What do you call your customer? What names do you use to describe the customers with whom you are dealing? If you are in the shipping business, you will most likely refer to customers as shippers. In the banking industry, your customers are identified according to their net worth. In the food business they might be known as consumers (as in “food consumption”). Each industry and company develops specific terminology to describe their customers. In one financial institute, we found that customers were referred to as “inventory.” This particular company was working on “liquidating” its bad inventory.
Shocking? It shouldn’t be. In my experience, I have found that this practice is very common. For years, companies have been identifying their customers as consumers of their products and services – not as human beings.
This demeaning and degrading behavior must stop. While others have accused me of being hyper sensitive, I maintain that this long standing practice is a symptom of a larger issue. The manner in which you describe our customers is a reflection of your attitudes and approach toward them. If you describe your customers as objects, your employees will surely treat them in a similar fashion.
Some companies argue that they only use this terminology behind closed doors, never to a customer. This argument contradicts my philosophy that whatever is said internally reflects reality – how you think, what you believe, and how you make decisions and conduct business. There can be no significant difference between how customers are referred to in the boardroom and how they are referred to in the retail store, call center or on the web. Consistency of message is critical to ensure corporate-wide customer centricity.
The crux of the problem is the organization’s business model. Companies that operate on a product-centric business model treat and refer to customers as objects. In this model, customers are little more than components in the organization’s business processes and are identified in accordance with operational terms. If, for example, a company finds value in treating a customer as a shipping or logistics operator, then the customer will be designated accordingly.
Aside form the derogatory nature of treating the customer as subservient to the process, companies operating on a product-centric business model face even greater challenges. When companies treat customers as components of a process, they also utilize a “one size fits all” approach and treat all customers the same. All customers are consolidated into a one dimensional persona that must fit within the process. The diversity and complexity of customers is subsequently ignored and replaced with a customer that does not exist but who fits perfectly within the organization’s business model. The customer is thus subjected to the company’s processes and efficiency needs rather than the other way around – as it should be.
What starts with an inappropriate customer name can lead to a product-centric business model that is incapable of dealing with the challenges of today’s customer. So rethink how you call your customers. Pay attention to the terms and customer descriptions used in your weekly meeting for they will demonstrate your readiness to meet the demanding, individualized and experience-craving customer. Connecting with customers starts by simply speaking the right language. Your customer has a name. Not the name you have given him (and million of other customers), but a unique name by which he is known. Learn who your customers are and what they call themselves.