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Pretty much basic, right?

Pretty much basic, right?

Well, so I thought 😅

Manuella Borges
February 02, 2025

_{Dear Reputation Builder,}

The point is that, sometimes, what we think doesn't matter, and the sooner we realize that, the better. However, even with years of self-knowledge, therapy, team leadership, and whatever else goes on in our minds, each and every one of us falls into the same issue once in a while: assuming everybody knows what we do.

The one that got me recently is the lack of a "customer-centricity” concept among leaders I've been exposed to in the last few months. I thought it was universally set, but the reality proved that many didn't even know what that meant, from Japan to Europe. REALLY! Most of you who read me now, if not all, know about it inside out, although having real difficulties implementing good practices and extracting real benefits from them. You failed, I failed… Truth must be told. Sorry, guys… 😬

You might be wondering, "Manuella, okay, but what do customer-centricity and reputation have in common?" Well, if reputation is the set of the collective perspective about something and many do not care about that, we have a disconnection.

In this edition, comes from Serbia the practical example of this combination of values, which is coincidentally (or not) related to my first 2025 trip. There, Lidl, a German grocery brand, has built a stellar reputation not just as a retail powerhouse but as a brand deeply committed to understanding and addressing stakeholder needs. Their approach to customer-centricity isn’t just operational—it’s a foundational management element, from gathering feedback to crafting community-focused initiatives. It's the center of their strategy.

This is a powerful reminder: customer-centricity isn’t just a buzzword but a reputation builder. But don't be fooled; there's always the other side of the coin (and there's a reflection gift to you at the end about that), which can be discussed in another edition. Sooo… I invite you to dive deep into a theme we both know is probably Achille's heel in your company, too.

Here is a little brief of what you are about to find today:

Chapter 1 | The positive side of customer-centricity: How Lidl Serbia’s initiatives foster trust and engagement.
Chapter 2 | Risks and gaps in understanding: Challenges Lidl faced and the risks of neglecting customer-centricity.
Chapter 3 | Strategies for embedding customer-centricity: Key actions Lidl implemented to build a strong reputation.
Lessons learned: Customer-centricity is a cornerstone of sustainable reputation.

Grab your cup of ☕️, slow down (it's Sunday), and let's reflect together ;)

Goal: understand trust and engagement-building through customer-centric initiatives.

1. Toxic positivity, no, sir. Not here!

Customer-centricity is more than just a product-business term—it's a strategic imperative that can transform a company's reputation. Lidl Serbia's success shows how this approach fosters trust and engagement.

THE CASE: Lidl Serbia's commitment to stakeholders

Since entering the Serbian market in 2018, Lidl has prioritized customer feedback and stakeholder needs. This commitment is evident in several key initiatives:

1️⃣ Sustainability efforts: Lidl Serbia integrated a comprehensive sustainability strategy focusing on being "good for the planet," "good for people," and "good for you." This includes introducing reusable, machine-washable bags to reduce plastic waste and organizing environmental clean-up activities, such as cleaning mountains in Serbia to preserve natural resources.

2️⃣ Community engagement: The company actively participated in CSR initiatives, such as raising awareness about parking issues for people with disabilities and contributing to local educational programs.

3️⃣ Employee welfare: Lidl provided competitive working conditions, including private health insurance for all employees, and launched over 375 training programs to enhance service quality. At least in Serbia… remember that.

4️⃣ Customer feedback integration: Mechanisms to gather feedback ensured the company remained aligned with consumer expectations and continuously improved
its offerings.

💭 To me, it also feels like the closest to “walk the talk” thing. You don't need to be perfect; you just need to do what you promise and, when needed, adjust the route. Here comes the “it's not that simple” issue we mentioned initially, right? ¯\_(ツ)_/¯

🎯 Practical takeaways:

Acting on customer needs builds reputation and loyalty.
Aligning business strategies with stakeholder expectations enhances trust.
Community involvement is essential for modern businesses.

Okay, moving on…

Goal: Highlight Lidl's challenges and the risks associated with neglecting customer-centricity.

2. Just like everyone (and every company)

While Lidl Serbia has made significant strides in adopting a customer-centric approach, the journey hasn't been without its challenges and risks.

THE CHALLENGES

1️⃣ Market entry perception: Entering Serbia as a discount retailer required overcoming skepticism and building trust among consumers who were used to traditional shopping models.

2️⃣ Cultural adaptation: Adapting Lidl’s global business model to fit Serbian customs and consumer preferences was critical but challenging.

3️⃣ Operational scaling: Rapid expansion to 67 stores across 38 cities required consistent quality and service standards.

THE RISKS

1️⃣ Eroding trust: Missteps in addressing customer needs could reduce brand trust.

2️⃣ Competitive disadvantage: Ignoring customer preferences risks losing market share to more adaptable competitors.

3️⃣ Reputational damage: Failure to align with consumer expectations could harm public perception and affect growth.

Click on the image to watch the video, providing an excellent summary of the company's strategy. Also, AKA the best and most recent one I've found

Got this from someone else? Don't be shy 😎

Goal: Actionable strategies Lidl Serbia implemented into its operations and reputation efforts.

3. Ask, decipher, build together, repeat 🔃

Lidl Serbia implemented several strategic initiatives to overcome challenges and foster a customer-centric culture.

This is what I call "getting the hands dirty." After all, they actually went to the field to research, identify, and understand what was needed to make it right.

What are these beauties?

Localized product mix
Tailored offerings to meet Serbian consumers' tastes and preferences, ensuring relevance and appeal.
Community Engagement and CSR Initiatives
Launched sustainability programs, such as introducing reusable bags and organizing environmental clean-up activities to engage the community and demonstrate corporate responsibility. And my reading here goes beyond ESG regulations and America's new view; it runs productivity and efficiency. Business for God's sake…
Employee development and welfare
Provided training programs and private health insurance, fostering a motivated workforce and ensuring high service quality. (I'm referring to Serbia's case, right? The video, for instance, mentions some legal issues in these matters around the global units, but it doesn't specify which one.)
Customer feedback integration
Established systems to gather and act on customer insights, driving continuous improvement.
Transparent communication
Maintained open lines with customers, sharing initiatives and responses to feedback to build trust and loyalty.

Outcomes of these strategies

Enhanced customer satisfaction: Lidl achieved the top position in customer satisfaction surveys in Serbia.

Market expansion: Successful expansion to 67 stores, with plans for further growth.

Employee retention: Fostered a positive work environment, leading to higher satisfaction and retention.

Pretty nice, huh?

❝

Reputation management is not just about fixing wrongs but about working on what’s right and building on it, turning your good name into your greatest asset.

Anonymous author

🧠 Keep in mind!

In this edition, you had a better understanding about:

Customer-centricity and how it helps to build reputation. Meeting and exceeding customer expectations strengthens trust and loyalty.
Transparency and its essentiality. Open communication fosters credibility and engagement. Oh, if it does!
Acting on feedback can generate results. Insights must translate into meaningful action for continuous improvement. For real!
Lidl Serbia’s journey demonstrates that prioritizing stakeholders and community needs is not only good business but also foundational for a strong reputation. Whether your market is local or global, customer-centricity is a strategy you can’t afford to overlook.

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