I recently met with a large, global IT company to discuss how customer loyalty creates shareholder value.
During the meeting, it became clear that this company has been narrowly focused on revenue generation and lost sight of the customer and creating customer value. For the past 12 months, the majority of their customer communications focused on selling products instead of sharing how customers can use their products in new and innovative ways.
In some cases, customers reported getting messages that tried to sell them products they already own. Now, this isn’t customer-focused.
During the meeting, one of the executives asked, "what is the right balance between focusing on revenue versus focusing on the customer?" The response, "There is no need to balance the two. Focusing on the customer is the means growth."
During times of uncertainty, it is a natural reaction to focus on selling. But, during these times, it is essential that we double down on our customer commitments, listen to the voice of the customer carefully, and demonstrate through our actions that we are paying attention to them.
At the end of the day, I wasn’t surprised to hear that this company experienced a dramatic decline in their customer satisfaction and loyalty metrics. It goes to show that when you take your eye off of your customers, they will take their eyes off of you.