Customer Centricity: Focus on the Right Customers for Strategic Advantage (Wharton Executive Essentials)

by Peter Fader

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Customer centricity requires major organizational, structural, strategic, and cultural changes.

Change

radical idea that not all customers are created equal and therefore should not and cannot be treated as equals.

Companies don’t make and sell the products they think their customers will want; they make and sell products they know their customers will want.

Customer acquisition. Customer centricity can allow your company to better understand the true cost (and value) of new customer acquisition, help you better understand

where your company should look

for new customers, and can increase the number and quality of referrals from your existing customers-thereby helping you gather even more highly committed customers moving forward. Customer retention. Customer centricity can lengthen the relationship between you and your best customers and allow you to maintain these relationships at lower cost. Customer development. Customer centricity can boost the frequency with which your customers purchase a particular product or service from you, allow you to sell more varied products to your customers via cross-selling, allow you to realize a price...

you will still need to be product-centric in a significant way.

Customer equity is the sum of the customer lifetime values across a firm’s entire customer base.

CRM is a coordinated set of systems that a company uses to help create and extract more value from its customer base.

CRM, quite simply, is customer centricity put into practice.