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Breaking Down What Customer Led Growth Is and How You Can Grow Your Business With It

What is customer-led growth? What does it mean to grow your business through customers? We break down the key components and explain how you can leverage them, as well!
Breaking Down What Customer Led Growth Is and How You Can Grow Your Business With It

Customer-led growth—where your customers are the ones who drive the direction of your business. It's a hot topic in marketing and sales, and it's only getting hotter.

But what is it? What does it mean, and more importantly, how do you do it? This blog post will break down everything you need to know about customer-led growth.

First things first: Why bother with customer-led growth? Isn't that just another way of saying "customer service?" Not exactly. You can absolutely provide excellent customer service without having a customer-led growth strategy and vice versa.

Customer service is focused on the interactions between the business and the individual customer. Customer-led growth is focused on investing in long-term relationships with customers so that they're more likely to invest in your business for the long term as well.

Customer-led growth is a top priority for businesses today.

It's hard to grow a business without customers, so it's no surprise that customer-led growth is a top priority for businesses today.

Customer-led growth is growing through identifying and meeting the needs of your customers. It focuses on understanding and responding to your customer's needs in an agile way instead of relying on historical data or guessing what they need.

Understanding your customers is crucial because they are the heart of any business. Customer-led growth allows you to tailor your products and services to meet those needs, which will lead to better results for you and your customers!

And this can help businesses identify new growth opportunities, too! When you understand what people are looking for in their products or services—and how you can provide it with yours—you'll be able to expand into other areas as well.

Prioritize the needs and wants of your customers above all else.

The definition of customer-led growth is pretty straightforward: you prioritize the needs and wants of your customers above all else.

This means you focus on delivering value to your customers instead of just pushing sales or trying to earn a profit. It’s not just about getting people to buy something; it’s about making sure they buy the right thing.

You can do this by constantly improving your product or service based on customer feedback. This shows that you care about your customers' needs and want to make their lives easier, which will keep them happy and satisfied with your brand.

What you need to know

To fully understand the concept of customer-led growth, you need to know its core tenets. Here are the three most important ones:

  • People don’t buy products or services—they buy into what those products or services represent.
  • Your company's branding should be built around your customers and not vice versa.
  • Every aspect of your company should be designed with your customers in mind.

Now that you know the basics of customer-led growth, it's time to learn how you can use it to grow your business!

Start by understanding who your customers are, what they want, and how they want it.

You should start by understanding who your customers are, what they want, and how they want it. You'll need data that helps you understand their goals and needs while using your site or product.

You might be wondering if the only way to get this kind of data is by surveying your customers when they leave your site or unsubscribe from your email list. There's some truth to that: customer surveys can provide valuable feedback on why people are leaving and what they dislike about what you're offering. But customer surveys are no longer the only method for gaining insights into customer satisfaction (or dissatisfaction).

Today, software tools make it possible for businesses to collect these customer insights automatically. There's even a new category of software, called Customer Success Management (CSM) platforms, which include powerful analytics capabilities for analyzing user behavior and gaining insights about overall satisfaction levels with specific products or features.

With access to these tools and basic web analytics software, you can start collecting the data you need to know more about why customers stick around or leave.

If you don't have access to a CSM platform—which is pretty pricey—then at least use web analytics software like Google Analytics so that you can get some basic metrics on user behavior on your website, such as bounce rate (the percentage of users that leave after viewing one page) and average session duration (how much time users spend on your website each session).

By analyzing this information, you can identify new opportunities for improvement within your organization.

So, how do you begin to identify opportunities for your business to improve?

To begin understanding what your customers value, you can:

  • Ask your team members, and see if their interactions with customers reveal any needs not being met.
  • Track user activity and engagement on your website and social media channels. Are customers interacting? How often? What posts are they responding to most often?
  • Read customer reviews and feedback regularly. Does the same complaint or suggestion come up frequently? If so, it may be time to make some changes.
Then, track how well you're meeting those needs and how much engagement is happening regularly.

To start, you'll want to identify your customers' needs in common. For example, a person who's just starting with their company will likely have different concerns than someone who has been running their business for years. They're probably looking for community and mentorship from people in similar positions rather than advice from experts on fixing specific issues. You can also analyze your customer base based on demographic data (like age group or income bracket), which may help you discover what kinds of products they want most.

Once you've identified the needs, create content—and a whole experience—around them. If there's an opportunity to meet those needs through product features, make sure it gets built into whatever it is that’s being developed around them (and not just as a band-aid solution). The way your product addresses customers' pain points should be woven into every aspect of its design and messaging so it feels like a natural extension of what they already know about you as an organization - not something clunky or difficult to use!

Then, track how well you're meeting those needs and how much engagement is happening regularly by asking questions like:

  • How long does it take for our current customers' problems with the product to be solved? What percentage of people have seen success after using this feature? How does that compare with past releases?"

Use those insights

Use those insights to make critical business decisions about products or services that need revamping, new features to add, or opportunities for revenue creation (if there's demand).

Breaking down the customer journey and identifying ways to give your customer a better experience is just one step toward improving your business. It's also crucial to have concrete data supporting (or disproving) the insights you gleaned from that customer journey analysis. You’ll need specific metrics to measure how well you're meeting individual needs and expectations at each stage of the customer journey map.

Once you’ve gathered sound data, use those insights to inform key business decisions about products or services that need revamping, new features to add, or opportunities for revenue creation (if there's demand). If a particular customer segment seems confused about existing features, write content educating them on how to use them properly. If customers seek information that doesn’t exist on your website but could be beneficial as a new content piece, create it!

This process can also help scale up an existing offering or launch a new one entirely based on market demand - not just gut feelings about what might work best for customers based on limited qualitative research done through focus groups or surveys).

The last step of the CLG process is to develop a strategy. The strategy will consider all of the information gathered in the previous steps so that it can be used as part of a larger growth plan. This should include identifying specific actions needed from each department within an organization, such as marketing, sales, and customer service.

This process can also help scale up an existing offering or launch a new one entirely based on market demand - not just gut feelings about what might work best for customers based on limited qualitative research done through focus groups or surveys).


TLDR:

  • Listen to and analyze customer feedback. Customers have a lot of information to share, and you can do this by using a survey tool to automatically collect feedback on the products and services. When analyzing the data, look for patterns and trends in their responses. This will help you build personas or user profiles—which are fictional representations of your ideal customers, based on common traits they share—that you can use to guide product development and personalize marketing communications.
  • Use insights from feedback analysis to inform decision-making. While it's important to understand who your customers are, it's even more important to know what they want from your business and how satisfied they are with what you're currently providing them with. This can help you identify areas where your business is underperforming to make improvements accordingly. The key is listening closely enough so that customers feel heard and taken seriously—and making sure their voices help shape key strategic decisions about your business going forward.