What Does Customer Focus Really Mean?

By Michael Blackman, The Tatham Group

Virtually all business leaders now agree that customer focus is essential in 21^st century commerce.  The problem is that customer focus means very different things to different people, with the key difference falling along emotional vs. intellectual/systematic lines. 

 For those front-line associates and especially leaders who let emotions guide their definition of customer focus, one might expect to find comments and actions like:

• We love our customers
• We will do anything for our customers
• The customer is always right
• If the customer asks for something we will do it

 On the surface those attributes sound good and benign however they are fraught with 20^th century thinking, including but not limited to:

• Order taking (which limits “how-based” innovation)
• Heroic behavior (unsustainable and risky)
• Sub-optimal revenue & profits (can’t grow or maybe even stay in business)
• Dominant/subordinate relationship (low/no differentiation)

 For those leaders who look at customer focus with a 21^st century lens, and allow more intellectual/systematic thinking, they can expect some different behaviors and outcomes from their people and customers.

•  Ensure customers play a role in our product/service development process (enhances loyalty and engagement)
• While listening to customers needs, separate what they ask for from what they really need to get done (differentiation and speed to market)
• Recognize that customers are essential in value creation but may need “tough love” (establishes more partnership vs. provider/consumer relationship)
• Understand the customer’s customer so that there can be true alignment of capabilities and value (sustains and enhances revenue/profits and lets business model evolve with markets)

 There are many more manifestations of old world vs. new world views of customer focus, but suffice to say that it no longer enough to say “we love our customers”.