module 2.5 customer, centricity, knowing the customer beyond the transaction

Customer electricity, knowing the customer beyond the transaction

Customer is not about providing a good customer service

It’s about organising the business around the customer rather than around products

• Product centric thinking:-How do we sell more of what we make?

• Customer centric thinking :- How do we create more value for the customers? We serve?

The difference, small, but it changes how a company operates

Real meaning of customer centricity

Many businesses know :-

• How many products they sold?

• Which products are popular?

• Their monthly revenue

Customer centric businesses know:-

• Who their best customers are

• What they buy

• How their needs change over time

• When they might leave

The focus shifts from managing products to managing relationship

Example:-A useful way to understand customer centricity

Think about why people often prefer a good local shop over a large anonymous store

The shopkeeper may know:-

• What brands you prefer?

• When you usually buy

• YouR budget

• Your family preferences

Because of this knowledge, recommendations feel relevant rather than random

Customer electricity tries to re-create this personal understanding at scale

Why customer electricity is difficult

• The challenge isn’t knowing the customer in one location

• The challenge is knowing them across every interaction

• Many companies are customer friendly

• Far fewer are Truly customer centric

Example Starbucks learning case

Barista may remember

• Your usual drink

• Your name

• How you like your coffee?

This creates a great local Experience

However, if you visit other locations:-

• they might not know Your Preferences

• The relationship starts from zero

Lesson

Customer electricity is not about individual employees being friendly

It requires systems that carries customer knowledge across organisation

What true customer centricity looks like

Imagine a customers interact through

• Website

• Phone app

• Physical store

• Customer Support

• Loyalty program

A customer centric company connects all this Touchpoints

The customer should feel recognised everywhere

Important principal:-

The customer says one company, even when company operates through many channels

example:-Hotel loyalty programs

1. Many hotel groups, remember

• Room Preferences

• Check-in habits

• Loyalty status

• Past stays

2. Returning guest may receive

• Preferred room type

• Faster check-in

• Personalise offers

• The hotel is just managing rooms

• It’s managing relationships

Marketing lesson:-Customer knowledge becomes part of the product experience

Difference between customer electricity and customer service

Customer service

1. Solve problem

2. Reactive

3. Interaction focused

4. Shot term

Customer centricity

1. Anticipate needs

2. ProActive

3. Relationship focused

4. Long-term

Example :-

Customer service→ We will fix your issue

Customer centricity→ Let’s understand why this issue keep happening

What customer centric companies measures?

Traditional companies often measure:-

• Sales

• Revenue

• Market share

Customer centric companies also measure:-

• Retention rate

• Repeat purchase

• Customer lifetime value

• SatisfactionS

• Loyalty

Because keeping a customer is often more profitable than constantly finding new ones

What should marketers learn?

The biggest lesson isn’t:-I know your customers

Every market is already says that

The real lesson is:- Design system that remember customers

Business has became customer centric when customer knowledge influences :-

• Product discussion,

• promotion

• pricing

• service

• Communication

Not just one department

Key takeaways

Business principal:-Product generate transaction, customer understanding generates relationships

Marketing principal:- The goal is not to make every Scale possible The goal is to make scale more likely

Strategic principal :- Customer centric city scales, the knowledge of our neighbourhood shopkeeper across an entire organisation

Customer centricity is the ability to recognise, understand and create value for the customers constantly across every interaction, not just during a single sale