Importance of Customer - Centric Approach

IMPORTANCE OF CUSTOMER-CENTRIC APPROACH

Part A

A Customer-centric approach is creating a positive consumer experience at the point of sale and post-sale. A customer-centric approach can add value to a company by enabling it to differentiate itself from competitors who do not offer the same experience. McCafe were customer centric and followed the trends and the way people were eating. They didn’t forget the taste and fun and they also offered a menu where a customer could choose from. McDonald’s differentiated itself from the other burger places by adding McCafe where they wanted to make new coffee experience accessible to everyone. McCafe was designed to attract people who are not regular visitors to McDonald’s, entry level café users or those who visited McDonald’s but didn’t buy anything for themselves. Changing the perception that McCafe was a burger place that sold coffee into that of a real café experience at an affordable price proves that McCafe took customer centric approach to create a positive consumer experience

Part B

Current competitive challenges induced by globalization and advances in information technology have forced companies to focus on managing customer centric approach, and in particular customer satisfaction, in order to efficiently maximize revenues. Following the customer-centric approach leads to higher levels of customer satisfaction because the emergence of customer centric approach is a technique to underpin organisational performance improvement in improving customer retention, customer satisfaction and customer value. What is needed is complete customer-centric business processing whereby all business processes and all individuals are focused on identifying and meeting the needs of customer. A customer centric business puts its valuable customer’s satisfaction at the core of its strategy and day-to-day operations. Every action is first evaluated by its impact on its customers. Valuable customer satisfaction is an important term. It describes the most profitable customers, rather than the largest number of customers. Many companies make the mistake of trying to grow their customer base regardless of value. This Generates costs with little returns and has a negative impact on satisfaction. The end result is a decline in profitability and damage to the brand. Customer focus is the key to success.

Customer centric approach leads to:

• higher customer satisfaction

• A profitable customer base

• Clear understanding of how to grow your business and profits, based on a deep knowledge of your customers

• An ability to respond quickly to your customer needs and changes in your business