With Customer Lifetime Value as your guiding star, the next step is to create metrics tailored to your unique business, customer base, and goals. Identifying early opportunities for customer-centricity often involves choosing a single use case within the business’s core function. An effective measurement will then be targeted to that specific use case, tying actions directly to changes in revenue and profitability. There should always be clear correlations between the customer-centric action taken in an organization and the revenue outcomes being measured; if you can’t point to the correlation, you should choose a new measurement.
What does this look like in practice? Imagine a retailer has decided to take a customer-centric approach to their marketing organization, specifically focusing on women’s apparel. Having collected data on those women who chose to purchase denim jeans within the last six months, the marketing team can design and serve advertisements to those same customers for jeans. The company can then measure any changes in revenue from that specific product line, offering a tangible proof point for the value of focusing on a company’s highest-value customers.
The goals and targets a company sets should always be based on specific use cases, avoiding goals that are too broad or developed using assumptions and historic decision-making (the fallacy that because a thing was a certain way once it will always continue to be so). From there, these targets should be published and shared with key collaborators; not only does this create accountability for your customer-centric efforts, but it also helps build buy-in as other company stakeholders see quantifiable progress.