Customer Centricity: Wharton Professor Peter Fader on Prioritizing Relationships in Business

KNOWLEDGE AT WHARTON ARCHIVES: Starbucks and Apple stocks have been trading at record highs, but are these and other businesses doing everything they can to ensure growth over the long term? Peter Fader, Wharton marketing professor and co-director of The Wharton Customer Analytics Initiative, argues that too many companies are customer friendly, but not customer centric. In other words, they treat each customer the same, missing an opportunity to discover who their best customers are. Without that data, they cannot make their most valuable customers even more profitable to the firm. In his new book, Customer Centricity, part of the Wharton Executive Education Essentials Series, Fader describes what customer centricity is, what it isn't and why it matters. He also demystifies customer relationship management and emphasizes the importance of gathering customer data in meaningful ways.
Stephen J. Kobrin, a Wharton management professor and executive director of Wharton Digital Press, talked with Fader about his new book.
More on this interview: knowledge.wharton.upenn.edu/a...
#customercentricity #customercentric #customerrelationshipmanagement #crm

[@niginpun6337]

this is probably the best video I've watched on the internet today! customer-centric vs product-centric! hats off

[@apurvsingh2864]

this one video is enough to cater every question on Customer centricity.

[@thesoultwins72]

Surely what Professor Fader is talking about is Key Account Management - not Customer-Centricity? This is especially true for retail companies [eg: Amazon, Nordstrom, Starbucks etc] who often cannot differentiate between their many customers. [For example, there are over 100 million Amazon Prime members].
In addition, Customer-Centricity is not a light switch that can be simply turned on and off to suit. For Customer-Centricity to really be effective, it needs to be continuous, constant and consistent. [3 C's]. So a retail operation cannot provide one customer with better service [at point of sale] compared to another.
In effect, Customer-Centricity is ongoing [not short term], involves everyone in an organisation [and is driven by senior management] and needs to be constantly reviewed and improved through creativity and innovation.
Professor Fader's model [and it is one that is advocated by many academics and business analysts] focuses much more on companies extracting the maximum value from consumers - which seems to me to be a completely different concept and focuses much more on an 'inside-out' perspective - which is the antithesis of Customer-Centricity.

[@krishanmohansharma8306]

👍 Great thoughts and insight. Thank you.

[@alessandrocomai8088]

Perhaps the Customer Lifetime Value (or part of it) described by. Prof. fader can be included in the Behavioural characteristic of the customer segmentation. I like the idea that there is an oversimplification of who is the most "Valuable" customers segments. Still so, I think that many companies are doing very well and they are able to create customized solution to different type of customers. Not saying that the new technologies are allowing firms to create mass-customized solutions.