Customer Centricity in Business
Building a Customer-Centric Company with Long-Lasting Value
Shep Hyken interviews Peter Fader and Sarah Toms. They discuss their new book, The Customer Centricity Playbook, and the “Customer Centricity Manifesto,” which teaches individuals and organizations how to build a customer-centric culture.
The Interview with Peter Fader & Sarah Toms:
A key term is CLV, which stands for “customer lifetime value.” Taking this into account, it is almost always more profitable to retain existing customers versus acquiring new customers.
There are high-, mid- and low-value customers. In your customer base, there are fewer high-value customers and losing them could drastically, negatively impact your business profits. There are more low- and mid-value customers. They are easier to acquire and losses don’t hurt your business as much.
The paradox of customer-centricity is that despite these facts, many companies still expend a lot of effort into acquiring and retaining the risky high-value customers rather than
