Product Centric V/s Customer Centric
Till now many companies in the market defined themselves by promoting the products they produce or by the services they offer and not by giving much importance of solving the problems of the customers. Therefore, product centric businesses try to introduce themselves with product superiority which is an approach, driven mostly by research and technology.
Where as a customer-centric organization emphasizes on diagnosing the business problems and offers value through customized solutions. This is known as an ‘outside in’ approach which is driven by innovative service delivery experiences to meet up the needs. In this approach, the basic goal is maintaining a long term relationship and aims for the customer mind share rather than market share. Hence, the customer-centric adopts a buyer driven pull approach which is against the sales driven push approach. For this approach, the company’s need to implement the enterprise mobility services for proper utilization of the approach. As the more mobile apps and solutions are provided by the company, the more popular the company becomes. Mass media tools like TV, OOH billboards, and print which were previously used for generating awareness among the viewers of the product has been overpowered by the new age digital media tools like influencers, experiential marketing and personalized customer journeys for better generation of user engagement. Apple has created a milestone related to the product centric approach as Steve Jobs considers that customers are unaware of what they want until and unless they are introduced to the product. The idea is of the core Apple organizational and market structure which gives the power to deliver their highly innovative products to their customers in a most effective and profitable way. Also, they put a lesser focus on individual customer feedback.
On the other hand, Amazon is on the other side of the spectrum and believes that if they are competitor focused then, they have to wait for a competitor to do something but, if they are customer focused then, there is more scope of becoming a pioneer. Therefore, Amazon implements everything that is customer centric. It can are that they have no products to sell but they have championed in the customer centric approach by delivering a unique platform for marketing.
Place the customer at the center
It is a great challenge to create and establish a competitive edge in this saturated market with the overflowing products and services. Hence, here comes the importance of innovating new and unique differentiators for competing profit, vying volume and value share. So, the organizations that have a higher understanding of customer needs and problems will be in competitive advantage.
This indicates understanding the customer needs attentively and responds to their queries by ensuring engagement especially at the initial stages. Monetizing any deal too soon into the customer experience journey can bring to an end of the relationship before it actually started. Neither can the organization put all the customers in similar catch segment and follow the same protocol for all of them.