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Chapter 10: Leading a Customer Centric Strategy

Chapter 10 Learning Outcomes

After reading this chapter, you should be able to do the following:

  1. Describe two challenges leaders encounter while building a customer centric organization.
  2. Describe three things a leader can do to make customer experience a company priority.
  3. Describe three habits of a customer centric leader.
  4. List three characteristics of a strong customer service vision.
  5. State three questions managers can ask employees to determine if they are engaged with the company’s customer service vision.
  6. Describe how to empower employees to deliver excellent customer service.
  7. List three sources for establishing quality standards.
  8. Describe why selecting and tracking the right metrics is critical for understanding and improving customer service operations

Build a Customer-Centric Organization

“The uniquely cross-functional nature of effective customer-experience efforts puts a premium on smart governance. Adequately addressing the challenge requires a dedicated effort on three levels. First, a customer centric leadership structure must ultimately report to the chief executive and should be designed to stimulate cross-department activity and collaboration. Second, leaders must commit to demonstrating behaviors and serving as role models to deliver customer-experience goals to frontline workers and refine and reinforce those goals over the long term. Finally, it is necessary to put in place the correct metrics and incentives that are critical for aligning typically siloed units/departments into effective cross-functional teams.”[1]

Overcome Challenges

Building a customer centric organization takes time and has some challenges. If customer centricity already flows through the DNA of an organization, the challenges will be minimal, but if a company is just beginning to build the customer centric mindset into core values, a few challenges may be encountered. A few of these challenges are listed below.[2]

  • Lack of Buy-In. Executive commitment across the organization is vital, especially when building customer centricity. Leaders need to set the tone and provide resources and support to make things happen.
  • Disparate Data. It can be hard to break down or connect existing silos within an organization. Finding ways to share data and information freely can help ensure nothing about the customer experience is lost in the weeds.
  • Resistance to Change. Certain employee beliefs can hinder customer centricity. For example, designers can be held back by the notion that focusing on the customer takes too much attention away from the product they’re creating. Others may have a “that’s not my job” mentality about taking customers into more consideration. They must be reminded that everyone has a common goal, no matter what their role: delivering the best customer experience.
  • Ineffectual Processes and Tools. Not having the right technology to process customer data and draw actionable insights means you won’t be able to respond to customer needs proactively or otherwise. The right processes are needed to ensure that the customer’s voice is heard and used throughout the organization.
  • Inadequate Employee Support. Building a customer centric culture is not a “set it and forget it” process. It requires daily commitment and a key part of that is empowering employees. People across the organization should feel encouraged to do what’s right for and by the customer. 
A person holding a sign saying "We are here to do better "
A person holding a sign saying “We are here to do better “

Research conducted by customer service provider Arvato revealed that businesses tend to rate the customer experience their company delivers higher than consumers do.[3]

Despite the attention to customer experience that is widely stated in corporate missions, visions, and values, actions speak louder than vision statements. When it comes to resources and budget, CEOs tend to prioritize technology over people or processes. Even when company leaders recognize that customer service could be better, they often will look to the latest technology to provide the solution without delving deeper into customers’ true wants and needs or gathering insights from frontline staff.[4]

Contact center leaders cited poor cross-departmental collaboration and lack of understanding and respect for the center as two of the top three challenges they are currently dealing with, and the number one challenge being agent attrition.[5]

Leaders have a huge impact on building a customer centric culture. The leader must be customer obsessed and share those values and goals with the company employees.  Does the leader walk the talk? Does the leader put customers first?  Are products, services, and processes created with customer needs and wants shaping results? If the company is focused on short-term results or is investing in areas that do not improve the customer experience, employees will observe this and leaders will see behaviours from employees that are not customer focused.  Leaders who want to deliver exceptional customer experiences need to invest in targeted employee incentives that will steer performance toward exceptional service.

Become a Customer-Centric Leader

Watch “A Customer-Centric Culture Needs a Leader” YouTube video below to learn why leadership is so important to creating a customer centric culture.[6] Transcript for “A Customer-Centric Culture Needs a Customer-Centric Leader” Video [PDF–New Tab]. Closed captioning is available on YouTube.

Prioritize Customer Experience

In building a customer centric culture, leaders in customer experience pursue a range of approaches to overcome the complexities of making the customer experience a priority. Several elements form the core of their successful efforts. They include the following:[7]

  1. Set up a dedicated team for customer experience. This allows a company to maintain a continuous focus on customer experience across segments, brands, geographies, and functional areas.
  2. Establish C-suite engagement. Given the cross-functional collaboration required, the CEO must make the customer experience an active priority.
  3. Fit the customer-experience team into the organizational fabric. If not, customer experience transformation efforts may drown in a sea of organizational confusion.

“Disney makes use of a simple leadership framework that links the delivery of business results to customer satisfaction and measures that satisfaction via two key indicators: “propensity to return” to a Disney experience and “propensity to recommend.” Disney’s framing also stipulates that the way to satisfy customers is through engaged employees. For Disney’s business leaders, the logic is clear: their task is to develop excellent employees, who in turn help to create satisfied customers, leading to business results.”[8]

Apply Leadership Principles

To create a customer centric organization, leaders apply the following principles:

  1. Model specific behaviours.  Managers must walk the walk.  Customer centricity is taught to agents and should be supported in the company vision, mission, and values as well as modeled by management.
  2. Foster understanding and commitment among employees and managers. Making a connection between improved customer satisfaction and bottom-line financial results will help all employees understand the importance of exemplary customer service.
  3. Develop capabilities and skills. Train agents in customer centric behaviours, but also train management so they are able to coach and support the team. Hire for fit.
  4. Reinforce behaviours through formal mechanisms. Financial incentives can help, but nonfinancial recognition schemes are more powerful.

Practice the 8 Habits of Customer-Centric Leaders

Leaders who build and sustain customer centric organizations consistently practice certain habits that keep customers at the core of every decision. Refer to Table 10.1 for the top 8 habits of the most customer centric company leaders.[9]

Table 10.1: 8 Habits of Customer-Centric Leaders
Habit Description Action Steps
1. Gather Customer Data Customer-centric leaders collect and use customer insights to understand needs, preferences, and pain points. They see data as the foundation for empathy and better decision-making. Regularly review customer feedback, surveys, and service interactions. Implement customer journey mapping to identify gaps and opportunities. Share data dashboards across teams to keep customer voices visible.
2. Continually Learn These leaders are lifelong learners who stay current with customer expectations, industry trends, and new technologies. They encourage a growth mindset throughout the organization. Dedicate time monthly to review industry reports, emerging trends, and customer insights. Encourage teams to attend learning events and share key takeaways. Build a culture of curiosity by rewarding experimentation and learning.
3. Establish Standards Leaders set clear expectations for how customers should be treated. Standards create consistency, build trust, and ensure every touchpoint reflects the company’s values. Define customer experience standards (e.g., response times, service tone). Train employees to meet or exceed these expectations. Regularly audit interactions to confirm standards are being met.
4. Incentivize Actions Customer-centric leaders align recognition and rewards with behaviors that improve customer experience. Incentives reinforce that customer-first actions matter. Tie employee performance metrics to customer outcomes (NPS, satisfaction). Publicly celebrate employees who go above and beyond for customers. Offer incentives for ideas that improve customer journeys.
5. Promote Cross-Team Collaboration Great experiences rarely come from one department. Leaders break down silos, ensuring marketing, operations, sales, and support work together to deliver seamless customer journeys. Hold cross-department CX meetings to share insights and align priorities. Create shared goals across teams that link directly to customer outcomes. Encourage joint projects that blend skills from different areas.
6. Set the Foundation Customer-centric leaders build the systems, culture, and processes that enable great experiences to happen consistently. They ensure CX is woven into strategy, structure, and values. Define a clear CX vision statement and embed it in company strategy. Invest in infrastructure (CRM tools, service training, customer journey analytics). Align recruitment and onboarding to emphasize customer-first values.
7. Make Customer-Informed Decisions Leaders prioritize decisions based on customer impact. They weigh customer insights as heavily as financial metrics and ensure major initiatives serve customer needs. Require customer data or feedback to be part of every business case. Ask: “What problem are we solving for the customer?” before approving projects. Pilot new ideas with customers before scaling widely.
8. Leverage Design Thinking Customer-centric leaders use design thinking to innovate around customer needs. They apply empathy, experimentation, and iteration to create solutions that truly work for people. Run workshops that involve customers directly in co-creating solutions. Prototype and test new ideas quickly to validate assumptions. Train teams in design thinking principles to embed empathy-driven innovation.

Create a Customer Service Vision

Companies with strong service cultures take the time to clearly define what outstanding service means to them.  They do this in their mission and vision statements, in their employee training, in their advertising, and in the behaviour of their managers and leaders. They ensure their products, services, and processes are designed with consumer wants and needs in mind. Being customer centric means that every department in the company understands that the customer comes first and everything they do is to obtain, retain, and build relationships with customers.

A customer service vision is a shared definition of outstanding service that gets all employees working in the same direction. A strong customer service vision has three characteristics:[10]

  1. It’s simple and easy to understand. A vision should not be too complicated or too long; it should bring clarity so all employees can understand it and act accordingly.
  2. It’s focused on customers. Focusing on profit or expanding market share may be the end goal, but customer centric companies achieve those goals by focusing on their customers.
  3. It reflects who the company is now, and who the company aspires to be in the future. It should be grounded in reality so the vision feels authentic to employees. It’s about what is working for the company now and what the company will build upon in the future.

Company Vision Statements

A person holding a sign saying "Where customers matter"
A person holding a sign saying “Where customers matter”

Amazon – “To be Earth’s most customer centric company, where customers can find and discover anything they might want to buy online.”[11]

Disney – “To make people happy.”[12]

IKEA – “To create a better everyday life for the many people.”[13]

Loreal – “To provide the best in cosmetics innovation to women and men around the world with respect for their diversity.”[14]

Microsoft – “To help people throughout the world realize their full potential.”[15]

Starbucks – “To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.”[16]

Zappos – “To provide the best customer service possible. Deliver ‘WOW’ through service.”[17]

Engage Employees with the Customer Service Vision

Employees need to know that organizational success is defined by the customer service vision. Engaged employees help fulfill the vision with the customers they serve. There are three questions you can ask employees to evaluate employee engagement in a customer centric organization. [18] These include:

  1. What is the customer service vision? Employees need to know it and where it is.  It may be in a book, online, written on a poster, or in some other location.
  2. What does the customer service vision mean? Employees should more than just memorize it, they should be able to explain it in their own words.
  3. How do you personally contribute? Employees should be able to describe how their individual role contributes to fulfilling the vision.

The customer service vision should be formally announced or introduced by the CEO or a high-ranking manager.  Companies must hire for the right fit; hire candidates who agree with or have personal goals aligned with the company vision. Training should then be provided to employees to help them understand how their role aligns with the company’s customer service vision. Ensure employees receive some one-to-one coaching from their immediate supervisor as needed. The goal is to verify that employees can answer all three of the above questions consistently. Finally, empower employees to enable them to provide excellent customer service and care, and be sure that company leaders are demonstrating their belief in the vision through their everyday behaviors, discussions, and decisions they make.

Empower Employees to Deliver the Customer Service Vision

Employee empowerment means giving employees the authority, the right technology, systems, and the freedom to go the extra mile to make customers happy. This requires thorough training of customer service teams to enable employees to identify and act on the opportunities to enhance the quality of support. Giving employees ownership for their own work will not only boost motivation but also increase service quality, team productivity, and quick decision-making.”[19]

Empowerment doesn’t mean allowing employees to do whatever they want. It means enabling them to deliver service that’s consistent with the customer service vision. Empowered employees need resources to serve their customers, the best-known procedures for serving consistently and efficiently, and the appropriate level of authority to handle unusual or unexpected situations.[20]

Empower employees in the following ways:

  • Educate the frontline call center agents on branding, culture, and values so they deliver service that is consistent with these values.
  • Provide agents with a 360-degree view of customers so they can make data-driven decisions.
  • Equip agents with the right tools so they can resolve issues at the first point of contact.
  • Cultivate innovation by encouraging autonomy and creative problem-solving.
  • Make agents integral members of the organization so they are proud to provide amazing service.[21]

Watch the “Customer Experience: Empower Employees with Decisions” YouTube video below to learn more about employee empowerment.[22] Transcript for “Customer Experience: Empower Employees with Decisions” Video [PDF–New Tab]. Closed captioning is available on YouTube.

Set SMART Goals Aligned with the Customer Service Vision

Effective goals should follow the SMART framework: Specific, Measurable, Attainable, Relevant, and Time-bound. Goals for individual agents must be clear and realistic, while broader contact center goals should be achievable and tied to measurable performance.

Just as important, goals must be aligned with the organization’s customer service vision. If goals are not connected to the vision, employees may focus on the wrong priorities. For example, if agents are rewarded solely for completing a high volume of calls, they may rush conversations, leaving customer problems unresolved. Similarly, if strict call-time limits are imposed, agents may transfer or end calls prematurely, frustrating customers. These are examples of bad goals driven by external incentives. In contrast, good goals connect directly to the service vision and encourage employees to act in ways that strengthen the customer experience.

Organizations often use metrics such as customer satisfaction, productivity, and revenue to evaluate service and performance. Goals should not only connect to these metrics but also reinforce quality standards—such as responsiveness, empathy, and accuracy—so that efficiency does not come at the expense of effectiveness. Goals can be an important signal to employees about what to focus on and how to prioritize their work. The danger is that some goals can push employees away from the customer service vision rather than towards it.[23]

In the contact center industry, there is a tendency to prioritize efficiency over effectiveness. For example, measuring average handling time (AHT) may drive speed but reduce quality. Instead, focusing on first contact resolution (FCR) aligns better with the customer service vision by ensuring issues are resolved thoroughly the first time a customer calls.[24]

Technology can also support SMART goals when used strategically. An IVR system, for instance, can streamline interactions by routing customers to the right agent on the first attempt. But if poorly configured, it can create an endless loop of frustration and damage both the customer experience and the organization’s reputation.[25]

Finally, goals should reflect the connection between employee satisfaction and customer satisfaction. Happy, supported employees are more likely to deliver high-quality service. Even small improvements—comfortable workspaces, clean facilities, and healthy food options—can positively influence morale, which in turn strengthens the customer experience.[26]

Create Quality Standards

Customer service standards refer to the level of performance customers can consistently expect from a company. These standards include factors such as speed, accuracy, transparency, accessibility, empowerment, efficiency, and the friendliness of staff.[27]

Improving quality and customer service brings numerous benefits, including stronger customer loyalty, increased revenues and profitability, positive word-of-mouth, and higher employee engagement. What defines good, poor, or exceptional customer service ultimately depends on customer expectations.Quality refers to the attributes of a product or service, while Standards outline the requirements, specifications, guidelines, or characteristics that establish expectations for customer service. Standards serve as a blueprint for what should consistently happen during customer interactions and provide a model to replicate across the organization.

There are three sources for establishing quality standards, as listed below.[28]

  1. Person rating service by touching a star
    Customer Feedback by Star Rating

    Customer expectations. These are always changing, so companies must continually innovate. Meeting customer expectations is a combination of people, processes, and technologies.

  2. The organization’s mission, vision, and values. Quality standards should support or align with these core principles.
  3. Stakeholders. A variety of groups shape service standards, including:
    • Government regulators, who set laws and compliance requirements (e.g., privacy, safety, or accessibility standards).
    • Suppliers and partners, who influence service levels through agreements, delivery times, or product quality.
    • Employees whose training, engagement, and feedback help establish realistic and effective standards.
    • Shareholders or owners often push for performance standards that align with financial goals and corporate reputation.
    • Industry associations, which may set benchmarks or best-practice guidelines for quality and service.
    • The community, whose expectations for ethical practices, sustainability, and corporate responsibility increasingly shape standards.
    • Customers, who are considered separately, as their direct experience and feedback remain the most important driver of quality.

Additional sources can also provide valuable insights:

    • Industry benchmarks and best practices. Comparing performance to recognized standards in the industry helps ensure competitiveness and relevance.
    • Competitor analysis. Evaluating how competitors deliver service can highlight strengths, weaknesses, and opportunities to differentiate.
    • Historical performance data. Past performance trends, customer service metrics, and previous successes or failures provide a baseline for improvement.
    • Compliance and regulatory requirements. Standards set by regulators or accreditation bodies can shape minimum service expectations.
    • Employee input. Frontline staff often have first-hand insights into where standards are met or missed, making their feedback essential for realistic and achievable quality measures.

“Customers frequently rank consistency as a primary driver of good customer service. To monitor the quality and consistency of your team’s replies, consider implementing quality assurance or conversation reviews. Providing ongoing feedback through reviews can ensure that your entire team is delivering excellent customer service.”[29]

Examples of Customer Service Quality Standards

Quality standards can be both quantitative (like response times) and qualitative (like tone, courtesy, and consistency).

  • Response Time. Emails will be acknowledged within 4 business hours. Live chat inquiries must be answered within 30 seconds. Phone calls should be answered within 3 rings.
  • Accuracy and Transparency. All information provided to customers must be factually correct and up to date. If a resolution cannot be provided immediately, staff must set clear expectations (e.g., “I will get back to you by 3 p.m. tomorrow”).
  • Courtesy and Professionalism. Every customer must be greeted with a friendly, respectful tone, using their name where possible. Staff must avoid jargon and communicate in clear, plain language.
  • Accessibility. Services and support must be available through multiple channels (phone, email, chat, in-person). Websites and digital services must meet accessibility standards (e.g., WCAG guidelines).
  • Problem Resolution. Customer complaints must be acknowledged within 24 hours and resolved within 3 business days, unless otherwise communicated. If an issue cannot be resolved, the case must be escalated according to a defined process.
  • Consistency Across Locations. Regardless of location or employee, customers should receive the same level of service quality. For example, product returns should follow a uniform policy company-wide.
  • Follow-Up and Feedback. After resolving an issue, employees will follow up with the customer within 48 hours to ensure satisfaction. Customers are to be invited to share feedback via surveys or review requests.

Sometimes, there is resistance to creating quality standards, as some managers feel these standards are too rigid and unnecessary.  The best way to combat resistance is to demonstrate what quality is and the costs when quality is lacking.

Establishing quality standards also provides a framework for training and evaluating employees. When staff clearly understand the expected level of performance, they can adjust their behaviors and decision-making accordingly. For example, if the standard emphasizes fast response times, employees will prioritize answering calls or emails quickly. If accuracy and transparency are central, employees will be more mindful of providing correct information and setting realistic expectations. Quality standards, therefore, act as both a roadmap and a benchmark—guiding behavior while also making it possible to measure whether service is meeting expectations.

Another important aspect of creating quality standards is adaptability. While consistency is key, standards cannot remain static. Customers’ needs, technologies, and competitive environments evolve constantly. For instance, what was once considered fast response time (such as returning an email within 24 hours) is now often seen as too slow, with many customers expecting real-time chat support. Companies that regularly review and update their standards demonstrate not only a commitment to excellence but also a willingness to innovate in response to shifting customer expectations.

Quality standards also play a role in shaping organizational culture. By linking service standards to the organization’s mission, vision, and values, companies reinforce the idea that service excellence is part of their identity—not simply a box to check. This alignment can foster employee pride and a sense of purpose, which in turn enhances engagement and reduces turnover. Employees who feel connected to the company’s service goals are more likely to act as ambassadors for the brand, providing the kind of authentic, human-centered service that customers value most.

Finally, creating quality standards provides an opportunity to quantify the cost of poor service and the value of good service. For example, companies may track the expense of service failures, such as refunds, lost customers, or negative online reviews. Conversely, they may measure the positive effects of high-quality service through increased retention, repeat purchases, or customer referrals. These metrics not only justify the need for standards but also give managers concrete evidence to guide future improvements. When framed in this way, quality standards shift from being perceived as restrictive rules to being seen as tools for success, both for employees and the organization as a whole.

Company Examples of Quality Standards in Action

A practical example of quality standards in action can be seen at Starbucks. The company emphasizes consistency in both product and service across its global locations. Customers expect their favorite beverage to taste the same whether they order it in Toronto, Tokyo, or London. To meet this expectation, Starbucks has strict product preparation standards, as well as clear guidelines for customer interaction, such as greeting customers warmly, writing their name on the cup, and maintaining a friendly tone. These service standards reinforce the brand’s mission of being a “third place” between home and work where people feel welcome.[30]

Another example comes from Amazon, where quality standards are built around speed, convenience, and accuracy. The company’s customer service standards include offering rapid responses, easy returns, and 24/7 accessibility through multiple channels. Amazon invests heavily in technology and processes—such as automated order tracking and AI-powered customer support—to ensure service consistency. Their famous “customer obsession” principle is reflected in the standards they set, which prioritize customer trust and hassle-free problem resolution.[31]

The Ritz-Carlton is often cited for having some of the most rigorous and well-defined customer service quality standards in the hospitality industry. These standards are embedded in its “Gold Standards” program and include:

  • A Credo Card, which every employee carries and refers to, that encapsulates the values and service culture expected in all interactions.
  • The “Three Steps of Service”—pre-defined service steps or rituals that staff follow in guest interactions (e.g., greeting guests, anticipating needs, offering help).
  • A set of 12 Service Values that cover both functional and emotional elements of service (cleanliness, safety, empathy, responsiveness, professionalism, etc.). These values differentiate what is “just acceptable service” from what is “exceptional, memorable service.

As part of ensuring consistency, The Ritz-Carlton has over 3,000 brand standards that apply across its hotels globally. These standards cover everything from how quickly phones should be answered and how employees should greet guests, to the appearance of uniforms, room cleanliness, and how staff should resolve guest issues. These standards make sure that whether a guest stays at a Ritz-Carlton in New York or Tokyo, the level of service is recognizable and consistent. They also tie closely into the company’s mission and values, emphasizing not just efficiency and accuracy, but emotional engagement and creating memorable experiences.[32]

These examples demonstrate that quality standards are not abstract rules—they are embedded into daily operations and customer interactions. Companies that apply standards effectively create a recognizable, reliable experience that customers come to trust and value. By ensuring these standards are lived out in practice, organizations turn their service promises into tangible realities.

Use Metrics That Matter

Metrics are fundamental to effective business decision-making. They provide leaders with insights into operational efficiency, financial performance, and customer satisfaction. In customer centric organizations, metrics extend beyond internal performance measures—they reflect the customer’s experience and indicate how effectively the company meets their needs. Metrics also serve as a communication tool for employees, clarifying expectations, reinforcing priorities, and holding teams accountable.

In customer service, both quantitative and qualitative metrics are critical. Historically, contact centers emphasized measures like Average Handling Time (AHT), Calls per Hour, or First Call Resolution (FCR). While these metrics capture operational efficiency, modern organizations balance efficiency indicators with experience-focused metrics to ensure the service delivered aligns with customer expectations. Examples include:

  • Customer Retention and Churn: Tracks repeat versus lost customers, linking service to revenue.
  • Net Promoter Score (NPS): Gauges customer loyalty and likelihood to recommend.
  • Customer Lifetime Value (CLV): Reflects how valuable each customer is over the course of your relationship.
  • Customer Effort Score (CES): Assesses ease of resolving an issue.
  • Quality Scoring: Evaluates interactions for tone, empathy, adherence to policies, and problem-solving.
  • Employee Engagement: Measures how motivated and empowered agents are, correlating with service quality.
  • Customer Satisfaction (CSAT): Measures contentment after an interaction.
  • First Contact Resolution (FCR): Tracks the percentage of issues resolved on the first interaction.
  • Service Level Metrics: Percent of calls or tickets resolved within target timelines.

These metrics can be applied across contact centers, in-person support, digital channels, and email communication. A customer centric approach emphasizes outcomes that enhance satisfaction and loyalty rather than simply increasing volume or operational efficiency. By combining operational and experience-focused metrics, organizations can make data-driven decisions that improve both employee performance and the overall customer experience.

Measuring Customer-Centric Success

Customer centricity is a strategic investment, not just a soft skill. Like any investment, it requires measurement to identify strengths, uncover friction points, and drive continuous improvement. Three core metrics—Customer Churn Rate, NPS, and CLV—are particularly valuable in assessing customer centric performance.

1. Customer Churn Rate

Churn Rate reveals when and why customers leave. Causes may include unmet expectations, poor onboarding, or limited perceived value from products or services. Monitoring churn exposes weak points in the customer journey and highlights areas for improvement.

Why it matters: Retaining customers is more cost-effective than acquiring new ones. It costs five to seven times more to acquire a new customer than to retain an existing one, and even a 5% increase in retention can increase profits by up to 95%. Companies with high retention grow faster and spend less on acquisition.

Formula to calculate Churn Rate %: (Number of customers lost during a time period) ÷ (Average total customers during that period) x 100

What to watch for: Voluntary churn (customers choosing to leave) often signals dissatisfaction or poor fit. Involuntary churn (billing issues, lapses) can often be resolved with better systems and communication.

Practical tip:  Combine churn analysis with qualitative feedback—exit surveys, support transcripts, or interviews—to identify root causes and guide targeted improvements that strengthen customer loyalty.

2. Net Promoter Score (NPS)

Net Promoter Score (NPS) provides a clear view of how customers perceive a company and their likelihood to recommend its products or services. It is a strong predictor of customer loyalty, referral potential, and overall brand reputation.

How it works: Customers are asked: “How likely are you to recommend this product or service to a friend or colleague?” Responses are given on a scale from 0 to 10 and categorized as:

  • Promoters (9–10): Loyal champions who refer others and renew often.
  • Passives (7–8): Neutral customers, vulnerable to switching.
  • Detractors (0–6): Dissatisfied customers who may churn or leave negative reviews.

Formula to calculate NPS: % Promoters − % Detractors = NPS score (−100 to +100)

What to track: Companies should run NPS surveys at multiple touchpoints, such as after onboarding, support interactions, or quarterly check-ins. Segmenting responses by customer type, region, or product line helps identify trends and areas for improvement.

Practical tip:  Include follow-up questions to understand why a score was given. Insights can reveal whether low scores are due to product issues, service gaps, or misaligned expectations, allowing targeted improvements to enhance loyalty.

3. Customer Lifetime Value (CLV)

CLV estimates the total value a customer brings over their relationship with the company, guiding strategic investment in acquisition, retention, and expansion.

How to calculate CLV: CLV = (Average annual revenue per customer × Average customer lifespan) − Cost to acquire

Example: If a customer spends $2,000/year and stays for 5 years, and it costs $1,000 to acquire them: CLV = ($2,000 × 5) − $1,000 = $9,000

What to watch for:

  • CLV by segment: Identify the highest-value customers and focus efforts on retaining them.
  • CLV vs. Customer Acquisition Cost (CAC): Ensure acquisition spending does not exceed the expected value of the customer.
  • Trends in CLV: Rising or falling CLV may indicate changes in product usage, pricing, or market alignment.

Practical tip: Track CLV over time to evaluate how improvements in customer experience—such as faster onboarding or more responsive service—enhance long-term value.

In summary, Churn rate, NPS, and CLV provide complementary insights that create a complete picture of customer centric success. Churn highlights where customers are leaving, NPS reveals how they feel about your brand, and CLV quantifies the long-term value of those relationships. Together, they allow organizations to identify weak points, prioritize improvements, and make strategic decisions that enhance loyalty, increase revenue, and strengthen overall customer experience. Monitoring all three ensures that efforts to delight customers are both measurable and impactful.

Applying Metrics in Operations

To make decisions that positively impact customers, both employees and managers must rely on real-time and historical data. Metrics are most effective when integrated into daily operations. Companies enhance customer centricity by:[33]

  • Using software that provides comprehensive dashboards and real-time metrics.
  • Empowering agents with real-time and historical data so they can make informed decisions that enhance the customer experience.
  • Aligning KPIs to the customer lifecycle and key touchpoints (CLV, NPS, CES).
  • Linking agent performance and feedback to metrics for continuous improvement.
  • Fostering a culture of data-driven decision-making.

When measuring how well quality standards are being met, the scoring system must reflect the standards and behaviors you want to reinforce. A flawed system can overvalue less important skills while minimizing the critical ones, making it necessary to test and adjust as needed.[34] 

Historically, contact centers prioritized quantitative metrics such as Average Handling Time (AHT) or Calls per Hour. Today, top-performing organizations recognize that true customer centricity requires balancing operational efficiency with the overall customer experience. Metrics should not merely track activity; they should drive improvements in customer satisfaction, loyalty, and agent effectiveness.[35]

To achieve this, businesses can leverage automated alerts, dashboards, and targeted coaching to address delays, prevent churn, and proactively resolve issues. Performance should be measured against established quality standards, reinforcing behaviors that positively impact customer experience. In addition to technology-driven tools, service quality can be assessed through coaching sessions, role-playing exercises, direct observation, recorded interactions, and even mystery shopping.

Watch the “How Can You Use Customer Service Metrics in Performance Reviews?” YouTube video below to learn how leaders can use quality standards and performance metrics during employee performance reviews to improve overall customer experience.[36] Transcript for “How Can You Use Customer Service Metrics in Performance Reviews?” Video [PDF–New Tab]. Closed captioning is available on YouTube.

 

Key Takeaways

  1. Building a customer centric culture may be challenging.  A few of the challenges a leader may encounter include lack of buy-in, disparate data, resistance to change, ineffectual processes and tools, and inadequate employee support.
  2. Leaders in customer experience pursue a range of approaches to overcome such complexity of making the customer experience a priority. Several elements form the core of their successful efforts. They include the following: Set up a dedicated team for customer experience, establish C-suite engagement, and fit the customer-experience team into the organizational fabric. 
  3. To create a customer centric organization leaders apply the following principles: Model specific behaviours, foster understanding and commitment among employees and managers, develop capabilities and skills, and reinforce behaviours through formal mechanisms. 
  4. Being customer centric means that every department in the company understands that the customer comes first and everything they do is to obtain, retain, and build relationships with customers.
  5. A customer service vision is a shared definition of outstanding service that gets all employees working in the same direction. A strong customer service vision has three characteristics: It’s simple and easy to understand, it’s focused on customers, it reflects who the company is now, and who the company aspires to be in the future.
  6. There are three questions you can ask employees to evaluate employee engagement in a customer centric organization: What is the customer service vision? What does the customer service vision mean? How do you personally contribute?
  7. Employee empowerment means giving employees the authority, the right technology, systems, and the freedom to go the extra mile to make customers happy.
  8. Customer service standards refer to the performance that customers can expect from the company. It encompasses various factors, like speed, accuracy, transparency, accessibility, empowerment, efficiency, and friendliness of the staff. There are three sources for establishing quality standards: Customer expectations, the organization’s mission, vision, and values, and stakeholders such as government, suppliers, employees, shareholders, industry associations, and the community.
  9. Previously, contact centers focused more on quantitative metrics such as Average Handling Time (AHT) and Calls per Hour. However, modern service centers recognize the importance of measuring customer experience and agent behavior more than quantitative metrics.

End-of-Chapter Exercises

  1. Contact Center Goals. Search the Internet for examples of good and bad goals for a customer service contact center. Take a few notes then share your findings with your classmates and professor.
  2. Customer Service Standards. Review the list of 7 Commonly Used Customer Service Standards. Which standard do you feel is the most important?  Why?  Discuss with your classmates and professor.
  3. Cross-Departmental Service. Why is it important for quality customer care/service to be a cross-functional objective? Provide an example of serving a customer where cross-departmental input may be needed. Discuss with your classmates and professor.
  4. Reinforce Employee Behaviour. Search the Internet for ways to reinforce employee behaviour beyond financial incentives.  Would these strategies work for every employee?  Why or why not?  Discuss your findings with your classmates and professor.
  5. Model Behaviour. Search the Internet for ways in which managers can model customer centric behaviours. Make a list and share it with your classmates and professor.
  6. Leadership Style Quiz. Take a leadership quiz to determine your leadership style.
  7. Leadership Skills Quiz. Take a leadership quiz to determine how good your leadership skills are.
  8. Customer Service Quiz. Take a quiz to evaluate how well your team delivers customer service.

 

Self-Check Exercise – Leading a Customer Centric Strategy

 

Additional Resources

  1. 15 Steps to Becoming the Best Team Leader in the Call Center Industry, YouTube Video
  2. Contact Center Trends for 2021, YouTube Video
  3. How Many Agents Do You Need? YouTube Video
  4. How Companies Can Achieve True Customer Centricity, YouTube Video
  5. An Introduction to Customer Centricity at Google, YouTube Video
  6. Customer Centric Culture Change, YouTube Video
  7. Beyond the Trends: Developing a Customer-Centric Retail Mindset in B2C & B2B
  8. Service Metrics for Customer Service, LinkedIn Learning
  9. Leading a Customer Centric Culture, LinkedIn Learning
  10. Customer Service Leadership, LinkedIn Learning

References

(Note: This reference list was produced using the auto-footnote and media citation features of Pressbooks; therefore, the in-text citations are not displayed in APA style).


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  2. Franz, A. (2023, April 26). The challenges of building and sustaining a customer centric organization. https://www.forbes.com/sites/forbescoachescouncil/2023/04/26/the-challenges-of-building-and-sustaining-a-customer centric-organization/?sh=4b31af712681
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Customer Centric Strategy, 2nd Edition Copyright © 2024 by Kerri Shields is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.