Which Kind of Customer-Centric are You?

The greatest companies are the ones with the happiest customers.

To create happy customers, you need to be customer-centric.

Every company believes they are customer-centric. But while a great company keeps the happiness of their customer in the center of their thoughts, the average company puts their customer in the center of the cross-hairs of a rifle scope.

1. Great companies ask, “How can we give our customers the buying experience that they would prefer?” They work at removing the friction from the customer experience.
2. Average companies ask, “How can we get our customers to give us more money, more often?” Average companies tells their marketing teams, “Sales is just a numbers game. Bring us twice as many leads and we’ll make twice as many sales. You bring’em in. We’ll close’em.”

But no matter what those marketing teams do, a decreasing number of people will respond to their ads. A negative customer experience drives customers away faster than marketing can bring them in.

Do you want to see what real customer-centric thinking looks like?

A client of mine recently wrote this email and sent it to all the people who work in his company. He forwarded it to me only as an afterthought.

SUBJECT: Pricing Reflection — Serving the Everyday Working American

Team,

Today I had a realization around some of our pricing. I’m all for setting prices that protect our margins and keep the business strong – but I’m equally committed to making sure we have price point items that the everyday working American can actually afford.

Let’s take a simple example: a toilet. Right now, most of our toilet installs are priced over $1,000. If we assume the median household income is $85,000, divided over 26 pre-tax paychecks, that’s $3,269 per check. A $1,000 toilet install is over 30% of that paycheck. That’s significant.

We need to remember who we’re here to serve – the nurse, the police officer, the office worker, the firefighter. These are people raising families, keeping their homes together, and doing the best they can. We cannot price them out of basic service. If we do, we risk not only losing today’s job – but any future relationship with that customer.

Let me be clear: I’m not trying to run a low-margin business.

But I do want to make sure we have real options for real people. Today’s pricing structure on some of these essential services is a barrier – not just to customers, but to our own techs who are trying to present them.

Because of this realization, I immediately asked Jacob to find a toilet that we could install at a price point of $699. Well, guess what – we found one today. And we’re bringing it in and adding it to the price book at $649.

This one change will give our team more confidence to present a basic toilet option. What I’ve heard from Will – and it’s been consistent – is that this has been a never-ending battle. Technicians don’t feel comfortable presenting a $1,000 toilet to customers, especially when many of them wouldn’t pay that themselves. That lack of confidence translates to lower conversions and frustrated customers.

This reminds me of what we went through in HVAC when we had no system options below $15,000. We lost installs constantly – not because we weren’t good, but because we didn’t have a simple, no-frills option for people who just needed heating and air. Once we corrected that, we started closing more jobs and rebuilding our pipeline.

We need to apply that same logic here. During times like this, let’s price effectively so we can keep building our customer base and generate revenue day by day. When the tide turns – and it will – we can always maximize margin percentage where appropriate.

There’s an opportunity here. We can maintain strong...