that you can be sure will never return to your business, while a happy one can even multiply them by telling their friends about your services or even leaving a good review that will build your fame as a company.

As social media platforms and other digital channels make the relationship between brand and customer more intimate, applying an approach that lets you please the demands of your customers and stay highly competitive in the digital era becomes necessary.

If you want to create this culture within your company, let us teach you how to do it with digital marketing and business management strategies.

Please keep reading!

What is a Customer-Centric Approach?

When discussing a Customer-Centric Approach, the main idea is to put your customer's needs and wants at the center of your business operations. Your target audience will be at the center, and all your business decisions and company structure should work to meet their wishes and exceed their expectations. 

When your company is customer-centric, all your teams, from product development to customer service, are working to deliver a satisfying experience for all your customers. 

This business philosophy has proved to have many benefits for companies as a Deloitte and Touche study found that customer-centric companies were 60% more profitable compared to companies that didn't focus on the customer, and 64% of companies with a customer-focused CEO are better than their competitors.

As we said previously, with social media's arrival, it becomes more imperative for companies to attend to customers' needs efficiently and seamlessly, as today, communication between them and your company is more straightforward.

With the immense competition among any niche, the winning business becomes the one that treats and gives a better customer experience, and not necessarily the one with the fanciest and most specialized products and services. Even more, a Super Office blog shows that 90% of companies compete solely based on customer experience, re-validating the importance of this approach.

For this, it is good to study data and analytics as these sources can give you better insights on giving a personalized experience for all of them. Streaming services like Netflix or e-commerce like Amazon achieve this personalization with the help of algorithms that gather all their behavior and deliver recommendations based on it. 

As you deliver more extraordinary experiences with them and make customers feel heard by giving them what they want, the obvious outcome is that they become more loyal to your brand. With customer loyalty, these can recommend your services to others, growing your customer base and generating more brand awareness. 

What is a Customer-Centric Approach - A we hear you sign

What is a Customer-Centric Approach?

The Advantages of a Customer-Centric Approach

At first sight, we could guess that as you focus more on customers, you can keep those you already have, which is even more important than having too many, but of course, you can also get new ones by recommendation or brand recognition.

Nonetheless, there are more benefits from applying this approach, so let's study all of them.

Improved Customer Experience

Before social media and the internet revolution, it was challenging for customers to get a personalized experience. Most businesses delivered the same format for all of them, and that was pretty much it.

But with technology, it is now easier than ever to deliver these customers products and recommendations that fix like a ring for them, as this approach lets us build a relationship with them that evolves and adapts to their needs. If you want to learn more, read our personalization and customer experience article.

Increase Brand Recognition

As people begin to notice that people end up satisfied with your customer experience, there's a really high chance that the voice will spread among their friends, the friends of their friends, and the list goes on even further.

Fortunately, digital channels allow users to share their experiences on all the platforms, telling how great it was and why they recommend you over others. Now, this can be a two-blade sword as a bad review could dirt your reputation, nonetheless, there are ways to handle it, but more on that further in the article.

Better Understanding of Your Target Audience

You may have done your research and also have an excellent smell for understanding customers and a sixth sense for business. All of these are great attributes for an entrepreneur; nonetheless, with technology and the customer approach, you can mix the instinct with actual data.

Ultimately, this knowledge mixture gives you a deeper insight into how your customers are behaving what they want and so you can give them what they need based on each of their necessities and wishes.

Increased Customer Loyalty

A happy customer will always come back. Today, customer ties aren't just transactional; it is more of a relationship. Similar to a durable relationship and one that is just a only one experience, when you know them as an individual, treat them as they like, and deliver the results they hope, it generates a comfortable feeling for them, something that will make them think twice before going to another company that might not know them as well as you do. Ultimately, by creating a deep relationship, you augment their loyalty to your customer-centric experience.

How to Apply a Customer-Centric Approach in your Company?

A customer-centric approach is a philosophy, and as such, the idea is that it becomes a contagious feeling within your company.

For starters, your company should already have a set of values and a personality that conveys this customer approach. When we look at luxury brands like Dior, there's a feeling it gives us;  the same sentiment is a mindset for every team member. 

Then, we add the secret and top ingredient to this approach: taking advantage of digital marketing capabilities and strategies to get the most business advantage from a centric approach and outmatching competitors. So, how can you do all of this? 

Please keep reading!

Hire the Right Team

We start with your support: Your team.

Having a great human resource recruiter with that business and psychological sight is essential to casting all the right members for your team.

In this part of the process, you or your human resources representative can explain what the company is about, the values, and, particularly, the experience the company wants to offer.

Define your Customer Experience

What is your brand about?

What is the reason behind it?

What is their voice?

Before defining what type of customer experience you want to deliver, you should have answered these questions. 


Look, a great customer experience comes from more than giving excellent treatment and being polite and friendly.

Behind this approach, there should be a complete personality, a brand personality that leads you to how you treat customers while differentiating yourself from others.

This part of your business should be the first step, but if you already have a brand, but feel you do not have a personality behind you can either read more on the articles linked above or take some of these tips:

  • Look for references: Nothing is original; most companies and ideas are a mixture of concepts you like. You can start building your brand based on other top companies you love, business personalities you admire, or even a fictional character. The idea is to grab the essence of all these references and mix them into your brand to create something solid and original.
  • Focus on color psychology: Colors are more than tones; they are symbols that can subconsciously convey the feelings you want your company to evoke. 

Once you built all your personality, you can base how your company will treat customers based on these brand personalities.

Use Customer Relationship Management Software

This part is where digital marketing starts showing its magic. Take a closer look.

If you are unfamiliar with this technology, a Customer Relationship Manager is a base of operations where you get to see all your customer interactions. This tool is of vital importance for any business within the digital world.

In this platform, you will give your customers a more sophisticated experience by attending to any of their needs more efficiently. This platform organizes all the data you need and gives you tools to follow all these situations quickly. If you are interested, click to learn the implementation process.

Focus on Data

Within your CRM or social media analytics, you can see more accurately what your customers like and what things are not working. This is a beautiful tool for all businesses as it lets them depend less on the so-called "intuition" and more on the actual data.

When you study data, you can save a lot of money, time, and resources on strategies or digital channels that won't work and then start to deliver an approach centered on what your customers are responding to.

Personalize Experiences

Remember, you must not give the same experience to every customer; it has to be personal.

Luckily, you don't have to go over one by one, and data gives you a shortcut by grouping your customers into categories depending on the services or products you offer.

With this approach, customers feel that you give a follow-up on their preferences as the analytics guide you on what you should deliver to each of them.

Create a Seamless Customer Journey

The digital era made everything as straightforward as possible.

Nowadays, you can do everything from the comfort of your smartphone or computer, but to achieve it, you have to build a seamless customer journey.

This journey has to go from an ad to a convert page without many extra steps in the middle so customers will stay caught up.

Also, you have to make sure that, on every step of the journey and in every channel or platform, your brand experience feels the same. For this, we recommend you follow an Omnichannel strategy.

Emphasize Customer Value.

There is a never-ending debate on quality vs. quantity. Nonetheless, we can give you some insights into it.

More on the B2B side of things, focusing on having quality customers is always more important than a bunch of them. Usually, B2B services are more expensive, so it is harder to get many customers, but it is better to have a few of them that are good than many that are not. Because of this, this article focuses significantly on building a great relationship with this decent amount of customers, as this keeps your business moving. If you waste too much energy on finding more and more, you might miss them.

Now, for e-commerce and B2C businesses, it is always good to expand your brand, as you depend more on sales. Nonetheless, it is always good to keep some loyal customers as this will also benefit your business.

How to Apply a Customer-Centric Approach in your Company? - A customer experience team smiling

How to Apply a Customer-Centric Approach in your Company?

How to Measure Customer-Centric Approach?

How do you know this approach is working? It isn't just something you could feel in your company's overall efficiency and energy; you also need data that backs up and gives you a guide on whether you are doing it right or not.

So, besides the data we already talked about, there are some other insights and values you want to focus on.

Conversion Rate

This rate represents the number of potential customers that convert into actual ones. When you measure it, you can see if your approach is having a good effect on new customers.

Churn Rate

This essential value revolves around knowing why people abandon or keep coming to your business. When you identify these reasons, you can make the necessary modifications to your customer approach. Please read our article on Churn Rate.

Customer Lifetime Value

With CLV, you want to focus on how much customers spend during their entire relationship with your business. This lifetime goes from the first time they bought to when they either started buying or stopped doing it. To give you all the information you need on this metric, check our article on Customer Lifetime Value.

Repeat Business

As you get more repeat customers, your centric approach offers clients the experience they want, so they keep repeating it.

Net Promoter Score

Then, one of the best ways to measure your approach success is by asking customers directly. For this, you can use an NPS, which is a chart from 1 to 10 where they can measure how great their experience was. You can implement this evaluation organically by putting it at the end of every purchase or service interaction or sending it by email. Also, make sure to add extra comment sections so you can get more detailed insights into their experience.

Final Thoughts

Customers are the center and the most significant sign of success for any business. That's why we all need to take care of their demands and let them know we have their backs on this business relationship. As with your business, if you need further access to managing your business or creating a successful digital marketing strategy to scale your sales, contact our professional team on Codedesign.

FAQs - Frequently Asked Questions 

What defines a customer-centric approach in business?

A customer-centric approach in business is defined by an overarching strategy that places the customer at the forefront of decision-making processes, prioritizing their needs, preferences, and satisfaction across all operations. This approach involves understanding the customer's journey deeply, using insights to tailor products, services, and experiences that meet or exceed their expectations. For instance, Codedesign, a leading digital marketing agency, leverages advanced data analytics to grasp customer behaviors and preferences, enabling the creation of highly targeted marketing campaigns that resonate with the audience, enhancing customer engagement and satisfaction.

How does focusing on customer needs benefit a company's profitability?

Focusing on customer needs directly benefits a company's profitability by fostering loyalty, reducing customer acquisition costs, and enhancing cross-selling opportunities. Satisfied customers are more likely to make repeat purchases and recommend the company to others, expanding the customer base organically. For example, companies that prioritize customer needs often see increased average order values and higher lifetime value from each customer. In the context of Codedesign’s clients, this approach has led to significant improvements in ROI from digital marketing campaigns by aligning product offerings and marketing messages with customer expectations, thereby driving sales and profitability.

Can a customer-centric approach improve brand recognition and loyalty?

Absolutely, a customer-centric approach is pivotal in improving brand recognition and loyalty. When companies consistently meet or exceed customer expectations, they create positive experiences that customers remember and associate with the brand. This strong brand recognition, coupled with trust and satisfaction, translates into loyalty. For example, Codedesign has witnessed firsthand how brands that personalize customer interactions and value customer feedback see a notable increase in repeat business and customer referrals, strengthening brand loyalty and establishing a solid market presence.

How does personalization play a role in a customer-centric strategy?

Personalization is a cornerstone of a customer-centric strategy. It involves tailoring products, services, and communications to individual customer preferences and behaviors, enhancing the customer experience. This level of personalization makes customers feel valued and understood, significantly impacting satisfaction and loyalty. With the advent of advanced data analytics and AI, companies like Codedesign can segment their audience with precision, delivering content and offers that are highly relevant to each customer, thus driving engagement and conversion rates.

What tools and technologies support a customer-centric business model?

Supporting a customer-centric business model requires a suite of tools and technologies designed to collect, analyze, and act on customer data. These include Customer Relationship Management (CRM) systems, Data Management Platforms (DMPs), and Demand Side Platforms (DSPs) for targeted advertising, as well as advanced analytics and AI for predictive insights. For instance, Codedesign utilizes these technologies to understand customer behavior and preferences, enabling the delivery of personalized marketing campaigns that effectively engage customers across multiple channels.

How can companies measure the success of their customer-centric strategies?

Companies can measure the success of their customer-centric strategies through various metrics that reflect customer satisfaction, loyalty, and engagement. Key performance indicators (KPIs) include Net Promoter Score (NPS), customer lifetime value (CLV), retention rates, and conversion rates. Additionally, analyzing the ROI of personalized marketing campaigns and tracking changes in customer behavior can provide insights into the effectiveness of customer-centric initiatives. Regularly monitoring these metrics allows businesses to fine-tune their strategies for even better results.

In what ways can customer feedback influence business operations and product development?

Customer feedback is invaluable in guiding business operations and product development. It provides direct insights into what customers value, their pain points, and how they perceive the brand. By actively listening to and acting on this feedback, companies can make informed decisions that improve the customer experience, enhance product features, and introduce innovations that meet evolving customer needs. Codedesign, for example, has helped clients to iteratively refine their offerings based on customer insights, leading to products that are closely aligned with market demand.

What role does employee training play in adopting a customer-centric culture?

Employee training is crucial for adopting a customer-centric culture as it equips staff with the knowledge, skills, and mindset needed to prioritize customer satisfaction in all aspects of their work. Training programs should focus on building empathy, improving communication skills, and teaching employees how to use customer data and feedback to enhance the customer experience. A well-trained workforce is more engaged and committed to delivering value to customers, which is essential for fostering a customer-centric environment.

How can businesses balance the need for personalization with privacy concerns?

Balancing personalization with privacy concerns requires a transparent and ethical approach to data collection and usage. Businesses must ensure they are compliant with data protection regulations, such as GDPR, and communicate their data practices clearly to customers. Offering customers control over their data and how it is used for personalization purposes can help build trust. Moreover, employing data anonymization and encryption techniques can protect customer privacy while still enabling the analysis needed for personalization. This balance is critical for maintaining customer trust and loyalty.

What are the first steps a company should take to shift towards a more customer-centric approach?

To shift towards a more customer-centric approach, a company should first conduct a thorough audit of its current practices, identifying areas where customer needs are not being fully met. Next, it should gather and analyze customer data and feedback to understand their expectations better. Implementing a robust CRM system can help manage this information effectively. Then, the company should train employees on the importance of customer-centricity and how to contribute to it. Finally, it should establish clear metrics to track the progress of its customer-centric initiatives, adjusting its strategies based on ongoing insights and feedback.

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