Tag Archives: Customer Centric Leadership

What do customer-centric CEOs do to build customer-centric cultures?

Posted on March 28, 2024 by | Leave a comment

Customer-centric leadership is a management approach that places the customer at the center of an organization’s strategy, operations, and decision-making processes. It involves creating a culture where every employee, from the frontline staff to the top executives, is focused on delivering exceptional customer experiences and maximizing customer satisfaction. Here’s an example of customer-centric leadership:

Imagine a telecommunications company called “TelcoFlow,” which specializes in mobile phone plans for businesses. The CEO, Sarah, embraces customer-centric leadership and instills this mindset throughout the organization. Here’s how she demonstrates customer-centric leadership:

1. Setting the vision and tone: Sarah communicates a clear vision that puts customers first. She emphasizes that the company’s success depends on understanding and exceeding customer expectations. This vision is reinforced in company meetings, training sessions, and internal communications.

2. Empowering employees: Sarah empowers employees at all levels to make decisions that benefit customers. She encourages frontline staff to go the extra mile in resolving customer issues and providing personalized service. Employees are trained to anticipate customer needs and proactively address them.

3. Gathering customer insights: Sarah ensures that the company consistently gathers customer feedback through surveys, social media monitoring, and direct interactions. She personally reviews customer feedback and shares insights with her leadership team and employees, using this information to drive product development, customer service improvements, and strategic decisions.

4. Fostering collaboration: Sarah fosters cross-functional collaboration between departments to deliver seamless customer experiences. Regular meetings are held where marketing, sales, operations, and customer service teams discuss customer pain points, feedback, and ways to enhance the overall customer journey.

5. Leading by example: Sarah sets an example by regularly interacting with customers, whether visiting retail stores, attending customer events, or responding to customer inquiries personally. She actively listens to customer feedback and takes personal responsibility for addressing any significant issues or concerns.

6. Celebrating customer success: Sarah celebrates customer success stories and shares them across the organization. Employees who go above and beyond in serving customers are recognized and rewarded, reinforcing the customer-centric culture.

Through Sarah’s customer-centric leadership, TelcoFlow has developed a reputation for exceptional customer experiences, resulting in high customer loyalty, positive word-of-mouth, and strong financial performance.

Employees feel empowered and motivated to contribute to the company’s customer-centric mission, fostering a cycle of continuous improvement and customer satisfaction.

While much of this is well known today, the question is how do you know whether your company is truly customer-centric? And what areas you should focus on to improve.

The MRI Benchmark is the tool leaders use to assess and improve their customer-centric culture and you can now try it for free: www.mribenchmark.com

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Posted in Customer Centric Culture, Customer Centric Leadership, Customer Obsessed Leadership, Customer-Centricity

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It’s not about huge transformations, it’s about small customer-centric practices that make a big difference

Posted on December 28, 2022 by | Leave a comment

While some organizations need to engage in large transformation projects that involve seismic changes in business models, technology, products and services, and people, to survive, these are the exception rather than the norm.

Many leaders believe that changing to a stronger customer-centric business requires disruptive change with a high risk of failure, so they fail to act. Yes, it can be risky, as many case studies point out.

Why?

Many customer-centric initiatives lack the right measurement and lack a coherent strategy to strengthen the foundation of customer-centricity – culture. They also include too many projects that dilute focus and diffuse efforts. By not including these crucial ingredients, initiatives falter, and engagement and buy-in of leaders and employees is lost.

But it doesn’t have to be that way!

Strengthening your customer-centric culture can be achieved with consistent, easy-to-implement, practices that everyone in an organization can adopt. It should be preceded by measurement to know where you stand, so you don’t spend money on initiatives that are not necessary. Also, you will identify those initiatives that will make a significant difference.

Many of the world’s best practices are simple and easy to implement such as placing “customer” as the starting item on the agenda at every meeting. You will need to create a logic as to “why” meetings should start with a discussion about customers and an emotional connection that includes a customer story as to how those discussions benefit customers, employees, and the business.

If this, and other easy-to-adopt practices are implemented and become habits of behavior, your customer culture will become stronger. In addition, all the other things you do, such as getting feedback from customers and collaborating in teams to create value for customers, will multiply the benefits to your customers, your team, and your business.

The trick is to first know where you stand through measurement. This is the catalyst to gain buy-in and commitment from leaders and employees to implement specific practices. Then, check progress along the way and measure the benefits.

If you follow this process, your teams and your organization will transform before your eyes – and it will not only be painless, but it will be easy to continue. The risks are low and the payoffs can be high!

Result? Engaged and inspired leaders and team members. Appreciative and loyal customers. Growth and profit for the business. Satisfied shareholders.

What’s in it for you as a leader of this approach?

Great satisfaction from making a real difference and rapid promotion based on demonstrated success!

Ready to take your customer centricity to the next level? Don’t miss out on value insights that can help you improve customer centricity. Visit MRI Benchmark!

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Posted in Customer Centric Strategy

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It’s not about the leaders’ views on customers, it’s about independent measurement

Posted on November 30, 2022 by | Leave a comment

If you ask senior leaders how customer-centric is the business they lead, the chances are that they will be much more positive than the reality.

If you ask 10 people in a business from different functions how customer-centric their business is, they will likely give widely different opinions.

If you ask 500 people, you will definitely get a wide variety of views.

If you ask 1000, there will be an even wider divergence.

Why?

Because they don’t objectively measure the most vital ingredient of customer centricity – customer culture: that is, what people in the business do that impacts customers. Specifically – how do they behave and what practices do they implement day in and day out with respect to customers.

We know from countless studies that an organization’s customer-centric culture drives customer experience that in turn drives customer retention and loyalty that leads to higher growth and profit as shown in this diagram.

If you don’t embed a strong customer culture right across the organization, you won’t get the rest – retained customers, trust, productivity, growth, and profit. Also, as a leader, you won’t get your team behind you or the momentum you need to be successful. At best your performance will be short-term, at worst it could be disastrous.

To get a strong customer culture you must find out where you are today through objective measurement that includes feedback from a large sample of people in your team or your business. Not just any measurement like employee engagement or net promoter score. Both of these measures are useful, but they do not measure customer culture.

This culture gap is a risky blind spot where decisions are taken in the dark and money invested on improving customer experience is lost.

You must use a purpose-built customer culture measurement tool. This must include universal behaviors that have been definitively found and tested to enable you to assess your company’s level of customer-centric practices – benchmarked against the most customer-centric and profitable businesses in the world.

There is only one purpose-built, validly tested, and reliably implemented customer culture measurement tool in the world – the Market Responsiveness Index (MRI). This has been used by more than 1000 organizations over the last 10 years and helped them create a unified view of their level of customer culture that everyone can agree on – and act to strengthen.

Visit us at MarketCulture to take this vital step.

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Posted in Customer Centric Leadership

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True customer-centricity is grounded in reality

Posted on December 22, 2021 by | Leave a comment

There is a reason the most customer-centric businesses in the world were born that way. To begin and become sustainable they were forced to be grounded in reality. They had to discover needs in the market that could be met, they had to work out how to service those needs and make a profit.

The businesses that have retained their customer-centric approaches as they have grown understood the need to remain grounded in the marketplace. Their leaders have not floated off into the ivory tower, rather they retain the pain of not delivering what they promised.

These leaders realize the work of organizations gets done at the front line and the further removed you are the larger the distance between you and reality. Hence the compelling need to empower those that are doing the work.

The best leaders don’t talk, they take action. They spend time with employees on the front line, speak with customers, put themselves in the customer’s shoes, and experience what it’s like to be a customer of their organization.

It is not complicated but it requires leadership which means consistent visible customer-centric action.

Learn more in our award-winning book, The Customer Culture Imperative.

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Why intensity and metrics matter when reshaping an organization’s culture: Lessons from Wells Fargo

Posted on May 13, 2019 by | Leave a comment

tim_sloan_in_front_of_congress

Wells Fargo’s challenges over the past few years have been well documented. It took a turn for the worse when it created an aggressive sales culture based on unrealistic targets.

To meet sales targets, employees opened accounts customers did not need, ordered credit cards without their permission and even forged customer signatures on paperwork.

The result was the creation of 3.5 million fake customer accounts many of which were then billed fees. Further investigations produced evidence that 570,000 customers had been sold car insurance they didn’t need.

These were failures of culture, leadership and ultimately risk management practices, something the bank had prided itself on during the mortgage crisis of 2008.

In 2017, the Institutional Shareholder Services (ISS), an influential shareholder advisory group released the following statement:

“The board failed to implement an effective risk-management oversight process in a timely way and that could have mitigated the harm to its customers, its employees and the bank’s reputation.”

It also suggested shareholders vote against the re-election of 12 of the 15 directors.

Most of the board was replaced over the next 12 months and Tim Sloan, the new CEO was tasked with cleaning up the mess.

To his credit, he did a lot of work with his top team to reshape the vision, values, and goals around the core idea of “helping customers succeed financially”. He also began to signal a shift in leadership focus away from shareholders:

“When you put your shareholders first—I hope Warren Buffett isn’t listening by the way—but when you put them first, then you’re going to make mistakes because you’re going to make short-term decisions that aren’t focused on creating a long-term, successful company.”

Sloan began dismantling the sales incentives that created the bad behavior and stopped paying employees on how many products they sell. Instead, they shifted the metrics to how often customers used their accounts and a range of customer experience metrics.

However, as with all changes, the devil is in the detail and employees had begun raising concerns again about customer-unfriendly practices emerging. A report by the Committee for Better Banks highlighted a continued culture of fear in which front line employees were not engaged in the change process but instead had it imposed on them.

“Honestly, it’s perceived as a joke — ‘Oh yeah, they’ve changed things,’ ” said Meggan Halvorson, 35, who works in Wells Fargo’s private mortgage banking division in Minneapolis. “I haven’t met anybody, personally, who believes what they’re saying or that it’s the case.”

Unfortunately, this has all been too little too late at least for Tim Sloan who was pressured into early retirement in early 2019.

In his final statement as CEO to the House Financial Services Committee he stated:

“We have more work to do, and that is an ongoing commitment by all of Wells Fargo’s 260,000 team members — starting with me — to put our customers’ needs first, to act with honesty, integrity, and accountability; and to strive to be the best bank in America.”

Within a month he would be gone.

What are the lessons?

Intensity and Velocity Matters

Changes need to be led with intensity and purpose from the top team throughout the organization. One of the reasons Tim Sloan was pressured into early retirement was that changes were not happening fast enough. There is a level of intensity and engagement required by the CEO to shift culture, and this is particularly important when the culture has gone bad.

Personally, “seeing the front.”

This term comes from the military and is based on the idea that leaders must see what is happening at the front lines themselves before making crucial decisions. The front line must be engaged in the process, the people doing the work matter and the daily interactions customers have with those people determine how the brand is perceived over time.

If change is imposed from the top, it is naturally resisted. The result is that employee initiative gets squashed, ownership is destroyed, and people keep their heads down out of fear of losing their job. In short, you get compliance, the bare minimum out of people.

If more direct attention had been paid to the front lines at Wells Fargo it would have been clearer what needed to happen to improve the customer and employee experience. If done correctly this will result in better business performance.

Metrics can help or hurt.

How people are measured can result in behavior that improves the customer experience or works against it. Clearly, the unrealistic sales targets at Wells Fargo resulted in the wrong behavior, that does not mean sales targets are bad; they are a necessary part of driving business performance. However, the way in which they are implemented matters.

Likewise, measures of customer experiences can be used in the right way or the wrong way. If they are used to performance manage, as a “stick,” they result in fear and resentment. Ironically, this works against the very thing they were designed to do which is to improve the customer’s experience. These metrics must be designed as learning tools that help employees develop and grow. This creates an environment that unleashes most people’s natural desire to deliver great experiences for their customers.

Transforming a company’s culture begins with a genuine desire by the top leadership to make things better. However, it then must be followed with concrete action by leaders at all levels.

If you want to catalyze customer-centric change across your organization, start by measuring how customer-centric you are today with the world’s only customer-centric culture benchmark, the Market Responsiveness Index.

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Posted in Case Study, Customer Centric Culture, Customer Centric Leadership, Market Culture Inaction

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Amazon Founder Jeff Bezos explains how he drives a passion for customer obsession with his senior leadership teams

Posted on June 26, 2018 by | Leave a comment

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Creating a customer-obsessed culture requires strong leadership and one of the very best exponents of the practice is Jeff Bezos of Amazon.

Even though Amazon now employs more than half a million employees and serves more than 300 million customers, Jeff Bezos personally reads every customer complaint email sent to him. While he does not respond to them personally, he is immersed in them as a way to stay in touch with the reality of what is going on in the business.

We call this, customer immersion, and it is one of the most important activities any CEO can engage in.

So how does he manage the wide range of customer complaints/feedback he receives directly?

He is known to forward the email directly to the leader accountable for that area with a simple “question mark”. The question mark is his short-hand for can you look into this? why is this happening?

Leaders know they are then on the hook to drill into the issue and find out what is happening and resolve it in a systemic manner, ie so it does not occur again!

And this is the crux of what makes a customer-obsessed culture different, leadership takes this seriously and follows through on making the changes necessary so that the source of the complaint is eliminated…. this simply does not happen in most organizations.

This approach gives Bezos a frontline insight into what customers think and experience. It is a huge leadership advantage as he can maintain a pulse on what is actually going on across Amazon’s massive and complex business.

In this great article by Julie Bort, Jeff explains:

“The thing I have noticed is when the anecdotes and the data disagree, the anecdotes are usually right. There’s something wrong with the way you are measuring it.”

For 10 years MarketCulture has helped leaders around the world understand how to engage employees in building a customer-obsessed culture. The MRI Assessment provides valuable feedback to leaders they can act on to enable employees to deliver great customer experiences.

MarketCulture has proven scientifically that a stronger customer culture will drive increased business performance through retention of customers and increased advocacy.
Contact us now to find out how we can help your company become customer obsessed.

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Posted in amazon, CEOs, Change Leadership, Customer Centric Culture, Customer Centric Leadership, Customer Centric Values, Customer Communications, Customer Insight, Customer Obsessed Culture, Customer Obsession, Customer-Centricity, Empathy, Voice of the Customer

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How do leaders become customer-centric?

Posted on May 28, 2018 by | Leave a comment

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Source: OCEAN/CORBIS

To answer this question it can be helpful to start with the opposite question: why aren’t leaders Customer-Centric? In many cases, it appears to depend on chance!

There are many reasons leaders are driven away from being truly customer-centric:

  • the dominant profit and shareholder value focus in many organizations,
  • the siloed and internal focus in most large corporations,
  • the pressure on short-term results at the cost of customer relationships and customer value.

But these are not the most important reasons!

In our research of more than 65 senior leaders around the globe customer-centric leadership occurs by chance – an upbringing in a family that runs a small business, working for a boss who happens to be customer-centric, an experience in a business that is ruined by lack of attention to customers.

What is lacking in organizations and tertiary learning institutions is the systematic training and development of leadership with a specific customer-centric focus.

There are virtually no university courses around the globe dedicated to the teaching of customer-centric leadership. Most organizations do not have this as a focused L&D program for senior leadership, the extended leadership group or for prospective and aspiring leaders.

How can you expect leaders to have the new currency of customer-centric leadership required for success by the new world of disruption and customer-driven strategies if you leave it to chance?

There are simply too many organizational pressures working against it.

Don’t leave your organization’s fate up to chance!

There is an answer. Research reported in The Customer Culture Imperative tells you what is required. Learn more about our dedicated Learning and Development programs for leaders at here.

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Posted in Authenticity, Change Leadership, Customer Centric Culture, Customer Centric Leadership, Customer Centric Values, Customer Communications, Customer Obsessed Leadership, Customer Obsession, Customer-Centricity, Empathy, leadership

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What drives leaders to become customer-obsessed?

Posted on May 9, 2018 by | 1 comment

Mature Man Clutching Arm As Warning Of Heart Attack

I was speaking recently with Rashid Velemeev, CEO of Sindbad Travel, one of Russia’s biggest online travel booking agencies based in St Petersburg. We were discussing customer-centric leaders and he mentioned that he believed an important characteristic is that they feel internal pain.

They can’t accept the way things are and they must change it to relieve their pain. It may be an experience of very poor service or of a product that does not work properly or an experience with people in a company who just don’t care. It creates a burning desire to do something about it.

When we think about this we realize that many businesses are started today because the founder has had a very poor customer experience and feels compelled to fill the gap created in the marketplace. It becomes a passion to make things right and if implemented well becomes a very good business.

Are you a leader that feels pain because things are not done right in your business to consistently deliver customer satisfaction? Do you feel the pain personally with each customer complaint?

If so you can relieve that pain by learning to implementing some of the ideas in our book: The Customer Culture Imperative. 

…AND now you can learn how to in our MarketCulture Academy

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Posted in Customer Centric Culture, Customer Centric Leadership, Customer Obsessed Culture, Customer Obsessed Leadership, Customer Obsession, market culture

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This is the secret to delivering powerful Customer Experiences that only a handful of CEO’s know about!

Posted on February 18, 2018 by | Leave a comment

Richard_Branson_Customer_Centricity

Why engaged customer-focused employees are vital to business success!

In today’s market, the majority of companies have very little to differentiate themselves from their competition. Their product and services are very similar if not identical. It is so easy to change to another company that it can be done in minutes or even seconds on the web. Social media can instantly let millions of people know what just took place. Customer expectations have changed and their demands are greater than ever.

Future business performance and sustainability will come down to whether or not customers continue to use your products and services or leave for an alternative supplier. It costs 7.5 times as much to gain a new customer yet the majority of companies spend their budgets on attracting new customers. What are you doing to retain your current customers?

MarketCulture’s purpose is to help companies recognize the importance of building stronger customer experiences that retain customers. We believe that inspired, engaged and empowered employees focused on customers are vital to success. It comes down to how the company delivers on its promise and ultimately it is all employees that make this happen. It takes one bad experience and you have lost a customer.

As leaders do you truly understand what your employees need in order to deliver a great customer experience? Are we telling them what to do or are we engaging them in what they believe is important? Richard Branson says that engaged and happy employees deliver superior customer experiences. Virgin enters markets where customers are dissatisfied. They quickly win a strong market share by providing great service with a touch of magic. Employees want to be part of the solution and feel that they belong. They want to be listened to and feel that their feedback contributes to the success of the business. Your employees are the ones that retain or lose your customers.

Companies today implement many tools that measure either employee engagement or customer satisfaction. They allow leaders to know whether or not they have happy/unhappy employees or satisfied/dissatisfied customers yet they rarely provide insight into how they can improve. Leaders need to understand what employees need to deliver the company’s promise and customer satisfaction.

“There are many ways to center a business. You can be competitor focused, you can be product focused, you can be technology focused, you can be business model focused, and there are more. But in my view, obsessive customer focus is by far the most protective of Day 1 vitality.” Jeff Bezos – Amazon Founder and CEO

How do we engage employees to build stronger customer experiences?

Customer experience comes down to the way your company and employees behave – whether you deliver or not on your promise. It can be as simple as responding to a customer in a timely fashion or just the tone of your voice. Amazon is now one of the biggest companies, yet they have retained a strong focus on their customer experiences even as they have grown to employ more than 300,000 people. The test of a company is not when things go well but when they don’t. Customers are looking to receive the value they paid for or they will simply try an alternative supplier. Where do you start building a stronger customer experience? You can start with the customer and find out whether or not they are satisfied but that is after the event has occurred and maybe too late. Alternatively, you can start with those that create the experience – “the employee” – and find out what they need in order to be able to deliver a great customer experience.

Steve Job’s recognized this towards the end of his time as CEO of Apple when he said:

“It’s not about me, it’s about the company and it’s about the cause. It’s not about everything being dependent on me. I have to build a culture, I have to think about a successor, I have to think about setting this thing up to do well over time. And in the end, what matters is, I want Apple to be an enduring great company and prove it didn’t need me.”

How do we do it? – It is simple. Listen to your employees, find out what is important to them, engage them, act on their feedback, empower them to solve customer problems and they will deliver better customer experiences.

MarketCulture researched 100’s of companies across the globe that exhibited both customer-centric decision-making with employees empowered to deliver great customer experiences. Some of these companies included Amazon, Google, Virgin, Apple, and Ikea.

The research revealed 8 disciplines that employees act on to deliver great customer experiences. We found these disciplines used across the entire organization including all support functions. This was not evident in companies that deliver inconsistent customer experiences.

Through both quantitative and qualitative employee feedback companies are able to act on strengths and weaknesses in order to support employees in delivering superior customer experiences.

What – A unique employee assessed customer engagement measurement tool.

Where do we start? The first step is to discover what is important to the employees in order to provide a better experience for customers. To do this we need to engage the employees and gain their feedback. The Market Responsiveness Index (MRI) is a unique assessment tool that all employees, including leaders, complete. The MRI has quantitative (scaled questions/benchmarked) as well as qualitative feedback (verbatim comments). This will identify the strengths and weaknesses of your company against companies that use best customer-centric practices. This will create change and build future business performance through the retention and growth of customers. Studies have shown that companies with Customer Centric practices outperform the others.

What is the Market Responsiveness Index (MRI)?

The MRI is a web-based employee assessment, requiring 15-20 minutes to complete, that benchmarks employee behaviors within your business against the most customer-centric companies in the world. This translates into 8 key disciplines all with a strong focus on the customer. These are Customer Insight, Customer Foresight, Competitive Insight, Competitor Foresight, Peripheral Vision, Cross Functional Collaboration, Empowerment and Strategic Alignment. Your company’s performance in these disciplines has been shown to drive future customer satisfaction, revenue growth, and profitability.

The MRI will provide key benefits to your company.

1. Momentum, Engagement and a New Mindset: It will create focus and momentum for a Customer Centricity initiative across the business and can be used to drive the embedding process.

2. Measurement: It is designed to provide the basis for benchmarking and measuring progress on those customer-focused behaviors that drive customer satisfaction, advocacy, revenue growth, profit and plans for individual managers to drive improvements.

3. Gain Insights: Hear directly from employees on the key issues holding the organization back from being more customer-centric in specific areas and across the entire business.

4. Tangibility and Communication: It makes customer culture tangible for all staff by identifying relevant activities that support business strategies. Through its methodology and measurement process, it facilitates communication of clear priorities.

5. Gain broad employee involvement: It provides staff with an opportunity for input and direct engagement in Customer Culture initiatives and a forum for agreeing with actions to be taken and a feeling that they are a key part of the journey and contributing to its success.

6. Build a common language across the Business: It also acts as a tool for ensuring staff within the business “get it” and develops a common language and behaviors from Customer Culture initiatives. It forms the basis for ongoing discussions and actions deep within each functional group which is where the ultimate success in embedding customer culture will be determined through collaboration.

7. Accountability: It provides customer-centric behaviors that can be included in the Key Performance Indicators of managers and their teams.

8. Benchmark: It provides the business with a benchmark against some of the world’s most customer-centric organizations. How do you compare with companies like Amazon, Apple, 3M, Virgin and others included in the database? The current database includes more than 300 corporations globally across B2B and B2C and several hundred business functions and units.

Interesting in starting your journey to a customer culture? Learn more here.

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Posted in Authenticity, Customer Advocacy, Customer Centric Culture, Customer Centric Leadership, Customer Centric Values, Customer Experience, Customer Obsessed Culture, Customer Obsession, Customer Satisfaction, Customer Service, Customer-Centricity, Empathy, Freedom, Honesty, transparency, Trust

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This is why every business should have a “Minister for Foreign Affairs”

Posted on January 2, 2018 by | Leave a comment

Flowchart on a chalk board

Recently I interviewed Annalisa Gigante, a Board member of ZIS (Zurich International School) and former Head of Innovation at LafargeHolcim. We were talking about customer-centric leadership and Annalisa suggested that companies could really benefit from a “Minister for Foreign Affairs”. She said today “we need to know what’s going on with the rest of the world.”

I thought about this and realized that the amount of disruption we are facing in our businesses and work lives suggests that we can gain better context on what’s happening, make better decisions, and have a better chance of benefitting from it if we do what she suggests.

In our research and work with companies wanting to become more customer-centric, we have called this factor: Peripheral Vision. That is, the externally focused “wide vision” activities carried out to understand the likely impact on the future business from changes in technology, society, economy, political and legal, and the natural environment.

Many companies seem to have a “Minister for Foreign Affairs”, but like we see in politics, often the learnings and potential impacts of these insights are not widely shared – and consequently not acted upon. In practice, peripheral vision should be built into future business strategies. But in our experience, it is frequently missing.

If you want to know how you can identify if your “Ministry of Foreign Affairs” is effective, find out about how our MRI (Market Responsiveness Index) can help you.

AND if you want to build this capability in your organization check out our MarketCulture Academy.

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Posted in Customer Centric Culture, Customer Centric Leadership, Customer Foresight, innovation, Peripheral Vision

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