My guess is that if I asked you to describe your organization’s business strategy you could readily tell me about your target customer, the products or services you offer, how you go to market and why what you do is just so darn compelling.
But what if I asked you about your customer strategy? Could you clearly articulate which customer segments are most valuable to your company today and in the future? Could you describe how your organization and processes are aligned to maximize the value of your most important customer relationships? Could you show me specific initiatives and programs designed to acquire, engage, grow and retain customers in each segment? And how about customer segment specific performance metrics like profitability, share of wallet and net promoter score?
Having a compelling business strategy is necessary–but hardly sufficient–in today’s customer-centric world. Face it, after the bounce off the bottom this year, most industries are faced with the prospect of slow growth–and unlike the past, it’s not going to be so easy to drive the top-line through price increases. That means your revenue growth will have to come from market share gains. And unless you are in the position to acquire lots of new customers, that means growing share of wallet with existing customers.
Chances are your competition has figured this out. So now you are left to battle it out in the marketplace. Are you going to resort to mass marketing and tired old price oriented tactics? Or are you going to get serious abut customer-centricity and take your strategy–your customer strategy–to the next level?
I’d hurry if I were you.