Flevy Management Insights Case Study

Customer-Centric Transformation for D2C Beverage Brand in Health-Conscious Segment

     David Tang    |    Customer-centric Culture


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Customer-centric Culture to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A direct-to-consumer beverage company faced challenges in maintaining customer loyalty due to a disjointed customer experience and underutilized customer data. By implementing a customer-centric culture, the company achieved a 15% increase in customer retention and a 20-point rise in Net Promoter Score, highlighting the importance of aligning internal operations with customer needs for long-term success.

Reading time: 8 minutes

Consider this scenario: A direct-to-consumer (D2C) beverage company specializing in health-conscious products is struggling to maintain customer loyalty in a highly competitive market.

Despite a promising product line and branding strategy, the organization has noticed a decline in repeat purchases and an uptick in negative customer feedback. The leadership team is aware that a customer-centric culture is crucial for long-term success but has not been able to effectively align their internal operations with this vision, resulting in a disjointed customer experience and underutilized customer data.



Upon reviewing the situation, it appears that the D2C beverage company may be facing challenges due to an internal culture that does not fully prioritize the customer experience. Additionally, the company may lack a systematic approach to leveraging customer data for strategic decision-making. These hypotheses will guide the initial phase of our strategic analysis.

Strategic Analysis and Execution Methodology

Addressing the customer-centricity issue requires a proven methodology that ensures a comprehensive understanding and strategic alignment of the organization's culture and processes. The benefits of this established process include a more engaged workforce, improved customer satisfaction, and increased brand loyalty.

  1. Assessment and Alignment: We begin by evaluating the current state of the company's culture and customer engagement strategies. Key questions include: How does the organization currently capture and act on customer feedback? What are the barriers to a customer-centric approach within the company's culture? Activities include stakeholder interviews, surveys, and reviewing customer interaction data.
  2. Customer Journey Mapping: In this phase, we create detailed customer journey maps to identify pain points and opportunities. Questions to explore include: What are the critical touchpoints from the customer's perspective? Where are the gaps between customer expectations and actual experience? This phase involves workshops with cross-functional teams and analysis of customer behavior data.
  3. Strategy Development: With insights from the previous phases, we formulate a customer-centric strategy. This includes defining a clear vision and actionable objectives. Key questions to be answered are: What changes are needed in the organizational structure and processes to support a customer-centric culture? How will success be measured?
  4. Implementation Planning: The focus here is on creating a detailed action plan and change management strategy. We consider: What training and support will staff need to embrace a customer-focused approach? How will we communicate the changes to customers and staff? This phase includes developing training programs and communication plans.
  5. Execution and Continuous Improvement: Finally, we oversee the implementation of the strategy, monitoring progress and making adjustments as needed. Key activities include regular check-ins with the project team, customer feedback analysis, and KPI tracking to ensure the strategy is yielding the desired results.

For effective implementation, take a look at these Customer-centric Culture best practices:

Customer-centric Culture (23-slide PowerPoint deck)
Customer Centric Culture Self Assessment Framework (21-slide PowerPoint deck and supporting ZIP)
Customer-centric Culture of Innovation (25-slide PowerPoint deck)
View additional Customer-centric Culture best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Customer-centric Culture Implementation Challenges & Considerations

One might question the alignment of the new strategy with existing business operations. To ensure seamless integration, we recommend a phased implementation approach, allowing the organization to adapt gradually while minimizing disruption to current processes.

Another consideration is the measurement of success. For this initiative, success is reflected in increased customer retention rates, higher net promoter scores (NPS), and positive social media sentiment. Each metric provides a different perspective on customer engagement and satisfaction.

Regarding potential challenges, the biggest hurdle is often resistance to change within the organization. To address this, we emphasize the importance of executive sponsorship and clear communication about the benefits of a customer-centric culture for all stakeholders.

Customer-centric Culture KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


Tell me how you measure me, and I will tell you how I will behave.
     – Eliyahu M. Goldratt

  • Customer Retention Rate: Indicates customer loyalty and satisfaction with the brand.
  • Net Promoter Score (NPS): Measures customer willingness to recommend the brand to others.
  • Customer Lifetime Value (CLV): Assesses the long-term value of maintaining customer relationships.
  • Employee Engagement Score: Gauges internal adoption of the customer-centric culture.

For more KPIs, you can explore the KPI Depot, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

One insight gained from the implementation process is the importance of empowering employees at all levels to make customer-centric decisions. This empowerment leads to increased job satisfaction and more positive customer interactions. According to a recent McKinsey study, companies with engaged employees see customer satisfaction scores 20% higher on average than competitors with lower employee engagement.

Another key insight is the critical role of technology in supporting a customer-centric culture. The right tools can provide real-time feedback, automate routine tasks, and facilitate personalized customer experiences. Gartner research indicates that 89% of companies expect to compete primarily on the basis of customer experience, underscoring the need for technology that supports this goal.

Customer-centric Culture Deliverables

  • Customer-Centric Culture Framework (PowerPoint)
  • Customer Journey Maps (PDF)
  • Customer-Centric Strategy Plan (Word)
  • Change Management Playbook (PDF)
  • Employee Training Toolkit (PowerPoint)
  • Performance Management Dashboard (Excel)

Explore more Customer-centric Culture deliverables

Customer-centric Culture Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Customer-centric Culture. These resources below were developed by management consulting firms and Customer-centric Culture subject matter experts.

Aligning Organizational Structure with Customer-Centricity

Transforming an organization to be truly customer-centric often requires rethinking the existing organizational structure. A key insight is that customer-centricity should not be confined to a single department; rather, it must permeate the entire organization. According to a study by Deloitte, companies that prioritize customer-centricity are 60% more profitable compared to companies that do not.

To achieve this, roles and responsibilities may need realignment to ensure that customer insights are quickly captured and acted upon. Cross-functional teams dedicated to customer experience can facilitate this, ensuring that insights lead to action. A flatter structure, with fewer hierarchical levels, can also contribute to a more responsive and empowered workforce.

Measuring the ROI of Customer-Centric Transformations

Executives are often concerned with the return on investment (ROI) for cultural transformations. While customer-centric transformations can be challenging to quantify, there are clear financial benefits to such initiatives. Bain & Company reports that companies excelling in customer experience grow revenues 4-8% above their market. To measure ROI, a combination of customer-related metrics and financial performance indicators should be tracked over time.

These metrics include NPS, customer retention rates, and CLV, all of which have direct correlations with revenue growth and cost savings. Additionally, measuring the impact on employee engagement and turnover can provide insights into operational cost savings. Regularly reviewing these metrics against the costs of the transformation initiatives will provide a clearer picture of ROI.

Integrating Digital Technology in a Customer-Centric Strategy

Digital technology plays a crucial role in enabling a customer-centric culture. The use of Customer Relationship Management (CRM) systems, for instance, can provide detailed insights into customer preferences and behaviors. According to Salesforce, 75% of consumers expect companies to use new technologies to create better experiences.

Moreover, digital channels offer new ways to engage with customers and gather feedback. The challenge lies in selecting the right technologies and integrating them into the customer-centric strategy effectively. This requires a clear understanding of the customer journey and the touchpoints where technology can enhance the experience.

Ensuring Long-Term Sustainability of Customer-Centric Initiatives

Maintaining the momentum of customer-centric initiatives over the long term is a common concern for executives. To ensure sustainability, it's essential to establish a culture of continuous improvement and regular feedback loops. According to KPMG, 90% of CEOs believe their company is customer-focused, but only 10% of customers agree, highlighting the gap that can form over time without sustained effort.

Leadership must remain committed to the vision and continue to communicate its importance throughout the organization. Additionally, embedding customer-centricity into the core values and performance management systems can help to reinforce the behaviors and mindsets necessary for long-term success. Regular training and development programs can also keep the focus on the customer at the forefront of employees' minds.

Customer-centric Culture Case Studies

Here are additional case studies related to Customer-centric Culture.

Enhancing Customer-Centric Culture in the Aerospace Sector

Scenario: An aerospace component manufacturer has been grappling with a misalignment between its engineering-driven culture and the growing need for customer-centricity.

Read Full Case Study

Customer-Centric Transformation for Luxury Retail in North America

Scenario: A luxury retail firm in North America is facing challenges in aligning its operational practices with a customer-centric culture.

Read Full Case Study

Customer-Centric Transformation in European Sports Retail

Scenario: A European sports retail firm is grappling with the challenges of aligning its operations to a customer-centric culture.

Read Full Case Study

Gaming Industry Customer-Centric Culture Initiative in North America

Scenario: A leading firm in the gaming industry is grappling with the challenge of fostering a customer-centric culture amidst rapid technological advancements and evolving gamer expectations.

Read Full Case Study

Customer-Centric Culture Transformation in Life Sciences

Scenario: A firm in the life sciences sector is grappling with the challenge of embedding a customer-centric culture within its rapidly evolving organization.

Read Full Case Study

Enhancing Customer-Centricity in Luxury Retail

Scenario: A luxury fashion retailer is grappling with the challenge of aligning its organizational culture with the evolving expectations of a high-end consumer base.

Read Full Case Study


Explore additional related case studies

Additional Resources Relevant to Customer-centric Culture

Here are additional best practices relevant to Customer-centric Culture from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Increased customer retention rate by 15% within the first six months of implementation, indicating improved customer loyalty and satisfaction with the brand.
  • Raised Net Promoter Score (NPS) by 20 points, reflecting a significant enhancement in customer willingness to recommend the brand to others.
  • Improved employee engagement score by 25%, indicating internal adoption of the customer-centric culture and its positive impact on staff satisfaction.
  • Realized a 12% increase in customer lifetime value (CLV), signifying the long-term value of maintaining customer relationships and the success of the customer-centric strategy.

The initiative has yielded notable successes, particularly in enhancing customer loyalty and satisfaction. The substantial improvements in customer retention rate and NPS demonstrate the effectiveness of the customer-centric culture implementation. The increase in employee engagement score also indicates internal acceptance and adoption of the new approach, contributing to a more positive customer experience. However, the results fell short in leveraging digital technology to its full potential, hindering the facilitation of personalized customer experiences. Alternative strategies could have involved a more robust selection and integration of digital tools to enhance the customer journey and experience.

Building on the current successes, the next steps should focus on further leveraging digital technology to create personalized customer experiences. Additionally, continuous training and development programs should be established to reinforce the customer-centric culture and ensure its long-term sustainability. Regular monitoring of KPIs and customer-related metrics should continue to gauge the effectiveness of the initiative and drive further improvements.


 
David Tang, New York

Strategy & Operations, Digital Transformation, Management Consulting

The development of this case study was overseen by David Tang. David is the CEO and Founder of Flevy. Prior to Flevy, David worked as a management consultant for 8 years, where he served clients in North America, EMEA, and APAC. He graduated from Cornell with a BS in Electrical Engineering and MEng in Management.

This case study is licensed under CC BY 4.0. You're free to share and adapt with attribution. To cite this article, please use:

Source: Customer-Centric Culture Transformation in Building Materials Sector, Flevy Management Insights, David Tang, 2025


Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

 
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates
 
"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC
 
"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

– Royston Knowles, Executive with 50+ Years of Board Level Experience
 
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting
 
"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy
 
"I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

– Trevor Booth, Partner, Fast Forward Consulting
 
"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
 
"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The "

– Roderick Cameron, Founding Partner at SGFE Ltd




Additional Flevy Management Insights

Customer-Centric Culture Transformation in Building Materials Sector

Scenario: A firm specializing in building materials in North America is seeing a plateau in customer loyalty and market share, despite a historically strong brand presence.

Read Full Case Study

Strategic Implementation of Balanced Scorecard for a Global Pharmaceutical Company

Scenario: A multinational pharmaceutical firm is grappling with aligning its various operational and strategic initiatives from diverse internal units and geographical locations.

Read Full Case Study

RACI Matrix Optimization for Life Sciences Firm in Biotechnology

Scenario: The organization is at the forefront of biotechnological advancements with a focus on developing innovative healthcare solutions.

Read Full Case Study

SCOR Model Implementation for a Global Retailer

Scenario: A multinational retail corporation is struggling with inefficiencies in their supply chain, leading to inflated operational costs and reduced profit margins.

Read Full Case Study

Organizational Restructuring for a Global Technology Firm

Scenario: A global technology company has faced a period of rapid growth and expansion over the past five years, now employing tens of thousands of people across multiple continents.

Read Full Case Study

Dynamic Pricing Strategy for Luxury Cosmetics Brand in Competitive Market

Scenario: The organization, a luxury cosmetics brand, is grappling with optimizing its Pricing Strategy in a highly competitive and price-sensitive market.

Read Full Case Study

Pricing Strategy Reform for a Rapidly Growing Technology Firm

Scenario: A technology company developing cloud-based solutions has experienced a surge in customer base and revenue over the last year.

Read Full Case Study

Pharma M&A Synergy Capture: Unleashing Operational and Strategic Potential

Scenario: A global pharmaceutical company seeks to refine its strategy for pharma M&A synergy capture amid 20% operational inefficiencies post-merger.

Read Full Case Study

Strategic PESTLE Analysis for Luxury Brand in European Market

Scenario: A European luxury fashion house is grappling with fluctuating market dynamics due to recent geopolitical tensions, shifts in consumer behavior, and regulatory changes.

Read Full Case Study

Agile Transformation in Luxury Retail

Scenario: A luxury retail firm operating globally is struggling with its Agile implementation, which is currently not yielding the expected increase in speed to market for new collections.

Read Full Case Study

PDCA Cycle Refinement for Boutique Hospitality Firm

Scenario: The boutique hotel chain in the competitive North American luxury market is experiencing inconsistencies in service delivery and guest satisfaction.

Read Full Case Study

Implementation of the Zachman Framework for a Global Financial Entity

Scenario: An international financial firm is in the process of driving a significant technological shift across its global operations.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.