Customer intimacy is a concept from marketing, which describes the ability of a supplier to become accepted and known as the regular partner with its customer. Companies that put a premium on customer intimacy want to reach their customers as individuals, rather than a generic user base. Question: Last Friday, you dealt with the issue of what a company should do to get a customer intimacy program started. About the Book Author Erica Olsen is cofounder and COO of M3 Planning, Inc., a firm dedicated to developing and executing strategy. An example of a company that applies supplier intimacy is Toyota. In our previous articles, we offered an introduction to customer experience, we told you what to emphasize while developing a customer experience strategy and we also dived into the tricky world of digital CX. KFC also claims that the system will remember what you ate for the next time. This makes it easier for suppliers to know when to ship parts and supplies without having to … Try these customer intimacy strategies to bring more value to your customers. Customer intimacy as a five-person company and customer intimacy as a 500-person company are different. Take the example of the choice between customer intimacy and operations excellence. Key Points. Customer Intimacy Alternatives: Operational Excellence Strategy An Operational Excellence (e.g. Companies like Apple, Sony, and Johnson and Johnson are considered to be companies that focus on product leadership. Toyota, along with other automobile companies, allows their suppliers access to production schedules. An executive brief [9] suggests that services provide the opportunity for industrial companies to significantly deepen the level of customer intimacy and increase customer control, but it does not explain how to evaluate this level of customer 8. A common mistake when designing for customer intimacy is thinking it is the same as customer … It seems obvious that a company cannot both provide individual service to customers and drive operating costs down. Customer intimacy. This strategy reflects customer intimacy. A good example in today's marketplace is the amount of money being invested in technology for teleservicing (for example, graphic user interfaces, customer database management systems). “Customer intimacy” is one of those terms that sounds great, but leaves you scratching your head when it comes time to act on it. Ikea , EasyJet) strategy is to lead in price and convenience. They are focused on lifetime customer value and are willing to incur short-term costs in order to build long-term loyalty and satisfaction—Nordstrom and Amex are a couple of B2C examples… Sample Vision Statement for an Online Retailer “We intend to provide our customers with the best online shopping experience from beginning to end, with a smart, searchable website, easy-to-follow instructions, clear and secure payment methods, and fast, quality delivery." So your company’s Net Promoter Score, or rate of people who would recommend your business to others, can be a good indication of where your customer service stands and another way to measure customer service. A t the height of the global pandemic, with bricks and mortar stores closed and people sheltering at home, customers were left with few buying options. Examples are emails, customer service team, loyalty program communications, etc. This was how Cable &Wireless successfully fought AT&T in the telecommunications market. It's a highly customer-centric strategy, in which an organization strives to build a lasting personal relationship with its customers, by continually customizing its offerings to meet their exact needs and wants. By taking examples from the companies listed above, as well as the best practices that they follow to delight their customers, your business can rank amongst the best of the best for top-tier customer service. GE Plastics and Cable & Wireless demonstrate what customer intimacy strategy means and why this model is likely to become more widespread in the years to come. In the automobile industry, Tesla focuses on product leadership, Lexus on customer intimacy, and Toyota on operational excellence. It is a major strategic decision that will often require a fundamental re-alignment of the organization to deliver it. The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market by Michael Treacy. Customer intimacy is one of the three elements of Michael Treacy's and Fred Wiersema's Values Discipline Model. However, Amazon acquired Whole Foods -- which ranks #2 on the latter list -- in 2017, helping to expand its overall brand reach to other audience segments. Here is everything you need to know about Customer Relationship Management along with our Top 5 Customer Relationship Management examples in companies! 3. niches. Discover the meaning of customer intimacy strategy. Tech tools have done a lot to enable greater personalization, but the most direct path to intimacy is still meeting someone in person. Customer intimacy requires organizations to succeed in customer service and attention by tailoring products and services to meet specific needs of customers. In addition, organizations should also concentrate customer relationship management, exceed customers’ expectations in product and service delivery, focus on customer lifetime value, and be reliable and close to customers. Customer intimacy creates a virtuous circle: the better the supplier knows the customer company with its objectives and difficulties, the better able he is to provide an optimal solution. Why customer experience matters. Rackspace, a cloud infrastructure company, anchors its premium prices with top-notch solutions and even better service.The organization regularly wins industry awards — and for good reason. That’s hard for a company with an international audience, but you can still coordinate ways for people from your company to meet with customers directly. Customer intimacy creates an honorable circle: the better the supplier knows the customer company with its objectives and difficulties, the better able he is to provide a most advantageous solution. Good customer experience is a given these days. 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