Companies need to be more customer-centricby
Few organisations have implemented truly customer-focused business strategies and reaped the rewards, according to a new report.
The report - Customer-centric IT strategies, published by the Economist Intelligence Unit and sponsored by Computer Associates – says that companies need to gain insight into customer behaviour and preferences.
It notes that most organisations are poor at identifying their most profitable customers, despite the fact that companies say that 80 percent or more of their revenue comes from just 20 percent of their customers. Analysis of customer data can highlight customers who spend little and cost a lot to cultivate and enable firms to decide which customers to try to retain and which ones to reject.
This insight would also allow firms to find out why they lose customers against their will. “This is a big change in the way companies try to retain customers,” says Nigel Holloway, director, Americas, Industry & Management Research at the Economist Intelligence Unit. “Until recently, customers were rarely contacted even to ask why they left.”