What Is the Impact of Customer Centricity in Business?

When Xiaomi customers noticed glitches or had ideas for better features, they didn’t shout into a void. In 2024, the company sped up how it responded—rolling out faster updates and keeping users in the loop. That shift, driven by direct customer feedback, paid off. Satisfaction climbed, and Xiaomi kept its loyal base hooked in a highly competitive market.

JD.com took a similar route. In May 2024, it rolled out JD NOW—an on-demand retail service offering delivery from half a million stores across 2,300 Chinese cities, sometimes in under nine minutes. This wasn’t a gimmick. It was a response to what shoppers wanted: convenience without compromise. The result? Happier customers and more orders, plain and simple.

Examples show that customer centricity isn’t just a buzzword in China—it’s a clear business strategy. Local giants are building stronger loyalty, more efficient operations, and faster growth by focusing hard on what their customers care about. 

Let’s break down what customer centricity means, how it plays out in China versus globally, and why it’s becoming essential.

Key Takeaways

Here’s a brief overview of the following article:

• Definition of customer centricity: Customer centricity means aligning every part of a business—from product design to service delivery—around what customers truly need and value.
• China’s distinct approach: Chinese companies focus on rapid feedback loops, real-time data, and cultural trust (guanxi) to meet customer expectations faster than traditional global models.
• Business impact: A strong customer focus increases revenue, improves retention, drives loyalty, enhances efficiency, and strengthens brand reputation across competitive markets.
• Notable examples: Brands like Xiaomi, JD.com, SF Express, Trip.com, Haidilao, and Laopu Gold show measurable gains from customer-first strategies.
• Role of internal culture: Customer centricity boosts employee engagement by giving teams a shared mission, clear goals, and stronger motivation to collaborate.

Contact Ashley Dudarenok to apply proven customer-centric strategies from China’s most competitive brands to your business.

What is Customer Centricity?

Customer centricity is a corporate strategy that aligns every process—from product roadmaps and logistics to support and post-sale care—with what customers truly need. In China, this strategy means acting quickly on feedback, using data to guide every decision, and treating every customer touchpoint as an opportunity to improve.

How China Defines Customer Centricity vs. Global Interpretations

In many global markets, especially the U.S. and Europe, customer centricity means prioritizing consistent branding, emotional touchpoints, loyalty systems, and journey mapping. Companies invest in CRM platforms, UX research, and storytelling. Updates are carefully planned and reflected in long-term brand equity.

China’s Pragmatic Edge

In China, feedback loops and data take center stage. Brands measure and act fast. For example:

• Alibaba funnels real-time signals—from reviews to browsing behavior—into optimizing product design, logistics, and promotions across platforms. It’s not about ritual marketing but reacting to customers instantly.
• Meituan’s coupon allocation system, deployed in May 2024, uses machine learning to deliver customized coupons to over 100 million users in more than 110 cities. Allocating offers in under 50 milliseconds dramatically improved conversions and added CNY 8 million in profit.
• JD.com’s self-built logistics directly improves perceived usefulness and satisfaction. According to a July 2024 academic study, logistics information quality and system reliability significantly increase loyalty and continuous buying intent among users across China.

Culture and Trust

In China, guanxi—relational trust—is critical in B2B and consumer decisions.

Customer-centric companies build and maintain that trust by:

• Listening and responding to feedback
• Offering consistent service across touchpoints
• Prioritizing relationship-building, not just transactions

When businesses align with cultural expectations, they earn stronger loyalty and long-term performance.

What is the Impact of Customer Centricity in Business

So, what’s the big deal with being customer-centric? Is it another feel-good business buzzword, or does it move the needle? The short answer: it does. Companies that genuinely put the customer first don’t just earn more loyalty—they perform better across the board.

1. Higher Profitability & Revenue Growth

Customer-centric businesses identify and eliminate friction that slows sales. They optimize products and services based on user behavior, not assumptions—leading to more conversions, fewer complaints, and better margins. 

When you understand your customers’ values, you can deliver more efficiently and confidently. A global study spanning 80 countries found that 84% of businesses prioritizing improving customer experience saw increased revenue, while 79% reported significant cost savings.

Case in China

SF Express Homepage

SF Express has consistently ranked #1 in customer satisfaction for over 15 years. Its premium pricing is backed by exceptional service, real-time tracking, and network reliability. Because it responds directly to customer expectations—especially in time-sensitive deliveries—it can sustain higher revenue and profit margins even in a price-sensitive market.

2. Improved Retention & Reduced Churn

Customer centricity helps businesses retain clients and reduce churn. Satisfied customers are more likely to return, and keeping them is far more cost-effective than replacing them.

Acquiring a new customer can cost up to five times more than retaining an existing one. Even a 2% increase in retention can produce the same profit as a 10% cost reduction.

Retention Through Personalization

Chinese companies recognize this link and invest heavily in customer satisfaction. Personalization—both online and offline—has become a core strategy. 

Tailored experiences meet individual preferences and build stronger relationships, increasing the likelihood that customers will stay rather than switch to competitors.

When services match customer needs, they feel understood and valued. That sense of relevance drives repeat business.

Case in Focus: Trip.com (Ctrip)

Trip.com, formerly Ctrip, offers a clear example of how customer care reduces churn. As China’s top online travel agency, it prioritizes convenience and support.

It’s an app that combines flights, hotels, trains, and tours into one platform. It also provides 24/7 multilingual customer service, helping users resolve issues quickly.

This consistent focus on support and usability has earned customer trust. Travelers who book once often return, knowing they’ll receive reliable service each time. As a result, Trip.com maintains high retention rates without relying on deep discounts or promotions.

3. Boosted Loyalty & Word‑of‑Mouth Advocacy

Image from freepik

Customer centricity doesn’t just drive repeat business—it turns satisfied customers into loyal brand advocates who actively promote your business.

Loyal customers are far more likely to recommend a company after a positive experience, which has a real impact in China’s social media–driven market. Emotionally engaged customers generate 306% higher lifetime value and refer others at a 71% rate, compared to just 45% among less engaged customers.

Word-of-mouth remains one of the most effective and trusted marketing tools. Happy customers share their stories with friends, family, and online networks. Research shows loyal customers are 4 times more likely to recommend a brand. Sometimes, word-of-mouth drives up to 13% of total sales—at no additional marketing cost.

Case in Focus: Haidilao’s Loyalty Effect

Haidilao’s growth reflects the power of customer-first service in action. The hotpot chain creates memorable experiences that naturally spark customer advocacy. Guests often receive complimentary snacks, manicures, or games while waiting—small gestures that leave lasting impressions.

This focus on delight, not just delivery, has paid off:

• Customers voluntarily bring friends and family
• Social media posts highlight the service as much as the food.
• Online reviews praise the staff’s personal touches.

Over time, Haidilao built a loyal following that actively promoted the brand without needing large-scale advertising. Its customer-first culture created advocates who discussed the experience and invited others to try it.

The Bottom Line

Customer-centric companies in China turn loyalty into momentum. When experiences exceed expectations, customers don’t just return—they recommend. That advocacy fuels organic growth, strengthens market position, and builds brand value from the inside out.

Want Results Like Haidilao or Trip.com?

Ashley Dudarenok

Loyalty doesn’t happen by chance. These Chinese brands built retention and advocacy by responding quickly to their customers’ needs.

If your team is ready to do the same, Ashley Dudarenok delivers keynotes packed with actionable strategies from China’s most customer-centric brands—tailored for global leaders.

Learn more about Ashley as a customer experience keynote speaker.

4. Enhanced Operational Efficiency & Cost Savings

Customer centricity improves service, streamlines operations, and reduces unnecessary costs. When companies focus on what customers value, they can cut waste, automate the proper steps, and simplify internal processes.

The result? A leaner, more efficient business that delivers faster service at lower cost.

Smarter Operations Through Customer Insight

Chinese companies increasingly use digital tools and AI to serve customers more efficiently. In the auto industry, a 2024 study found that Chinese automakers are building digital-first service systems that respond to customer expectations for fast, transparent experiences. These systems reduce delays, cut paperwork, and help teams prioritize real customer needs.

When you align operations with customer behavior, the payoff includes:

• Fewer process bottlenecks
• Faster service delivery
• Lower manual error rates
• Better use of staff and tech resources

These changes improve the experience and lower costs—without compromising quality.

Case in Focus: Alibaba’s Cainiao

Alibaba Cainiao homepage

Cainiao, Alibaba’s logistics platform, shows how customer-centric design drives efficiency. The company uses big data and automation to:

• Optimize delivery routes based on real-time demand
• Reduce warehouse handling time
• Minimize last-mile delivery issues

This customer-first logistics model ensures speed, accuracy, and cost control. Fast delivery wins customer trust, and automated routing lowers operational expenses. Together, they create a self-reinforcing system where better service equals greater efficiency.

5. Stronger Brand Reputation & Trust

Customer centricity builds more than satisfaction—it builds trust. Trust directly influences loyalty and long-term brand preference in China’s fast-moving, high-choice market. When businesses consistently meet or exceed expectations, they earn reputations that set them apart from the competition.

Positive, consistent experiences shape how customers perceive a brand. Over time, this turns into a reputation that attracts new customers and reinforces loyalty among existing ones.

Why Trust Matters

Chinese consumers are increasingly selective, often prioritizing transparency, safety, and service quality. When companies focus on customer interests and deliver dependable experiences, they create emotional confidence in the brand.

Customer-centric companies typically:

• Resolve problems quickly
• Communicate clearly and respectfully
• Deliver consistent service across channels
• Protect customer data and privacy

This behavior builds goodwill—something branding alone can’t manufacture.

According to a Gallup study, customer-centric companies saw a 20% increase in customer confidence, a key indicator of trust, alongside gains in loyalty. Simply put, putting customers first translates into a more trustworthy, resilient brand in the eyes of consumers.

Laopu Gold – Jewelry with Cultural Confidence

Through symbols of Chinese heritage, fixed pricing, and exclusive releases, Laopu doubled in-store sales and quadrupled online performance in 2025. Its listing led to a valuation above HK$170 billion (about US$21.7 billion), a clear sign of brand trust.

Shushu/Tong – Fashion With a Local Touch

Shushu/Tong, a Shanghai‑based fashion label, has gained traction through seasonally updated, design‑forward collections. In 2025, its presence on Tmall improved product tracking and customer loyalty. Since then, it has grown to over 30 international and 20 domestic stockists, added a flagship store in Shanghai, and expanded into new categories like handbags.

In a Market Where One Mistake Matters

In China, reputation can change quickly. PwC reports that nearly one in three consumers will abandon a brand after just one bad experience. That makes trust a fragile but essential asset.

Customer-centric companies protect their reputations by acting fast, learning from complaints, and preventing issues before they escalate. Over time, this creates a brand identity built on what the company sells and how it treats its customers.

6. Employee Engagement & Internal Culture Growth

Image from freepik

Customer centricity benefits customers and transforms internal culture. When an organization prioritizes customers, it gives employees a shared mission, more explicit purpose, and stronger motivation.

Staff at every level understand how their work contributes to a better customer experience. This alignment boosts morale, encourages initiative, and creates a service-driven culture that supports long-term growth.

Engagement Through Purpose

A customer-focused company connects employee roles directly to customer outcomes. This makes day-to-day tasks more meaningful and encourages teams to collaborate across departments to solve customer problems faster.

Engaged employees:

• Feel ownership over the customer experience
• Take pride in delivering value
• Are more proactive in resolving issues

The result is stronger internal cohesion and better external service.

Culture That Reinforces Itself

In customer-centric companies, positive feedback loops form naturally. Employees see the impact of their work through happy customers, which increases their engagement. They deliver even better service as they feel more connected to the company’s purpose.

This self-reinforcing cycle contributes to:

• Higher employee retention
• Better cross-functional collaboration
• A culture of accountability and empathy

When customer needs drive decision-making at all levels, internal culture becomes more responsive, united, and growth-oriented.

L’Oréal in China – Customer-Centric Innovation Spurs Employee Empowerment

Multinational L’Oréal has adopted a localized, customer-centric strategy in China. It revamped its product positioning to focus on skin repair over generic recovery and tailored formulations specifically for Chinese consumers.

How this connects:

• Empowers product teams with clear, customer-driven goals.
• Encourages cross-functional collaboration (R&D, marketing, local insights).
• Boosts employee ownership of customer-first innovation, reinforcing internal cohesion and a service-oriented mindset.

7. New Growth & Upsell Opportunities

Customer centricity helps companies uncover revenue opportunities by focusing on what customers want next. Instead of pushing products, they analyze behavior to offer more relevant services, upgrades, or adjacent solutions.

Listening to customers reveals what they’re willing to pay for—and when.

Free Benefits That Increase Paid Conversions

One clear example is how companies leverage loyalty programs and freemium perks to drive upsells. According to J.D. Power’s research on China’s auto industry, customers who received free benefits (like complimentary services or perks) became much more likely to purchase paid services later. 

Specifically, 38% of customers offered free benefits ended up buying additional paid benefits, compared to 13% without freebies. This shows that a small customer-centric gesture (a freebie that provides value) can open the door to significant additional revenue, as satisfied customers are happy to invest more in a brand. 

Similarly, engaging customers through digital channels can boost spending: Chinese customers who use a company’s official app or online platform tend to be more engaged and spend more. 

For example, auto customers using manufacturer apps for service bookings not only showed higher loyalty but also had an average after-sales spend 718 RMB higher than non-app users – essentially because the convenient, personalized experience led them to utilize more services

8. Competitive Advantage & Market Differentiation

Customer centricity gives companies a clear edge in competitive markets. Service quality and customer experience become key differentiators when products and prices are similar.

In China, where consumer expectations evolve quickly, companies prioritize customer needs are better positioned to lead.

Brands that offer consistent, personalized service stand out. Customers who trust a company to meet their needs are likelier to stay loyal—even when alternatives exist.

Customer-centric companies respond faster, adapt sooner, and earn reputations that competitors struggle to match.

Huawei: Competing Through Customer Focus

Huawei built global momentum by aligning its products with customer feedback. It invested in R&D to improve user experience—from longer battery life to localized features—and provided tailored support for enterprise clients.

This approach helped Huawei grow its consumer business to over $74 billion, strengthening its position in both domestic and international markets.

Xiaomi: Growth Through Customer Co-Creation

Xiaomi engaged users early through online communities and direct feedback loops. Each product release reflected user input, which built loyalty and increased relevance.

Customers became repeat buyers and brand advocates. Xiaomi’s responsive model helped it maintain a strong foothold in China’s competitive smartphone market.

Customer centricity helped companies break away from competitors and lead their categories. The ability to deliver what customers truly value remains one of the strongest differentiators in China’s fast-moving markets.

The Future of Consumer-Centricity in China: Where It’s Headed and Why It Matters

Image from freepik

As China continues shifting from an investment-heavy model to a more sustainable, consumption-driven economy, brands face a big question: How do we put the consumer at the center? The short answer? Adapt fast—or risk falling behind.

A Rising Consumer Class with Bigger Expectations

China’s middle and upper-middle classes are growing fast, expected to add about 80 million people by 2030. This group, especially younger consumers like Gen Z, isn’t just spending more (about 50% above average incomes); they’re spending differently. They want products that reflect their values, fit their lifestyles, and feel personal. 

In China, 61% of Gen Z consumers plan to increase spending by over 20% in the next two years, especially on experiences, wellness, and meaningful brands.

Digital Touchpoints Are Getting Smarter—and More Social

China is already a global leader in digital innovation, and the next wave of consumer engagement is all about personalization at scale. Platforms like Alibaba and JD.com use AI, big data, and social influencers (KOLs or “wanghong”) to tailor real-time experiences. 

Meanwhile, social commerce—shopping through platforms like WeChat, Xiaohongshu, and Douyin—is exploding. People trust recommendations from peers and influencers way more than traditional ads.

This shift isn’t just trendy—it’s sticky. Livestreaming sales and private WeChat groups are becoming some of the most effective sales channels nationwide.

Policy Support Means the Trend Isn’t Slowing Down

China’s government is actively pushing toward a consumer-led economy. From the “dual circulation” strategy to fresh initiatives supporting domestic food and agricultural product consumption, there’s clear momentum behind policies that boost internal demand.

The IMF estimates that if China succeeds in making this transition—especially with reforms in pensions, healthcare, and education—it could unlock up to $3.5 trillion in GDP growth over the next 15 years.

Ashley Dudarenok: Make Customer Centricity Work Like It Does in China

JD.com, Xiaomi, Trip.com—these brands succeed because they co-create with their customers, not just serve them.

If you’re ready to bring these strategies into your business, Ashley Dudarenok can help.

As one of the world’s top experts on customer experience and China’s digital economy, Ashley works with Fortune 500s and high-growth teams to:

• Decode what customer centricity means in action
• Show how to use data, AI, and social commerce to strengthen loyalty
• Align internal teams around fast, feedback-driven innovation
• Build reputation and retention through value—not gimmicks

Her keynotes and advisory sessions don’t just inspire—they deliver playbooks shaped by what works in the world’s most competitive market. Connect with Ashley now to design a strategy built on real-time feedback and customer trust—and grow your brand the Chinese way.

Book a consultation or keynote to bring customer centricity out of theory and into action.

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