Customer-first: the strategy that will help you build customer loyalty
- Inspira Joyas
- Dec 19, 2022
- 8 min read
Updated: Jan 4, 2023
As an entrepreneur, you know that it is important to prioritize your customer. You may even often say "the customer is always right".
This type of philosophy only makes sense if you actually have the plan to implement it. That's why truly successful companies follow a "customer first" strategy, without neglecting their business goals. We will explain what it is and how you can apply it in your company.
What does "customer first" mean?
As the name suggests, a customer-first strategy seeks to satisfy customer needs by creating the best brand experiences.
The key to this strategy is to leverage services and features that increase the value of the company in the eyes of the customer.
How does putting the customer first impact a company?
A customer-first strategy builds a mutually beneficial relationship between the customer and the company. In other words, everyone wins.
The best customer-focused strategies address the needs of the customer, but also those of the employees. Why? Because employees can't prioritize customers if they don't feel valued. If customers are not happy, employees cannot feel satisfied with their work. And if employees are unhappy, they can't prioritize customers. It's a vicious cycle.
In the end, if you prioritize both your customers and employees, you will have a company where everyone is happy. So let's look at the advantages of this vision in depth.
7 advantages of a customer-first strategy
1. You will promote customer loyalty
This is an aspect that directly impacts business profitability. It is estimated that the probability of generating a sale with a current customer is 60-70%. In addition, a 5% increase in customer retention can increase your profits by 25% to 95%.
Having happy customers will drive them to make more purchases and, therefore, make your business more profitable.
2. You will generate word-of-mouth marketing
Customers who know they are your organization's priority are more likely to recommend it. We've all mentioned to family, colleagues, or friends those experiences with great brands that we know will help them. Customers can do the same for you.
Keep in mind that 74% of consumers consider recommendations from people close to them to be the most important factor when deciding on a purchase.
3. You will have a dynamic business structure
By focusing your teams on putting the customer first, you will ensure that your organizational structures are not rigid, but adaptable to the needs of the customers. For example, a salesperson will have the opportunity to provide adequate service, even if he or she does not belong to the specialized area.
4. You will be able to detect new opportunities
By having a dynamic, customer-centric structure, you will find new business opportunities as the public's needs and pain points change. You will be able to close the gaps in your product today to better satisfy your customers.
5. You will make each employee's work meaningful
People look for our work to give something to others. Research shows that having a meaningful job is the most relevant factor in happiness worldwide. If your employees know that they are directly and positively impacting the lives of your customers, this will be a factor in their satisfaction.
Remember that the customer-first strategy considers that "the customer" is not only the one who pays for your product or service, but also the employees. Give them real possibilities to exercise their knowledge and experience, actively adapting to your clientele, and you will see them grow.
6. You will get the benefits of data analysis
A customer-first strategy goes hand in hand with business digitalization, as it is the most efficient way to follow up on customer requests, questions, and complaints. This will give you the power of data analysis of your customers, in order to provide them with what they require, at the right time in their buying journey.
7. You will have the basis to maintain your business over time.
With happy employees and customers, the use of digital tools, and word-of-mouth marketing at full throttle, you'll see that this business vision will allow you to be profitable over time. It's what we at HubSpot call "Growing Better": staying relevant to people by providing the right solutions and humane treatment.
7 steps to put the customer first in your strategy
Understand your target audience.
Recognize the needs you are meeting.
Achieve a customer-centric mindset.
Have a crisis plan ready.
Think of innovative ideas to improve the customer experience.
Prioritize direct communication with the customer.
Conduct regular surveys.
1. Understand your target audience
You cannot achieve a customer-first strategy without knowing your customers. You need to understand your target audience in order to improve their shopping experience.
Analyze service and sales metrics to discover new and better ways to create products or marketing materials. Keep track of your customer's demographics, buying behaviors, values, attitudes, and any other information you can gather. Also, make sure everyone in your organization can access this information.
2. Recognize the needs that you are satisfying
Once you identify your audience, start thinking about their needs and objectives. This will help you determine what objectives or needs your organization should address.
For example, imagine that your target audience loves coffee and likes to drink it in a quiet place where they can also read or work. If you offer a unique and inviting space with inexpensive prices, your small coffee shop could meet this need and compete with chains like Starbucks.
Having a strong presence and the ability to address problems will set you apart from the competition and show that you have a customer-first strategy.
3. Achieves a customer-centric mindset
In most companies, the customer service team is solely responsible for monitoring customer satisfaction. Employees in this area are the ones who communicate directly with customers. But it doesn't make sense that they are the only ones who should be concerned about what users think.
It is impossible to have a customer-first strategy if only customer-facing employees apply it. Everyone in your company must adopt a customer-centric mindset. If this happens, they will benefit. For example, when the product team is developing a new item, they should consider what features meet the customer's needs.
Human resources employees must ensure that employees are happy, as happy employees create happy customers.
If every person in your company is thinking about having successful customers, you will have a strategy where the customer comes first.
4. Have a crisis plan prepared
One inevitable thing is that there can always be a crisis. You can't predict when they will come, but you can plan how to overcome them. That's why it's vital to create a crisis plan.
A crisis plan addresses any issues that may affect your brand's reputation. It also minimizes its negative effects. Not only will this help you avoid problems, but it will demonstrate that your primary concern is for the safety, opinions, values and support of your customers.
5. Think of innovative ideas to improve the customer experience.
When you create a new product or service, you can sit back and watch sales increase. However, your competitors are also likely to create new products and services to meet changing market needs.
If you don't keep up, you'll fall behind and may ultimately put your company at risk.
Innovation is key to a good customer-centric strategy. This will demonstrate that you understand your customers' needs and can predict how they will change over time.
By looking for new ways to improve the customer experience you will demonstrate your dedication to quality products and services. And this will keep your customers loyal.
6. Prioritizes direct communication with the customer
No matter what your organization is, sometimes it seems like there are a million things to do before a product is brought to market. Items must be designed, built, tested, and manufactured before they can be offered to the public.
Still, it doesn't matter how good your product is if it hasn't been advertised on a large scale. That's why marketing is so important: you can use newsletters, social media, print ads or YouTube commercials. Connect with your customers and show them why they should buy your product.
All this will build the narrative that your products are designed with the customer's needs in mind.
7. Do periodic surveys
You will never know if your strategy is effective unless you ask your customers. Conducting regular surveys (quarterly, semi-annually, or whatever suits you best) can give you valuable information about your target audience. Consider their opinions and use them to improve.
It is also useful and important to survey employees. After all, employee satisfaction and happiness are just as important as customer satisfaction and happiness. Get feedback from your team on how they think the strategy is working and if they have ideas for improvement.
5 ways to boost your customer first strategy
You already have the basics to start a customer-first strategy. Now, we will give you some aspects to take into account to go a step further.
1. Integral "customer" concept
Usually, we believe that a customer is someone who consumes from a brand on a regular basis. In a customer first strategy, we must broaden this concept: customer is every person who interacts with a brand. And the emphasis is on "person", because it is not a number or an asset, but someone with needs and who seeks to feel comfortable in their interactions with a brand.
That someone can be:
A repeat customer
A one-time customer
A visitor to your website
A person who left their details on a form on your blog
A collaborator/collaborator
Your company's suppliers
With this comprehensive concept, you will see that you can generate a positive impact on those who approach your company, regardless of whether it is an SME or a large organization.
2. Customer experience
The customer experience is the most relevant aspect of customer loyalty, even more so than a brand's name and the prices it offers.
A customer-first strategy needs to generate customer experiences that not only meet expectations but delight. What is the key to delight? Reduce friction in your company to the minimum possible. Friction is present when:
A customer has to repeat more than once what they need (whoever served them on WhatsApp doesn't know anything about their history on a phone call).
It is not easy for them to find the information they need on your website.
The data or brand image you offer on Facebook does not match what you do on your blog or Twitter.
Your website does not have the security measures for your prospect to make a purchase.
Your agents and collaborators in general lack timely service training.
3. Business culture
Make your business culture, from the mission and vision, customer first. Focus the DNA of your business on solving their needs. Although it may seem simple, the reality is that most companies focus on generating more profit. At best, consider that profitability and customer satisfaction are equally important.
Consider that when you put your customers first and help them in a meaningful way, your business takes off. In a sense, closing deals will be guaranteed, in keeping with the Customer-Based Cycle.
4. Loyalty programs
One way to put the customer first that will give you measurable results is loyalty programs. Who doesn't like to receive extra benefits from a brand they like?
You don't need to put a big budget into this aspect. While big discounts and thousand-dollar giveaways suit everyone, your loyalty program could contain:
Free shipping after a certain amount of purchases.
Small gifts from the company
Premium content useful to your clientele
Special mentions on your social networks
Discounts associated with recommendations, and much more
In addition, it is important that you track the program's indicators, in order to optimize its results, such as its impact on customer retention and return on investment.
5. Transparency and commitment
Transparency gives us the guideline to trust in business. Not surprisingly, 35% of customers are loyal to brands they trust.
Committing and being transparent implies that:
Your customers know what you use their information for and how.
Tell them what your brand's motivations are.
Show a committed and real vision of your environment.
Provide adequate solutions for each type of customer.
Generate marketing, advertising, and sales strategies based on what your customers are looking for and what you can effectively solve.
Customer Commitment Code
One of the main reasons why you should have a strategy focused on your customers is so as not to lose contact with them. Because if you stop caring about your customers' needs, your company, instead of growing, will start having problems.
That's why at HubSpot we decided to create a customer engagement code. This code consists of 10 points that you can implement in your communication and dealings with the customer:
Capture my attention; don't steal it.
I am a person, not a customer profile.
Solve my problems before yours.
Use my data, but don't abuse it.
Ask for my opinion and take it into account.
Acknowledge your mistakes.
Give me the tools; I'll find the solutions.
I don't mind paying, but give me a clear price.
If I want to leave, don't hinder me.
Do the right thing, even if it's hard.
We at HubSpot work with this code on a daily basis. That doesn't mean we're already perfect, but we strive for it.
For more ways to improve the buying journey in your organization, check out our guide to a customer experience strategy.
Comments