Question 1: Discuss the Six Building Blocks of Customer Centricity

1. Mass Customization:

Mass customization is a business strategy that combines the benefits of mass production with
the flexibility of customization. Mass customization relies on a deep understanding of
customer preferences, allowing businesses to offer personalized products or services. By
analysing customer data and collecting feedback, organizations can identify the specific
customization options that are most valued by their customers. Mass customization enables
businesses to design products or services that are tailored to individual customer needs and
desires. Moreover, implementing mass customization requires cross-functional collaboration
within an organization. Departments such as product design, manufacturing, marketing, and
customer service need to align their efforts to ensure a seamless customization process and
consistent customer experience. For example, Nike allows customers to personalize their own
Nike products, including clothing and footwear, from colours and materials to style.

2. Customer Engagement:

Engaging with customers allows organizations to gain deeper insights into their needs,
preferences, and behaviours. By actively listening to customers through various channels,
such as surveys, social media, or feedback mechanisms, businesses can better understand
their expectations and tailor their offerings accordingly. Moreover, actively seeking their
feedback fosters a sense of involvement and demonstrates that their opinions are valued. This
can be achieved through various channels like social media interactions, customer
communities, feedback surveys, or personalized communication, allowing customers to
contribute to the improvement of products, services, and overall customer experience. For
instance, Uber Eats, uses dynamic content to personalize their messaging with restaurants
specific to the user’s location and past behaviour.

3. Structuring around the customer, not the product:

Structuring around the customer, not the product involves organizing and designing business
processes, teams, and strategies with a primary focus on delivering value to the customer.
Instead of organizing around product lines or internal functions, businesses structure their
organization around customer segments or specific customer needs. This may involve
creating dedicated teams or departments that are responsible for serving and understanding
the unique requirements of different customer groups. Additionally, by mapping the customer
journey, businesses gain a holistic view of the customer's interactions and touchpoints
throughout their relationship with the company. This helps identify pain points, opportunities
for improvement, and areas where personalized experiences can be delivered. The
organization can then align its structure, processes, and resources to ensure a seamless and
delightful customer experience at every step.

4. Empowerment of front-line staff:

Empowerment of front-line staff refers to granting them the authority, resources, and
autonomy to make decisions and take actions that directly benefit the customer. It involves
trusting and equipping employees with the necessary tools and support to provide exceptional
customer service. Front-line staff are given the authority to make decisions and resolve
customer issues without constant supervision or requiring approvals from higher levels of
management. They have the freedom to use their judgment to address customer needs
promptly and effectively. For instance, Disney employees are given the tools to solve issues
right away, from comping meals to offering special experiences. 

5. The democratization of customer relationships and knowledge:

It refers to the trend of giving customers more power and control in their interactions with
businesses. It involves providing customers with access to information, involving them in
decision-making processes, and empowering them to have a voice in shaping the products,
services, and experiences they receive. Businesses involve customers in the co-creation of
products, services, and experiences. They seek input, ideas, and suggestions from customers
through surveys, focus groups, or online communities. By engaging customers in the design
and development process, businesses can ensure that their offerings meet customer needs and
preferences more effectively.

6. The capability to filter massive data sets to add value to products and service offers

The capability to filter massive data sets to add value to products and service offers refers to
the process of analysing large volumes of data to extract valuable insights that can enhance
the products and services provided to customers. By leveraging advanced analytics
techniques, businesses can process and analyse massive data sets to uncover patterns, trends,
and correlations. This analysis can provide valuable insights into customer behaviour,
preferences, and needs, helping businesses understand their target audience better. Data
analysis can help businesses predict demand patterns, forecast sales, and optimize inventory
management. By analysing historical sales data, market trends, and external factors,
businesses can ensure that they have the right products in stock, avoid stockouts or
overstocking, and optimize their supply chain operations. This can lead to advertising to the
target market that would ensure efficient results in the long journey.

Question 2: Discuss the The Seven Characteristics of Customer-Centric

Companies

1. Customer Understanding: Customer-centric companies invest in understanding their

customers deeply, including their behaviours, preferences, and pain points. They
gather data through various channels, such as surveys, feedback forms, and social
media listening, to gain insights into customer needs. For example, Amazon uses
customer data to offer personalized product recommendations based on purchase
history and browsing behaviour.
2. Customer-Centric Culture: These companies foster a culture that puts the customer at
the centre of decision-making. Every employee, from top management to front-line
staff, is aligned around the common goal of customer satisfaction. Zappos is known
for its customer-centric culture, empowering employees to go above and beyond to
provide exceptional service.
 3. Customer Journey Mapping: Customer-centric companies map out the entire customer
journey, understanding each touchpoint and interaction a customer has with the
company. They identify pain points and areas for improvement to deliver a seamless
and satisfying customer experience. Airbnb focuses on mapping the end-to-end
journey, ensuring that every step, from booking to check-out, is well-designed and
customer-friendly.
4. Customer-Centric Metrics: These companies measure success not just by financial
metrics, but also by customer-centric metrics. They track metrics such as customer
satisfaction scores, Net Promoter Score (NPS), and customer lifetime value to
evaluate their performance. Apple regularly measures and monitors customer
satisfaction to assess the quality of its products and services.
5. Cross-Functional Collaboration: Customer-centric companies break down internal
silos and foster collaboration across departments. They ensure that different teams
work together seamlessly to deliver a unified and consistent customer experience. For
example, Disney emphasizes cross-functional collaboration to ensure that the guest
experience is exceptional across all aspects, from theme parks to customer service.
6. Continuous Improvement: These companies are committed to continuously improving
their products, services, and processes based on customer feedback and market trends.
They actively seek customer input and involve customers in the co-creation of new
offerings. LEGO encourages customer feedback and engages with its community to
gather ideas for new products and improvements to existing ones.
7. Customer Advocacy: Customer-centric companies prioritize customer advocacy and
word-of-mouth recommendations. They aim to create loyal customers who become
brand ambassadors and actively promote the company to others. Salesforce, for
example, has a strong customer advocacy program called "Trailblazer Community"
where customers can share their success stories and collaborate with other customers.
These seven characteristics collectively define customer-centric companies. By embracing
these characteristics, companies can create a customer-centric culture, deliver exceptional
experiences, and build strong customer relationships, leading to long-term business success.