DELIVERING CUSTOMER VALUE INDIVIDUAL ASSIGNMENT

level2

Customer-centric and Market driven Approach

Customer focus is one of the only elements of the relationship between a company and its customers. A customer focus means it puts the customers high on your list of priorities. If the customer is the heart of the business and also by making the customers part of the culture, then it becomes customer centric.

Generic Overview
Within an organisation one department cannot function in isolation and you cannot departmentalise a customer-centric approach. It can only emanate from the very heart of an organisation. In the organisation someone should be ready to take the complete control of the total customer experience for a true customer-centric approach to work. The one who takes up this responsibility should assume the role of the communicator, champion and relationship developer. Most of the organisations are not ready to take this. Some companies rely on individuals who are good with the customers to assume this role which has limited effect. To become a customer-centric is a far more arduous task and identifying the shortfalls is easy and overcoming them is far more difficult. Educating an entire workforce to change in a way that is generally customer-centric is time-consuming and very expensive process. (DUMITRESCU)

Types of customer-centric approach

Most commercial relationships can be broken down to three distinct categories; they are price-driven, product-driven or customer-driven. (Kotler, p. 183) Price-driven organisations These organisations look at price as a differentiator and are forever concentrating on margins. The organisations in other categories do not look at margins but it is an ethos within an organisation that makes everything surround the product price. But this will require those organisations to cross out the value of their customers. They find themselves in a precarious position in terms of customer service because when somebody else comes along with a lower price the customer feels justified in switching because no loyalty has been built. Product-driven organisations These organisations differentiate on their particular products which can be an ideal solution sometimes, especially if the product is unique. Unique products can be either franchised or copied, creating unexpected competition. This kind of organisation relies upon the product to keep the customer. If the product is good, efficient, economical to run and cost-effective, then
1|Page

DELIVERING CUSTOMER VALUE INDIVIDUAL ASSIGNMENT

level2

customers will acknowledge these facts and remain loyal. However, sometimes competitors can mimic goods and customers can be tempted to buy your competitors stock.

Customer- driven organisations This type of organisation does not have to compete on price or product although it is important that the price and product are of an acceptable standard. The customer-driven organisation will look at its customers as a part of the overall business process. A true customer-driven organisation will want to go that extra mile to please the customer and to ensure that they enjoy the experience of being a customer of that organisation. (Vandermerwe, p. 121)

Dealing with customer-centric issues as seen in the international company HP

An ideal customer-centric assurance solution should address the heart of the CEM process covering: detecting quality of experience problems, identifying them and their root cause, facilitating their resolution and ensuring on-going preventative measures. CEM focuses only on customer experience problems communicated into CRM and does not address the areas of identification and resolution. HP has examined current process and tools in OSS and identified three keys areas for improvement: 1. Integration across resource and service layers The move to customer-centric operations has been affected due to the Silo organisations processes and applications. The lack of consolidation across multiple network domains and equipment vendors may be addressed by a manager of managers approach. But more often, there is a lack of integration across vertical layers. Consolidating these resources and service management layers allows for linking the network with service operations and enables efficient problems detection as well as identification and resolution, resulting in increased overall operations efficiency. 2. Problem correlation and root-cause analysis The first step to ensure an optimise customer experience is by quickly identifying a network resource problem and by understanding its impact on services. Unfortunately existing approaches often fail to keep up with change, are difficult to maintain and fail to address cross-technology problems. Due to this a radically different approach is needed where the network structure can be captured in a dynamic topology model that accurately reproduces the behaviour of the real network.

2|Page

DELIVERING CUSTOMER VALUE INDIVIDUAL ASSIGNMENT

level2

3. End-to-end service quality management A comprehensive customer-centric assurance solution must measure the customer experience by collecting metrics through passive probes, active probes and usage data. Just by detecting a customer experience problem is not sufficient. The solution must also correlate these metrics with other data sources, such as transaction and session statistics, network and services data, along with business-related data, in order to also identify and resolve the customer problem.

By putting the best customers in the centre of your universe, they would show you where to focus. Thats the beauty of Customer-Driven Business Performance. It helps to identify and prioritize opportunities for revenue growth and improved margins. Then have to apply these strategies, ideas and tactics to get it done.

3|Page

DELIVERING CUSTOMER VALUE INDIVIDUAL ASSIGNMENT

level2

Market-driven/Market-driven approach
The concept of "market-driven management" is practiced with great success by many of the world's leading corporations. But, it is a concept that is equally relevant to small business as well. This refers to a firms policy or strategy guided by market trends and customer needs instead of the firms productive capacity or current products. Basically it means using market knowledge to determine the corporate strategy of an organization or a company or a firm. A market driven organization has a customer focus with awareness of competitors and an understanding of the market. The most important capabilities for market-driven organizations are market awareness, organizational flexibility, strategic vision and external relationships. A key activity for a market-driven organization is information gathering. Market-driven organizations continuously gather data in all environmental sectors competitive, cultural, political, economic, technological, human resources, physical resources, and consumer.

Steps involved in becoming Market-Driven:

There are three elements to become a successful market-driven organization. These are as follows: a) A form of accepting and implementing and showcasing the changes formed within the organization according to the convenience of the customer. This includes the capabilities for delivering customer value - from product design to order fulfillment, and all the supporting systems, controls, measures and human resource policies. b) An externally oriented culture with dominant beliefs, values and behaviors emphasizing customer value has a very distinctive impact. c) Distinctive and different capabilities in market sensing, market relating, and anticipatory strategic thinking, that is, strategic thinking helps them devise winning strategies that anticipate rather than react to market threats and opportunities.

4|Page

DELIVERING CUSTOMER VALUE INDIVIDUAL ASSIGNMENT

level2

SOURCE- www.relevantasset.com

Importance of Customer-Centric and Market-Driven Approach:

The concepts of customer-centric and market-driven are the same since both approaches base their decisions on the needs of their targeted markets and customers: a) By defining, selecting and focusing the specific target markets. b) Thoroughly understanding the current and emerging needs of the customers in its chosen market segments. c) Building a compelling value proposition and by offering solution to meet these needs and desired outcomes. d) Foster a culture and collaborative organizational approach that makes customers the centre of focus while satisfying business and shareholder requirements. e) Strive towards a leadership market share position within targeted market.

5|Page

DELIVERING CUSTOMER VALUE INDIVIDUAL ASSIGNMENT

level2

Difference between market-driven and driving market

Market driven refers to a business orientation that is based on understanding and reacting to the preferences and behaviours of players within a given market structure. Driving markets, on the other hand, implies influencing the structure of the market and/or the behaviour(s) of market players in a direction that enhances the competitive position of the business. There are three generic ways of changing the structure of a market: (a) eliminating players in a market (deconstruction approach), (b) building a new or modified set of players in a market (construction approach), and (c) changing the functions performed by players (functional modification approach). Market behaviour can be modified directly or, alternatively, indirectly by changing the mind-set of market players (e.g., customers, competitors, and other stakeholders).

6|Page

DELIVERING CUSTOMER VALUE INDIVIDUAL ASSIGNMENT

level2

Executive summary
By all this means of information i have provided i would like myself to conclude by saying that each of these companies accepting customer-centric or market-driven approach are one in the same and what they have to focus mainly is to see what form of profit they would like to earn in return of lieu the form they accept to approach. Market driven approach as such is not something that backdrop to a business community managers concerning to these approaches are well reputed a skilled enough to have the ability to overcome financial drawback and crisis situation and so this form of customer centric approach will be very much of successful for managers in these sectors as a high return on investment will be able to carry out the business in a positive structure and managers would be able to handle these turnover in a flexible manner as accost can be unexpected.

I believe that this would prove my part that the managers working in this field will be able to compensate and strive hard forward in the method they have adopted. And i also expect that this form of approach would result in high sales turnover and a goodwill appraisal for any business enterprise.

7|Page

DELIVERING CUSTOMER VALUE INDIVIDUAL ASSIGNMENT

level2

REFERENCES Websiteshttp://www.businessdictionary.com/definition/customer-centric.html http://www.businessdictionary.com/definition/market-driven.html http://www.businessinberkshire.co.uk/threestep/news2.html http://www.businessweek.com http://www.bnet.com http://www.softnetsolutions.com/cca.pdf http://www.wdbarrett.com/samples/marketdrivenorg.pdf http://www.yourdictionary.com/business/customer-centric

Books-

The customer-centric-organizationfrom pushing products to winning customers by booz, Allen, Hamilton

Customer centric selling by Michael Bosworth

Marketing insight from A to Z by Philips kotler

Marketing management by Philips kotler

8|Page