Share this content
5

Is customer-centricity the problem rather than the solution?

Is customer-centricity the problem rather than...

Didn't find your answer?

Sampson Lee posted a blog (check blue tab at the top) about customer-centricity on MyCustomer a few weeks back that got tongues wagging. Do you agree with Sampson? Is the concept of 'customer-centricity' a problem for businesses rather than a solution? 

Replies (5)

Please login or register to join the discussion.

linkedin
By LinkedIn Group Member
06th Feb 2014 15:01

Response from Philip Burton from the MyCustomer.com LinkedIn Group

Sampson makes some interesting points :) 
However... as I read it, his arguments are based on the assumption that a business will aim to please *all* (current and potential) customers. That's generally not true. 
A market-led (or customer-led) business will think about what types of customer it wants to attract, serve and retain. It will create personas. It will model its marketing strategy, CRM and customer loyalty programs on these target personas. And (if it's focused) it will let other customers quietly come and go without paying too much time or attention to them. 
I agree with Sampson that "you can't and shouldn't try to please everyone" - but a good customer-centric business won't.

Thanks (0)
linkedin
By LinkedIn Group Member
06th Feb 2014 15:03

I never looked at customer centricity that way before. You can order your steak at the pancake house, but it will never be as good as the pancakes!

Thanks (0)
linkedin
By LinkedIn Group Member
06th Feb 2014 15:05

Justin is spot on. Not all organisations need or want to compete on customer centricity. As a practitioner, I find many organisations feel the need to be customer centric but find it difficult to quantify or articulate tangible benefits from doing so. Organisations who compete on price are not so concerned about delivering great customer service. To them, advocacy comes from being the cheapest. I constantly argue that a competitive edge can still be gained even if the USP is not based on customer centricity. However, I still find that it is this type of organisation that may agree with the statement asserting customer Centricity to be the problem , not the solution. In those organisations, the cost and effort in shifting focus and mindset of its employees and brand is more of a problem than a solution.

Thanks (0)
linkedin
By LinkedIn Group Member
06th Feb 2014 15:07

I agree with Justin. 
1. Customer-Centricity is not about satisfying every need of every customer. I don't now anyone who think so. 
2. Customer-Centicity is not in contradiction to allocating resources efficiently. It is, for some companies, the way to be efficient. 

I agree there is a problem with customer-centricity - it is still not relay and truly adopted by most business leaders. We do need to ask ourselves - why? My opinion: 
executive understand only the long-term benefit of strong customer equity. Until they will feel the immediate benefit, will be measured and rewarded accordingly and firms' market valuation will be according to customer-centric metrics, we will continue to hear arguments like "limited resources" and "good service is not affordable" 

I do not understand what's new with Mr. Lee's argument that companies should focus on the allocation of resources. Isn't it what they already doing for years? 

The question we should ask is: what strategy leads to success in an era of empowered customer and growing transition to services? focus on allocation of resources will always be true,... but it is not a strategy.

 

Thanks (0)
linkedin
By LinkedIn Group Member
06th Feb 2014 15:08

A few thoughts: 
1. The level of customer centricity is closely related to the branding and positioning strategy of the business. 
2. In addition, businesses being pragmatic, will normally focus on the top few customer concerns, based on the frequency of feedback and ensuring that the actions taken are consistent with the business strategy. 
3. Businesses will want to satisfy the needs of the most profitable customer segments. 
4. Solutions to some customers' concerns can be built into the service delivery design. A revised service delivery design will avert the occurrence of an event that leads to a feedback. This approach may require some resources in the short term but will have a long term effect on increasing the efficiency and effectiveness of the business service delivery. 

In summary, not all customers' feedback will be treated equally and that most concerns can be resolved with business process redesign.

Thanks (0)
Share this content

Related posts