Business Finance Homework Help

Customer Centricity

Without customers, businesses could not succeed.  The term “customer centric” has, therefore, become synonymous with proactive business strategy worldwide.  Primarily due to advances in technology, we are experiencing a fundamental shift in marketing – from a previous focus on companies to a spotlight on consumers.  This gives customers a much stronger voice in both the business-to-business (B2B) and business-to-consumer (B2C) markets.

This core reading discusses how customer centricity fits into an organization in three ways: 

1. as part of a knowledge management system (understanding the customer);
2. as part of developing strategic competence as a learning organization (building a customer-centric culture); and
3. as a foundation for corporate strategy development and execution (serving the customer).

Customer Value

This reading highlights the importance of understanding the various ways in which customers derive value from products and services.  The following four ways are identified and explained, with examples and illustrations of each provided throughout the reading: 

1. Economic value
2. Functional value
3. Experiential value
4. Social value

Customers define value in different ways depending on the type of product or service they purchase and their needs and motivations at various times throughout their lives.  Marketers need to create and maintain, and in many cases improve, the quality of their products and services to continue to surpass the value provided by new and existing competitors.  This focus on value is accomplished most successfully by continually assessing the needs and expectations of target markets as well as being on the forefront of new innovations launched in the marketplace.

Following your review, prepare responses to the following discussion questions:

1. According to research, what are some of the key customer-centric characteristics of successful companies?
2. What are some of the ways that technology has shifted power from companies to consumers?
3. In discussing Net Promoter Score (NPS), why does Reicheld suggest doing surveys frequently rather than annually or just a few times a year?
4. What are the basic building blocks and decisions involved in creating customer value aimed toward the development of profitable long-term relationships with customers?
5. A focus on customer service and the customer experience can provide a competitive advantage, however many organizations have not taken advantage of this opportunity.  How can the marketing tool, the service-profit chain, be used to analyze where firms are missing the mark?

.