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Top and Bottom line Growth
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Build sustainability into your company's sales and profits
Identify, support and leverage your core asset - your customers
Customer centricity leads to increased top & bottom lines
Concerned with growth and profits, industry leaders spend significant time searching for ways to continually improve. Many understand that a focus on profits alone will not address the long term stability or growth of their company. Most trust that there must be a more elegant or sophisticated method that can be a catalyst for enhanced long-term growth.
A new model - the client centric organization - is spreading now across all industries; it shifts the focus to the long term value of a customer and the evolving needs of both company and customer and less on current offering(s). Emphasis is placed on the clients' future needs rather than the company's short-term goals. The client centric organization model has proven to be an excellent strategy for achieving long term stability and growth by satisfying the supplier's and clients' needs.
But, don't confuse customer service with client centricity.
Customer service is a microcosm, a subset of the discipline, called client centricity. Effective client centricity requires excellent customer service as a prerequisite. A client-centric organization provides mutual benefits to the client and the supplier, as it develops a flexible, resilient strategy to support and enhance the clients' and suppliers' long term success as a team (or members of the same industry/ecosystem).
The customer centric POV puts the focus where it's most effective
The client centric organization strategy is successful because it addresses key problems like global competition and the migration of major accounts. A unique competitive advantage is created for each company that applies this discipline; it facilitates growth from the outside-in. As traditional management teams labor through strategic planning, operations, and risk management in an effort to increase sales of existing goods, customer-centric organizations strengthen their market position by jointly innovating new services and products; this locks customer and company into a stronger, long term relationship.
Southwest Cargo has maintained profitability in every year of its existence (approximately 40); they've made a concerted top down effort to systematically understand their clients' and customers' long-term ever-changing needs. Likewise, Cisco reshaped its image through the success of their customer centric "Smart Care" program which contributed to record sales of $40 billion in 2010.
Using a few case studies of clients with whom we have worked, we will illustrate how this process delivers greater financial pay-off:
Regardless of the type or size of an industry, building a truly customer centric organization requires specific expertise in a process of extensive research (much of which is best conducted by third parties), analysis, and implementation that is uniquely tailored to each business.
- Senior leadership at a global energy company felt the company was capable of much higher profits and faster growth. As with many traditional companies with market longevity, both our client and their customers had grown accustomed to business as usual. We spoke with all of their significant customer relationships, researched the strategies of several of their fastest growing competitors and learned some important internal dynamics from division executives. Analysis revealed an opportunity to realign customer relationships that imagined a new future for their interactions. Customer centric behavior increased our client's short term bottom line by $225M dollars - and paid off very well when the company was subsequently acquired.
- A mid-sized chemical distributor was being seriously challenged by a bigger low-price-focused competitor. Desperate, they initially made the mistake of trying to compete on price. Once we worked through the customer centric process with them and their customers, it was revealed that our client has significant scientific advantage and a technological edge that customers wanted but had been lost in the struggle to compete on price; they were undervalued. We helped them build a joint innovation pipeline with the industries' two largest customers and re-align their product and marketing relationships in a customer centric way. Within 2 years, revenue had increased significantly. After 7 years of customer centric focus, this 50 year old formerly-sluggish company had doubled in size.
- A global contract manufacturer in the electronics industry was on the verge of losing not just their biggest client, but by far the most dominant customer in the market - and didn't know it. Disaster was looming; a string of recent acquisitions blended several teams of traditionally minded executives into a dysfunctional team that lost track of their customer amid the turf wars. Our research revealed they had lost any focus on the customer they had and were about to lose them. We revealed the danger our client was in, inspired a new customer centric focus on their clients' futures that dissolved the internal struggle for our client. Not only did our client not lose their most dominant customer, they came home within 90 days with an additional $29M in business from them, further cementing their re-imagined relationship.
Three major benefits accompany a client centric model:
Develop your company's customer centric capacity
- The value of every aspect (or viewpoint) of the business relationship increases; from every perspective - the firm's, the client's, the products/services, and the relationships.
- A process for new ideas, programs, and strategies is established that leads to unique industry products and services which create immediate and future value.
- Profitability and ROI will increase.
Based on our 20-plus year track record of successful client engagements, Beckett Advisors now offers a complete end to end training curriculum for company leaders, followed by a period of hands-on consulting. Customized for each of our clients, the curriculum is titled, appropriately: "Leading the Client Centric Organization."
It has proven highly sensitive to the needs of senior executives in multi-national companies because it incorporates respect for diversity across cultures. Our list of long-term clients combined with our core values demonstrates Beckett Advisors' commitment to the discipline of customer centricity. For further information, please contact Peter Belanger at 800.336.8797 or click here.