A recent study, highlighted in Triple Fit Strategy: How to Build Lasting Customer Relationships and Boost Growth (Harvard Business Review Press, 2024), analyzed over 1,000 customer-centricity projects and found that only 15% of companies successfully adopt this approach.
Most remain tethered to a product-focused mindset, prioritizing sales over customer collaboration.
Customer-centricity involves orchestrating all company activities to ensure a target customer’s success—profitably.
This requires continuous dialogue with customers, leveraging strategic insights to adapt and transform operations. It’s not just about meeting customer needs; it’s about co-creating solutions that drive mutual growth.
Below, we explore three common traps that derail efforts to become customer-centric and offer strategies to avoid them.
The three traps
1. The ambition trap
In the ambition trap, a company’s goals align with customer expectations, but resource allocation falls short.
This mismatch leads to promising ideas that never reach fruition.
For example, an internet services provider, referred to here as ITS, made strides in aligning with customer needs but failed to allocate sufficient resources.
Conflicting priorities and inadequate training led to missed opportunities.
ITS overcame this trap by establishing customer advisory boards, which helped direct resources to high-impact projects, reigniting growth.
2. The delivery trap
In the delivery trap, companies allocate resources and plan effectively but fail in execution.
Promises remain unfulfilled which both frustrates customers and stalls progress.
A health insurance company, Subsidium, fell into this trap while collaborating with hospitals.
Miscommunication and operational inefficiencies stalled progress for 18 months.
A CEO-led intervention clarified roles and streamlined communication, resolving execution issues and restoring customer trust.
3. The business trap
The business trap occurs when execution and resources seem sufficient, but the company’s activities are misaligned with customer priorities.
This results in wasting effort on internal issues rather than addressing strategic needs.
CarTec, an automotive supplier, faced this trap when responding to cost-cutting demands from clients. Instead of aligning with customer strategies, CarTec focused inward, losing key contracts.
A benchmarking analysis revealed gaps, enabling the company to realign priorities and rebuild customer relationships.
In conclusion
Avoiding the ambition, delivery, and busyness traps requires vigilance and customer-focused planning.
By aligning resources, executing effectively, and maintaining strategic customer dialogue, companies can foster lasting relationships and sustainable growth.
The key is to cross-check strategies regularly and ensure customers remain at the heart of every decision.
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