Products or Customers First?

We’ve probably all heard of the phrase, “Which came first, the chicken or the egg” at some point in our lives (maybe today is that day for you). It’s a rhetorical question that is designed to get us to think about the importance of each side of the spectrum.

This idiom can be substituted in many ways including in a business environment. If we transform the common idiom to  “Which takes precedence, products or customers?” All businesses inherently prioritize customers as a final objective; without customers, sustaining a business is unfeasible. However, the distinguishing factor lies in determining at what stage in the process the customer assumes priority.

Companies that are Product-Centric

1. Focus: For these companies, there is stronger emphasis on the process of introducing products to the market and directing attention towards internal affairs. These organizations meticulously evaluate their current capacities, data pertaining to product lines, technological advancements, and skill sets, subsequently formulating strategies and creating products that align with these fundamental components.
2. Need: Product-centric companies adopt a mindset of confidence where it believes in its product(s) capabilities irrespective of who buys it.

Questions: These companies engage the market from two questions: “what can we as a business sell ” and “how can our business achieve high sales goals?” These questions directly influence the marketing message echoing those two points.

Companies that are Consumer-Centric

1. Focus: For customer-centric companies, their offerings are influenced by external factors, with an emphasis on the customer journey and identifying unfulfilled requirements. The other aspect of this method is to identify customer pain points which are utilized to guide product decisions.
2. Need: Adopting this mindset leads companies to address issues that require attention, as opposed to relying solely on internal resources to develop a product that may not necessarily cater to the needs of the customers.
3. Questions: These companies engage the market from two questions: “what problems are affecting the customer or needs they need fulfilled ” and “how can our business help the customer directly or indirectly?” From this vantage, the marketing message is usually tailored to be on a more personalized level of engagement.

Most businesses tend to blend these two perspectives, especially the larger ones. The inclination towards product centricity may facilitate efficient administration, yet it frequently hampers the ability to swiftly adapt to market dynamics. On the flip side, customer centricity empowers a company to promptly respond to alterations in the market and places significant emphasis on cultivating enduring, mutually beneficial relationships with customers.

Take Away: Incorporating customer centricity within the organizational culture is a good practice, even if it is not explicitly identified through a formal program. In order to cultivate a customer-centric mindset, what actionable step can you take?