Customer Focus Mindset

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HOW TO CREATE

A CUSTOMER FOCUS MINDSET?

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GETTING NEW CUSTOMERS COSTS A FORTUNE. LOSING THEM CAN SEND YOU BROKE. THERE IS ONLY ONE
MEASURE OF CUSTOMER FOCUS AND THAT IS CUSTOMER LOYALTY. WHEN YOU FAIL SO DOES PROFITABILITY,
AND YOUR COMPETITORS TRIUMPH. BUT THIS NEED NOT BE SO. YOUR WHOLE ORGANIZATION, NOT JUST YOUR
‘CUSTOMER FACING DEPARTMENTS’ EXIST TO PROVIDE VALUE FOR CUSTOMERS. THIS REQUIRES COMPLETE
CUSTOMER FOCUS IMMERSION.

CEO STUDY FINDS CUSTOMER FOCUS IS NUMBER ONE


IBM’s 2010 global CEO study found eighty-eight percent of all CEOs picked
“getting closer to the customer” as the most important dimension to realize their
strategy in the next five years.

CEOs are convinced that their organizations must be connected (or reconnected)
with customers and keep on learning how to strengthen those connections. They
recognize that getting closer to customers will require new approaches and a new
mindset. They are more committed than ever to taking personal responsibility for
leading a stronger customer focused culture. i

WHERE DO I START?
First you need to get the facts about your current situation. For example, to begin a
To deliver value to weight loss program you start by getting on the scale and facing reality. Understand-
ing the extent of customer centricity in your organization and team is no different.
customers requires a
First measure and benchmark your customer focus on those activities within your
customer focus mindset organization that drive customer satisfaction and retention.
in which people across
Two validated tools are available for benchmarking customer focus. These are easy
the entire organization to use and understand.ii
understand their customers 1. MRI measures the behavioral heartbeat of an organization with reference to its
and act from a customer external customers, competitors, broader external environment, collaboration
perspective. and alignment. Each of these factors has a measurable impact on customer
satisfaction and business performance.
2. CRI is used to measure customer focus with reference to internal customers
relevant for back-office functions like Finance & Administration.

Both tools work well together to provide quantitative measures on the level of cus-
tomer focus and can predict where an organization is heading in terms of customer
satisfaction.

The benchmark results are all important to understand which strategy is required by
your organization to deliver the best customer value both internally and externally.
If there is weakness in all or most factors, a complete rewiring may be necessary.
More frequently, you can build on strengths and rewire just one or two factors that
are particularly weak.

HOW TO REWIRE
It comes from the top
Rewiring for a customer focus mindset into the psyche and actions of an organization
requires a dedicated effort from the top. Senior leaders are important customer focus
role models. They must be visible, relentless, passionate and committed to increasing
value delivered to each customer. They need to become heroes. Ask John Stanhope,
CFO of Australia’s Telstra and Charles Lawrence, General Manager of Franke USA.
Both have undertaken customer-centric transformations of their Monitor customer culture and customer satisfaction
organizations over the last two years with considerable success. Periodically measure the drivers of strong customer focus
In Telstra’s case, not only has the 2400 strong Finance & culture against targets and introduce initiatives to transform
Administration group become more efficient and aligned with ‘weak spots’. Continue to monitor customer feedback and sat-
its customers’ needs, but at least $16 million in annualized isfaction. Do you measure the level of your customer focus?
savings have resulted directly from the service culture initiative.iii
Study top performing organizations in customer service
At Franke, an MRI was conducted over two successive
The top performers have purposefully rewired the mindset
years. After the first MRI, strategic decisions to increase
of people at all levels to place the customer at the forefront
service levels in the call center and in the supply chain were
of thinking and action. Studying organizations like Apple,
implemented. These moves rubbed off on other functions
Zappos and Ritz-Carlton show how it is done. John and
with a substantial improvement in strategic alignment of the
Charles show what first steps can be taken to change things
business around a customer focus. One year later sales were
for the better. What best practices have you incorporated in
up 12% and the bottom line had nearly doubled. A second
your business recently?
MRI showed all customer focus factors significantly higher.iv
Are you personally modelling customer-focused behavior?

Empowered employees IT'S TIME TO ACT!


As well as top leadership role modelling and support by the
senior management team, a customer focus culture has to be
spread through-out the entire workforce. One of the most MarketCulture Strategies and its partners provide
important aspects is creating an empowered workforce of expert services that make customer focus a lasting part
employees who are committed to the customer and believe in of the fabric of your organization. We can diagnose how
the company. They need to be able to make a direct connec- well your company performs on critical market-driven
tion to how they contribute to customer value and satisfaction. behaviors, providing you invaluable insight into how
Can everyone in your organization make that connection? you benchmark with other organizations. And with our
partners, we are trusted advisors in helping your organi-
Alignment around a customer-focused vision
zation effectively navigate the change journey.
The leadership, vision, values and the strategy and ways of
working must be aligned around customer-centric ways of
thinking and doing. These need to be supported by structure,
processes, systems and people. Every action is moulded by a Get additional free resources
commitment to meeting and exceeding customer expectations. Go to our website and download additional free resources
Is this how your business is designed? that can help you get your customer focus improvements
started on the right foot.
A critical mass of people are engaged
www.marketculture.com
People need to be engaged at a personal level to gain buy-in.
‘Bright spots’ of exemplary customer focus behavior in the
organization can be used as tangible illustrations. They provide
motivating stories, mentors and applied training of best prac- i  “ Capitalizing on Complexity: Insights from the Global Chief
Executive Officer Study”, IBM, 2010.
tices. Measure progress at the individual, team and functional
ii The Market Responsiveness Index (MRI) measures those
group levels. Reward and recognize people that embody the
behaviors relevant to external customers, competitors and the
desired culture. Align internal systems including performance external environment that drive business performance. The Cus-
review processes to embody and support customer focused tomer Responsiveness Index (CRI) measures the customer
behaviors. Do you specifically recognize and reward customer- centricity of back-office functions like Finance in relation to
focused people/teams? their internal customers. Both are proprietary services of
MarketCulture Strategies.
iii See “MarketCulture Hero – John Stanhope”, A case/video by
MarketCulture Strategies, July 2010 and “Rewiring the financial
With a benchmark you can build on mind”, Shaun Drummond, CFO Magazine, July 2010.
strengths and rewire just one or two factors iv See “MarketCulture Hero – Charlie Lawrence”, A case/video by
that are particularly weak. MarketCulture Strategies, October 2010.
MarketCulture Strategies
112 Las Brisas Drive
Monterey, 93940, CA
Telephone: +1 800.817.8582
San Francisco, New York, Sydney

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