Extreme business

x Sponsored content on Research Live and in Impact magazine is editorially independent.
Find out more about advertising and sponsorship.

The word ‘extremism’ now has such negative connotations. When we hear about extremism in politics or religion in the media, it is all too often associated with some of the world’s biggest problems. But, when it comes to the future of relationships between firms and customers, extremism is increasingly necessary.

If I were to ask a room of 100 business leaders whether they thought their business was ‘customer-focused’ I’d be very surprised if the vast majority didn’t agree. In my recent research, 80% of CEOs claimed their company was customer-focused. Why is it then, that only 8% of customers believed that firms they buy from are customer-focused?

A recent study by McKinsey showed that the difference between being ‘customer-focused’ and having an ‘extreme customer focus’ is not down to the channels or products – these are the basics that everyone would hope they get right – the extremism is between the channels. You can suss out whether a company is extremely customer-focused when things go wrong – in the little details, and how they deal with individuals’ complaints. For example, extreme customer focus is when a company is ready to recommend a competitor if it might offer a better solution for that individual customer.

Successful Belgian radio station Q-Music has built a reputation for going the extra mile spectacularly for listeners, and prides itself in its slogan ‘Q is good for you’. In one competition, the station gave a house worth €250,000 to a lucky listener. The winner was of course delighted, but joy quickly turned into despair when the construction company walked away from the job half-way through, turning a dream prize into a nightmare.

Q-Music quickly came up with a solution and instead paid €250,000 in cash, straight to the winners, so they could buy a new house. You might think that was the only fair thing to do, but ask yourself how many companies would have opted instead for a long drawn-out legal solution between sponsors, builders and several other parties in an attempt to save money. Q-Music put the listener first, and this extreme customer focus has helped build a loyal army of listeners and brand advocates.

Google is another example of a company that, despite the distractions that come with being one of the world’s most powerful brands, still stays focused on the needs of individual customers. Rather than forcing users to fit in with how its service works, Google made a customer commitment that whatever the problem a particular customer is struggling with, it is Google’s problem.

If a user can’t spell or if they don’t know the right words to use, Google will helpfully suggest alternatives that might yield better results. If they can’t speak the language, Google Translate is on hand; if the web is too slow for them, Google has its Loons project in the pipeline, aiming to bring fast internet connections to millions more people around the world.

Google has made a public commitment to look at the whole problem, and that mindset is so engrained into its culture that it has made an emotional connection with millions of customers around the world, becoming an essential part of their everyday life.

So how do companies show they really do have an extreme customer focus? Look at your own ‘symbols of extremism’. These are the details by which you prove to the individual customer (and to yourself) that you really mean it, and while they might seem like minor details, the little things you do to go the extra mile can make you stand out from the crowd.

In the increasingly anonymous digital world, it can be easy to forget the value that people add to the customer relationship, but real extreme customer focus cannot be achieved without also focusing on the human element within your business.

It is an interesting paradox that the more we embrace digital, the rarer human interaction becomes, and we therefore value it much more highly. This is the element of the customer relationship that you cannot automate – computers don’t offer empathy, passion or creativity – so genuine personal skills must be engrained into your company culture, if you are going to build an emotional connection with your customers.

Prof Steven Van Belleghem is author of When Digital Becomes Human, published by Kogan Page