what does it mean to be customer centric? alan mitchell 8 february 2007

What does it mean to be Customer Centric?

Alan Mitchell

8 February 2007

“When I use a word," Humpty Dumpty said in rather a scornful tone, "it means just what I choose it to mean - neither more nor less.”

“When I use a word," Humpty Dumpty said in rather a scornful tone, "it means just what I choose it to mean - neither more nor less.”

'Customer focus'

“When I use a word," Humpty Dumpty said in rather a scornful tone, "it means just what I choose it to mean - neither more nor less.”

'Customer focus'

Organisational structure

“When I use a word," Humpty Dumpty said in rather a scornful tone, "it means just what I choose it to mean - neither more nor less.”

'Customer focus'

Organisational structure

Customer Orientation

“What gets measured gets managed”

Producer push

Brand ‘loyalty’“‘The acid test of brand loyalty is whether a housewife, intending to buy Heinz Tomato Ketchup in a store and finding it to be out-of-stock, will walk out of the store to buy it elsewhere or switch to an alternative product.”

Tony O’Reilly

Marketing schizophrenia

Get the customer to do what the company wants him to do

Marketing as persuasion and manipulation

Get the company to do what the customer wants it to do

Marketing as identifying and meeting needs

Customer centric companies make their money by improving their customers’ profitability

'The consumer' is a business seeking to

improve its own profitability

Objectives E.g health, wealth, happiness

The consumer as a business

Business objectives Emotional outcome

The consumer as a business

Better decisions Information, Attention

Business objectives Emotional outcome

The consumer as a business

Better decisions Information, Attention

Better Processes Time, Money, Energy

Business objectives Emotional outcome

The consumer as a business

Better decisions Information, Attention

Better Processes Time, Money, Energy

Better Products/Services Value for money(Utility, Quality, Price etc)

Business objectives Emotional outcome

The consumer as a business

Better decisions Information, Attention

Better processes Time, Money, Energy

Better products/services Value for money(Utility, Quality, Price etc)

Business objectives Emotional outcome

The consumer as a business

Better decisions Information, Attention

Better Processes Time, Money, Energy

Better Products/Services Value for money(Utility, Quality, Price etc)

OPTIMAL value

Operations: work, energy

?

Passion: emotional costs/benefits

Information: needed/gained

Time: spent well/badly

Money: saved, spent well/badly

Attention: well/badly invested

OPTIMAL signatures

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Less More

What I want

What I get

Business objectives Emotional outcome

The consumer as a business

Better decisions Information, Attention

Better Processes Time, Money, Energy

Better Products/Services Value for money(Utility, Quality, Price etc)

The consumption process

Clarify and articulate needswhat do I want?what's available?

OPTIMAL signatures

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Less More

The consumption process

Clarify and articulate needswhat do I want?what's available?

Searchwhere can I get it from?at what price?on what conditions?how do I acquirehow to install, set up etc?

OPTIMAL signatures

O

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Less More

The consumption process

Clarify and articulate needswhat do I want?what's available?

Searchwhere can I get it from?at what price?on what conditions?how do I acquire, install, set up etc?

Comparehow does this offering

stack up against available alternatives

which outlet or retailer?

OPTIMAL signatures

O

?

P

I

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M

A

Less More

The consumption process

Clarify and articulate needswhat do I want?what's available?

Searchwhere can I get it from?at what price?on what conditions?how do I acquire, install, set up etc?

Comparehow does this offer stack up which outlet or retailer?

BuyOPTIMAL signatures

O

?

P

I

T

M

A

Less More

The consumption process

Clarify and articulate needswhat do I want?what's available?

Searchwhere can I get it from?at what price?on what conditions?how do I acquire, install, set up etc?

Comparehow does this offering stack up against available alternativeswhich outlet or retailer?

Install

Solve problems

Upgrade

Buy

OPTIMAL signatures

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M

A

Less More

OPTIMAL signatures

O

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Less More

O

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Customer

O

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Customer

Value exchange

Marketing innovation: designing richer win-wins

Business objectives Emotional outcome

Serving the ‘household’ business

Better decisions Information, Attention

Better processes Time, Money, Energy

Better products/services Value for money(Utility, Quality, Price etc)

All four levels, integrated

Driven by customer metrics1a) by what customers actually do

Driven by customer metrics1b) by what customers actually ask

‘Problem solving communities’

Driven by customer metrics2) by customers’ value signatures

Driven by customer metrics2) by customers’ value signatures

Driven by customer metrics2) by customers’ value signatures

Driven by customer metrics2) by customers’ value signatures

‘Second wave’: better processes

‘Third wave’: better decision-making

Personal media management services

Personal media management services

Ubiquitous search

Downloadable content

IndividualHere I am. This is what I

want!* my characteristics* my likes and dislikes, wish lists* my intentions* my specifications* my purchasing and usage patterns Personal media

management services

IndividualHere I am. This is what I

want!* my characteristics* my likes and dislikes, wish lists* my intentions* my specifications* my purchasing, usage patterns

Personal media management

services

Peer2PeerThis is what we

recommend!* P2P & expert reviews* ‘if you liked this, you might like …* what people like you are watching, searching for, etc* community generated content

Personal media management

services

ProvidersHere we are! This is what we have to offer!* filtered, permission based ads* free trials, first episode offers* distributed content (new and repeat)* searchable, downloadable archives

Peer2PeerThis is what we

recommend!

IndividualHere I am. This is what I

want!* my characteristics* my likes and dislikes, wish lists* my intentions* my specifications* my purchasing and usage patterns

* P2P & expert reviews* ‘if you liked this, you might like …* what people like you are watching, searching for, etc* community generated content

To conclude …

OPTIMAL value

Operations: work, energy

?

Passion: emotional costs/benefits

Information: needed/gained

Time: spent well/badly

Money: saved, spent well/badly

Attention: well/badly investedO

P

I

T

M

A

Customer

O

P

I

T

M

A

Customer

Value exchange

Marketing innovation: designing richer win-wins