Curtis On...The Benefits of Customer Centricity
Curtis Bingham, Founder & Executive Director of the Chief Customer Officer Council, lists the multitude of benefits customer centricity is yielding businesses, including Oracle, Panasonic, Xerox, and GoDaddy.
Transcript for Curtis on...The Benefits of Customer Centricity
I'm Curtis Bingham and I'm the founder and the executive director of the Chief Customer Officer Council. There's been a lot of research lately that has been done on tying customer satisfaction with revenue and profitability. In fact, there are a number of correlations with bottom-line business results.
It's statistically proven that improving customer satisfaction increases purchase intentions; it improves customer retention; it improves the ability to cross-sell and upsell; it reduces customer complaints; it increases referrals as well; and it reduces price sensitivity.
I've had the chance to talk with a lot of chief customer officers over the last decade and to ask them what kinds of things they saw as a result of improving customer centricity within their organization.
Oracle found that their most engaged customers were 6 percent more loyal and generated 33 percent greater revenue than those customers who were not engaged.
Panasonic found that their extremely loyal customers had five times greater repurchase rate, and just a simple one percent increase in loyalty generated 33.3 million dollars in annual incremental revenue.
The Oklohama City Thunder, an NBA basketball team, looked at the increase in renewals of their season ticket holders and found that that would equate to almost $400,000 in annual improvement.
Xerox uses the net promoter scores and they found that their net promoters are 2.5 times more likely to repurchase. We can quickly do the math and find out how big a number that would be in terms of revenue and profits.
GoDaddy—many of you have seen their commercials and have heard about them. They found that in the first number of years that they were in business, aligning properly with their customers yielded an eleven hundred percent growth over a four-year period.
It's very clear that an improved focus on customer centricity yields all kinds of business results, top line and bottom lines.
So, what are you doing to improve customer centricity within your company?