Customer orientation

From CEOpedia | Management online

Customer orientation is a significant success component and it reflects a general attitude of all employees towards achieving high customer satisfaction through various activities which include: marketing, service, helping customers to solve their problems, timely response to request, good communication of sales team, R&D activities aimed on comprehensive enhancement of product capabilities, maintaining high motivation to solve customer problems, proper training and competence building within organization (Vaggelis Giannikas 2018, p. 75). It is a collection of beliefs that set up clients' needs and happiness as the most important firm for the company and it is usually connected with higher business performance (Maria M. Smirnova 2018, p. 457). Few other benefits for using customer orientation are higher customer pleasure, delivery to requirements and delivery authenticity (Gerrit Willem Ziggers 2016, p. 19). Companies with high customer orientation generally achieve higher sales and profits through higher customer retention and word of mouth advertising. Customer orientation is also linked with higher job satisfaction, clients' trust and relationship improvement for singular salespeople (A. D. Arndt 2012, p. 354).

Levels of customer orientation

It is possible to divide three levels of customer orientation (Maria M. Smirnova 2018, p. 459):

  • the organization's orientation (customer needs are first, while ignoring all different stakeholders),
  • the manager's orientation (organize more responsibility to the customer orientation through the organization),
  • the sales person's orientation (make a customer happy through interaction with him/her).

Characteristics of customer orientation

Characteristics divided by elements which influence customer orientation (Vaggelis Giannikas 2018, p. 76):

  • customer - clossness,
  • customer - accessibility,
  • customer - flexibility.

Examples of Customer orientation

  • Listening to customer feedback: Companies that are customer-oriented prioritize customer feedback and take it seriously. For example, Apple Inc. has a customer feedback system in place to listen to customer complaints and suggestions so that they can make improvements to their products and services.
  • Developing customer-centric strategies: Companies that are customer-oriented develop strategies that are focused on customer needs and preferences. For example, Amazon Inc. has an extensive customer-centric strategy that aims to make their customer experience as convenient and enjoyable as possible.
  • Providing customer support: Companies that are customer-oriented provide customer support that is both helpful and timely. For example, Microsoft Corporation provides 24/7 customer support through phone, email and live chat.
  • Offering rewards and incentives: Companies that are customer-oriented offer rewards and incentives to their customers to encourage loyalty and increase customer satisfaction. For example, Starbucks offers a loyalty program where customers can earn points for every purchase and redeem them for rewards.

Advantages of Customer orientation

Customer orientation is a set of beliefs that prioritize customer needs and satisfaction, and it is typically associated with higher business performance. There are a number of advantages that come with a customer-oriented approach, such as:

  • Higher customer satisfaction - Companies that focus on customer orientation tend to achieve higher levels of customer satisfaction due to their ability to effectively communicate with customers, understand their needs and provide timely solutions to their problems. This can lead to better customer retention, higher sales, and increased word-of-mouth advertising.
  • Increased job satisfaction - Employees that work in customer-oriented organizations generally experience higher job satisfaction and better working conditions. This is because customer-oriented organizations tend to prioritize customer needs, which can lead to better job security and improved working conditions.
  • Improved customer-salesperson relationships - Companies that use customer orientation often have better relationships with their customers. This leads to more trust and loyalty between customers and salespeople, which can result in increased sales and better customer loyalty.
  • Improved delivery accuracy - Companies that are customer-oriented are more likely to deliver on their promises and meet customer expectations. This leads to better customer experiences which can result in higher customer satisfaction and increased sales.

Limitations of Customer orientation

A customer orientation approach has certain limitations which must be taken into account when implementing it in a business. These include:

  • Poor products or services - If the product or service offered is of low quality, this will not be enough to satisfy customers and it will be difficult to create loyalty.
  • Lack of customer feedback - Companies must ensure there are adequate channels for customer feedback and that customer feedback is taken seriously and acted upon.
  • Unclear objectives - If customer orientation objectives are not clearly defined, it is difficult to measure success.
  • High cost - Implementing customer orientation requires additional costs, such as training and additional resources, which can be difficult to justify if the results are not immediate.
  • Difficulty in changing processes - Customer orientation requires changes to existing processes and procedures, which can be difficult and time consuming to implement.
  • Lack of flexibility - Customer orientation requires a certain level of flexibility to be able to respond to customer needs, which can be difficult to achieve if processes and procedures are too rigid.
  • Lack of customer data - Customer orientation requires a certain level of customer data to be able to accurately understand customer needs, which can be difficult to obtain in a timely manner.

Other approaches related to Customer orientation

  • One-to-one marketing: This approach focuses on building personal relationships with each customer by providing customized services, products, and experiences.
  • Relationship marketing: This approach focuses on building strong relationships with customers, creating loyalty and trust and increasing customer retention.
  • Brand orientation: This approach focuses on creating a strong brand and developing customer loyalty through providing consistent, high-quality products and services.
  • Customer experience management: This approach focuses on understanding customer needs and creating a positive customer experience.
  • Quality management: This approach focuses on providing quality products and services that meet customer needs and expectations.
  • Process improvement: This approach focuses on the continuous improvement of processes in order to increase customer satisfaction.

Customer orientation is an important component for the success of a business. It involves understanding customer needs and creating a positive customer experience by focusing on providing customized services, building relationships, developing customer loyalty, creating a strong brand, providing quality products and services, and continuously improving processes. With a customer oriented approach, companies can achieve higher sales and profits, higher customer retention, and improved customer satisfaction.


Customer orientation — recommended articles
Hospitality product quality — Quality of tourist service — Customer loyalty — Customer driven — Customer focus — Customer value creation — Outsource marketing — Job scope — Consumer orientation

References

Author: Olga Marmuszewska

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