Customer centric marketing
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Customer centric marketing focuses on satisfying individual customer needs rather than target markets. It allows firms to build customer satisfaction, loyalty, and long term viability through direct sales. Companies like Amazon and IBM center their strategy on customers, bundling services with products, inviting online communities, and ensuring easy contact. The customer centric approach changes business processes and culture to prioritize customer orientation across the organization. The goals are to understand customers, treat them as expected, respond to them, and anticipate needs.
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Customer centric marketing
- 2. Introduction • Customer centric marketing is – focused on satisfying the needs of individual customers (Hanif, Hafeez, & Riaz, 2010) – It does not emphasize on the needs and resources of a whole target market segment or the person doing the selling (Fornell, Johnson, Anderson, & Cha, 2002) – It is the ideal approach for marketing especially for small businesses (Johnson, Gustafsson, & Roos, 2005)
- 3. Customer centric marketing • Through the customer centric marketing approach a firms will be able to: – Sell its goods or services directly to an individual customer – Build customer satisfaction – Promote lifetime customers – Develop a long term economic viability
- 4. Customer centric marketing • high level of importance is not placed on understanding behaviors of customers and exploiting that for the benefit of the business • customer centric marketing approach simply places high importance on respect for customers
- 5. Customer centric enterprises • Two examples of customer driven companies include: – Amazon – IBM • These companies center their marketing and sales on the customers (Thompson, 2000) • Eventually, the effort results into product driven strategy
- 6. Customer centric enterprises: what they do 1. Give promises to the customers and not just missions for the companies (Thompson, 2000) 2. The services are bundled in with the products 3. Create an online community that is inviting 4. Customers have no problem contacting the companies (Thompson, 2000) 5. Customer friendly and cost effective communication system
- 7. Customer relationship • Customer relationship involves two sources of customer satisfaction 1. The actual customer experience: represents what and how customer receive goods and services to satisfy their needs 2. The marketing dialogue: represents information exchange to influence the attitude behaviors, and expectation of customers (Evans, 2002)
- 8. Effect of customer centric approach to the organization • Customer centric marketing approach brings changes in the designs of various business process – Technological support – Culture in marketing – Organizational culture
- 9. Customer centric approach • Creates organizational culture since every part of the organization is affected and caused to focus on individual customer satisfaction • Marketing and sales personnel are charged with the highest responsibility • The marketing and sales department have direct and frequent contact with the customers (Cronin, Brandy, & Hult, 2000)
- 10. Process of customer centric marketing • First step is to develop an understanding of the customers. This involves: – Being aware of who the customer are – How to identify and group them – Knowing what they want – Conducting customer research and intelligence
- 11. Process of customer centric marketing • Second step is knowing what the customers want. It involves: – Segmenting the customer according to their needs – Making accurate forecast about the segments – Adjusting product development according to the needs of the customers
- 12. Process of customer centric marketing • The next step is ensure that the customers are satisfied • The fourth step is to develop a culture that involves every organizational organ in being customer oriented (Anderson, Fornell, & Mazvancheryl, 2004) • Finally, systems have to be put in place to encourage customer orientation.
- 13. Goals and Objectives of CCM • To understand the customers • To treat customers as the expect to be treated • Respond to customers actions • Anticipate the needs of the customers
- 14. Customer centric marketing and customer satisfaction • Positive fulfillment involves delivery on their words • Poor fulfillment has a negative effect to the organization (Athanassopoulos, 2000) • Customer centric approach helps the organization: – Capture information on customer fulfillment – Respond effectively
- 15. References • Anderson, E., Fornell, C., & Mazvancheryl, S. (2004). Customer Satisfaction and shareholder value. Journal of Marketing, 172-185. • Athanassopoulos, A. (2000). Customer Satisfaction Cues to Support Market Segmentation and Explain Switching Behavior. Journal of Business Research, 191–207. • Cronin, J., Brandy, M., & Hult, T. (2000). Assessing the Effects of Quality, Value, and Customer Satisfaction on Consumer Behavioral Intentions in Service Environments. Journal of retainling, 193- 218. • Evans, G. (2002). measuring and managing customer value. Work study, vol. 51, no. 3. • Fornell, C., Johnson, M. D., Anderson, E. W., & Cha, J. (2002). A National Customer Satisfaction Barometer: The Swedish Experience. journal of marketing, 1-18. • Hallowell, R. (1996). The Relationship of Customer Satisfaction, Customer Loyalty, and Profitability: An Empirical Study. The International Journal of Service Industry Management, 27-42. • Hanif, M., Hafeez, S., & Riaz, A. (2010). Factors Affecting Customer Satisfaction. International Research Journal of Finance and Economics, 44-51. • Hennig-Thurau, T., & Klee, A. (1997). The Impact of Customer Satisfaction and Relationship Quality on Customer Retention: A Critical Reassessment and Model developing. Psychology & Marketing, 737-764. • Johnson, M., Gustafsson, A., & Roos, I. (2005). The Effects of Customer Satisfaction Relationship Commitment Dimensions, and Triggers on Customer Retention. Journal of marketing , 210-218. • Thompson, H. (2000). The Customer-Centered Enterprise: How IBM and Other World-Class Companies Achieve Extraordinary Results by Putting Customers First. MacGraw Hill.
Editor's Notes
- Customer centric approach in marketing emphasizes on two areas: satisfying the needs of individual customers and not of the organization or a large market segement
- Customer centric business processing helps organizations in several ways including building long term relationship with customers thus increasing the viability of the business
- The two examples of companies earlier mentioned, do the following things in their customer centric marketing and sales approach. They no only have missions for themselves but also give promises to their customers. this means that the companies’ mission statements mention about the customers as well.