Today, Customer Experience is the differentiator
Many leaders believe that customer-centric business models are in direct conflict with the stakeholder value-based models we see across the world today.
Their organisations focus almost exclusively on the ‘shareholder’ as the most important stakeholder. The reality, however, is very different. If value is optimised for the customer, the entire stakeholder community benefits. Optimising value for stakeholder groups other than the customer can destroy value for the entire stakeholder community as disenfranchised employees and alienated customers result in a revenue and profit reduction. This is why we have ‘sustainable customer profitability’ at the heart of our model. Becoming ‘efficiently customer-centric’ delivers sustainable profit and not misleading short-term profit at the expense of long-term economic value.
Organisations are finding it increasingly difficult to drive sustainable growth through product innovation or ‘low price’ propositions alone.
Product commoditisation, price convergence, customers’ use of pre-purchase search and evaluation, mean it is tough to differentiate on product and price, For many organisations, a much better source of growth is through delivering personalised, relevant, consistent experiences to clearly targeted customer groups. TCF’s global SCHEMA research, carried out in 2015 clearly showed that high performing businesses are able to recognise the difference between being “customer friendly” or “customer focused” versus truly “customer-centric” and are developing and capitalising on their ability to identify and understand their customers like never before.
Contact Neil Woodcock for more information on TCF’s ground breaking research.