Insights2020: 3 Dimensions for Customer-Centric Growth (i)

The digital revolution has opened businesses up to a world of possibilities that only a decade ago was considered science-fiction. By 2020 there will be more than 50 billion connected devices worldwide, that is 7 devices per person. Welcome to the era of the connected consumer!
It’s difficult to imagine the possibilities for the ocean of behavioural data these devices will provide. It means we will (finally) have the data available to better understand people and what they want – and to reshape our brands and business to become truly customer-centric. Being customer-centric is key in the current environment, where traditional value drivers such as product quality or a strong distribution network don’t cut it anymore. Anyone can produce quality products, manufacturing no longer provides a sustainable competitive advantage, and with channels widely available and used by all (both online and offline) the distribution network hardly provides a competitive advantage. Thus, the true source of competitive advantage lies in understanding the needs of customers and serving them in a fast, transparent and credible way: being customer-centric. Put simply, creating a customer-centric culture is about understanding your brand’s value and delivering it consistently to customers regardless of channel. This doesn’t mean doing everything customers want, but it means focusing on what they value most, in line with your overall business strategy and brand promise.

Insights2020: A Vermeer Initiative
Marketers know deep in their hearts that customer-focus leads to better commercial decisions, which lead to improved commercial results. Vermeer’s recent study Insights2020 – Driving Customer-Centric Growth, involving more than 325 interviews with global business, marketing, and Insights & Analytics (I&A) leaders and 10,500 quantitative survey responses across practitioners globally, has proven this relationship: Companies that show stronger levels of customer-centricity outperform their peers when it comes to business growth.
The outcomes of this study reveal what outperformers do well that their underperforming peers don’t. A clear pattern emerged, revealing 10 drivers of customer-centricity that impact business growth. These drivers are grouped along 3 distinct dimensions.
Customers these days expect more than just a good product or service. They require a seamless, consistent and tailored brand experience that goes beyond functional benefits: one that has a clear purpose. Over performing businesses understand this dynamic: 80% of their respondents say their company links all they do to a clear purpose, versus only 32% at companies identified as ‘underperformers’ (those with lower customer-centricity and lower business growth).A clear African example of this is Safaricom, a leading mobile network operator in Kenya, which uses its leading role in mobile communication to give back to the community: through mobile health services, mobile education at refugee camps, and bringing connectivity to the underprivileged.
Overperformers are also more likely to customise brand experiences with use of data-driven insights. 74% of respondents report doing this, versus only 30% amongst under performers. A good use of data to provide tailored solutions is Discovery’s car insurance programme, where Discovery uses DQ-Track sensors to assess the driver’s style and issues points for additional discounts based on the associated risk, encouraging people to drive safe.
The third driver is touch point consistency: a fully consistent brand experience across all touch points, for which the need will only intensify as the number of channels through which we interact with brands is increasing. A great example of this is Capitec Bank, who understands consistency and the busy life of current day consumers: they ensure that interacting with them is seamless and simple, irrespective of channel, whether it is inside a branch or using an app.

Nicki Cunliffe and Dennis Van Den Berg