You order dinner on Zomato, and no sooner does the delivery partner hand the packet, than your phone beeps, it is time for rating the service and (a bit later) the restaurant. As you are hungry, you choose to skip these. But remember your rating could mean empowering someone’s choice.

Simply Put….

Customer empowerment is the latest buzzword for businesses. It means a brand’s effort to Fulfill the customers’ needs rather than pushing a product to them. Management courses such as an MBA or an online MBA provide a detailed grasp of customer empowerment.  The empowerment results in an informed customer decision as against a random call (e.g. star ratings and reviews help a prospect to pick a suitable hotel room online)

Centricity and Empowerment

Customer-centricity and empowerment are two seemingly interchangeable marketing terms.  But they are distinct.

A customer-centric approach is tailoring a product based on data and research-driven insights (e.g. segmentation, targeting and positioning).

Customer empowerment, on the other hand, goes further and thinks about how the product can make a real tangible difference to the customer (e.g., an easy-to-use mobile banking app).

Two-Way Benefit

Customer empowerment is give and take and it benefits both the stakeholders:

Benefits to the Customer:

• Improved Experience: Empowerment drives improved customer experience (e.g. Ad-free YouTube streaming option)
• Enhanced Control: Empowered customers gain control over their activities (e.g full payment or EMI in credit card transaction)
• Informed Decisions: Customers can make purchase decisions based on reviews/ ratings (e.g Shopping on Amazon)
• Transparency: Transparency initiative enables the customers to stay assured (E.g When you make a high-value internet banking transaction, you get an alert to confirm or decline)
• Convenience: Empowered customers explore different options before zeroing down on a product (e.g. 4-star, 5-star rating in air conditioners and their comparative advantage)

Benefits to the Businesses

• Retention
• Upselling / Cross-selling
• Competitive Advantage
• Better Product Quality
• Insights to Customer Behavior

         Some Strategies

• Provide Information through FAQs, testimonials, interactive chats, video tutorials
• Personalize the offers based on customer preferences (e.g. gold jewellery or diamond)
• Communicate through real-time chat, and community forums (e.g. new product features)
• Update about any changes to their orders, or service interruptions.
• Automate routine activities like payments (time-saving)
• Recognize through loyalty programs

Wrapping Up

Empowering the customers makes them more self-sufficient, informed, and engaged. This in turn helps the business to build a stronger, more enduring relationship with the customer.

Discussion Question

Do you think customer ratings/reviews influence purchase decisions?  Recall an incident where the ratings/ reviews have helped you.

Source Article

• https://brandequity.economictimes.indiatimes.com/news/marketing/consumer-empowerment-is-taking-over-marketing/112564560
• https://hiverhq.com/blog/customer-empowerment#:~:text=Customer%20empowerment%20is%20when%20you,to%20have%20with%20your%20brand.
• https://www.storyly.io/glossary/customer-empowerment#:~:text=Behavior%3A%20Empowered%20customers%20are%20more,with%20their%20needs%20and%20preferences.