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The Secret to Success in the Digital Age: Building a Customer-Centric Culture of Innovation

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A large majority of organizations rarely focus on gathering and utilizing customer-centric knowledge.  So much so that they even introduce a product without having vital insights on the customer and their unmet needs, and they are often clueless about them.  Consequently, many product development initiatives fall flat as managers struggle to filter and evaluate ideas.

Most organizations, today, are developing initiatives around Customer Experience Strategy and Customer Journey Mapping.  Customer-centric Organizations, on the other hand, are deeply focused towards value creation for their customers.  They understand the unique customer insights needed to make customer-centric decisions, are able to gather those customer insights, and are aware of the way to utilize the insights in creating value for their customers.  By using customer insights, Customer-centric Organizations drive their product innovation success rate significantly higher than the industry average.

In order to develop this capability, organizations need to first utilize a customer-centric research process to gather the customer insights required to drive value creation.  This is accomplished when:

  • They know the desired unique customer insights needed to make customer-centric decision.
  • They are able to gather the required customer insights.
  • They realize the proper time and way to utilize the insights in making value creation focused business decisions.

Building a Customer-centric Culture of Innovation warrants a methodical approach.  A potent approach to building such a culture of innovation encompasses 3 key phases:

  1. Qualitative Insights: Apply Customer-Centric Fundamentals – The first phase commences by organizing an intensive day-long workshop for each cross-functional product team. The teams engage in a unique customer journey where they employ a “jobs-to-be-done” lens to analyze their market, and identify valuable, qualitative customer insights needed to drive customer-centric decision making.
  1. Quantitative Insights: Quantify Opportunities that Exist – This phase entails conducting quantitative research to rank the most critical customer insights needed to develop customer-centric data model. The insights available through this data set help the company in making customer-centric business decisions for years to come.
  1. Implementation: Leverage New Customer Insights for Growth – In this phase, managers and employees across the organization are trained on utilizing the insights to devise market and product strategies, and to encourage customer-centric growth.

Let’s take a deeper dive into the first phase of this process.

Qualitative Insights: Apply Customer-Centric Fundamentals

The first phase commences by organizing an intensive workshop for each cross-functional product team.  It is typically a day-long session where the teams engage in a unique customer journey.  They employ a “jobs-to-be-done” lens to analyze their market and identify valuable, qualitative customer insights needed to drive customer-centric decision making.  The qualitative customer insights developed during the first phase serve as an indispensable, long-term guide in the journey to a customer-centric mindset.

During phase I, each product team is trained on customer-centric philosophy in a workshop settings.  The workshop participants participate in qualitative research discussions designed to obtain critical customer information, and understand using fresh insights in making customer-centric business decisions in their market.  Upon completion of the initial phase, the product team is able to develop a shared innovation vocabulary and gather customer insights to make customer-centric marketing and product development decisions.

Interested in learning about the third phase of the approach to Customer-centric Culture of Innovation?  You can download an editable PowerPoint on Customer-centric Culture of Innovation here on the Flevy documents marketplace.

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Want to Achieve Excellence in Customer-Centric Design (CCD)?

Gain the knowledge and develop the expertise to become an expert in Customer-Centric Design (CCD). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

In the modern Digital Age, advances in technology and communication, combined with the explosive growth in data information, have given rise to a more empowered global customer. Recent economic and political events highlight the need for organizations to understand how consumers view the world and the most important attributes for their purchasing decisions.

Thus, increasingly more organizations are seeking to invest and focus on Customer-centric Design. A clear understanding of customer needs and behaviors across the organization will help drive profitable growth strategies and provide the confidence to invest in opportunities at a time when staying within budget can be extremely difficult.

Learn about our Customer-Centric Design (CCD) Best Practice Frameworks here.

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About Mark Bridges

Mark Bridges is a Senior Director of Strategy at Flevy. Flevy is your go-to resource for best practices in business management, covering management topics from Strategic Planning to Operational Excellence to Digital Transformation (view full list here). Learn how the Fortune 100 and global consulting firms do it. Improve the growth and efficiency of your organization by leveraging Flevy's library of best practice methodologies and templates. Prior to Flevy, Mark worked as an Associate at McKinsey & Co. and holds an MBA from the Booth School of Business at the University of Chicago. You can connect with Mark on LinkedIn here.

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