New trends in customer-centric organizations

We have all heard of the premise of a "customer-centric organization." This concept basically proposes that the needs and wants of consumers should form the backbone of an organization, giving it a singular focus and clear direction that guides all of the company's decisions and actions. In theory, being customer-centric is a sensible strategy, but many companies take their interpretation of the concept too far, leading to errors in execution that can have grave long-term consequences.



The basic premise to “base all of a company's actions and decisions on what will please the customer” is definitely an honorable concept. This same premise, however, poses the greatest potential risk for improper interpretation. If a company does everything in its power to please its customers, how does it determine when organizational goodwill is taken advantage of by insatiable customers who will never be happy, no matter what actions a company takes?


Consumers always want the best product and the highest quality at the lowest price, delivered with the most convenience and comfort possible. The challenge for a company is pleasing customers with varying tastes, since the definition of quality, price, convenience and comfort varies from one customer to the next. In this scenario, it's easy to see how the concept of a “customer-centric organization” is impossible to retain in its purest sense.


To illustrate the point, consider the example of something that we are all familiar with – taxes. Assuming that the government could adopt a “customer-centric” strategy, do you think that we would all be willing to pay the same amount in taxes? Do you think we would all even be willing to pay taxes at all? Everybody in a society, even those who are part of the informal economy and do not pay taxes, wants electricity, water, roads, safety and other quality services – regardless of how we may define them.


Another example, even more extreme, further presents the complexity of the argument. Consider the case where you go to the doctor, expecting to be treated in an efficient and effective manner, with the physician applying the skills and experience necessary to determine the best treatment and cure the ailment. During the course of treatment, there may be some discomfort or even setbacks, but the end result is what is driving the decisions, not the process itself or anything that is experienced along the way. This is the same process that we use when considering a purchase of any product or service. Whether it's a music player, a haircut or a car, we are all looking for the solution that best suits our needs, without regard to the process we undergo to make our decision.


To be successful and viable in the long-run, modern companies must of course understand and accommodate the needs and wants of consumers. But companies must also also realize that being customer-centric does not simply mean that a business must blindly cater to the whims and desires of its customers. Businesses must apply their knowledge and experience to propose solutions that are practical, profitable and sustainable over time. In addition to satisfying their customers, companies must show the same level of commitment to their shareholders, employees and local communities.


Companies must offer a sufficient return on investment for the shareholders, investors and suppliers that provide the resources to develop the business. They must satisfy employees and business partners by offering support, development and security in return for their effort and dedication. And finally, businesses must realize the impact they have on the community and should act responsibly and ethically to be good corporate citizens at all times.


All companies should believe in the products and services that they offer. What is the best wine, the best mobile phone or the best type of music? There is no single answer to this, since it varies by person and even for the same person, depending on the specific situation. All that the winemakers, phone manufacturers and musicians can do is offer the best product possible, based on their knowledge and experience. Feedback from customers should certainly be taken into account, but it can not be the only factor, since the interests of shareholders, employees and communities must also be considered. As business leaders, we owe our allegiance not only to our customers, but to all of the individuals and organizations that contribute to our long-term viability and success.

The new mexican customer

Studies commissioned by ampersand and performed by MDI Group during 2008 and 2009 revealed the importance of understanding customers and building loyalty as a key strategy for retention. The study, titled “Evaluation, understanding and market segmentation of loyalty programs,” conducted in 2008, determined:

• 62% of the respondents have a loyalty program, and
• 77% considered that a loyalty program was “important” or “very important” when choosing a product or service.

 A deeper study made in 2009 revealed that, of the consumers who have a loyalty program membership:

• 90% used the loyalty program in the past 12 months
• 73% would “recommend” or “highly recommend” the loyalty program, and
• 28% increased their use of, or sought to only use, products or services that have a loyalty program.

In addition, in response to specific questions asking them to evaluate the programs they use, the 2009 study determined:

• 48% are attached to the brand, shown by a resistance to use or purchase competing products or services.
• 57% purchase or use the brand's products or services more frequently.
• 66% have recently redeemed points or received benefits from their loyalty program.
• 67% intend to purchase products or services of the company that has the loyalty program.

 With respect to the preferred brand use, the same study revealed that amongst the members of loyalty programs:

• 33% like to immediately redeem their points for goods or services.
• 49% prefer to wait and accumulate points over a longer term for larger rewards.
• 93% want to redeem points for benefits such as gifts, theater tickets and other prizes, rather than receive cash rewards or "cash back."

With these figures in mind, it is clear that consumers in Mexico prefer companies that focus on their customers. There are many examples in the news of companies that have introduced innovative promotions and value-added programs to attract and retain new customers.

A wide range of companies – including financial institutions, logistics and shipping companies, medical groups, engine manufacturers, hotel chains, insurance and real estate firms, retailers and budget airlines – represented a diverse but focused group of companies that introduced or strengthened their loyalty programs and demonstrated a renewed commitment to their customers and potential customers in 2009. Without a doubt, many of these companies strengthened their hold on their customers this year, even through the economic turmoil.