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However, the three most important customer centric metrics that should be carefully monitored are churn rate, Net Promoter Score and customer lifetime value CLV. Therefore, more companies are investing in keeping existing customers instead of trying to find new ones. The key to success is to understand why people leave, and why people remain customers. To calculate the churn rate, measure the number of customers who left in the last 12 months divided by the average number of total customers during the same period.

Each time a customer responds to this question, the answer is then segmented based on predefined criteria:. CLV measures the amount of revenue a customer contributes to your business for as long as they are a paying customer. To calculate CLV, add up the total revenue you have earned and multiply that with the length of the business relationship.

Then, deduct the initial cost of acquiring them. Calculating CLV helps you understand why it makes sense to invest in keeping your customers. The shift towards becoming a truly customer centric organization is both complex and long but, do not be put off by this as even the smallest changes to policy and processes can have a significant benefit for both employee and your customer.

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Being a customer centric organization is the Holy Grail towards unlocking the true potential of customer value. Always put yourself in the shoes of the customer and minimize customer effort and maximize customer value. CRM software plays an important role in becoming customer centric as this is where all of your customer data is stored. What is CRM and why is it important to your business? Customer Journey: how a holistic strategy drives profitable… The customer journey follows the complete lifecycle from awareness to…. Steven Macdonald is a digital marketer based in Tallinn, Estonia.

Since working with SuperOffice, he has led the growth of the blog from 0 to 2.

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You can connect with Steven on LinkedIn and Twitter. View all articles by Steven MacDonald. Steven it is an interesting article. I have a question to you. Amazon has the lowest prices and great customer service. However, their employees don't earn much and work at Amazon centres is hard. How can a brand build a long-term successful strategy, when it's employees are unhappy? I compared it with Standard Oil. John D. Rockefeller made sure that his people were paid well to avoid protests.

Best wishes, Martyna. That's a great point, Martyna! Happy employees are a hugely important factor for when creating a successful strategy. I want to send a letter for getting permission for that. So, please send me your e-mail id so that I can send you the official mail for that. I have also sent a request to get connected with u in LinkedIn. Thanking you Dr N. This article is true, CRM can bring in customer centric strategy. I am using a CRM and it has build more customers and also helped in constant follow-up of customers.

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I am a CRM blogger with about five years of exprience. I agreed completely to the content of this article. I would love to also be a contributor to this blog as well. Thanks so much Steve for this article. An interesting article. Organizations need to realize that focusing their initiatives towards building a customer centric culture is paramount.

Building a customer centric culture facilitates not just business offerings but also processes and policies that can help in providing a great customer experience. Although, the initiative towards customer centricity can be led by anyone in an organization, leadership must lead by example and inspire entire workforce to shift their focus.

Great article! An easy read and yet very impactful.

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I'm faced with many of the customer centric challenges the article references. I plan to use some of the tips mentioned. Hey, Steven, cool article and a fascinating topic! I'm compiling a report for my employer, and would greatly appreciate it. Best regards, Denis. Great blog, good information is given about customer centric strategies. It was worth reading. Thanks for posting the blog. Thanks Steven for this article.

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  • I thinks a customer centric strategy is the best way. Hi Kira. Hi Del.

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    Well Said Steven! Hi Steven, are you able to indicate source of research that led to graphic on challenges faced in becoming truly customer centric? Hi Darrel. But is that possible? Baton Rouge Local Events.

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    Our Views: Diligence, not drama, should drive impeachment talk. Stephanie Grace: Read the latest. James Gill: Read the latest. Dan Fagan: Read the latest. Walt Handelsman: Browse the best cartoons. Elayn Hunt Correctional Center cadet arrested, accused of attempting to bring drugs into prison. The Advocate College Football Cocktails At Sunset. Power of Pink They expect great work and drive people to achieve extraordinary results. Wiseman identified Multipliers get on average 2x from their people. While Multipliers do many of the same things as Diminishers, the book takes us through the 5 things Multipliers do very differently:.

    Men wanted, for hazardous journey, small wages, bitter cold, long months of complete darkness, constant danger, safe return doubtful. Honour and recognition in case of success. Multipliers are often viewed as the best boss to work for. They consider the role of the person at the top a genius maker rather than themselves a genius. As a result they attract the best talent through word of mouth.

    Diminishers look to build teams of the best talent, but only to make themselves look good. Once within their team, talent is stunted.

    Talent Magnets ignore org charts. What do people do exceptionally well, easily, and freely without condition? People may not be aware of their own genius. Although they removing blockers, Multipliers are not overprotective of their team such that they no longer have room to tackle their own problems and grow. They liberate their team and create a safe environment for them to perform at their best, rather than operating a tyrannical rule that demotivates and closes people down.