Today, a start-up can launch overnight. Products and services can be developed through global suppliers or purchased from wholesalers or manufacturers, then resold to customers. Distribution can be achieved through digital channels and pop-up shops. Customer awareness and brand recognition can be developed through marketing and influencers. Notwithstanding the economic factors, evolving competitive forces, changing government regulation, and uncertain supply chains, starting a business has been simplified. With this simplification comes challenges, particularly, how a start-up differentiates itself from another and remains relevant to customers.
Organizational alignment goes beyond products and services. It includes the customer experience, how it treats its employees, how it supports communities and responds to societal issues.
According to the Harvard Business Review article, The Elements of Value, customer values or needs can be grouped into four (4) categories… 1) functional: saving time and reducing costs; 2) emotional: reducing anxiety and entertainment; 3) life-changing: belonging and self-actualization, and 4) social impact: self-transcendence. A customer’s willingness to pay for a product or service either ‘one-time’ or over a lifetime, will depend on how well the start-up meets these values.
Customer values have been influenced by changes in preferences, technology, and society. As customers have become more informed, their expectations have shifted towards experiences and relationships.
Today, customers seek personalized experiences, ethical practices, and greater transparency. Social media and digital platforms has empowered customers to demand more from businesses. This new customer requires businesses to continuously reassess their organizational capabilities and goals.
Amazon and Spotify are two (2) examples of effective organizational alignment with customer values.
- Amazon’s focus on customer value is in its commitment to convenience, selection of products, and fast delivery. It has evolved to meet customer expectations, from its Prime membership program offering expedited shipping, to its streaming services. As Jeff Bezos, Amazon’s former CEO, said in a 1999 interview, “…it’s the obsessive experience to the customer…”. Amazon dominates its market by prioritizing the customer.
- Spotify disrupted the music industry by offering personalized music streaming services and developing curate individual playlists. By aligning its business to customer needs, Spotify attracted millions of subscribers and caused industry leaders to follow their lead, with the launch of Apple Music.
Aligning a start-up to the values of a customer is not a one-time event. It requires first identifying the customer, continual review of the customer as their needs evolve, and an ongoing evaluation of its ability to meet the needs of the customer.
- Identify the target audience to gather insights into their preferences and expectations. Use surveys, focus groups, and data analytics to build a detailed customer persona. Learn about their expectations through all aspects of the customer journey.
- Ensure that the start-up’s core values align with those of the customers. Today’s customers prefer to engage with brands that reflect their beliefs and principles.
- Collect feedback, using social media metrics, customer advisory boards, and dedicated customer-service channels. Ongoing collection of feedback enables the start-up to stay attuned to the customer and make organizational adjustments.
- Cultivate a culture of adaptability and responsiveness. As the customer’s needs change, it is important that the start-up can respond to those changes. Promote the exploration of new ideas and experimentation with different approaches to serve the customer.
- Establish key performance indicators (KPIs) that relate to customer satisfaction, retention, and engagement. Use this data to refine strategies and set new objectives. Use these metrics to regularly assess and adjust the start-up’s ability to align with customer values.
Starting a business has been simplified, resulting in increased competition. How does it stand out amongst the increased competition? One answer is to ensure that the start-up is aligned to the needs and values of the customer.
Nigel Taklalsingh | Contributing Writer
