02/12/2021
There is ample evidence that a customer focused organization will enjoy significant benefits such as customer retention, customer acquisition, revenue, profitability, market share, reputation, brand equity, competitive positioning, and many more business outcomes.
Why then, one might ask, is it so challenging to embrace the customer as a core focus? Entering into a customer-centric journey in trying to build a customer focused culture is a challenging task for many reasons. Some of these challenges are outlined below.
1. LOSS OF INTEREST
Many companies will embark on creating a customer experience strategy to differentiate themselves from their competitors. Sustaining the commitment to do so can sometimes be detoured because executives could find themselves focusing their interest in other directions. For example, Time Warner articulated a customer experience strategy aimed at creating differentiated experiences. But executives pivoted to focus on customer acquisition through discounts resulting in a dramatic decline in the customer satisfaction scores.
2. LACK OF CLARITY
In many companies, some departments may want to be customer-centric but could find that others do not share a vision of delivering extraordinary customer experiences. When there is no common ground, behavioral responses can vary resulting in a negative impact on the intent of all those who want to deliver those experiences.
3. FAILURE TO GET BUY-IN
Many companies will fail to transform their cultures to focus on the customer because they have not embedded customer centricity in all parts of the organization. And the momentum for failure will increase because of the lack of buy-in by others in the organization, especially senior management.
4. BEHAVIOR CHANGE
Being customer-centric is about behavior and mindset change. If engineering oriented companies make the transition to being customer-centric, the employees need to learn new ways of thinking about customer needs. They need to reframe the questions about what they should be doing and the plans for doing it so that these questions and plans constantly take account of the customer.
5. SILOED CUSTOMER DATA
In many instances companies have developed technology infrastructures in which customer data is trapped in organizational silos. Sharing of data, therefore, is limited.
6. SERVICE
Service delivery is often reactive and has no personal touch. A service orientation that reflects a one-size-fits-all mentality will impede any attempt to be customer focused
7. REWARD SYSTEM
Compensation systems are designed for legacy frameworks for employee performance. Building a customer focus required a change in employee behaviors is not congruent with rewards and recognition.
