Lior Arussy, author of Customer Experience Strategy: The Complete Guide from Innovation to Execution, says lowering prices for customers is the easiest, but worst mistake an executive can make.
Why won't lowering prices improve the customer base?
It entices customers who usually do not appreciate a company's products or services to join the customer base. More customers are good. Reducing margins to attract them is bad. Slimmer margins, plus increased demands on service, will negatively impact the existing customer base. The loyal customers who may or may not qualify for the lower prices will be offended that the offer was not made to them originally.
Explain your customer-centric philosophy.
Customer-centric companies 'start' their business model with the customer and 'end' with the products and services. This philosophy absolutely requires the following principles: Customers must be selected carefully -- not every customer is right for every company. Hire passionate employees who love the business. Set high standards for performance and reward employees who exceed expectations. Empower employees to solve problems independently. Reward customers for product and service loyalty. Innovate with customers not for customers. And demonstrate emotional engagement.
How can employees be empowered to solve problems at the personal level?
The first rule is, "Every employee is a customer." They must tap into the internal customer within themselves and stop thinking like employees who follow orders. Common-sense solutions soon become corporate policy. So empowered, the customer-centric employee will seek out solutions that are personally tailored to address each individual problem. The companies that reward this type of thinking are the companies that historically rate at the top of the customer service hierarchy.
How does a customer feel like they're an integral part of the operation?
On its website, Nike allows customers to design nearly every detail of an athletic shoe. Sure, the shoe still has the trademark 'swoosh' but it is wholly owned by the customer/designer. By bringing the customer into the design process, Nike is demonstrating its desire to respect the unique needs of its customer base. Is it a marketing tool? Of course. Does the customer pay a premium for their unique creation? Absolutely. But in this environment, the company is acting more as a platform for joint creation than as a destination with pre-fixed products.
