Understanding of Customer Needs

According to research, what are some of the key customer-centric characteristics of successful companies?

According to the studies, most successful organizations shares the following common characteristics:

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  1. They are customer-centric instead of product/technology-centric.
  2. They have a deep understandingof customer needs.
  3. They promote their branding by keeping the customer in the centre.
  4. They value their employee and create an employee-friendly, innovative and creative environment.
  5. They always ask, “what delights the customers?”.

 

Furthermore, these companies are not divided by industry, demographic, or country.

 

  • What are some of the ways that technology has shifted power from companies to consumers?

 

Since the evolution of the internet in the late 1990s, it has played a significant role in the global market dynamics. Over time, this evolution has provided more power to consumers. Now the consumers have the power to go online and search for products. So, the consumers are no longer dependent on the local businesses. It is effortless to start an online business, which results in massive competition for the product lines. Consumers have the power to switch and have the power to post a negative or positive comment on any product on social media. Social media has evolved to such a point that anyone in the US can impact product opinions in Asia.

Furthermore, most consumers are shopping online, so they always have the power to shut down the ads they do not want to see. This behaviour forces companies to make more consumer engaging ads and to involve consumers in any product line decision.

 

I believe that Amazon is one of the best examples of a customer-centric and technology-driven organization. It is needless to say about amazon’s growth, but it speaks the volume for consumer power and technology. On the other hand, we have seen the downfall for Barnes & Noble as they lack a customer-centric technology-driven approach.

 

In my opinion, the companies have understood the point that they can come and suitable, but consumers will always be there. The origin of this phenomenon clearly shows the shift of power towards consumers.

 

  • In discussing Net Promoter Score (NPS), why does Reicheld suggest doing surveys frequently rather than annually or just a few times a year?

 

Net Promoter Score (NPS) is one of the best customer feedback loops. NPS was created by Frederick Reichheld. NPS puts all the customers into the following three categories:

  1. promoters
  2. passives
  3. detractors

This categorization helps the organization evaluate customer experience and helps to know the “why” for a bad customer experience. NPS generally used a zero-to-ten scale.

 

The review of this score will provide the early signs of any issues that need attention. Reichheld argues that consistency is crucial, and regular evaluation of results is critical. If the company only doe the reviews once a year, then most of the employees/managers will lost the feel for its importance and work only towards the company profit for the whole year and review the results only once a year. Reichheld states that if a company does not make NPS a vital aspect similar to financial measurement and does it more often, employees will lose its importance. It will become a one more here-today, gone-tomorrow corporate initiative. To avoid this kind of situation, Reichheld suggests doing the surveys more frequently. One of the other reasons for these frequent surveys is that these will provide a chance to try more tactics and approaches for enhancing customer experience.

 

 

 

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