W2 - CUSTOMER CENTRICITY: The Limits of Product-Centric Thinking & The Opportunities and Challenges of Customer Centricity

Question	Answer
Essential carateristics of traditional product-centric approach	1. Reason for business: maximize shareholders value 2. How: through high sales volume and costo reductions 3. Performance measure: market share (more customers, mroe products, more sales) 4. Product-oriented organizational structure --------------------------------------- IT'S ALL ABOUT PRODUCT EXPERTISE
Cracks in product-centricity	1. commoditization 2. smart customers 3. retail saturation 4. globalization 5. deregulation 6. need for "end-to-end" solutions 7. IT customer-level tracking
Cheers for direct marketing	1. customer is the unit of analysis 2. knowledge of customers and their buying habits 3. determining marketing strategies based on past purchases
What is customer centricity	a strategy that aligns a company's development/delivery of its products/services arounde the current and future needs of a select set of customers in order to maximize their long-term financial value to the firm
Essential carateristics of traditional customers-centric approach	1. Purpose: maximizing shareholders value 2. How: celebrating customers heterogeneity 3.Focus on customer present and future (life time) value 4. Performance measure: customer acquisition, retention and development 5. Customer-centric organizational design ---------------------------- IT'S ALL ABOUT RELATIONSHIP EXPERTISE

Resource summary

	Created by Carlo Marmo over 8 years ago