Previously, businesses were focused on being product centric, but times have changed and being customer centric is much more important. If you are wondering exactly what being customer centric is, then you have stumbled to the right place. Being customer centric is when you place focus on the customer and understand his or her needs. You keep the customer’s interests in mind and you are able to handle complaints, fix and resolve problems, and cater to every customer.
What is the Difference?
There is a big different between product centric and customer centric. It is important to understand the difference to know how to properly run your business and adhere to the customer.
A product centric company will place all of its focus on a product and try to sell that individual product to as many people as it possibly can.
A customer centric company will focus on one sole customer and try to sell that individual customer as many services as it can.
Although the two sound alike, they are very different and both offer different results.
Which One is More Sustainable?
A product centric company will come and go with its products. When the once popular product is no longer popular, the company will either need to come up with another stellar product or close its doors. This type of company only lasts as long as the product lasts and will die off over time.
It can be difficult for a product centric company to continually produce new product and not every new product is always a hit. This places bars on the company’s assets, profits, and more.
A customer centric company is more likely to be sustainable because the company itself is in a better situation and can respond to failed product or service better. This type of company can adjust its efforts or offer different services to the customer to retain them. The right type of product can be created for each type of customer.
Focus on the Best
In a customer centric company, you want to make sure you are focusing on the best customers you have. Not every single customer is worth your time or effort. You want to target customers who are more than just average. Granted, you can help the average customer but your profit lies within the best customer. See this breakdown of being customer centric in the infographic provided by Monetate.
In a customer centric focused business, you will need to adjust your customer based on their lifetime value. This is the estimate amount that they will spend/need you for. The higher the value, the more you want to pursue them.
Place Focus Where Focus MattersIt is important to evolve into a customer centric business to cater to your customers. Product centric businesses will see a boom of profit for that first stretch while their product is still hot and fresh. Once that fire burns out, they are done. A customer centric company may start out slower in the beginning, but overall they will be more profitable because they can adjust and provide more for their customers.