CUSTOMER CENTRICITY MARKETING, Apuntes de Fisioterapia

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Week 4 – CUSTOMER

CENTRICITY:

The Limits of Product-Centric

Thinking

From Product-Centric to Customer-Centric Management

The Product-Centric Approach

The main goal of most companies is to maximize the value of the company and to increase shareholders value.

Maximum profits through: Volume + Cost Reduction

Main question: “Will it scale?”

The metrics: x Volume delivered x Reduction of costs x Market share = Key performance indicator

Sources of growth: x Finding new customers x Innovation (R&D): new products, extensions of existing products x = Extending the product!

Most companies have a Product-oriented organizational structure!

The competitive advantage: product expertise

This model = Product-Centricity

More and more companies jump “out of the water” (fish metaphor), to see how they can do in another environment.

Three Cheers for Direct Marketing!

Three Cheers for Direct Marketing!

The first companies that used data analysis were in Direct Marketing domain.

x The individual customer is the unit of analysis x Know who their customers are and what they buy x Aim to determine marketing communication based on past purchases x Constantly determine (and leverage) individual customer value. Try to figure out who are the best customers and how you can provide them the best value.

Interesting book: Being Direct by Lester WUNDERMAN

Which Firms Are Customer Centric?

Which of these retailers are highly “customer centric”?

Wal-Mart, Apple, Starbucks, Nordstrom Æ None of them!

¾ Wal-Mart : they don’t have a Loyalty Program, they don’t really study what their customers do and buy…They understand geographical differences; they consider their customers as a group but not as individuals. It’s a wonderful success of Product-Centricity. They focus on Operational-Excellence. They start focusing on some customer-centric strategies (Scan & Go). ¾ Apple : they don’t really study and target their audience; they just try to provide the best high- tech products. They focus on Performance Superiority! ¾ Starbucks : they focus on customer-centricity on a local level but not on a national level. ¾ Nordstrom : story of the guy who had his tires repaid whereas Nordstrom didn’t sell tires. It can be a good idea only if you know that this customer is very valuable and will come back and spend a lot of money. But, you can only know that by studying the data about customers.

Major Points

9 Product centric approach has some cracks, because the world has changed 9 You need to gather as many information and datas about your customers as possible to be truly customer-centric 9 The individual customer is a the center of the customer-centric approach 9 Most firms are not customer-centric