Ranjay Gulati reports how Best Buy talked to a group of customers (in this case "Busy moms") to find out why they were leaving the store without buying anything. Here are three examples of customer centricity at work. Peter Fader, author of Customer Centricity, summarizes the picture in the following way: "Customer centricity is a strategy to fundamentally align a company’s products and services with the wants and needs of its most valuable customers." Examples of Customer Centricity: This is a strategic approach and encourages the company to work with customers to co-create the future. Customer-centric companies are focusing on core customer groups, identifying needs (not just wants), and seeking to solve problems. Proactive Instead of ReactiveĬustomer-focused companies tend to chase the customer, seeking to please everybody who walks through the door and seeking to match the product/services on sale with each customer. Other customers are still customers, but they are not central to the strategic planning of the business, nor to the creation of the key tactical tools. These companies typically have a segmentation that is based on customer lifetime value, and focus their efforts on the relationship with and needs of these customers. Customer-centric companies know who the key customers are, because they employ an approach based on customer lifetime value. Focus on Customer Lifetime ValueĬustomer-focused companies often focus on being nice to all their customers, offering great service to all customers and empowering frontline staff to go the extra mile to make the customer happy. By thinking like the customer, by understanding needs as well as wants, a customer-centric company can ensure that the long-term experience of the customer is optimized. Customer-centric approaches try to create a complete solution. Provide Solutions, not Just Products/ServicesĬustomer-focused marketing tries to identify which products and services match the wants from each customer.
#Focussed vs focused how to#
The famous examples of Ford not wanting to provide faster horse-drawn carriages and Steve Jobs not asking customers how to develop the iPhone fall into this category. Customer-centric companies try to understand what customers need and deliver that. Dealing with Needs, not WantsĬustomer-focused companies listen to what customers say they want and try to give it to them. Approaches based on co-creation, ethnography, and motivations tend to be customer centric.
Approaches like programmatic advertising, A/B testing and NPS metrics are customer focused. Customer-centric approaches try to see the world from the customer’s point of view, which is an inside-out point of view. Thinking like a CustomerĬustomer-focused approaches tend to be based on looking at the customer and trying to work out what to sell to them. So, what is the difference between customer centricity and being customer focused, and why might you favor customer centricity? Here are five key points to keep in mind. Today, we have informed consumers, competitive markets and few tangible product/service benefits-a combination that has resulted in the focus shifting to customers. In the days when products and services could achieve a clear product/service difference that was clear, sustainable and beneficial, a product-centric approach made sense. Companies used to focus on design, manufacturing and logistics. The key change to keep in mind is that markets have moved from product centricity to customer centricity. The trend in customer centricity, compared with customer focused, is illustrated by the data from Google Trends shown below. This post looks at the differences between customer focused and customer centricity-and identifies where customer centricity is taking center stage.
For many people, these two terms are almost interchangeable, but if you dig into the literature and advice, there are some subtle but important differences. I was recently asked about the difference between customer focused and customer centric.
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