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

by Peter Fader

Those long-term profits are realized because customer centricity allows companies to excel in three key areas: 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 premium from your best customers for an existing product or service, and allow you to up-sell your best customers to higher margin products or services.