A new study by experience design consultancy, cxpartners, in partnership with Google, focusing on customer-centricity came across CXM’s desk.  

The research report surveyed 110 businesses in Europe and found that customer-centric organizations grow nine times faster and are four times more likely to have highly satisfied employees. They have the ability to change in months that would take others years to achieve.  

The State of Customer Centricity report reveals the scale of the advantage that Europe’s most customer-centric companies have—with on average the top 36% achieving around nine times the annual year on year revenue growth compared to lower maturity companies. 

Strong customer centricity gives organisations a sense of energy and purpose. The leaders and managers we spoke to in the most customer-centric organisations inspired and empowered their employees – there was a sense of everyone in the organisation being given the opportunity to excel,” stated Giles Colborne, CEO and co-founder of cxpartners

What is the customer-centricity model? 

a vector diagram of a model that customer-centric organisations use

The research is based on the cxpartners’ Customer Centricity Model, which measures an organisation’s customer-centricity across five different dimensions. These are people, process, governance, facilities and communication that determine whether they can create great user experiences.

The differences in performance between a high- and low-scoring customer-centric organisations are startling when looking at growth, employees’ satisfaction, and the agility to change. 

1. Faster growth 

Businesses are all about growth and customer-centricity will aid them in this aspect. Therefore, organisations with high customer-centricity have an average annual revenue growth rate of 8.7%. In comparison, organisations with low to medium levels of customer-centricity, have an average of 0.8% growth. 

The team of researchers believe there are two reasons for this. Customer-centric organisations are more likely to retain customers, which creates a strong foundation for growth. In turn, these customers are more likely to recommend those organisations to their friends and family, accelerating growth. 

2. More satisfied employees 

Over 90% of high customer-centric businesses have a high employee satisfaction rate compared to just 20% of low-scoring organisations. The researchers believe that a customer-centric operating model provides employees with a clear mission that gives their work meaning. Employees empowered with a greater sense of autonomy also deliver a higher performance when they are trusted to do what is best for the customer. 

In the increasing battle for talent, a customer-centric operating model seems to offer a clear advantage.  

3. Greater agility to change 

The research finds that 65% of highly customer-centric organisations can adapt by making major changes to their systems within weeks or months, rather than the years taken by low-scoring organisations. 

The researchers put this down to two things. First, high performing organisations are focused on the customer impact of their technology choices, rather than cost or internal politics. Second, high maturity organisations are able to make better decisions faster and deliver more value to customers.  

Becoming a customer-centred business isn’t easy: it requires a systematic focus that needs to be adopted by leadership and baked deep into the organisation’s operating model. But, as the research shows today, the results are worth it – as happy customers and fulfilled staff power business growth,” claims Matt Brittin, President of EMEA Business & Operations at Google. 

Post Views: 1201