customer centric market research

How to Do Market Research: The Complete Guide

Learn how to do market research with this step-by-step guide, complete with templates, tools and real-world examples.

Access best-in-class company data

Get trusted first-party funding data, revenue data and firmographics

Market research is the systematic process of gathering, analyzing and interpreting information about a specific market or industry.

What are your customers’ needs? How does your product compare to the competition? What are the emerging trends and opportunities in your industry? If these questions keep you up at night, it’s time to conduct market research.

Market research plays a pivotal role in your ability to stay competitive and relevant, helping you anticipate shifts in consumer behavior and industry dynamics. It involves gathering these insights using a wide range of techniques, from surveys and interviews to data analysis and observational studies.

In this guide, we’ll explore why market research is crucial, the various types of market research, the methods used in data collection, and how to effectively conduct market research to drive informed decision-making and success.

What is market research?

The purpose of market research is to offer valuable insight into the preferences and behaviors of your target audience, and anticipate shifts in market trends and the competitive landscape. This information helps you make data-driven decisions, develop effective strategies for your business, and maximize your chances of long-term growth.

Why is market research important? 

By understanding the significance of market research, you can make sure you’re asking the right questions and using the process to your advantage. Some of the benefits of market research include:

• Informed decision-making: Market research provides you with the data and insights you need to make smart decisions for your business. It helps you identify opportunities, assess risks and tailor your strategies to meet the demands of the market. Without market research, decisions are often based on assumptions or guesswork, leading to costly mistakes.
• Customer-centric approach: A cornerstone of market research involves developing a deep understanding of customer needs and preferences. This gives you valuable insights into your target audience, helping you develop products, services and marketing campaigns that resonate with your customers.
• Competitive advantage: By conducting market research, you’ll gain a competitive edge. You’ll be able to identify gaps in the market, analyze competitor strengths and weaknesses, and position your business strategically. This enables you to create unique value propositions, differentiate yourself from competitors, and seize opportunities that others may overlook.
• Risk mitigation: Market research helps you anticipate market shifts and potential challenges. By identifying threats early, you can proactively adjust their strategies to mitigate risks and respond effectively to changing circumstances. This proactive approach is particularly valuable in volatile industries.
• Resource optimization: Conducting market research allows organizations to allocate their time, money and resources more efficiently. It ensures that investments are made in areas with the highest potential return on investment, reducing wasted resources and improving overall business performance.
• Adaptation to market trends: Markets evolve rapidly, driven by technological advancements, cultural shifts and changing consumer attitudes. Market research ensures that you stay ahead of these trends and adapt your offerings accordingly so you can avoid becoming obsolete. 

As you can see, market research empowers businesses to make data-driven decisions, cater to customer needs, outperform competitors, mitigate risks, optimize resources and stay agile in a dynamic marketplace. These benefits make it a huge industry; the global market research services market is expected to grow from $76.37 billion in 2021 to $108.57 billion in 2026 . Now, let’s dig into the different types of market research that can help you achieve these benefits.

Types of market research 

• Qualitative research
• Quantitative research
• Exploratory research
• Descriptive research
• Causal research
• Cross-sectional research
• Longitudinal research

Despite its advantages, 23% of organizations don’t have a clear market research strategy. Part of developing a strategy involves choosing the right type of market research for your business goals. The most commonly used approaches include:

1. Qualitative research

Qualitative research focuses on understanding the underlying motivations, attitudes and perceptions of individuals or groups. It is typically conducted through techniques like in-depth interviews, focus groups and content analysis — methods we’ll discuss further in the sections below. Qualitative research provides rich, nuanced insights that can inform product development, marketing strategies and brand positioning.

2. Quantitative research

Quantitative research, in contrast to qualitative research, involves the collection and analysis of numerical data, often through surveys, experiments and structured questionnaires. This approach allows for statistical analysis and the measurement of trends, making it suitable for large-scale market studies and hypothesis testing. While it’s worthwhile using a mix of qualitative and quantitative research, most businesses prioritize the latter because it is scientific, measurable and easily replicated across different experiments.

3. Exploratory research

Whether you’re conducting qualitative or quantitative research or a mix of both, exploratory research is often the first step. Its primary goal is to help you understand a market or problem so you can gain insights and identify potential issues or opportunities. This type of market research is less structured and is typically conducted through open-ended interviews, focus groups or secondary data analysis. Exploratory research is valuable when entering new markets or exploring new product ideas.

4. Descriptive research

As its name implies, descriptive research seeks to describe a market, population or phenomenon in detail. It involves collecting and summarizing data to answer questions about audience demographics and behaviors, market size, and current trends. Surveys, observational studies and content analysis are common methods used in descriptive research. 

5. Causal research

Causal research aims to establish cause-and-effect relationships between variables. It investigates whether changes in one variable result in changes in another. Experimental designs, A/B testing and regression analysis are common causal research methods. This sheds light on how specific marketing strategies or product changes impact consumer behavior.

6. Cross-sectional research

Cross-sectional market research involves collecting data from a sample of the population at a single point in time. It is used to analyze differences, relationships or trends among various groups within a population. Cross-sectional studies are helpful for market segmentation, identifying target audiences and assessing market trends at a specific moment.

7. Longitudinal research

Longitudinal research, in contrast to cross-sectional research, collects data from the same subjects over an extended period. This allows for the analysis of trends, changes and developments over time. Longitudinal studies are useful for tracking long-term developments in consumer preferences, brand loyalty and market dynamics.

Each type of market research has its strengths and weaknesses, and the method you choose depends on your specific research goals and the depth of understanding you’re aiming to achieve. In the following sections, we’ll delve into primary and secondary research approaches and specific research methods.

Primary vs. secondary market research

Market research of all types can be broadly categorized into two main approaches: primary research and secondary research. By understanding the differences between these approaches, you can better determine the most appropriate research method for your specific goals.

Primary market research 

Primary research involves the collection of original data straight from the source. Typically, this involves communicating directly with your target audience — through surveys, interviews, focus groups and more — to gather information. Here are some key attributes of primary market research:

• Customized data: Primary research provides data that is tailored to your research needs. You design a custom research study and gather information specific to your goals.
• Up-to-date insights: Because primary research involves communicating with customers, the data you collect reflects the most current market conditions and consumer behaviors.
• Time-consuming and resource-intensive: Despite its advantages, primary research can be labor-intensive and costly, especially when dealing with large sample sizes or complex study designs. Whether you hire a market research consultant, agency or use an in-house team, primary research studies consume a large amount of resources and time.

Secondary market research 

Secondary research, on the other hand, involves analyzing data that has already been compiled by third-party sources, such as online research tools, databases, news sites, industry reports and academic studies.

Here are the main characteristics of secondary market research:

• Cost-effective: Secondary research is generally more cost-effective than primary research since it doesn’t require building a research plan from scratch. You and your team can look at databases, websites and publications on an ongoing basis, without needing to design a custom experiment or hire a consultant. 
• Leverages multiple sources: Data tools and software extract data from multiple places across the web, and then consolidate that information within a single platform. This means you’ll get a greater amount of data and a wider scope from secondary research.
• Quick to access: You can access a wide range of information rapidly — often in seconds — if you’re using online research tools and databases. Because of this, you can act on insights sooner, rather than taking the time to develop an experiment. 

So, when should you use primary vs. secondary research? In practice, many market research projects incorporate both primary and secondary research to take advantage of the strengths of each approach.

One rule of thumb is to focus on secondary research to obtain background information, market trends or industry benchmarks. It is especially valuable for conducting preliminary research, competitor analysis, or when time and budget constraints are tight. Then, if you still have knowledge gaps or need to answer specific questions unique to your business model, use primary research to create a custom experiment. 

Market research methods

• Surveys and questionnaires
• Focus groups
• Observational research
• Online research tools
• Experiments
• Content analysis
• Ethnographic research

How do primary and secondary research approaches translate into specific research methods? Let’s take a look at the different ways you can gather data: 

1. Surveys and questionnaires

Surveys and questionnaires are popular methods for collecting structured data from a large number of respondents. They involve a set of predetermined questions that participants answer. Surveys can be conducted through various channels, including online tools, telephone interviews and in-person or online questionnaires. They are useful for gathering quantitative data and assessing customer demographics, opinions, preferences and needs. On average, customer surveys have a 33% response rate , so keep that in mind as you consider your sample size.

2. Interviews

Interviews are in-depth conversations with individuals or groups to gather qualitative insights. They can be structured (with predefined questions) or unstructured (with open-ended discussions). Interviews are valuable for exploring complex topics, uncovering motivations and obtaining detailed feedback. 

3. Focus groups

The most common primary research methods are in-depth webcam interviews and focus groups. Focus groups are a small gathering of participants who discuss a specific topic or product under the guidance of a moderator. These discussions are valuable for primary market research because they reveal insights into consumer attitudes, perceptions and emotions. Focus groups are especially useful for idea generation, concept testing and understanding group dynamics within your target audience.

4. Observational research

Observational research involves observing and recording participant behavior in a natural setting. This method is particularly valuable when studying consumer behavior in physical spaces, such as retail stores or public places. In some types of observational research, participants are aware you’re watching them; in other cases, you discreetly watch consumers without their knowledge, as they use your product. Either way, observational research provides firsthand insights into how people interact with products or environments.

5. Online research tools

You and your team can do your own secondary market research using online tools. These tools include data prospecting platforms and databases, as well as online surveys, social media listening, web analytics and sentiment analysis platforms. They help you gather data from online sources, monitor industry trends, track competitors, understand consumer preferences and keep tabs on online behavior. We’ll talk more about choosing the right market research tools in the sections that follow.

6. Experiments

Market research experiments are controlled tests of variables to determine causal relationships. While experiments are often associated with scientific research, they are also used in market research to assess the impact of specific marketing strategies, product features, or pricing and packaging changes.

7. Content analysis

Content analysis involves the systematic examination of textual, visual or audio content to identify patterns, themes and trends. It’s commonly applied to customer reviews, social media posts and other forms of online content to analyze consumer opinions and sentiments.

8. Ethnographic research

Ethnographic research immerses researchers into the daily lives of consumers to understand their behavior and culture. This method is particularly valuable when studying niche markets or exploring the cultural context of consumer choices.

How to do market research

• Set clear objectives
• Identify your target audience
• Choose your research methods
• Use the right market research tools
• Collect data
• Analyze data 
• Interpret your findings
• Identify opportunities and challenges
• Make informed business decisions
• Monitor and adapt

Now that you have gained insights into the various market research methods at your disposal, let’s delve into the practical aspects of how to conduct market research effectively. Here’s a quick step-by-step overview, from defining objectives to monitoring market shifts.

1. Set clear objectives

When you set clear and specific goals, you’re essentially creating a compass to guide your research questions and methodology. Start by precisely defining what you want to achieve. Are you launching a new product and want to understand its viability in the market? Are you evaluating customer satisfaction with a product redesign? 

Start by creating SMART goals — objectives that are specific, measurable, achievable, relevant and time-bound. Not only will this clarify your research focus from the outset, but it will also help you track progress and benchmark your success throughout the process. 

You should also consult with key stakeholders and team members to ensure alignment on your research objectives before diving into data collecting. This will help you gain diverse perspectives and insights that will shape your research approach.

2. Identify your target audience

Next, you’ll need to pinpoint your target audience to determine who should be included in your research. Begin by creating detailed buyer personas or stakeholder profiles. Consider demographic factors like age, gender, income and location, but also delve into psychographics, such as interests, values and pain points.

The more specific your target audience, the more accurate and actionable your research will be. Additionally, segment your audience if your research objectives involve studying different groups, such as current customers and potential leads.

If you already have existing customers, you can also hold conversations with them to better understand your target market. From there, you can refine your buyer personas and tailor your research methods accordingly.

3. Choose your research methods

Selecting the right research methods is crucial for gathering high-quality data. Start by considering the nature of your research objectives. If you’re exploring consumer preferences, surveys and interviews can provide valuable insights. For in-depth understanding, focus groups or observational research might be suitable. Consider using a mix of quantitative and qualitative methods to gain a well-rounded perspective. 

You’ll also need to consider your budget. Think about what you can realistically achieve using the time and resources available to you. If you have a fairly generous budget, you may want to try a mix of primary and secondary research approaches. If you’re doing market research for a startup , on the other hand, chances are your budget is somewhat limited. If that’s the case, try addressing your goals with secondary research tools before investing time and effort in a primary research study. 

4. Use the right market research tools

Whether you’re conducting primary or secondary research, you’ll need to choose the right tools. These can help you do anything from sending surveys to customers to monitoring trends and analyzing data. Here are some examples of popular market research tools:

• Market research software: Crunchbase is a platform that provides best-in-class company data, making it valuable for market research on growing companies and industries. You can use Crunchbase to access trusted, first-party funding data, revenue data, news and firmographics, enabling you to monitor industry trends and understand customer needs.

• Survey and questionnaire tools: SurveyMonkey is a widely used online survey platform that allows you to create, distribute and analyze surveys. Google Forms is a free tool that lets you create surveys and collect responses through Google Drive.
• Data analysis software: Microsoft Excel and Google Sheets are useful for conducting statistical analyses. SPSS is a powerful statistical analysis software used for data processing, analysis and reporting.
• Social listening tools: Brandwatch is a social listening and analytics platform that helps you monitor social media conversations, track sentiment and analyze trends. Mention is a media monitoring tool that allows you to track mentions of your brand, competitors and keywords across various online sources.
• Data visualization platforms: Tableau is a data visualization tool that helps you create interactive and shareable dashboards and reports. Power BI by Microsoft is a business analytics tool for creating interactive visualizations and reports.

5. Collect data

There’s an infinite amount of data you could be collecting using these tools, so you’ll need to be intentional about going after the data that aligns with your research goals. Implement your chosen research methods, whether it’s distributing surveys, conducting interviews or pulling from secondary research platforms. Pay close attention to data quality and accuracy, and stick to a standardized process to streamline data capture and reduce errors. 

6. Analyze data

Once data is collected, you’ll need to analyze it systematically. Use statistical software or analysis tools to identify patterns, trends and correlations. For qualitative data, employ thematic analysis to extract common themes and insights. Visualize your findings with charts, graphs and tables to make complex data more understandable.

If you’re not proficient in data analysis, consider outsourcing or collaborating with a data analyst who can assist in processing and interpreting your data accurately.

7. Interpret your findings

Interpreting your market research findings involves understanding what the data means in the context of your objectives. Are there significant trends that uncover the answers to your initial research questions? Consider the implications of your findings on your business strategy. It’s essential to move beyond raw data and extract actionable insights that inform decision-making.

Hold a cross-functional meeting or workshop with relevant team members to collectively interpret the findings. Different perspectives can lead to more comprehensive insights and innovative solutions.

8. Identify opportunities and challenges

Use your research findings to identify potential growth opportunities and challenges within your market. What segments of your audience are underserved or overlooked? Are there emerging trends you can capitalize on? Conversely, what obstacles or competitors could hinder your progress?

Lay out this information in a clear and organized way by conducting a SWOT analysis, which stands for strengths, weaknesses, opportunities and threats. Jot down notes for each of these areas to provide a structured overview of gaps and hurdles in the market.

9. Make informed business decisions

Market research is only valuable if it leads to informed decisions for your company. Based on your insights, devise actionable strategies and initiatives that align with your research objectives. Whether it’s refining your product, targeting new customer segments or adjusting pricing, ensure your decisions are rooted in the data.

At this point, it’s also crucial to keep your team aligned and accountable. Create an action plan that outlines specific steps, responsibilities and timelines for implementing the recommendations derived from your research. 

10. Monitor and adapt

Market research isn’t a one-time activity; it’s an ongoing process. Continuously monitor market conditions, customer behaviors and industry trends. Set up mechanisms to collect real-time data and feedback. As you gather new information, be prepared to adapt your strategies and tactics accordingly. Regularly revisiting your research ensures your business remains agile and reflects changing market dynamics and consumer preferences.

Online market research sources

As you go through the steps above, you’ll want to turn to trusted, reputable sources to gather your data. Here’s a list to get you started:

• Crunchbase: As mentioned above, Crunchbase is an online platform with an extensive dataset, allowing you to access in-depth insights on market trends, consumer behavior and competitive analysis. You can also customize your search options to tailor your research to specific industries, geographic regions or customer personas.

• Academic databases: Academic databases, such as ProQuest and JSTOR , are treasure troves of scholarly research papers, studies and academic journals. They offer in-depth analyses of various subjects, including market trends, consumer preferences and industry-specific insights. Researchers can access a wealth of peer-reviewed publications to gain a deeper understanding of their research topics.
• Government and NGO databases: Government agencies, nongovernmental organizations and other institutions frequently maintain databases containing valuable economic, demographic and industry-related data. These sources offer credible statistics and reports on a wide range of topics, making them essential for market researchers. Examples include the U.S. Census Bureau , the Bureau of Labor Statistics and the Pew Research Center .
• Industry reports: Industry reports and market studies are comprehensive documents prepared by research firms, industry associations and consulting companies. They provide in-depth insights into specific markets, including market size, trends, competitive analysis and consumer behavior. You can find this information by looking at relevant industry association databases; examples include the American Marketing Association and the National Retail Federation .
• Social media and online communities: Social media platforms like LinkedIn or Twitter (X) , forums such as Reddit and Quora , and review platforms such as G2 can provide real-time insights into consumer sentiment, opinions and trends. 

Market research examples

At this point, you have market research tools and data sources — but how do you act on the data you gather? Let’s go over some real-world examples that illustrate the practical application of market research across various industries. These examples showcase how market research can lead to smart decision-making and successful business decisions.

Example 1: Apple’s iPhone launch

Apple ’s iconic iPhone launch in 2007 serves as a prime example of market research driving product innovation in tech. Before the iPhone’s release, Apple conducted extensive market research to understand consumer preferences, pain points and unmet needs in the mobile phone industry. This research led to the development of a touchscreen smartphone with a user-friendly interface, addressing consumer demands for a more intuitive and versatile device. The result was a revolutionary product that disrupted the market and redefined the smartphone industry.

Example 2: McDonald’s global expansion

McDonald’s successful global expansion strategy demonstrates the importance of market research when expanding into new territories. Before entering a new market, McDonald’s conducts thorough research to understand local tastes, preferences and cultural nuances. This research informs menu customization, marketing strategies and store design. For instance, in India, McDonald’s offers a menu tailored to local preferences, including vegetarian options. This market-specific approach has enabled McDonald’s to adapt and thrive in diverse global markets.

Example 3: Organic and sustainable farming

The shift toward organic and sustainable farming practices in the food industry is driven by market research that indicates increased consumer demand for healthier and environmentally friendly food options. As a result, food producers and retailers invest in sustainable sourcing and organic product lines — such as with these sustainable seafood startups — to align with this shift in consumer values. 

The bottom line? Market research has multiple use cases and is a critical practice for any industry. Whether it’s launching groundbreaking products, entering new markets or responding to changing consumer preferences, you can use market research to shape successful strategies and outcomes.

Market research templates

You finally have a strong understanding of how to do market research and apply it in the real world. Before we wrap up, here are some market research templates that you can use as a starting point for your projects:

• Smartsheet competitive analysis templates : These spreadsheets can serve as a framework for gathering information about the competitive landscape and obtaining valuable lessons to apply to your business strategy.
• SurveyMonkey product survey template : Customize the questions on this survey based on what you want to learn from your target customers.
• HubSpot templates : HubSpot offers a wide range of free templates you can use for market research, business planning and more.
• SCORE templates : SCORE is a nonprofit organization that provides templates for business plans, market analysis and financial projections.
• SBA.gov : The U.S. Small Business Administration offers templates for every aspect of your business, including market research, and is particularly valuable for new startups. 

Strengthen your business with market research

When conducted effectively, market research is like a guiding star. Equipped with the right tools and techniques, you can uncover valuable insights, stay competitive, foster innovation and navigate the complexities of your industry.

Throughout this guide, we’ve discussed the definition of market research, different research methods, and how to conduct it effectively. We’ve also explored various types of market research and shared practical insights and templates for getting started. 

Now, it’s time to start the research process. Trust in data, listen to the market and make informed decisions that guide your company toward lasting success.

Related Articles

• Entrepreneurs
• 15 min read

What Is Competitive Analysis and How to Do It Effectively

Rebecca Strehlow, Copywriter at Crunchbase

17 Best Sales Intelligence Tools for 2024

• Market research
• 10 min read

How to Do Market Research for a Startup: Tips for Success

Jaclyn Robinson, Senior Manager of Content Marketing at Crunchbase

Search less. Close more.

Grow your revenue with Crunchbase, the all-in-one prospecting solution. Start your free trial.

Root out friction in every digital experience, super-charge conversion rates, and optimize digital self-service

Uncover insights from any interaction, deliver AI-powered agent coaching, and reduce cost to serve

Increase revenue and loyalty with real-time insights and recommendations delivered to teams on the ground

Know how your people feel and empower managers to improve employee engagement, productivity, and retention

Take action in the moments that matter most along the employee journey and drive bottom line growth

Whatever they’re saying, wherever they’re saying it, know exactly what’s going on with your people

Get faster, richer insights with qual and quant tools that make powerful market research available to everyone

Run concept tests, pricing studies, prototyping + more with fast, powerful studies designed by UX research experts

Track your brand performance 24/7 and act quickly to respond to opportunities and challenges in your market

Explore the platform powering Experience Management

• Free Account
• Product Demos
• For Digital
• For Customer Care
• For Human Resources
• For Researchers
• Financial Services
• All Industries

Popular Use Cases

Customer Experience

• Employee Experience
• Net Promoter Score
• Voice of Customer
• Customer Success Hub
• Product Documentation
• Training & Certification
• XM Institute
• Popular Resources
• Customer Stories
• Artificial Intelligence
• Market Research
• Partnerships
• Marketplace

The annual gathering of the experience leaders at the world’s iconic brands building breakthrough business results, live in Salt Lake City.

• English/AU & NZ
• Español/Europa
• Español/América Latina
• Português Brasileiro
• REQUEST DEMO
• Experience Management
• Customer Centricity

Try Qualtrics for free

What is customer centricity and why is it important.

16 min read In a post-pandemic consumer landscape, customer centricity is more vital than ever. Learn about why putting customers first is vital for business growth, and how you can create a customer centric culture in your organization.

What is customer centricity?

Customer centricity is the practice of putting customer experience first throughout an organization’s actions and attitude.

Often, it’s seen as a brand culture or mindset shift, but in practice, it is more of a business-wide strategy that requires more than just considering what customers are looking for.

To do more than just keep customers in mind, businesses need to consider customer needs and wants as the most important factor when planning to take any action. From product development to the individual steps in the customer journey , customer centricity should permeate every facet of your business decisions and action.

Free eBook: 2024 global consumer trends report

Customer centricity vs customer friendliness

Peter Fader, a Wharton marketing professor and author of The Customer Centricity Playbook and Customer Centricity , has suggested that often companies are customer-friendly, but not customer centric. Rather than focusing on individual customers, a brand’s customer base is treated as a whole, with actions applied equally to each customer with expectations of similar outcomes.

Customer centricity, he argues, is about understanding customers on a granular level. Which are the most valuable customers, and what do they want or prefer? Which communication preferences do they have, what experiences do they expect, and what drives them to make the purchases they do?

By focusing on customer centricity rather than being customer friendly, brands can improve their ROI and provide better, more personalized campaigns and tailored customer experiences.

Why is customer centricity important?

Consumers now expect businesses to focus on the customer experience. They want their wants, needs, and opinions to be reflected in their relationship with brands, from customer centric marketing to interactions with customer service reps. In 2022, 63% of consumers told us that brands needed to do a better job of listening to feedback on customer experience. In 2023, we found that 36% of consumers are still not happy with the level of empathy shown in their customer service interactions with brands.

It’s clear taking a customer centric approach is something that customers now expect. But how do you go about creating a customer centric culture, and what are the potential business impacts of taking this action? Read on to find out.

What are the business benefits of being a customer centric company?

Creating a customer centric organization isn’t just about customer benefits. A customer centric business can expect increased customer loyalty and subsequent financial returns, as well as greater competitiveness when it comes to new customer acquisition.

Customers will spend more when they feel heard

When businesses create meaningful experiences that take customer feedback into account, customers feel heard – and are willing to spend more. 62% of consumers said that businesses need to care more about them, and 60% stated they’d be willing to buy more if they did feel cared for . Putting customers at the forefront of your brand actions means customers have better experiences that better reflect what they expect.

Personalization pays dividends

Providing a positive customer experience that is customer centric, rather than generic, is financially rewarding for businesses. Brands that grow more rapidly receive 40% more revenue from a personalized approach than their less successful rivals.

When your brand doesn’t personalize services to customers, it means you risk infuriating your customer base and damaging customer satisfaction – 76% of customers get frustrated when they aren’t given a personalized experience . Personalization and customer centricity is key to keeping loyal customers and attracting new ones.

Customer centric businesses get ahead of their competitors

Research from the Qualtrics XM institute found that the gap in stock prices between customer experience (CX) business leaders and customer experience laggards grew from 24% points in 2019 to 66% points by the end of 2021 . The cost of ignoring customer needs is clear – there is a financial impact when customer centricity isn’t a key business value. Compete with your market rivals by joining the ranks of customer centric companies.

Increased customer loyalty and lifetime value

Customers that can see they are heard and appreciated by businesses are more likely to come back for similar experiences, rather than seeking new ones elsewhere. With the cost of acquisition likely being higher than the cost of customer retention , it makes sense to increase loyalty and customer value by investing in creating better, more customer centric experiences with your brand.

Creating and implementing a customer centric strategy for your organization

When to create and enact a customer centric strategy.

The right time to become a customer centric business is now – the best time was yesterday. However, customer centricity is not just a lip-service action – becoming a customer centric business means enacting change throughout your organization. This requires planning and likely time to ensure that actions taken are worthwhile, both from a financial standpoint and as an enduring change.

How to create a customer centric strategy

To form a better understanding of what you need to do to become a customer centric organization, you’ll need to go through a few key steps.

Gather customer data

Examining your customer data and feedback is the best way to ensure you’re heading in the right direction with your strategy. There’s little use in creating a customer centric approach, only to find it doesn’t meet customer expectations.

Your customer data can be collected from various sources within your organization. These might include:

• Customer survey feedback, such as Net Promoter Score (NPS) responses
• Customer behavior data, such as transaction history
• Front-line feedback from customer service employees
• Website analytics tools
• Social media platforms
• Third party review sites
• Loyalty program data
• Subscriptions to brand marketing, such as newsletters
• Text analysis on call transcripts, chat, SMS, emails and other feedback
• User testing results

Understand your customers through data-led insights

By gathering this information, you can begin to spot patterns and link customer’s feedback in their own words with actions your company has taken. Feeding your customer data into a customer experience platform that can distill data into insights can be a faster way to see the patterns in customer behavior and begin strategizing the action that needs to be taken.

Insights you might pull out include:

• Future predictions of customer needs, based on past behavior trends
• Which channels customers prefer to use, and for which activity (e.g. reaching out to customer service representatives)
• What customer relationship actions will have the best ROI, with the greatest impact from the smallest effort
• How to improve personalization at scale by customer segmentation
• How to retain customers beyond the first purchase and increase customer lifetime value

Develop your strategy and set goals

The data-led insights you develop as part of this process will give you ideas as to where you can make the most impact for the least amount of investment. Once you have a clear view of which actions will have the greatest results, you can develop your strategy and set goals.

For example, if your user testing and customer feedback has indicated that your payment page is confusing, you can reduce the number of drop-offs at that stage in the customer journey by making the page more user-friendly.

Your company actions and goals could be to:

• Ask your web development team to work on user experience
• Ask your marketing team to make it clear that feedback has been taken into account to your customers
• Ask your customer experience team to gather more feedback post-action to see the impact that was made
• Ask your customer service reps to flag payment issues in future
• Review customer data post-action to see if this had a positive impact on sales and revenue, cart abandonment rates and customer calls
• Monitor your KPIs such as customer satisfaction post-action for signs of improvement
• Repeat the process of finding and taking action on customer insights

How to implement your customer centric strategy

Implementing your customer centric strategy is a company-wide process, and one that more companies will adopt as the benefits become clear. Get ahead of the competition by dedicating your brand to implementing a strategy that pays dividends. Here are our suggested actions:

Create a customer centric culture across the entire business

Overall, your business strategy should adhere to a customer centric company vision. This helps to make it clear to everyone within your business that your overall company goal is to put customer satisfaction first in every action taken.

Areas in which you could focus your strategy include:

• Customer centric marketing, with the aim of encouraging customers to become promoters to others through word of mouth
• Customer centric selling, with products and services offered reflecting what customers indicate they need and want
• Customer centric thinking, encouraging suggestions and regular feedback from employees to help improve customer relationships

Build in customer centricity from day one

Your employees are often the best proponents of your customer centric approach, and it makes sense to instill a sense of customer centricity from the very beginning of their work with your brand.

You might try engaging in:

• Customer focused hiring practices, finding employees that also share a customer centric approach to doing their work
• Customer centric personnel development , with customer centricity built into your employee evaluations as a KPI
• More customer focused onboarding practices , with your vision for customer centricity made clear

Common challenges for customer centricity

A lack of leadership buy-in.

Customer centricity starts from the top down. Without leadership buy-in and guidance, brands can often find that customer centricity falls behind other priorities. To avoid this, you’ll need to ensure that management engages with the idea of a customer centric culture, spreading support throughout their teams.

As managers, you’ll need to make it clear that each customer centric action contributes to other business goals by connecting key customer centric objectives with business and organizational KPIs. Customer centricity isn’t a one-off project, after all – it’s an ongoing process that adapts as the market and consumers change. Leadership will need to ensure that initial dedication continues over time.

Organizational silos

When a business’s marketing, sales, operations, customer service function and more work in silos, it can be difficult to share one customer centric vision. Ensuring that vital customer relationship management isn’t one team’s responsibility, but everyone’s, can help to foster customer centricity across the whole business. To help teams to communicate effectively for better customer success, create cross-functional groups across various teams and share insights from customer data widely. Your aim is to create a customer centric brand, rather than just implement customer-focused actions in individual areas.

A product or service focus, rather than a customer centric focus

Working on products or services in isolation from a sales and marketing approach doesn’t reflect real-world customers. For example, take a customer who has purchased two different products with a financial organization such as a bank. They don’t want to have to deal with different teams for each individual product or service they use – they want a unified account overview, with customer service reps aware of all their past interactions with the business.

Moving away from a product or service focus towards customer centricity helps to break down silos, encourages customers to find new products and services from across your brand and helps you to condense operations. It’s a win-win from a customer outcomes and a business point of view.

Inadequate or legacy technology

Bringing customer data together from disparate digital channels is difficult without the right technological support. Inadequate systems that can’t analyze customer data in depth can limit the granular study of customer behavior and drivers that’s needed for a truly customer centric approach. When legacy systems aren’t integrated, important information isn’t delivered cross-team or is kept hidden in silos.

Analysis and the dissemination of vital insights to the right teams at the right time can be greatly supported with the right technology. A customer experience platform, such as Qualtrics Customer XM, can help you to not only gather all relevant customer data, but bring your teams together to work on customer centricity as a whole.

Measuring the success of your customer centric approach

Developing an action plan and goals is only part of creating customer centricity in your organization. You will also need to measure the success you’ve had in meeting your goals. This will help you to make better future decisions, based on successful actions taken over time.

Important customer centric metrics that can be monitored over time could include:

• Net Promoter Score (NPS): How likely is it your existing customers would recommend you to others before and after the strategy has been implemented?
• Customer Satisfaction (CSAT) score: How satisfied are your customers with your products, service and experience?
• Customer Effort Score (CES): How hard is it for your customers to complete actions, and how have your actions impacted this effort?
• Your sales rate: Have sales improved since implementing your actions?
• Your customer lifetime value (CLV): Has customer value increased following your customer centric approach?
• Customer loyalty program signups: How successful has your customer loyalty program been post-strategy?
• Customer support: Have customer support metrics (time to resolution, cost per serve) improved since enacting your strategy?

How to ensure your strategy evolves with customer needs

Customer centric best practices are to continually monitor progress, and evolve with customer needs over time. Becoming a customer centric business is an ongoing process that requires constant review.

Rather than taking a static or regularly-scheduled approach to evaluation, use real-time insights to ensure that your teams are working towards current customers’ expectations. With constant monitoring, business-wide KPIs and an adaptive strategy, you can ensure that your brand is always evolving to meet customer needs.

This also helps you to meet new customers’ expectations. By consistently analyzing and predicting behavior based on loyal customer trends, you can replicate successful actions for new customers and develop quicker steps to customer retention.

Creating customer centric experience with Qualtrics

Developing customer centric thinking across your organization and understanding how your actions make an impact doesn’t have to be difficult.

With the Qualtrics Customer XM platform, you can tailor each customer’s experience at scale. Hear all customer feedback, no matter where it’s shared. Use powerful analytics and predictive intelligence to collect vital data and transform it into targeted action for better business outcomes.

Related resources

Customer data platforms 14 min read, customer experience insights 12 min read, customer relationship building 12 min read, customer equity 11 min read, ai and customer experience 17 min read, customer experience transformation 15 min read, customer lifecycle management 18 min read, request demo.

Ready to learn more about Qualtrics?

• Gartner client? Log in for personalized search results.

Unlock the Potential of Customer-Centric Marketing and the Modern CMO

Use a customer-centric marketing strategy to design customer experiences that drive loyalty

Download the Customer-Centric Marketing Guide

By clicking the "Continue" button, you are agreeing to the Gartner Terms of Use and Privacy Policy.

Contact Information

All fields are required.

Company/Organization Information

Please provide the consent below

I have read, understood and accepted Gartner Separate Consent Letter , whereby I agree (1) to provide Gartner with my personal information, and understand that information will be transferred outside of mainland China and processed by Gartner group companies and other legitimate processing parties and (2) to be contacted by Gartner group companies via internet, mobile/telephone and email, for the purposes of sales, marketing and research.

By clicking the "Submit" button, you are agreeing to the Gartner Terms of Use and Privacy Policy.

By clicking the "Begin Download" button, you are agreeing to the Gartner Terms of Use and Privacy Policy.

CMOs are now required to lead the charge in CX, which often extends to influencing beyond the marketing function.

As brands prioritize their digital capabilities, marketing leaders must prioritize customer needs and objectives over channels, loyalty, and customer relationships to foster stronger and more sustainable customer relationships. It is now the time for CMOs to enhance their role as the "Chief Customer Officer" and focus on customer-centric marketing.

Download this research for actionable insights on:

• Developing  a clear, customer-centric value statement that aligns with your customers' expectations of your brand
• Identifying key areas of focus to cultivate an engaged internal audience that drives the customer journey
• Gaining insights on improving your brand's current customer experience to enhance customer loyalty

About Customer-Centric Marketing

As customer needs evolve, businesses are increasingly adopting a customer-centric approach. This shift is often driven by the concept of customer experience. Today, customers play a central role in marketing decisions, leading to a transformation in the role of the CMO. Chief Marketing Officers are now becoming experts in understanding consumer needs, behaviors, and megatrends, going beyond their traditional marketing function . They are taking on the role of "chief customer officers" and are instrumental in cultivating sustainable customer relationships.

Download this Gartner research to learn why it's important for CMOs to embrace their evolving role as "chief customer officers." Get recommendations on how to enhance your brand's customer experience strategy  using the experience thesis statement framework and tool.

Adopt a customer-centric marketing approach, to effectively meet the changing needs of your customers and build lasting relationships. 

Editor Note:

For the FAQ section, please ensure that the Article Text component marked "LAST FAQ ITEM" remains at the end of the list, and if more than 4 components are required please copy/paste from the other above components and keep them above the last item to keep the correct spacing.

Please also take care not to delete the grey line below the copy in each Article Text while you are editing in your content, only the one marked "LAST FAQ ITEM" should remain without the grey line.

***This message will dissappear outside of edit mode***

Customer-Centric Marketing FAQs

What is customer-centric marketing.

Customer-centric marketing is a strategic approach that prioritizes the needs and experiences of customers. It goes beyond simply promoting products or services and instead focuses on delivering value and exceptional experiences. By understanding and meeting customers' unique needs, customer-centric marketing aims to build strong relationships and foster loyalty.

How do you create a customer-centric marketing strategy?

To create a customer-centric marketing strategy, it is important to deeply understand and prioritize customer needs and experiences. This can be achieved by:

• Conducting thorough research and analysis to uncover customer preferences and pain points
• Gathering feedback through surveys, interviews, and customer interactions
• Segmenting your customer base to tailor your marketing approach to different groups
• Identifying key touchpoints and moments of truth in the customer journey

By focusing on customer needs and experiences, you can develop a strategy that truly resonates with your target audience and drives business growth.

What are the key steps on customer centricity?

The key steps to achieving customer centricity are:

Customer Understanding

Personalized Engagement

Continuous Improvement

By following these steps, you can prioritize your customers' needs, enhance engagement, and drive long-term success for your business.

For the More Resources section, you will need to manually choose each item to populate below. Please ensure that you keep the "Enter Offer Type" field updated with the content type of the page you are linking if it differs from the default selectiions.

More resources for customer-centric marketing

Gartner for marketing.

Get insights, guidance and tools to enable faster, smarter decisions and stronger performance on your mission-critical marketing priorities.

Customer Journey Maps That Deliver Results

CMOs and customer experience leaders: Learn how to build a customer journey map that delivers value at all customer journey stages.

Enabling a Personalized and Digital Customer Experience (CX)

Read how Gartner helped AARP deliver a personalized and digitized CX that helped them save cost worth $1.8M.

Are you an agency specialized in UX, digital marketing, or growth? Join our Partner Program

Learn / Blog / Article

Back to blog

An expert's advice on successful customer-centric marketing

In the world of marketing, there is no shortage of approaches and strategies.

One such method is called customer-centric marketing. We were fortunate enough to interview Bill Macaitis, a marketing leader who served Salesforce, Zendesk, and Slack, about this approach, and learn exactly how customer-centric marketing has helped him—and can help you—grow these companies.

Last updated

Reading time.

What is customer-centric marketing?

Customer-centric marketing is a marketing approach designed around  customer needs  and interests. It is about prioritizing customers over any other factor, using a blend of intuition, common sense, and solid data about customer behavior.

Bill Macaitis was in charge of online marketing for Salesforce when he noticed a significant, consistent drop in leads over a relatively short time period.

How much of a drop?

Bill wasn’t sure of the exact figure when   I interviewed him for ’The Humans Strike Back’ podcast , but he guessed it was around 10% or more —significant enough to represent more than statistical noise or random fluctuations, and large enough to keep his team up at night.

It was around 2010 and Salesforce (a customer relationship management platform or  CRM software ) was already a global company by then, so that kind of drop in leads would have a significant impact on revenue down the line. “ We had a massive   sales team , ” says Bill, “ They [were] depending on a steady flow of leads coming in. ”

Despite the pressure, Bill knew they couldn’t make any assumptions about the root cause of the issue.  In order to solve the problem, they had to see their company, brand, and services through the eyes of a new prospect who had just entered their sales funnel.

You’ll learn exactly how they did this in a minute, but first…

Who is Bill Macaitis?

Over the past decade, Bill played an integral role in the growth of three tech giants—Salesforce (Senior Vice-President of Marketing), Zendesk (Chief Marketing Officer), and Slack (Chief Marketing Officer and Board Advisor). 

He’s a straight-talking marketing leader who believes that Software-as-a-Service (SaaS) and e-commerce companies succeed when they adopt a customer-centric approach at every stage of their sales cycle.  He argues that companies can achieve this by treating their employees right and playing to their strengths, which he discusses in detail during his Ask Me Anything (AMA) talk in  the 'The Humans Strike Back' community .

Throughout my interview with Bill and his AMA, two prominent themes arose. The first (succeeding with customer-centric marketing) is the theme of this post, and the second (building a customer-centric marketing department) is the theme of  the second piece .

4 tips for infusing customer-centric marketing into your company

#1: see the world from your customer’s point of view.

Salesforce CEO Marc Benioff is a big believer in seeing the world from your  customer’s perspective , but as Bill learned through first-hand experience, this is sometimes easier said than done.

MARC BENIOFF IS THE FOUNDER, CHAIRMAN AND CEO OF SALESFORCE.

After working for the same company for years, marketing professionals can become myopic about their industry, company, and product.  They know their business intimately, but a prospect with minimal brand exposure needs to figure out what your company does at a glance.

Otherwise, they’re on to the next shiny object.

When Bill’s team noticed that drop in leads, they tossed around a number of theories about the root cause, but they knew they couldn’t draw conclusions on a whim. “ I think it's important to have the right market intelligence, the right customer listening, the right tools just to understand [what’s] happening, ” says Bill.

It wasn’t until they used a service called  Five-Second Test  that they realized the issue had to do with their core messaging. During a five-second test, a panel of test subjects view a webpage for only five seconds before it disappears. Then they’re asked to identify their first impressions and what they recall about the company.

FIVE-SECOND TESTS CAN BE USED TO TEST HOME PAGE DESIGNS, LANDING PAGES, LOGOS, BROCHURES AND MARKETING MATERIAL.

Earlier that year, Salesforce began a new approach to messaging, branding themselves “ the social enterprise. ” The phrase appeared front-and-center on the newly designed homepage, and it was meant to imply that Salesforce was a platform that connected professionals teams from across departments, much like social media.

Salesforce's homepage back in 2010 ( Wayback Machine ).

The problem?

This was seven or eight years ago, and the phrase “social media” wasn’t yet a household term outside of the tech community.  After running a series of five-second tests, Bill and his team learned that newcomers to their website didn’t understand the new messaging.  “ At the time, they were thinking `social’ was more like `social causes,’ ” says Bill.

Five-second test respondents assumed Salesforce sold software exclusively to non-profits, which explained the high bounce-rate and sudden drop in leads. Prospects from for-profit businesses would visit the website, quickly assume it had nothing to do with them, and disappear.

The moral to the story?

As marketers, we can be blinded by our own knowledge and extensive experience with our industry.

To counter our own assumptions, we sometimes need to take a step back and use feedback directly from people of interest (such as five-second tests, surveys, customer interviews, or even in-page feedback widgets) to understand  how our target market experiences our brand .

#2: don’t p*ss your customers off

Seems obvious, right? And yet… we’re bombarded these days with sleazy marketing tactics that drive us crazy.

During his AMA, Bill referenced a new tactic that just about anyone with a cell phone has experienced. A robocall spoofs an incoming number that closely matches your own number (off by only a digit or two), hoping you’ll be more likely to pick up since it looks familiar. If you  do  pick up, your experience with the brand will most likely be negative—and the company will create an instant detractor out of you.

These tactics, according to Bill, arise from an excessive focus on short-term metrics, such as lead generation.

But wait a minute…

Didn’t we just spend 400+ words talking a drop in leads at Salesforce and the panic that ensued? Yes, leads matter—it’s an important metric, but it’s not the  only  metric that should concern you.

A narrow focus on leads (to the exclusion of all else) drives marketing tactics that nobody likes. Those tactics degrade your brand integrity, and they leave you with more detractors than promoters… which doesn’t bode well for your long-term success!

So… what long-term metrics should you focus on?

#3: use the insightful long-term metrics to understand your customers

Bill is an advocate of data-driven marketing. Without the right data, it’s difficult to understand your customers at all.

Here are a few of Bill’s favorite things to measure when assessing public perception of your brand.

Aided Recall

Aided recall measures how well people recall your brand with a little help. Can they watch the first half of your TV commercial and tell you how it ends? Do they recognize your logo in a list of other logos in your space?

AIDED RECALL IS A MEASURE OF THE NUMBER OF PEOPLE WHO EXPRESS KNOWLEDGE OF A BRAND OR PRODUCT WHEN PROMPTED.

Unaided Recall

This metric goes a step further and asks, “Does your brand come to mind without any prompting?” For example, if you run an e-commerce website and you ask someone about popular places to shop online within your niche, do they name your website?

How does the public feel about your brand? Do they see you in positive, neutral, or negative light based on news stories and their own experiences?

You can glean Voice of the Customer (VOC) data can from surveys that ask specific questions about their feelings toward your brand and  analyze the open-ended answers , but you can also get data from things like customer reviews. How does that work? Services such as Amazon Comprehend use Natural Language Processing (NLP) algorithms to mines qualitative data for keywords that indicate customer satisfaction (or lack thereof).

Net Promoter Score® (NPS)

Do they like you? Not just enough to buy your product, but to  recommend  you to their colleagues, friends, and loved ones?  Net Promoter Score  measures how likely a customer is to recommend your brand to someone else.

An example of an NPS   survey   shown to Hotjar users.

An example of using NPS for customer-centric marketing

For example, here at Hotjar, we asked our customers, “ How likely are you to recommend Hotjar to a friend or colleague? ” on a scale of 1-10 (where 10 = very likely).  To calculate our NPS score , we subtracted the percentage of detractors (those who ranked us 0-6) from the percentage of promoters (those who ranked us 9 or 10). The neutral respondents (those who ranked us 7-8, in our case) do not factor into the NPS. 

The result? Our NPS was 59 (64% - 4.8% = 59.2%), and this figure serves as the benchmark by which we can evaluate progress in the years to come. For a detailed analysis of our adventures with NPS, check out my post from:  1 Year into NPS: The good, the bad, the ugly of getting our users feedback/ .

Why is determining your NPS so important?

When clients become promoters, that represents a level of commitment to your brand that goes beyond mere customer satisfaction.  They’ve become an advocate of your business, and personal recommendations are a powerful way to attract new clients.

#4: give your customers an amazing experience

We, marketers, talk a lot about improving conversion rates from one step of the funnel to another these days, but what about the bigger picture? Do our customers actually  like  us? Are we giving them a good experience at every stage of the sales funnel, from awareness to return-purchases?

Three ways to improve customer-centric marketing efforts

When we take a step back and broaden the focus, Bill believes some obvious areas for improvement typically arise.

1. Website usability

Is your website easy to use? Is the experience you’re providing valuable, relevant, and even safe?

One way to measure your website usability is to use   Incoming Feedback   by Hotjar to see what people love and hate, and identify issues.

It may seem obvious to you where they go to change their shipping address or their credit card information, but it may not be clear to  them . If they have to hunt around to figure things out, they’re going to be frustrated… even if they  do  convert. Bill says, “ All these little experiences build up to what your brand is. The brand is the sum total of every micro-experience someone has with you. ”

That’s why Bill is a fan of Hotjar (if we may toot our own horn for a second). “ I think it’s the preeminent tool out there when you're looking at   heatmaps , listening, understanding your customers [and] where they're going. The recordings are just invaluable. ”

The bottom line, of course, is that however you do it—you’ve got to deliver a seamless online experience if you want to turn customers into promoters.

2. Content marketing

When your prospects and clients experience your brand through relevant, engaging content that actually improves their lives in some meaningful way, they’ll gain a more positive association with your brand.

According to the  B2B Content Marketing 2018 - Benchmarks, Budgets & Trends – North America  report (from the Content Marketing Institute and Marketing Profs), 79% of respondents said that they can demonstrate how content marketing has increased audience engagement, and 65% can show how it has increased their total number of leads.

Podcasts, vlogs, and blogs can all achieve this effect when they focus is on producing quality content (rather than overt advertising trying to pass for content marketing).

When Bill was at Slack, they made their own  podcast , which focused on real human stories exploring how work transformed people’s lives. “ I think [our cost] was something like 6 or 7 cents per listen, and I think we had 6 or 7 million listeners, ” he says. “ That’s 7 million people [who] have experienced your brand for 20 or 30 minutes, for 6 or 7 cents [each]. ” Bill estimates that today, Slack’s podcast has more than 10 million listeners.

"WORK IN PROGRESS" IS SLACK'S PODCAST ABOUT THE MEANING AND IDENTITY WE FIND IN WORK.

What’s more—a podcast can be a rich source of material for blog posts. Not to get too “meta,” but that’s exactly what we did with this blog post by mining  'The Humans Strike Back'  for blog topics.

Now, you may be asking yourself, “ Can content marketing work for companies who sell tangible products? ” Australian digital marketing agency Gorilla360 features a blog post that highlights some of the  best content marketing in the e-commerce space . Among their favorites is LifX, a company that sells lightbulbs that interface with smart-home systems—and yes, they produce an engaging blog.

How do they do it with a less-than-fascinating product? The LifX blog covers all kinds of subjects that homeowners (their target market) would find interesting, including “how to” pieces that cover everything from  mood lighting  to  extending the night vision of your security camera .

And that’s really the secret to exceptional content marketing —the brand is always in the background, while the focus is on engaging topics that relate to the company’s mission.

3. Customer support

Too many companies cut corners on customer support with the goal of spending as little as possible—and they get what they pay for! This is an integral part of their brand experience, and mediocre support service will leave an awful taste in a customer’s mouth. Fortunately, there are a few key things you can do to improve that experience.

Bill is a believer in making customer support available to everyone across the globe, so if you have customers in Pakistan, don’t limit your support hours to 9-to-5 Pacific Standard time. “ We want to support people wherever they are, ” he says, “ So organizing around time zones is very important. ”

Bill goes on to explain that, as Slack grew, their customer support team began to include more specialists who would handle specific support tasks, such as integration or billing. “ I think that’s the natural evolution, ” he says.

Finally, it’s important to make support available through a variety of channels—phone, chat, email, social media, etc.

In the end, a customer-centric approach to marketing weaves intuition and common sense with solid data about customer behavior.

Consider the brand experiences that have turned you into an advocate for a particular company, and do your best to emulate those techniques. Resist quick and easy marketing tricks (even if they generate easy leads or conversion), test your assumptions using helpful, long-term metrics, and work to provide real value every time a prospect or customer interacts with your brand.

Key takeaways

Assume nothing: collect data to understand your customers

Use the long-term metrics to figure out how prospects and customers experience your brand

Engage in marketing practices that offer real value

Aim to delight at every point in your sales funnel

Set the bar higher! Your mission is to create promoters—not just paying customers.

Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

Related articles

6 traits of top marketing leaders (and how to cultivate them in yourself)

Stepping into a marketing leadership role can stir up a mix of emotions: excitement, optimism, and, often, a gnawing doubt. "Do I have the right skills to truly lead and inspire?" If you've ever wrestled with these uncertainties, you're not alone.

Hotjar team

The 7 best BI tools for marketers in 2024 (and how to use them)

Whether you're sifting through campaign attribution data or reviewing performance reports from different sources, extracting meaningful business insights from vast amounts of data is an often daunting—yet critical—task many marketers face. So how do you efficiently evaluate your results and communicate key learnings? 

This is where business intelligence (BI) tools come in, transforming raw data into actionable insights that drive informed, customer-centric decisions. 

6 marketing trends that will shape the future of ecommerce in 2023

Today, marketing trends evolve at the speed of technology. Ecommerce businesses that fail to update their marketing strategies to meet consumers where they are in 2023 will be left out of the conversations that drive brand success. 

Geoff Whiting

Search for: Search Button

Customer Centric Marketing: Strategies for Success and Growth

Table of Contents

Want to have more customers by spending less money? Well, we aren’t kidding! There are a few underused marketing strategies that brands have used to achieve this. And customer centric marketing is one simple way to get started. Let us show you how.

Customer-centric marketing is one of the most important strategies one can implement for their business. And hence, it’s worth understanding what it is and how it can benefit you. This blog post dissects the concept of customer centricity, shows how brands are using it, and explains ways you can use this strategy to improve your marketing.

What Is Customer Centric Marketing?

Customer centric marketing is how you do your marketing as a business to ensure that you are relevant, valuable, and memorable to your customers. So this means shifting the focus of your business from just understanding how to sell your products, well to, understanding how your customer can benefit from it.

The goal of customer-centric marketing is to enable customers to travel through the buyer’s journey on their terms and cater to the “whole” of the customer. This entails knowing your customers and understanding their needs, preferences, and pain points.

Let’s show you how some well-known brands that have successfully implemented customer-centric marketing strategies.

Customer Centric Marketing Examples

Airbnb has taken over the hospitality industry with its customer-centric approach. They provide unique, personalized accommodations and foster a sense of community through user reviews and host interactions. They have successfully captured the desire for authentic and personalized travel experiences.

2. Glossier

Glossier is a skincare and beauty brand that has gained a dedicated following by prioritizing customer feedback and engagement. They actively involve their customers in product development and marketing decisions which in turn creates a sense of community and loyalty.

3. Chubbies

Chubbies is a men’s clothing brand known for its customer-centric approach and engaging marketing campaigns. They prioritize understanding their target audience and creating a sense of community through social media and events, gathering a loyal customer base.

These brands have leveraged customer-centric marketing strategies to differentiate themselves in their respective industries and build strong relationships with their customers.

Why Do We Need Customer Centric Marketing?

Did You Know: According to a study by Deloitte , customer-centric companies are 60% more profitable compared to companies that are not focused on the customer.

Customer Centric Marketing is important for several reasons:

Build Stronger Relationships

By focusing on the needs and preferences of your customers, you can build stronger relationships with them. This can result in referrals and customer loyalty.

According to a study by Nielsen, 92% of consumers trust recommendations from friends and family over all other forms of advertising.

This indicates that building strong relationships with customers and generating positive word-of-mouth referrals can significantly impact a brand’s reputation and success.

These measures would cultivate loyal customers who are more likely to recommend the brand to their network, leading to increased customer acquisition and growth.

Increase Revenue

A customer-centric approach can lead to increased revenue. You can tailor your products and services to meet those needs. This leads to increased sales and customer satisfaction index in the long run.

Improve Customer Retention

Customer-centric approach results in improved customer retention. Happy customers are more likely to stay with your business and continue to make purchases.

According to research by Frederick F. Reichheld of Bain & Company , increasing customer retention rates by just 5% can lead to a profit increase of 25% to 95%.

This statistic underscores the significance of customer retention and the financial impact it can have on a business.

By prioritizing a customer-centric approach, businesses can enhance customer satisfaction, loyalty, and overall retention rates, which can ultimately contribute to improved profitability and long-term success.

Gain a Competitive Advantage

A customer-centric approach can help you stand out from your competitors. By understanding your customers better than your competitors, you can create more relevant marketing messages.

Listening to their pain points and feedback can also help you advance your products, and services before your competitors.

Reduce Costs

By following the fundamental steps of a customer-centric approach, you can reduce marketing costs. When you know what your audience wants, you can devote resources to selective strategies instead of doing hit-and-trial with ineffective campaigns.

3 Ways to Get Started With Customer Centric Marketing

Get to know your customers a little better.

Conduct market research and gather data to gain insights into your customers’ needs, preferences, and behavior. Use customer feedback surveys , and social media monitoring, to gather information about your target audience.

TIP: Conduct surveys to get insights into customer behavior, needs, and challenges. Ask specific questions in the survey about their requirements, their experiences with your or competitors’ services, and areas to improve your solutions.

[ Try it out ]

Create a Customer-Centric Website

A customer-centric website is one designed and optimized to provide a seamless and personalized user experience that caters to visitors’ needs and preferences.

This can be achieved by making your website interactive instead of delivering one-way messaging. But how to do that? Creating interactive content for your website is not at all tough. For example, you can add a quiz to your homepage for your visitors.

Step 1: Make a quiz using a no-code quiz maker.

Step 2: Embed it on your website.

There are different types of interactive content you can play with like calculators , quizzes , surveys, product recommendations , etc. based on your requirements.

Tip – You can use a tool like Outgrow and create all kinds of interactive content in one place . It has a variety of tools to boost your marketing strategies and make your brand stand out.

You can check out Outgrow’s premade templates, customize them, and make your own within minutes!

Leverage User-Generated Content

This refers to the practice of utilizing content created by customers or users of a product or service to enhance marketing and promotional efforts. This can include customer reviews, testimonials, social media posts, photos, videos, and other forms of user-generated content.

By incorporating user-generated content into marketing strategies, businesses can amplify social proof, build credibility, and engage their audience by showcasing authentic experiences and opinions of their customers. Collaborating with marketing agencies in Dubai can further enhance these efforts, bringing professional expertise to refine and maximize the impact of user-generated content.

Customer-Centric vs Product-Centric

5 Ways to Succeed With Customer-Centric Marketing

1. create personalized experiences to wow your customers.

Use customer data to personalize your interactions with customers. Address them by name, recommend products and services based on their past purchases, and tailor your communication to their preferences.

Let’s say you have an online retail store that sells custom clothing and accessories . You have a customer named Sarah who has made multiple purchases in the past, including linen dresses , handbags, and shoes. You can gather and analyze this customer data to personalize your future interactions with Sarah.

1. Personalize emails and chatbot and text messages 2. Recommend products through quizzes or based on past purchases 3. Tailor offers to their preferences By personalizing your interactions with Sarah, you provide a more tailored and relevant experience. This increases the chances of engaging Sarah, enhancing her satisfaction, and potentially leading to future purchases.

READ MORE: Want to learn how to do personalized marketing for your customers? Check out our detailed blog on it!

2. Use customer feedback to shape new offerings

As we discussed earlier in the blog, another great way to customer centricity is creating surveys that talk directly to customers. A survey that is designed to capture users’ interests and pain points can work wonders for your marketing strategy.

However, creating a survey is not enough. You should ensure that the data which is being collected from the customers is being analyzed and their feedback is valued and implemented. Sounds like too much work? Well, you won’t have to analyze all the data manually if you use a smart survey tool. A survey maker like Outgrow comes with powerful analytics, automation, and integration features to do the hard and smart work for you.

In fact, it also comes with multiple premade templates that you can customize with a few clicks. The bonus point is that you can try out the all-rounder Outgrow survey maker or form builder for free !

Once you’ve published a survey with Outgrow, its detailed performance could be measured under the Analyze tab. You can view total visitors, traffic, and other user details under this section. Additionally, for capturing feedback in physical locations, consider implementing a Windows Kiosk for feedback, to seamlessly gather insights from customers on-site.

Want a step-by-step guide? Check it out here: How to Create a Survey in 5 Minutes

3. Ensure Easy Customer Support

In today’s digital age, providing easy and accessible customer support is crucial for businesses. Customers expect quick and convenient ways to get their questions answered and issues resolved. One effective way to achieve this is by leveraging chatbots.

They can be integrated into websites, messaging apps, or social media platforms, allowing customers to engage in real-time conversations and receive instant assistance.

By implementing chatbots for customer support, businesses can offer several benefits:

• 24/7 Availability
• Instant Responses
• Consistency and Accuracy
• Scalability
• Cost Savings

If you want to try out chatbots that can be easily integrated into multiple platforms, take a look at the Outgrow chatbot that now comes with the power of AI.

Check It Out Here – How to Build Chatbots Using No-Code Chatbot Builder

4. Keep an eye on trends, but don’t just follow the crowd

To stay one step ahead of the competition, you need to be able to identify new trends in your industry and then act on them before anyone else does. If you want to stand out, position yourself as an expert who can provide valuable information on upcoming technologies or strategies.

Ask yourself questions like “What is the latest trend in my industry that could potentially be profitable for my customers?”

One such example is Mint.

Establishing a presence in a highly competitive niche like personal finance (or any popular niche) can be intimidating for a new startup.

However, Mint, a financial tracking tool, demonstrated that it is indeed possible to differentiate yourself in a crowded market by implementing effective online marketing strategies.

Despite being less well-known compared to its more established competitors, Mint adopted a digital strategy that involved creating numerous top-notch content pieces, including informative blog posts and engaging infographics such as “ A Dude’s Guide to Not Going Broke during Wedding Season .” Through their dedicated digital marketing efforts, Mint successfully cultivated a large online audience, eventually leading to its acquisition by Intuit for an impressive $170 million.

5. Choose the right performance metrics

It’s easy to get caught up in the endless stream of data about your business and customers.

But what are you analyzing with the help of this data?

Are you measuring the right things?

Are you looking at the right metrics?

If not, you might be missing out on some big opportunities.

The 3 most important performance indicators are NPS, CSAT, and CES when it comes to being customer-centric. Let’s understand them in a detailed way.

Net Promoter Score is a metric that measures customer loyalty. It’s a way to know how likely your customers are to recommend you to others and continue doing business with you. It’s calculated by asking the customers a simple question – “On a scale of 0-10, how likely are you to recommend our company/product to your friends/colleagues?”

You can conduct an NPS survey to get the customers’ data and then calculate NPS scores.

How to calculate NPS:

NPS is calculated by subtracting the percentage of customers who respond to the NPS question with a score of 6 or below (referred to as ‘detractors’)from the percentage of customers who answer with a score of 9 or 10 (referred to as ‘promoters’).

NPS scores can range from -100 to +100.

The scale for evaluating NPS scores is as follows:

• NPS Score above 0: Indicates that the business has more promoters (customers who are likely to recommend) than detractors (customers who are less likely to recommend), and is generally seen as positive.
• NPS Score above 50: This signifies a strong customer base and high levels of customer satisfaction, indicating that the business has a significant number of promoters.
• NPS Score above 70: Considered exceptional and represents an outstanding customer experience. This suggests a highly loyal customer base with strong advocacy.

The Customer Service and Support (CSAT) portion of the marketing mix is often ignored by companies however, deserves much more attention.

This can include answering any questions that your customers may have about your product or service, solving problems, resolving complaints or simply being available for customers who need assistance.

CSAT scores are typically measured through customer surveys or feedback mechanisms where customers rate their satisfaction with the support they received. The survey questions usually ask customers to rate their experience on a scale, such as 1-5 or 1-10, with a higher score indicating higher satisfaction.

How to calculate CSAT:

When calculating CSAT scores, we initially aggregate the number of customers who selected “satisfied” or “very satisfied” (or similar numeric values). Subsequently, we divide the sum of these responses by the total number of survey responses, and finally, multiply it by 100 to express it as a percentage.

Although a score of 90% or above is considered good, it is crucial to constantly strive for improvement and aim for even higher scores.

Regularly analyzing customer feedback, identifying areas for improvement, and implementing corrective measures can help businesses enhance their customer service and support performance. You can also train your staff with the latest helpdesk tools, call center software and live chat platforms to improve the CSAT score of your organization. Ultimately, the goal is to provide exceptional customer experiences and exceed customer expectations.

The customer effort score indicates how much effort customers put into understanding and using your products and services or resolving their queries. Customers score it on a numeric scale, and the better your score, the less effort they have to expend.

The calculation involves presenting a survey to customers and asking a simple question – “How easy was it for you to use our services?”. We usually ask this question on a 5 or 7-pointer scale, including relevant phrases like “extremely difficult” or “extremely easy”. Lower numbers indicate easy/low effort, while higher numbers suggest more effort.

Although there is no universally defined threshold for a “good” CES score, businesses generally strive to achieve a CES score lower than their previous scores.

Comparing your CES score with competitors can help provide context and identify areas for improvement.

To develop an effective customer-centric strategy, it is crucial to gain a deep understanding of your customer base. To meet this requirement, you need to diverge from traditional marketing approaches and, instead, prioritize being attuned to their needs and preferences.

If your goal is to prioritize your customers and make them feel valued, it is essential to enhance interactivity in your brand and communication channels. By creating more interactive experiences, you can foster engagement, gather valuable feedback, and demonstrate a genuine commitment to meeting your customers’ expectations.

And, the best one-stop solution for going interactive is using tools like Outgrow !

If you want to create some interactive pieces for your website, sign up for a 7-day free trial and see your customers stick!

By implementing the following strategies, you can guarantee that you are effectively following customer-centric marketing, thereby enhancing the customer experience and driving business success.

1. Regularly gather customer feedback.

2. Develop buyer personas and customer journey maps.

3. Use data analytics to track customer behavior.

4. Prioritize customer needs and preferences.

5. Provide excellent customer service.

6. Continuously improve.

You can create an interactive website by utilizing embedded tools like surveys, calculators, and product recommendations.

While a product-centric approach focuses on the product and its features, a customer-centric approach prioritizes understanding and meeting the needs and preferences of the customer.

The seven pillars of customer-centricity are customer understanding, customer experience, customer-focused culture, customer feedback, customer lifetime value, customer advocacy, and customer-centric metrics. By implementing these pillars, businesses can create a culture and operations that prioritize and meet the needs of their customers.

Customer-centric tools are software and technology solutions that can help businesses improve their customer engagement, experience, and relationships. By leveraging these tools, businesses can gain a better understanding of their customers, personalize marketing and communication, and provide a seamless and positive customer experience. One of the customer-centric tools to try out is Outgrow.

Prajwal is a full-time content marketer at Outgrow. With strong expertise in thorough research, he loves to stay up-to-date with the latest marketing trends and technological developments.

Similar Posts

Email Marketing Trends You Can’t Ignore in 2023 and Beyond 

Give this blog a read if you want to make your email marketing game creative and successful with the best email marketing trends of 2023!

Step By Step Guide to an SEO Competitor Analysis for Your Ecommerce Site

Step By Step Guide to an SEO Competitor Analysis for Your E-commerce Site SEO is critical for eCommerce businesses looking to stand out from their competition. An SEO competitor analysis will allow you to learn from your top SEO competitors’ strengths and weaknesses for your own SEO strategy. Competition in the eCommerce industry has never…

Repurposing Your Content – What You Need To Know

Repurposing Your Content – What You Need To Know How can you ensure a steady flow of published content and increased brand recognition? You guessed it- Repurposing Content! This blog entails how you can repurpose your content and gives out tips as well. Content creation is one of the leading tools of digital marketing, but its…

5 Underrated Content Marketing Platforms

5 Underrated Content Marketing Platforms This post is for those of you who go, “Dear internet, this is what I have to say…” but don’t know where to start. Or those of you who’ve already exhausted the ‘key channels’ by sharing your creation over and over again. Here we are, to bring to you a…

Personal Branding Examples – How to Use Brand for Business Success

Personal Branding Examples – How to Use Brand for Business Success Every marketer wants to get personal branding right but only a few are actually able to build a noticeable brand presence that helps them propel their business. Reason? Most personal branding lessons and ideas you’ll find out there are based on reverse engineering cases…

QR Code Uses: 14 New Ways to Grow Your Business

Looking for new ways to grow your business revenue and brand value? Unlock 14 creative QR code uses to take your business a level up today.

Leave a Reply

You must be logged in to post a comment.

Marketer of The Month Podcast- EPISODE 216: Agility in the Market: BNP Paribas’ COO Sophie Heller on How to Transform a Market Approach

Marketer of the month podcast- episode 215: user-centric marketing: bunq’s chief of staff bianca zwart on how to build across diverse markets, quick links.

Website Calculator

Form Builder

Survey Maker

Acquire Customers

Increase Conversions

Increase ROI

Increase Sales

© 2024 Outgrow

Customer-centric strategy driving innovativeness and business growth in international markets

International Marketing Review

ISSN : 0265-1335

Article publication date: 22 February 2022

Issue publication date: 30 August 2023

The motivation for this study comes from decision making related to strategic marketing orientations in international markets. The authors examine if customer orientation and customer relationship orientation perform as two distinct constructs in driving firm innovativeness, and how together they support business growth among export firms. This study aims to suggest a customer-centric strategy for export firms that drive innovativeness and growth.

Design/methodology/approach

An international corporation specialized in company information services provided a list of the contact information of Italian companies. The authors sent an email request to respond to an online survey and received 416 effective responses from firms operating in export markets. The authors propose and empirically test a model in which customer orientation, customer relationship orientation and innovativeness predict business growth. This model controls for the effects of firm size, industry and customer type (B2B vs. B2C).

The study findings suggest that customer orientation and customer relationship orientation are two distinct strategic orientations driving innovativeness. However, they do not directly affect business growth. Instead, they require the innovativeness of an exporter to materialize as business growth.

Practical implications

The results of the study recommend business strategies focusing not only on customer needs and satisfaction but also on retaining current customers and building customer relationships in international markets. Firms can learn from international customers and develop effective customer-centric strategies to spread the acquired information into the internal decision-making as it contributes to firm innovativeness and business growth in international markets.

Originality/value

This study is one of the pioneering studies combining customer orientation and customer relationship orientation, showing their theoretical and empirical divergence. This study is also among the first which tests how the two strategic orientations together with innovativeness promote business growth among export firms. The authors add understanding of the synergistic effects both of using customer information and developing deeper relationships on firm innovativeness and performance among exporters.

• Strategic marketing orientations
• Customer orientation
• Customer relationship orientation
• Innovativeness
• Business growth

Tuominen, S. , Reijonen, H. , Nagy, G. , Buratti, A. and Laukkanen, T. (2023), "Customer-centric strategy driving innovativeness and business growth in international markets", International Marketing Review , Vol. 40 No. 3, pp. 479-496. https://doi.org/10.1108/IMR-09-2020-0215

Emerald Publishing Limited

Copyright © 2022, Sasu Tuominen, Helen Reijonen, Gábor Nagy, Andrea Buratti and Tommi Laukkanen

Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

Introduction

Firms seeking growth are increasingly turning their attention to export markets when domestic markets saturate. However, firms need to decide whether to offer the same products and services regardless of borders, or to attempt new ideas and come up with new products and services to better satisfy customers' needs outside domestic markets; the latter calls for a decision to focus on a customer-centric strategy and innovativeness. Indeed, to achieve superior performance in an international market, a venture needs to develop capabilities that create value for foreign customers via products and services that satisfy their needs ( Lu and Beamish, 2001 ). For example, a study of technological exporters shows that firms need to focus simultaneously on the development of innovations and on understanding current and future customer needs to achieve high export performance ( Hortinha et al. , 2011 ). Therefore, to quote Peter F. Drucker (1954) : organizations require two essential basic functions: ‘marketing and innovation’, which applies especially to exporters.

Since the 1990s, a plethora of research examines different strategic orientations and their performance effects in different business contexts ( Grinstein, 2008 ). However, more research is needed on how different strategic orientations or a combination of these affect business performance especially in international markets ( Cadogan, 2012 ).

Also, the relationships between different strategic orientations are far from coherent or unresolved in literature ( Im and Workman, 2004 ; Tajeddini, 2010 ). This causes complexity in exporters' decision-making: how to balance between different strategic marketing orientations in international markets?

Firms may pursue different strategic orientations (e.g. market, sales, brand, technology, entrepreneurial and employee) or a combination of these. According to the strategic choice perspective, there is no universally beneficial strategic choice, and strategic orientations therefore require development that considers external opportunities and threats ( Zhou et al. , 2005 ). Consequently, different environments may need a specific strategic resource deployment that results in superior business performance ( Venkatraman and Prescott, 1990 ). For exporters, which strategic choice they invest in is a crucial decision, especially as international marketing decisions are critical for international marketing success ( Hughes et al. , 2019 ). When pursuing their goals, international entrepreneurial firms decide about how to effectively balance strategic orientations to mobilize resources ( Oviatt and McDougall, 1994 ; Li, 2013 ) which, however, is often a mixture of rational planning and intuitive improvisation ( Hughes et al. , 2018 ). For an effective identification and exploitation of international opportunities, it is necessary to have strategic orientations that support the sensing of opportunities with respect to target markets ( Navarro et al. , 2010 ) and engage in proactive exploration of opportunities by strengthening activities that help a firm achieve consistently superior customer experience and long-lasting customer relationships ( Payne and Frow, 2005 ).

We argue that together with customer orientation customer relationship orientation constitute a strong customer-centric view of marketing strategy that aims to “make the best use of customer information to better manage customer value and firm profitability” ( Aksoy et al. , 2008 ). Customer-centric marketing strategies originate in customer and market orientation, which takes customer preferences into account in value creation ( Sheth et al. , 2000 ). This is essential, especially among companies operating in international markets, because customer orientation enables firms to enter new markets successfully ( Park et al. , 2017 ; Jantunen et al. , 2005 ). Indeed, customer and market knowledge may become critical for shaping international marketing strategy, because they also enable firms to make better decisions regarding the standardization or adaptation of international marketing programs ( Katzikeas et al. , 2006 ; Boso et al. , 2012 ). Decision making regarding marketing mix standardization vs. adoption in international markets has become a subject of significant debate because of its antecedents and performance outcomes ( Theodosiou and Leonidou, 2003 ).

However, this study argues that focusing solely on identifying and satisfying customer needs may not be enough; instead, firms should also pay attention to the culture, values and activities that enable them to build long-lasting customer relationships. Such a strategic emphasis on the relationships of a firm refers to customer relationship orientation ( Jayachandran et al. , 2005 ). Recent literature proposes that the interactions between the buyer and seller are considered the most valuable channel of customer knowledge that firms may utilize in decision making ( Tseng and Wu, 2014 ; Salojärvi et al. , 2015 ).

This study further suggests that the performance effects of customer-centric strategies may fully materialize only in association with mediators such as innovativeness. The literature suggests that customer relationships bring about ideas which may then facilitate the development and decision making of product innovations (e.g. Walter et al. , 2001 ; Salojärvi et al. , 2015 ) that are regarded as a necessity to enjoy enhanced business performance, especially among export firms in highly competitive international markets ( Boso et al. , 2013 ; Efrat et al. , 2016 ). Along with market orientation, innovativeness is one of the key strategic orientations in the marketing literature. Although customer orientation is widely perceived as a driver of innovation ( Wang et al. , 2016 ), previous studies also find conflicting results concerning whether there is a significant relationship between customer orientation and innovativeness ( Tajeddini, 2010 ). It is therefore necessary to test whether the relationship marketing paradigm challenges the traditional models of innovativeness and performance (see e.g. Woodside, 2004 ; Hurley et al. , 2005 ). For export firms, the critical question regarding decision making is: is it worth adopting a customer-centric strategy, and how does it affect business growth?

To the best of our knowledge, customer orientation and customer relationship orientation have not been examined simultaneously on innovativeness and performance in export markets. This study seeks to establish whether customer relationship orientation together with customer orientation enables innovativeness that in turn enhances growth among exporters. The role and effectiveness of customer orientation or customer relationship orientation on innovativeness and performance remains unknown or has not been consistently demonstrated in previous empirical findings (e.g. Noble et al. , 2002 ).

This study therefore contributes to the existing literature in several ways. First, it provides evidence concerning how customer-centric strategies contribute to innovativeness and business growth among exporters. Second, it further studies the role of innovativeness between the effects of the customer and customer relationship orientations on the business growth which researchers have called for (e.g. Joshi, 2016 ; Chen et al. , 2018 ). Third, this study provides evidence that the two different orientations forming customer-centric strategies, namely customer orientation and customer relationship orientation, are empirically distinct concepts, and that they simultaneously affect innovativeness and firm performance.

Against this background, the rest of the paper proceeds as follows. First, it introduces the study's theoretical background and research concepts. Second, it develops the conceptual model and research hypotheses. The third section describes the questionnaire, data collection and methods. Fourth, the paper reports findings and draws conclusions. Finally, it discusses limitations and potential directions for future research.

Theoretical background

Since the 1990s, the paradigmatic shift from transactional to relationship marketing has revealed the importance of customer knowledge and interaction in the creation of business value. However, the creation of profitable customer relationships often assumes the need for more versatile customer information than traditional transactional marketing can provide ( Davenport et al. , 2001 ; Gebert et al. , 2003 ; Rollins et al. , 2012 ). Several studies (e.g. Gustafsson et al. , 2005 ; Rust and Zahorik, 1993 ) report that satisfaction positively affects customer retention, which in turn yields a positive impact on a firm's financial gains ( Edvardsson et al. , 2000 ). It is thus evident that such customer-centric strategies may also provide valuable customer insights for exporters and various business development purposes such as product innovation ( Camarero, 2007 ; Walter et al. , 2001 ).

The emphasis of customer relationship management (CRM) on satisfying and retaining customers requires that firms actively work toward understanding and fulfilling customer needs, and constantly evaluate and invest in customer relationships ( Grönroos, 1994 ). Consequently, satisfying and retaining current customers represent the fundamental objective of relationship marketing ( Ahmad and Buttle, 2001 ; Grönroos, 1994 ; Gustafsson et al. , 2005 ). Firms exhibiting high levels of customer relationship orientation should therefore be able to retain their customers, given that the entire organization is oriented toward such a goal.

Customer relationship management activities help a firm collect and use customer and market data to build a consistently superior customer experience and long-lasting customer relationships ( Payne and Frow, 2005 ). Various knowledge management technologies and CRM tools can be applied in gathering information, and for marketing and sales purposes, which also enables more individual interactions with customers ( Shoemaker, 2001 ). As a firm grows larger, more resources are available to build this database and related analytical tools, which can be used for customer profitability analysis and to calculate the lifetime value of a customer ( Dowling and Uncles, 1997 ).

Customer orientation can be considered a search routine that incorporates customer expectations and preferences in new product development and product (offering) modifications (i.e. innovativeness). It also promotes closer interactions with customers, enhancing incremental improvements that move products toward optimal levels of quality, features and costs ( Voss and Voss, 2008 ). Firms' relationships with customers thus have innovation and scout functions that help them develop process and product innovations by obtaining ideas from customers and having access to information about how markets are developing ( Walter et al. , 2001 ).

Hence, the development and implementation of customer information into CRM activities are keys to developing customer-centric and innovation capabilities. It follows that the effective use of market information with the organization could directly affect the CRM ( Javalgi et al. , 2006 ). Customer focused organizations emphasize the increasing importance of customer satisfaction and loyalty, which stimulate firms to seek organizational ways to better serve their customers. Therefore, CRM helps a firm develop strong ties with customers and achieve customer loyalty. Hence, loyal customers are more profitable than disloyal customers ( Dowling, 2002 ). In their work, Javalgi et al. (2006) contend that the interrelationships between satisfaction, loyalty, retention and profitability are consequences of strong customer-orientated capabilities.

Hypotheses development

Customer orientation and customer relationship orientation.

Customer orientation is an organization-wide philosophy that sets customer needs and interests first ( Deshpandé et al. , 1993 ). As one of the three components of market orientation, customer orientation involves the activities of gathering customer information and disseminating it throughout the organization ( Narver and Slater, 1990 ). It is rooted in firm processes and management practices as it covers a variety of activities related to generating and processing information regarding existing customer needs ( Kohli and Jaworski, 1990 ). Customer orientation thus refers to an organization-wide focus on assessing and meeting customer needs ( Green et al. , 2007 ; Appiah-Adu and Singh, 1998 ), with the emphasis on customer understanding and satisfaction ( Appiah-Adu and Singh, 1998 ).

Previous studies analyze customer orientation at the organizational (e.g. Strong and Harris, 2004 ) and individual (e.g. Macintosh, 2007 ) levels. Studies at the organizational level are associated with market orientation and firms' behavior regarding their customers, while at the individual level, the focus is on the interpersonal contact between employees and customers and on employees' customer-oriented behavior and attitudes ( Stock and Hoyer, 2005 ). Such studies show that high levels of customer orientation precede entry into international markets ( Dess et al. , 1997 ; Jantunen et al. , 2005 ; Ripollés et al. , 2012 ). To do this, customer-oriented firms constantly scan and monitor the customer needs of international markets for new opportunities and strengthen their competitive positions in them ( Covin and Miles, 1999 ; De Clercq et al. , 2005 ). Customer orientation may thus assist decisions regarding the standardization or adaptation of international marketing strategy ( Katzikeas et al. , 2006 ). According to Vrontis (2003) , customer orientation may encourage firms to use an adaptation strategy, because this enables firms to respond more easily to export customer needs and preferences, thus allowing them to benefit from market tailoring.

In line with Salojärvi et al. (2015) , we argue that customer and customer relationship orientation are two distinct concepts. Customer relationship orientation refers to an organizational culture that considers customer relationships as valuable assets ( Jayachandran et al. , 2005 ). It is rooted in the organization's mindset, values and norms, and affects every interaction a firm has with its customers ( Day, 2000 ). It also focuses on shared values that are consistent with CRM and related to the organization of the firm around customers and their needs, as well as the incentives that help the firm focus on CRM ( Jayachandran et al. , 2005 ). In this sense, customer relationship orientation enables CRM activities. In a customer relationship-oriented firm, employees acknowledge the importance of customer retention, share customer information freely and serve customers slightly differently according to the potential value they are expected to bring to the firm in the future ( Day, 2003 ).

While we argue that customer and customer relationship orientation are two clearly separated concepts, they are strongly linked. Customer relationships are focal in a marketing concept, which in turn forms the foundation of market orientation ( Grönroos, 1989 ). Yet, the relational perspective is missing from the dominant conceptualizations of market orientation ( Helfert et al. , 2002 ), and hence of customer orientation as a component of it. However, customer orientation forms one of the philosophical bases of CRM ( Ryals and Knox, 2001 ) that is considered an effective approach for gathering, analyzing and converting customer information into managerial action ( Ernst et al. , 2011 ).

Customer orientation has a positive effect on customer relationship orientation.

Customer orientation, customer relationship orientation and innovativeness

This study further hypothesizes that customer orientation and customer relationship orientation enhance innovativeness. Innovation refers to the generation, approval and realization of new ideas, products and services and processes ( Calantone et al. , 2002 ). Hurley and Hult (1998) suggest that innovation consists of two components, namely innovativeness and the capacity to innovate. Innovativeness refers to the aspect of a firm's culture that relates to its openness to new ideas. Meanwhile, the capacity to innovate refers to the firm's ability to successfully adopt or implement new ideas, processes and/or products or services. This study focuses mainly on the aspect of innovativeness. According to Lumpkin and Dess (1996) , innovativeness reflects a firm's willingness to support new ideas, creativity and experimentation in the development of offerings to customers ( Lumpkin and Dess, 1996 ). Furthermore, organizational innovativeness is the degree to which a firm deviates from existing practices in creating new products and/or processes ( Deshpande et al. , 1993 ).

For example, Wang et al. (2016) state that customer orientation is a driver of innovation. As firms pursue a better knowledge of their customers and subsequently use this information to provide them with the products and services that best meet their needs, they probably need to focus on innovating to achieve this goal – that is, their current processes, products and services may be enough to satisfy current customer needs, but quickly fall short when needs change and grow more complex. A better understanding of customers therefore serves as an incentive for developing innovativeness to keep up with customer needs. While there are also conflicting results ( Tajeddini, 2010 ), the findings of Theoharakis and Hooley (2008) show that customer orientation consistently leads to higher levels of firm innovativeness across countries. Moreover, prior research shows that customer orientation positively affects service and product innovations in service and manufacturing firms ( Wang et al. , 2016 ), and the innovativeness of international joint ventures ( Park et al. , 2017 ). It also serves as an enabler of Born Globals' innovativeness ( Kim et al. , 2011 ). In particular, for firms operating in turbulent international environments, nurturing customer relationships is particularly important ( La Rocca and Snehota, 2014 ; Navarro et al. , 2010 ), because an effective product/service development can complement international customer relationships by enhancing mutual understanding and benefits in customer relationships ( Ngo and O'Cass, 2012 ; Smirnova et al. , 2011 ).

Furthermore, besides the firm coming to appreciate the need for innovativeness due to its own active study of customer needs, customers can similarly be active in encouraging firms to focus more on innovating. For example, Walter et al. (2001) note that firms' relationships with customers have innovation and scout functions that help them develop process and product innovations by obtaining ideas from customers and accessing information about how the markets are developing (see also Alam, 2006 ; Battor and Battor, 2010 ). The recent literature has also suggested the mediating role of innovations between customer relationships and business performance, especially in services ( Chen et al. , 2018 ). Ernst et al. (2011) found that CRM has a strong positive impact on new product performance which in turn acts as a mediator between CRM and firm's financial performance.

Customer orientation has a positive effect on innovativeness

Customer relationship orientation has a positive effect on innovativeness

Innovativeness and business growth

This study also includes business growth in its conceptual model. It represents a financial performance measure, and this study uses it to indicate change in annual turnover. Weinzimmer et al. (1998) argue that change in turnover is the most neutral approach when the data at hand include firms from different industries and with different characteristics. Turnover growth may result from various sources such as higher prices charged to customers, increased market share or a greater share of the wallet, or all these together. Importantly, higher prices, for example, allow firms to grow in terms of sales, although employees or assets remain the same ( Weinzimmer et al. , 1998 ).

The basic objective of innovation is to achieve a sustainable competitive advantage by creating innovations that include important and attractive elements, while excluding those that are trivial and undesirable in potential customers' value chain ( Lengnick-Hall, 1992 ). Empirical research by Calantone et al. (2002) , Agarwal et al. (2003) and Theoharakis and Hooley (2008) , among others, shows that firm innovativeness is positively related to business performance. Specifically, innovativeness helps a firm to better respond to the needs of its customers. It also shows them that it actually utilizes customer information and strives to use this information for the customers' benefit. Innovating based on customer information is likely to enhance customer retention and ensure customer satisfaction. Innovations also help in acquiring new customers. In turn, this should show in the bottom line.

Innovativeness has a positive effect on business growth

To account for potentially confounding factors, this research controls for the effects of firm size, industry and type of main customers (B2B vs B2C) (see Figure 1 ).

Measurements and research data

We used five items from Farrell et al. (2008) to measure customer orientation. The scale items measure the firm's objectives, commitment and strategy toward customers' needs and customer satisfaction. Regarding customer relationship orientation, we used a four-item measurement scale adapted from Jayachandran et al. (2005) . This scale follows an organization cultural perspective; that is, it stresses the attitudes and values of the firm toward customer relationships. Furthermore, the scale items emphasize the role of both employees and firm managers in managing a firm's customer relationships, allowing the evaluation of the overall importance that the respondent firms attach to customer relationships. For innovativeness, we utilized the six-item firm innovativeness scale that Calantone et al. (2002) propose. Among other things, the scale items focus on whether a firm actively tries new ideas and exhibits creativity in its operations. The anchors of a seven-point Likert scale range from ( 1 ) = totally disagree to ( 7 ) = totally agree for both strategic orientations. For business growth, we used a five-point scale with opposite ends denoting ( 1 ) = significantly decreased and ( 5 ) = significantly increased, asking the respondents to indicate how their annual turnover had developed.

Data collection

A large commercial database administered by an international corporation specializing in company information services provided the company contact information for the study. An email invitation was sent to 50,000 Italian firms requesting a response to an online survey which received 778 complete responses, of which 416 were export firms. This low response rate may result from (1) the contact information list including many incorrect or outdated email addresses, and (2) the antispam filters many firms have in place that categorize various surveys as junk mail. Furthermore, as Sheehan (2001) notes, response rates to email surveys have steadily decreased over time. Table 1 summarizes the characteristics of the respondent firms.

Non-response bias

Given the low response rate, we studied the potential non-response bias for the main data set of 778 complete responses, applying the linear extrapolation method ( Armstrong and Overton, 1977 ). To classify the respondents, we followed the time trends approach, categorizing the first quarter of the respondents (based on the order in which they answered) as early respondents ( N  = 195) and the fourth quarter as late respondents ( N  = 195). We then compared the two groups against each other in relation to the 16 research variables, using an independent samples t -test. We find statistically significant differences ( p  < 0.05) between early and late respondents only among three measure items. We further tested non-response bias in the final structural model ( N  = 416) with multi-group analysis in which we compared the model of the first quarter (early respondents; N  = 104) across the model of the fourth quarter (late respondents; N  = 104) of the respondents. The Chi-square test shows the models are invariant with p  = 0.178. There is therefore reasonable evidence that non-response bias does not represent a major issue in this study.

Construct validity

We carried out confirmatory factor analysis (CFA) to establish a measurement model and validate the research constructs. After removing two measurement items (INN 5, INN 6) due to low factor loadings, all factor loadings are significant at p  < 0.001, and all standardized factor loadings exceed 0.70 ( Table 2 ). Finally, we tested for multicollinearity with variance inflation factors (VIF). The low VIF values (ranging from 1.36 to 1.87) suggest that multicollinearity is not a concern in this study.

To assess discriminant validity, we compared the square roots of average variance extracted (AVE) value with the inter-construct correlations ( Fornell and Larcker, 1981 ). The data support discriminant validity, because the square root of AVE is greater than the correlations of other constructs ( Table 3 ). Furthermore, the AVE values exceed the 0.50 threshold, and the composite reliability values all exceed a level of 0.80, indicating good convergent validity. The results therefore indicate that customer orientation, customer relationship orientation and innovation orientation are truly distinct constructs. Finally, we used a common latent factor approach in CFA ( Podsakoff et al. , 2003 ) to assess common method variance. We allowed items to load their theoretical constructs and a latent common method variance factor. We compared the standardized regression estimates with and without a common latent factor, finding no signs of common method bias.

The results in Figure 2 show that customer orientation significantly affects customer relationship orientation ( β  = 0,72), p  < 0.001) and firm innovativeness ( β  = 0.41), p  < 0.001) supporting H1 and H2 . The results further confirm H3 , because customer relationship orientation significantly affects firm innovativeness ( β  = 0.20), p  < 0.01). Moreover, the results demonstrate that an export firm's innovativeness supports business growth ( β  = 0.11), p  < 0.05), confirming H4 .

Concerning the control variables, the results indicate a positive relationship between firm size and business growth ( β  = 0.11), p  < 0.01). Moreover, the model suggests greater growth for B2B exporters than exporters operating in B2C markets ( β  = −0.08), p  < 0.05). Industry, referring to production vs. service firms, does not affect growth.

Following Baron and Kenny (1986) , we tested the possible mediating effect of innovativeness between customer orientation and business growth and customer relationship orientation and business growth. Consequently, we added direct paths from customer orientation and customer relationship orientation to business growth. We find no statistically significant direct effects which indicate that innovativeness is not a pure mediator. This means that neither customer orientation nor customer relationship orientation affects business growth, but they both foster innovativeness, which enhances growth.

Discussion and conclusions

Although significant progress has been made in understanding how different strategic orientations affect growth (and performance) of internationally oriented firms (see Cadogan et al. , 2002 ; Doblinger et al. , 2016 ; Su et al. , 2015 ), we still know little about how different strategic orientations in combination (i.e. customer orientation, customer relationships orientation and innovativeness) affect business growth in international markets. The study implies that – in line with the environment – strategy co-alignment and strategic choice perspectives – effectively combining strategic orientations can help a firm to (1) sense opportunities in international markets ( Navarro et al. , 2010 ; Pinho and Martins, 2010 ), (2) strengthen activities related to building superior customer experience and long-lasting customer relationships ( Payne and Frow, 2005 ) and (3) introduce highly innovative products/services ( Sarasvathy et al. , 1998 ; Li, 2013 ).

In this study, we tested how customer orientation and customer relationship orientation affected firm innovativeness and business growth among export firms. First, we find that customer orientation strongly affects customer relationship orientation, and both these orientations foster firm innovativeness, which in turn boosts business growth. These results suggest that customer-centric strategies are a source of innovations for export firms. This lends further support to previous findings in the literature, showing that customer orientation consistently leads to greater levels of firm innovativeness across countries (e.g. Theoharakis and Hooley, 2008 ) and the importance of customer orientation in the creation of innovations, which in turn contributes to performance ( Kankam-Kwarteng et al. , 2019 ). As a response to proposals in the earlier literature (e.g. Woodside, 2004 ; Hurley et al. , 2005 ), the results of this study also demonstrate the contribution of the relationship marketing approach to innovativeness and performance research.

Second, the empirical data support this study's theoretical reasoning that customer orientation and customer relationship orientation are two distinct constructs of a firm's more generic customer-centric strategy. While customer orientation focuses more on customer needs and preferences, representing more the traditional marketing orientation perspective ( Narver and Slater, 1990 ), customer relationship orientation addresses the relationship marketing approach, focusing on building customer relationships and retaining current customers ( Jayachandran et al. , 2005 ). The previous literature suggests that customer relationships may spark ideas that may then facilitate the development of product innovations (e.g. Walter et al. , 2001 ; Salojärvi et al. , 2015 ). We therefore argue that both these studied orientations play an essential role in the development of firm innovativeness.

Third, this study re-examined the research on the effectiveness of customer orientation on innovativeness and firm performance, especially as the previous studies suggested that the empirical findings did not consistently demonstrate a relationship between customer orientation and firm performance (e.g. Noble et al. , 2002 ). While some studies report a direct positive relationship between customer orientation and business performance (e.g. Zhou and Nakata, 2007 ), some studies report both direct and mediated effects (e.g. Alteren and Tudoran, 2016 ), while others suggest only an indirect effect (e.g. Laukkanen et al. , 2016 ). The findings of this study suggest that customer orientation and customer relationship orientation do not directly affect business growth, but that a customer-centric strategy requires innovativeness to materialize as business growth in export firms. Indeed, the results of this study support previous findings showing that innovativeness is an essential driver of business growth among export firms ( Calantone et al. , 2006 ; Lages et al. , 2009 ). In general, the relationship between export performance and its antecedents is inconsistent, because this may be affected by a firm's strategic capabilities, marketing mix decision and macro-environmental factors ( Hultman et al. , 2009 ). Customer-oriented export firms constantly scan and monitor the customer needs of international markets (for new opportunities) and strengthen their competitive positions in their international markets ( Covin and Miles, 1999 ; De Clercq et al. , 2005 ). Exporters therefore need to utilize customer information by developing products and services that satisfy customer needs ( Reichheld, 1993 ). We add to this, suggesting that customer knowledge may also help in the creation of enduring customer relationships. Indeed, the findings advocate a customer-centric strategy for exporters that may greatly benefit from a focus on building customer relationships and retaining current customers. The customer insights across different markets may become increasingly important in international marketing strategic decisions such as exporters' product and market development purposes, because they foster the success of innovations. In turn, this contributes to exporters' business growth.

Finally, the effects of our control variables also suggest that the growth of exporters benefits from the greater number of employees and B2B markets: the results show that larger firms and those firms operating in B2B markets perform better than smaller firms and those operating in B2C markets. Previous studies have also found a positive relationship between firm size and export business performance (e.g. Wagner, 1995 ; Chetty and Hamilton, 1993 ), although some controversial results also exist (e.g. Moini, 1995 ). It may be that larger firms have more resources to systematically monitor customer needs and satisfaction, build customer relationships and use customer information to innovate and grow. This is in line with the notion of Majocchi et al. (2005) , who suggest that firms must grow sufficiently to gain international market share to be able to properly manage their foreign customers as well. In international marketing research, firm size is often associated with a standardized international strategy ( Tan and Sousa, 2013 ). However, Schilke et al. (2009) have not found evidence that standardization of international marketing strategy would be stronger for firms operating B2B vs. B2C markets. Although the results of this study do not directly indicate the strategic direction between standardization and adaptation, customer-centric strategies have generally been attached more specifically to marketing adaptation ( Vrontis, 2003 ). This could be taken into a consideration in further studies that could investigate whether B2B firms are associated stronger in adaptation strategy in comparison to B2C firms. Furthermore, because B2B markets often involve fewer customers than B2C markets, it may be easier for B2B firms to monitor customer needs and satisfaction, build long-lasting customer relationships in export markets, and thus use this information for innovative and pursuit growth, than it is for the exporters operating in B2C markets.

Managerial implications

The results of this study imply suggestions for practicing managers of international firms on several fronts. We offer insights how a strong customer focus of a firm may benefit the organization to make competitive decisions in export markets.

First, managers need to realize that to create a strong customer relationship orientation, a firm needs to develop a customer-orientated culture within the organization. Because of strong customer–firm relationships, the organization gains first-hand information about changing the customer needs and preferences of international markets that help a firm innovate and provide tailor-made products and services to customers, which in turn positively affects business growth. A firm that is good at developing and maintaining relationships with its key customers is therefore in a good position to satisfy their needs through a successful new product/service development.

Second, the study results highlight a clear distinction between customer orientation (i.e. focusing on customer needs and preferences) and customer relationship orientation (i.e. building long-lasting customer relationships). Our results suggest that managers of export firms should first invest in developing a strong customer orientation within an organization, because it significantly contributes to customer relationship orientation and firm innovativeness. This implies that to implement successful growth strategies, it is essential to understand customer needs and preferences in export markets and build strong relationships with them, which requires distinct attention and resources allocation within the organization. Third, the results of this study imply that strong customer orientation and relationship orientation are necessary, but not sufficient, capabilities for organizational success; however they should be combined with innovativeness so that the firm is able to achieve growth objectives. Managers should also understand that to achieve high growth via customer-centric strategies and firm innovativeness, a firm requires extra resources (i.e. sufficient human capital) that support the deployment of the former capabilities. Finally, understanding the relationship between different strategic orientations enables firms to find a balance that helps them achieve growth in international markets.

Limitations and future research

This study contributes to the literature on relationship marketing, innovations and international marketing, yet at the same time, the reader should be aware of its limitations. Future research would benefit greatly from testing the model using longitudinal data, that is, the role of customer orientation, customer relationship orientation and innovativeness on long-term growth. Furthermore, all the study responses were collected from single respondents in each firm. While such an approach is often the only way to collect data (see Rindfleisch et al. , 2008 ), this study strongly suggests that future research should attempt to collect data from multiple sources, thus reducing the potentially negative effects associated with common method variance.

We also strongly suggest future research to consider addressing only certain types of firms (e.g. business-to-business firms) as such an approach could allow researchers to obtain a more detailed picture of the role of the customer-centric strategies in an international context. In this study, focus was not limited to any specific industry or types of businesses. While this allowed the formation of an overall and not an industry-bound picture of the research constructs, a more focused research framework could better serve the needs of both research and practitioners in specific fields of international marketing. Finally, future research could examine customer-centric strategies more closely as part of product standardization vs. adaptation strategies. In particular, the effectiveness of customer orientation and customer relationship orientation could be applied to product adaptation-performance research. We also suggest that research should continue to study various combinations of strategic orientations, and how they are related to firm performance in export markets.

Conceptual model

Results of the structural model

Company characteristics

CFA results