Product Centric Versus Customer Centric – Does it matter?

0
1522

Share on LinkedIn

Product Focused Companies

A product centric organization is one that is focused on the products it brings to market rather than the customers that buy those products.

It looks to develop new products by leveraging technology or specialized skills that exist in the company. It starts by looking internally at its capabilities rather than externally at what needs are not being met.

The chart below is a simple comparison of the two approaches:

product versus customer centric companies


In large complex organizations a product focus provides management with direct line of site into which products are selling well, at what profit and clear product owner accountability. While it does simplify the management of a firm it does come at a cost. It tends to create siloed organizations that compete for customers and often lacks a coordinated approach. In fact many of the poor customer experiences happen as a result of this internal/product focus. The other downside is a myopic vision of the market that blindsides companies to key changes.

What business are you in?

Product focused companies define themselves by their products. For example Kodak originally defined its self as being in the photo processing business. This definition impact the culture of the company in a way that hamstrings thinking and creates impediments for action. When the shift to digital came Kodak resisted this because of the impact on its “products – photo processing”.

The classic example of this is the “Last buggy whip company” the company that made the best buggy whips in America! It just failed to see the car was coming to on literate it’s market.

The future for companies is to balance this product focus with a customer focus so that customers feed directly into decision making and are not an afterthought.

What trends are affecting the way your customers solve their problems?

Does your organization suffer from excessive product focus?

Republished with author's permission from original post.

Christopher Brown
Chris Brown is the CEO of MarketCulture Strategies, the global leader in assessing the market-centricity of an organization and its degree of focus on customers, competitors and environmental conditions that impact business performance. MCS works closely with the C-Suite and other consulting groups to focus and adjust corporate vision and values around the right set of beliefs, behaviors and processes to engender more dynamic organizations, predictable growth, and customer lifetime value. In short we help leaders profit from increased customer focus.

ADD YOUR COMMENT

Please use comments to add value to the discussion. Maximum one link to an educational blog post or article. We will NOT PUBLISH brief comments like "good post," comments that mainly promote links, or comments with links to companies, products, or services.

Please enter your comment!
Please enter your name here