What is Customer Focus?

What is customer focus? A detailed explanation of the meaning, background of mindfulness and practice points. In recent years, more and more companies are focusing on customer-oriented services.

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What is Customer Focus?

In today's world, where it is difficult to sell goods and services, a customer-oriented mindset is effective in getting customers to choose your company. In this article we will explain the meaning of customer orientation, why it attracts attention and the points to put into practice.

Customer orientation refers to a mindset that puts the customer first. It is the exact opposite of the management policy of "selling what the company wants to sell" and "prioritizing the organization's profit", and gives top priority to the customer's needs.

A business that simply responds to customer needs is not customer-oriented. This is because even if all the customer's needs are met, it is not necessarily what the customer really wants. A customer-oriented business strives to satisfy latent wants and needs that even the customers themselves are not aware of.

Many managers and people in charge may think, "Our company puts the customer first, so it doesn't matter." However, there are many cases where, while the customer may seemingly come first, in reality, the company's profit is the top priority.

Why is customer orientation so appealing?

The reason why customer orientation is attracting attention is that it leads to higher profits. In addition, for customers to choose among the many goods and services in the marketplace, it is necessary to have a mindset that prioritizes the customer's needs.

One of the reasons that customer orientation leads to higher profits is that it reduces the cost of acquiring new customers. We can build good relationships with existing customers because we do business with the customer as our top priority.

As a result, if satisfaction increases and customers become repeat customers, they will not have to spend a lot of money to acquire new customers. It is not uncommon for a company to have a large market share at the beginning, but soon find itself in a fierce price war with its competitors.

To increase profits

Acquiring new customers is not profitable. Focusing on attracting new customers is necessary, but focusing on increasing the proportion of existing customers will lead to higher profits.

Make people choose between saturated goods and services. Today, the market is flooded with all kinds of goods and services. In today's information society, attractive products and excellent services spread in the blink of an eye, and companies soon follow suit.

It has been noted that the cost of acquiring new customers should be five times the cost of selling goods and services to existing customers. This is called the "1:5 rule". On the other hand, there is also the "5:25 rule," which states that by avoiding customer churn by 5%, profits can be improved by at least 25%.

It takes customer-oriented thinking to get customers to choose among many similar products and services. Even if the product is the same, if you understand the customer's latent needs and adequately convey the value and benefits it brings, the chances of them choosing your company will increase.

Points to practice customer orientation in contact centers

By increasing your touch points with your customers, you increase your chances of building a good relationship with them. In particular, contact centers receive a wide variety of inquiries and queries, so it is important to operate contact centers based on customer orientation.

Understanding your customer is essential to creating these situations. You must deepen your understanding of your customers through data analysis and persona shaping, and then review it on an ongoing basis.

Understanding customer needs

A customer-oriented business is an effort to bring benefits to customers. To achieve this, it is necessary to capture precisely what the customer wants and what they want to solve.

Customers themselves may not be aware of the problems they face or what they really want. If we can penetrate into such deep areas and capture latent needs, we can provide proposals, products and services that will benefit our customers.

Conducting questionnaires and interviews is one way to understand customer needs. It is also effective to analyze and share accumulated customer information and past behavioral history. When analyzing needs, use frameworks such as RFM analysis, segmentation analysis and CTB analysis.

Get closer to your customers

A contact center is a touch point for a company and is like a haven for customers when they are in trouble. Customers are increasingly dissatisfied when they are treated as if they are "mechanically treated" or "not served" at the destination they rushed to.

To be customer-focused in your contact center, you must demonstrate that you are there for your customers. Be sure to listen carefully to what your customers have to say and treat them with respect. It is also important to empathize with your customers, rather than criticize them.

If you can respond in this way, you can give a good impression that you are a company that cares about your customers. As a result, it leads to the promotion of repeat business and prevents exit.

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