Table of Contents

• Myth 4: Customer-centric Strategies Are Expensive

• Myth 5: Customer-Centric Performance Measures Focu …

• Myth 6: Customer-Centricity and Operational Excell …

• 6 Myths Busted: The Bottom-Line

• To the New VP of Sales at a Start-up

• The Rainmaker

Are You Falling for These 3 Additional

Customer-Centricity Myths?

by Laura Patterson

Selecting the right customer-centric strategy has many top- and bottom-line benefits.

Published research has compared customer-centricity laggards to their counterparts. The data has found a higher customer-centricity maturity level is proven to deliver:

• 7 times higher growth

• 60% increased profitability

• Higher brand and customer equity and shareholder value

Yet, some misconceptions have slipped into the conversation.

In this issue and the previous week, we debunk six common myths that often act as roadblocks, preventing businesses from fully embracing a customer-centric approach to reap its rewards.

Myth 4: Customer-centric Strategies Are Expensive

Costs are only costs when they don’t result in higher profitability.

Fact:

Customer-centricity is an investment, not an expense. A poor customer experience costs money via lower customer retention rates, lower referral rates, lower customer lifetime value,

fleeting loyalty, or worse – negative reviews. Here are some of the top and bottom-line benefits of adopting a customer-centric strategy:

• Research by Deloitte found that customer-centric companies were 60% more profitable than companies not centered on the customer.

• A McKinsey study found that organizations adopting customer-centric business strategies achieve annual revenue growth of 10 to 15%.

• Bain & Company research determined it is 5X less expensive to keep a customer than acquire a new one.

Customer-centricity is an investment, not a cost. Just as with any other strategic initiative, success requires an investment in implementation, knowledge transfer, and change management.

Do you have questions about crafting and implementing customer-centric strategies to reap the rewards? Ask away. I walk my talk and will provide great answers tailored to your business.

Myth 5: Customer-Centric Performance Measures Focus Solely on Satisfaction and Loyalty

While customer satisfaction and loyalty are integral to customer-centricity, these measures represent only part of the picture. It would be best to go broader.

Fact:

Actual customer-centric performance measures encompass a broader spectrum, including customer engagement, effort, and the overall customer experience. 

Non-financial measures associated with customer-centricity are also needed to determine the full ROI of customer-centricity investments. However, they often go untracked. These include metrics to assess the impact of preference, customer retention, take rate, customer experience, and innovation on your company’s market share.

A comprehensive assessment allows businesses to identify areas for improvement and tailor their strategies better to serve their customers’ evolving requirements and priorities.

Myth 6: Customer-Centricity and Operational Excellence are Separate Initiatives

Some mistakenly view operational excellence and customer-centricity as separate and distinct initiatives. Instead, they are synergistic.

Fact:

Customer-centricity and Operational Excellence are intertwined forces that can drive business success when harmonized. Operational excellence focuses on optimizing processes to enhance the customer experience, improve engagement, and reduce customer effort.

Meanwhile, customer-centricity places the customer at the core of every facet of a business, including operations. Recognizing the synergy between these two strategies allows organizations to achieve unparalleled success by delivering exceptional value while efficiently managing resources.

6 Myths Busted: The Bottom-Line

Customer-centricity is not an exclusive growth club reserved for large corporations, certain industries, or specific functional organizations. Nor is it an overly complex or one-and-done endeavor.

It’s not a cost center; it’s a growth engine. It is a game-changer and dynamic strategy that any business can and must adapt to thrive in a rapidly changing business climate. Customer expectations are constantly rising, and strong competitors are wooing and keeping customers by providing a better experience.

Gleaning insights from customer data, embracing ongoing adaptation, selecting measures beyond satisfaction and loyalty, and recognizing the synergy between operational excellence and customer-centricity are all critical steps toward achieving the associated business benefits, both now and in the future.

By dispelling these myths, we empower businesses of all sizes to chart a course toward sustained growth and success through genuine customer-centric strategies. Are you ready to navigate the ever-changing business seas with a renewed understanding of customer-centricity?

Your journey begins by shedding these misconceptions and embracing the customer at the heart of your operations.

Have questions about how to get started and improve your customer-centricity maturity level? Ask away. I’m customer-centric-passionate and will provide great answers tailored to your business.

To the New VP of Sales at a Start-up

by Michael Centrella

Congratulations on your new role as VP of Sales at an early-stage company! To thrive, you'll need to adapt your approach from big company practices to the unique demands of a startup.

What worked in a large corporation often doesn't apply in a startup. Instead of relying on past methods, focus on understanding the market by listening to customers and asking insightful questions. This approach will help you achieve Product-Market Fit (PMF), which is critical for your company's success.

Startups frequently overcomplicate sales processes with complex CRM systems, leading to misleading projections. Rather than pushing your team to chase every lead, be transparent about the market's real needs and align your sales strategy accordingly. This honesty will help prevent the high turnover and poor outcomes that often plague startup sales teams.

When hiring, flexibility is key. Candidates from large companies may struggle in a startup environment where agility and resourcefulness are essential. Look for people who can adapt quickly and build scalable sales models, as these qualities are more valuable in a fast-paced, evolving market.

Simplicity is also crucial. Avoid complex pricing, pitches, and messaging that can confuse customers and create barriers to success. Instead, focus on clear, straightforward communication highlighting your product's strengths without disparaging competitors. A simple, well-articulated message is often more persuasive and easier to scale.

Your passion for the company's mission will be a significant asset. Embrace the long hours and challenges as part of your commitment to the startup's future. Genuine enthusiasm will resonate with your team and customers, driving motivation and loyalty.

Choose a company and leadership team that aligns with your values and can support you through the ups and downs. Collaboration with other departments, such as engineering and marketing, ensures smooth development and fosters mutual respect.

Finally, understand the risks inherent in startups. Enter with realistic expectations, and be ready to navigate uncertainty. Create a positive, collaborative work environment and offer competitive, tailored compensation that reflects startup sales roles' high-risk, high-reward nature.

By following these guidelines, you'll be well-equipped to lead your team to startup success. Enjoy the journey and the impact you'll make.

Michael Centrella brings over 30 years of diverse experience in the tech industry, having held various executive roles ranging from startup CEO to individual contributor. He currently leads Momentum Technology Partners (MTP) as Principal, driving a forward-thinking approach to fractional services. MTP offers various services, including Sales, Marketing, Business Development, and Fundraising strategies, catering to companies from early-stage ventures to large, established organizations seeking transformation. Michael also provides Advisory and Board support, helping companies navigate their growth and transformation journeys.

The Rainmaker

by Nancy Zare, Ph.D.

Chad stands out among attorneys in private practice, not just due to his imposing presence but more so because of his unparalleled selling acumen.

His instincts in building client relationships and referral networks are almost second nature. He easily persuades prospects to become clients and consistently turns every new connection into a valuable business opportunity.

Younger attorneys look up to Chad, eager to learn from his vast experience. Chad welcomes this with open arms, seeing value in the mentorship process and benefiting from their contributions.

Yet, despite his dedication to nurturing the next generation, he remains puzzled about why they struggle to replicate his results independently. He’s disappointed when people don’t duplicate his success.

One of Chad‘s strategies is to build relationships with Centers of Influential Networks (COINs), who are well-connected and have solid reputations in their fields.

He invites them to attend exclusive events where each member brings their top clients and introduces them to one another. Despite his creativity in organizing such occasions, Chad noticed only a handful truly take advantage of this golden opportunity, leaving him to question why.

Chad is personable, intelligent, ambitious, and hardworking. However, he mistakenly assumes that everyone shares his drive and initiative.

The biggest mistake most people make is projecting their style and assuming others behave the same way.

Recognizing the difference between proactive individuals and those more hesitant is crucial. It will spare him agitation.

Whether dealing with interns, associates, or broader business connections, some will naturally take action, while others will not.

Chad is the Rainmaker who takes decisive action.

Working together, he learned how to identify different personality styles. This helped him find the right protégés and referral partners, bringing him greater satisfaction and magnifying his impact professionally.

Attorneys hire Nancy Zare, Ph.D., The Sales Whisperer to grow their businesses without exaggerated marketing claims and questionable sales tactics. She helps them generate warm leads and turn them into clients. Nancy is the creator of the AlikeAbility(TM) Sales System and the author of 7 books.