"Our Take" - How Customer Centric Are You?

(Past Editions by: Date, Title, Topic)

 
About "Our Take" 
"Our Take" is a collection of daily vignettes covering a wide range of CRM topics. It's an attempt to add our own spin to the world of CRM. We will use the column to share our perspectives, opinions, epiphanies, web nuggets, or quite frankly anything that moves us. Get ready to expect the unexpected. And, don't be shy about sharing your thoughts.
 
 
4/13/06 - How Customer Centric Are You?
Yesterday, I shared responses from three readers on how they felt about getting input from customers. One of the three responses touched on the concept of customer centricity and the importance of being customer centric. Mike Trotter, Executive Director of Purdue University's Center for Customer Driven Quality, says that customer centricity means "the customer is the heart of your business - a convergence of all company resources on the customer experience."
 
I can buy that. Unfortunately, most smart executives would say something very similar to that. And I think most executives believe their organizations are customer centric. The sad truth is most of their customers don't feel that way. Therein lies the big disconnect. So let me pose some questions to you.
 
What is the best way to accurately measure the degree of customer centricity for an organization? Is there a way to create a metric that accurately describes customer centricity that would stand up to an external audit? On a scale of 0 to 10, how customer centric is your organization and how can you prove it?
 
Gary Lemke, Publisher
(Share your thoughts)
 
4/14/06 - Measuring Customer Centricity
In yesterday's column, I challenged all CRMAdvocate readers to share how they measure the degree of customer centricity in an organization. Our working definition of customer centricity is "a convergence of all company resources on the customer experience." It seems it is much easier to give examples of things the company does to apply resources to the customer experience.
 
But it is different to determine what is anecdotal and what is truly systemic. It is difficult to discern corporate commitment from the lips of executives versus what the customer experiences. The lack of response to yesterday's questions could be interpreted a few different ways.
 
One possible interpretation is a lack of response represents a lack of interest. I know CRMAdvocate readers too well. You are among the planet's most passionate people when it comes to providing a good customer experience. My working conclusion right now is the question ("how to effectively measure the degree of customer centricity") is difficult. Are we tilting at windmills?
 
Gary Lemke, Publisher
(Share your thoughts)
 
4/17/06 - Measuring Customer Centricity - Part II
Today I want to start to follow up on my request to hear input on how to effectively measure customer centricity. Our working definition of customer centricity is "a convergence of all company resources on the customer experience." The issue is the apparent disconnect between how customer centric a company is as viewed from the customers' perspectives rather than internal perspectives. Let me start with saying that I have not seen enough input to feel I can weigh in on a single answer.
 
So I will share a few responses in hopes that it sparks more thoughts. Hopefully together we can distill some "nuggets" for everyone to consider. One reader wrote that in Fred Reichheld's "The Ultimate Question" book, a simple yet powerful answer to measuring customer centricity is "How likely is it that you would recommend this company/product/service to a friend or colleague?" This is also known as the Net Promoter Score (NPS).
 
Another reader wrote that what we're really talking about is whether or not companies are living their brand promise. The brand promise is about day-in/day-out delivery of the organization’s ideally defined customer experience—in every employee action, including every customer interaction. The reader suggests you can measure customer loyalty (as well as brand equity) through direct research with customers. I'll share more thoughts tomorrow.
 
Gary Lemke, Publisher
(Share your thoughts)
 
4/18/06 - Measuring Customer Centricity - Part III
Many of you have commented on the discussion of measuring the degree of customer centricity by suggesting that customer satisfaction might be the metrix. My experience tells me that asking customers how they feel about your product or the experience might be insightful but it doesn't get to the heart of measuring customer centricity.
 
Isn't it interesting that satisfied customers will often switch vendors? To me this demonstrates a disconnect between measured satisfaction and loyalty? Likewise, I find it peculiar that dissatisfied customers will often remain deeply loyal. Perhaps it is laziness or a lack of understanding of other options. Although I can't recall the source, I remember one study reporting that some people will switch vendors at the slightest hint of bad service while others are mistreated a dozen times straight and still don't switch.
 
My point is that customer satisfaction metrics talk more about customer behaviors rather than the degree to which an organization is customer centric. We are still on the hunt for a metric that can measure the degree of organizational customer centricity. Care to share?
 
Gary Lemke, Publisher
(Share your thoughts)
 
4/19/06 - Measuring Customer Centricity - Part IV
Consensus continues to build that a bulletproof metric to measure the degree of organizational customer centricity may be unrealistic. The source for some of this skeptic thinking is based on experience - people have been trying to find the answer for years without success. But there are other factors at work.
 
One reader wrote, "Even the most committed "customer centric" car dealership can't deliver service today in my city because the auto mechanics union is on strike. Is the dealership no longer customer centric?" The reader continues by saying, "In order to serve customers a company has to earn a profit. So in the face of skyrocketing fuel costs, labor demands and other costs, an airline cuts service rather than raise prices. And fliers complain that the carrier doesn't care about its customers."
 
I'm sure you have examples of external factors that keep your organization from being more customer-centric in the eyes of your customers. Some external factors you can anticipate and address. Others you can't. But are you doing everything to eliminate internal factors that impede customer centricity?
 
Gary Lemke, Publisher
(Share your thoughts)
 
4/20/06 - Measuring Customer Centricity - Part V
Today, I'm continuing the discussion on measuring customer centricity by delving more into the internal rather than the external side of things. Many of you have expressed that measuring customer centricity is more about the things happening inside the organization rather than just measuring customer impressions.
 
In short, it's about business processes. One reader wrote, "How easy is it for your customer's to transact business? Are you continually asking them to transact your way or can they transact in a manner appropriate to their business? Can you provide what they want, in a time frame they require, and at a price they are willing to pay? Or, is it a continual trade-off on these important factors for your customer on every transaction?"
 
Customers can score how well you serve them. Are you using customer input and feedback in a way that actually transforms your business processes? Consider this perspective from one reader: customer-centricity is a characteristic of the company whereas customer loyalty is a characteristic of the customer.
 
Gary Lemke, Publisher
(Share your thoughts)
 
4/21/06 - Measuring Customer Centricity - One Last Post
Although I have plenty of additional thoughts about measuring the degree of customer centricity of an organization, I also realize the topic has occupied this column for more than a week. So I want to wrap it up for now and move on to other topics.
 
The most exhaustive response I received was from Mike Trotter of Purdue University. His input is a bit long for this column but you can read a summary of customer centric metrics.
 
How would you rate your customer centricity based on these questions?
 
Gary Lemke, Publisher
(Share your thoughts)
 
4/24/06 - Customer Centricity under Siege
OK, I lied. I said I was going to move on from the question of customer centricity but after reading responses from you very smart and savvy reader, I had to break the rules and share. Last Wednesday, I shared one reader's thoughts that the ability to be customer centric is sometimes beyond control. The reader gave a real life example of an auto mechanic strike that forced dealerships into the position of not being able to service their customers' cars.
 
While the dealership may not be able to do business as usual, a customer centric organization can find ways to do unusual business. Here are some suggestions: So what does the most customer-centric dealership do when the auto mechanics are on strike? They negotiate with a quick lube place to honor the dealer's oil change club for the duration of the strike. They send email or call their customers to let them know that they still want to help keep their cars running great. They set up Service Alternatives desk where the managers help get customers connected with resources for urgent service needs. They negotiate a deal with rental car agencies to provide discounted "loaners" for customers with cars stuck in the service bays in an unfinished condition. In other words, they don't throw their hands in the air and say, "There's nothing I can do!"
 
Another reader wrote, "Communication about how the dealership is making the situation as bearable as possible for their customers is the way to go. For example, they can promise to extend the hours of service when the strike is over to catch up with missed appointments, refer customers to an out-of-town dealership for emergency situations and help problem-solve resulting transportation issues. Now that's customer centricity!
 
Gary Lemke, Publisher
(Share your thoughts)