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Customer Centricity Inclination for coming Change


Customer-Centricity Inclination for Coming Change

The foundation of customer centricity was laid in the marketing concept that was articulated by Peter Drucker in the mid-1950s as a business philosophy that directs all organisational activities towards filling the customers’ needs. Drucker (1954) explained that a customer defines the purpose of an organisation, determines the products the organisation would produce as well as decides whether the organisation would prosper or not. This philosophy was further reiterated by Levitt (1960) who asserted that “management must think of itself not as producing products but as providing custom- creating value satisfactions.” Levitt (1960) expounded that organisations that define their business myopically in terms of products can stagnate even if the basic needs of customers are met. Therefore an organisation must be defined in terms of meeting the customers’ needs rather than producing and selling the products. Shah et al. (2006) further enforce that the true essence of customer centricity lies not in how to sell products but rather on creating value for the customer and in the process creating value for the organisation. Customer-centric organisations have an operating and organisation model and strategy that focus on the customer (Barta, 2009). Therefore, according to Smith and Chang (2010), the customer-centric approach considers the customers of the products as assets and deals with acquiring and retaining customers.

The growing obsession with customer centricity is driven, in part, by technology. Today customers can obtain and exchange more information about the good and bad of their encounters with companies than ever before.

The focus on experience is also a function of economic development. In the developed world, where homes already overflow with physical goods, much of what we spend our money on — mortgages, life insurance, cable or Internet service — are intangible, commodity-like services that don’t really enter our consciousness unless something goes wrong. And when problems happen, a single interaction with a website, a help desk, or a service technician can have a huge influence on how we regard a brand — and whether we choose to keep spending our money with it.

Customers now expect more than personal engagement when it comes to customer centricity, they also demand engagement at the right time, on the right device, with the right message. They also expect a true, integrated cross-channel experience. This next-level form of engagement ushers in an era of what’s referred to as “extreme personalization." Extreme personalization (EP) requires engagement for context, content and behavioral data. Combined with the advancement: AI-powered marketing automation platforms, extreme personalization isn’t just possible, it’s now emerging as a competitive advantage for modern retail brands. Now, with AI, personalization is possible for both content and context.

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