Customer obsession: The what, why, and how
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Have you heard the buzz about ‘customer obsession’ and wondered, “What does that actually mean?” Jeff Bezos coined the expression, and clearly, Amazon isn’t doing too badly. So, in this blog, we’ll break it down—the what, why, and how of customer obsession—so you can put the principles into practice in your organization (and become a better company at heart.)
What is customer obsession?
If you've ever been obsessed with someone, you know the drill: You can’t stop thinking about the object of your desire or doing things to win their affection. So, imagine a company culture completely focused on making customers incredibly happy—that’s the idea behind customer obsession. It’s a zealous passion to not only meet but exceed customer expectations by making the people who interact with your brand the heart of everything you do.
Customer-centricity vs. customer obsession
While customer-centricity focuses on delivering a superior customer experience and meeting customer needs, customer obsession goes above and beyond by anticipating customer needs in advance. Jeff Bezos referred to customer-obsessed companies as the “missionaries” of the business world, those that are "building the product and building the service because they love the customer, because they love the product, and because they love the service." So, what does a customer-obsessed company look like in action? Let’s walk through a few examples.
Famous examples of customer-obsessed companies
Morton's Steakhouse's
Peter Shankman, a frequent traveler, jokingly tweeted Morton’s Steakhouse to meet him at Newark Airport with a steak upon landing. To his surprise, Morton’s took his tweet seriously and sent a tuxedo-clad waiter with a full steak dinner, including a 24-ounce Porterhouse, shrimp, potatoes, bread, napkins, and silverware. By turning a playful tweet into an unforgettable experience, Morton’s secured its place in the “Exceptional Customer Service” Hall of Fame.
Disney
Disney's legendary commitment to customer satisfaction started with Walt Disney himself. He was so determined to understand his guests that he walked around his theme parks, observing how far people would walk before discarding their trash on the ground. He discovered that the magic distance was 30 feet, hence the strategic placement of trash cans every 30 feet in Disney parks—that’s customer empathy in action.
Those are two famous examples of focusing on the customer first, but what does customer obsession that scales look like?
Examples of customer obsession that scales
IKEA
The Swedish furniture giant IKEA epitomizes customer obsession by constantly seeking feedback to enhance its product range and shopping experience. Leveraging insights from customer behavior, IKEA designs stores that are easy to navigate and solve common household problems. Their famous catalog, in-store childcare, and innovative flat-pack design are clear indicators of their commitment to understanding and meeting customer needs. Additionally, IKEA anticipates customer desires with augmented reality apps for home visualization and prioritizes sustainability, addressing broader customer concerns.
USAA Bank
USAA provides financial services tailored to military members and their families. They consistently rank high in customer satisfaction and loyalty, with a Net Promoter Score four times the industry average. This dedication is deeply embedded in their company culture and employee training. New employees undergo a 4-day cultural orientation and routine mock “boot camps” to better understand and connect with their customers. USAA's obsession is also reflected in its products, such as allowing customers to deposit checks via their phones and catering to the needs of traveling or deployed military personnel.
Zalando
German online fashion retailer Zalando exemplifies customer obsession by offering a 100-day return policy and free shipping, ensuring maximum customer satisfaction. Their extensive product range caters to diverse tastes and needs, demonstrating their commitment to customer choice. Zalando invests heavily in customer service and data analytics, enabling them to understand and predict customer preferences accurately. By providing a personalized shopping experience and maintaining high standards of service, Zalando has successfully built a loyal customer base across Europe.
Alibaba
Chinese e-commerce behemoth Alibaba is another stellar example of customer obsession. Founder Jack Ma has always emphasized the importance of customer satisfaction. They leverage big data to personalize the shopping experience, anticipate customer needs, and offer tailored recommendations. Alibaba's customer service, including its efficient logistics and buyer protection policies, ensures a high level of trust and satisfaction among its users.
Amazon
And last, but not least, Amazon, of course. Jeff Bezos’ mantra of "customer obsession" has driven innovations like one-click shopping and Amazon Prime, which were developed with the customer’s convenience in mind. As Bezos said, “We're not competitor obsessed; we're customer obsessed. We start with what the customer needs, and we work backward."
Why customer obsession matters
Customer obsession isn't just a buzzword—it's a transformative approach that can take your business to the next level. When your organization is truly obsessed with its customers, you can expect these measurable benefits:
Business growth and revenue: Customer-obsessed companies report higher revenue over time through effective upselling and cross-selling to existing customers.
Brand loyalty and referral: Surpassing expectations turns customers into brand advocates, attracting new customers through word-of-mouth recommendations.
Customer lifetime value: Continuously adding value keeps customers engaged and connected with your brand, which is a wise investment: Acquiring a new customer can cost five times more than keeping an existing one. Increasing customer retention by just 5% can boost profits by 25-95%. The success rate of selling to existing customers is 60-70%, compared to 5-20% for new customers.
Resilience: Being driven by customer feedback keeps you agile, innovative, and ready to respond and adapt to unexpected market shifts.
Competitive advantage: Customer-obsessed companies maintain a roster of happy, long-term clients and consistently outperform competitors.
How to create a customer-obsessed culture
There’s no magic potion for creating a customer-obsessed culture—it must grow from the heart of your company. Create the conditions for this to happen by following these simple guidelines:
Assessment: Evaluate all your customer touchpoints and interactions. Chat with frontline employees who interact with customers daily—they have insights into common complaints and details about customer relationships. Objectively evaluate your current processes and customer data to decide where to focus your efforts.
Research: To win your customers’ hearts, you must completely understand them. Dive into their pain points, desires, problems, and goals through surveys, reviews, and direct feedback. Engage with your most loyal customers to uncover what makes them tick—they are a fountain of positive proof.
Implement new processes and systems: With customer data in hand, implement processes and systems that support a customer-obsessed mindset. Get leadership involved to set the tone from the top. Develop feedback loops to analyze customer insights regularly. Introduce immersive training for all employees to ensure they understand the customer experience and can empathize. Include activities like customer interviews and shadowing sessions. Leadership should participate, too.
Support and celebrate customer-obsessed employees: Equip your employees with the resources and training they need and make customer satisfaction everyone’s job. Celebrate examples of customer obsession across your entire company—make it fun.
Measure success via KPIs: Track and optimize customer-focused metrics to know if it’s working:
- Net promoter score (NPS): Are your customers singing your praises?
- Customer satisfaction score (CSAT): How happy are your customers?
- Customer retention rate: Are your customers sticking around?
- Customer effort score (CES): How easy is it for customers to interact with you?
- Customer churn rate: How many customers have left you heartbroken?
- Customer lifetime value (CLV): What is the total worth of a customer over their relationship with you?
Map and manage your customer journeys: To truly understand and anticipate your customers’ needs, map out their entire journey with your brand. Use a tool like TheyDo to visualize and analyze customer experiences at every touchpoint across various journeys and departments. By putting the customer journey at the heart of your company strategy, you can identify pain points and opportunities for improvement, ensuring a seamless and delightful experience that not only meets but exceeds customer expectations.
Better company at heart, better bottom line
In a world of fickle consumers and infinite choices, winning your customers' hearts is essential. Customer obsession isn't just a business strategy—it’s about having and sharing a passion for what you do through your business. When your entire company is focused on the customer, you’ll make better products and offer superior services, ultimately making the world a better place, one happy customer at a time.
Ready to start obsessing over your customers? Let TheyDo make it easy for you. Our ultimate Journey Management platform puts the customer (and their journeys) at the heart of everything you do, ensuring alignment across your entire organization. By gaining valuable insights into your customers' experiences, you can identify pain points, uncover opportunities, and develop solutions that bring joy and delight beyond their wildest expectations.