Product-Centric Versus-Customer Centric organization

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Richard Claassens CIPPE

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[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Best solution for customer Personalized packages of products, service, support, education, consulting Customizing for best total solution Most profitable, loyal customer Portfolio of customers – customer profitability Price for value, risk Goal Main offering Value creation route Most important customer Priority setting basis Pricing Strategy Product profit centers, product reviews, product teams Customer segments, customer teams, customer P&Ls Organizational concept Structure New product development Customer relationship management and solutions development Most important process Processes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Measures Rewards ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Power to people with in-depth knowledge of customer’s business • Highest rewards to relationship managers who save the customer’s business Convergent thinking: What combination of products is best for this customer? On the side of the buyer in a transaction Relationship management culture: searching for more customer needs to satisfy Approach to personnel Mental process Sales Bias Culture People Product-Centric vs. Customer-Centric (Jay R. Galbraith, Designing the Customer-Centric Organization A guide to strategy, structure, and process, 2005) Products-Centric Company Customer-Centric Company Source: This table is a composite op points describing product- and customer-centric companies taken from Peppers and Rogers (1992, 1997, 2001), Treacy and Wiersema (1995), Seybold (1998, 2001)

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