Customer centricity 

The product-centric approach 

 The goal of the firm is to maximize shareholder value 
 Maximum profits through volume and cost reductions 
 Key performance indicators such as market share 
 Growth through extending the product 
 Product-oriented organization structure 
 The competitive advantage: product expertise 

Product centricity 
For most companies (those focusing on performance superiority or operational excellence) it is
all about coming up with the best idea and then producing a lot of it and keeping the cost down.

Bad parts of product centricity 

 Technology enables product development (can create new products much faster)
 technology-enabled information flow (customers know a lot more and talk more)
 Technology-enabled delivery (customers can buy the product from any part of the world)
 Globalization (customers more aware of products from other areas)
 deregulation (no more monopoly in areas)
 The customer wants to buy “end to end solutions” meaning they want to buy a fixer to
their problem and this may require going to different brands

Data-driven business 
This is about understanding the customers, their needs, wants and behavior, and then
marketing according to that. Similar to the book of habits, they use the power of habits and
information to sell their product. 

Direct marketing 
Aim to determine marketing communication-based on past purchases. 

Customer centricity 
Being a trusted advisor to the customer. Having a great customer and company relationship. 
Selling as much stuff as possible,
Not always about making money right away, long term and sometimes losing money in the
moment to make more money later in time. 
Elevating the worth of customer so they spend more money over time 
Need to have a forward-looking perspective 

Living in a customer-centric world 

The goal is to maximize shareholder value 
Key to success is (celebrating customer heterogeneity) finding the profitable customer from
the less profitable ones 
Focus on future profitability (customer lifetime value)
Success arises through enhanced customer acquisition, retention, and development 
Customer-centric organization structure 
 Being customer-centric does not mean ignoring the less valuable customers, you need
many fewer value customers to balance out the money you are putting into the more
valuable ones.