New Age Customer Centric Marketing

February 9 - 10, 2017, Mumbai

“In the age of the customer, executives don’t decide how customer - centric their companies are — customers do.” - Kate Leggett

The never ending quest for marketers to align themselves to the customer centric paradigm hasinspired the emergence of the idea of Customer Centric Marketing. The concept of customercentricity is not new in the Marketing literature. Levitt (1960) proposed that “firms should not focus on selling products but rather on fulfilling customer needs”. However, the phenomenon of customer centricity has only recently been acknowledged by the marketers.

Customer-Centric Marketing draws attention to the individual customer at the center stage of marketing design and delivery. It initiates the realization that there is no “average” customer. Customers have diverse behaviors and preferences – and this presents rich opportunities to move past a “one -size-fits- all” marketing approach. Customer Centric Marketing approach thereby empowers marketers to target the right customer with the right channel and right message – at theright time. It also helps marketers align around a strategy that will drive long-term value to the business: acquiring high-value customers and keeping them coming back. Customer-Centric Marketing is not just about building “better” relationships with your customers but also a source of lasting competitive advantage for marketers.

The researches in the area of customer centric marketing have been diverse and wide ranging. Thetwo main distinguishable work so far in this area, are Shah, Rust, Parasuraman, Staelin, and Day(2006) and Sheth, Sisodia, and Sharma (2000). While Sheth et al. (2000) analyzes theenvironmental and structural factors (from marketing productivity issues to market diversity) raisingthe need for companies to move toward a customer-centric approach; Shah et al. (2006) haveemphasized on the areas of intervention (at an organizational and managerial level) for attainingcustomer centricity in practice. Sheth et.al (2000) argues that this focuses on the needs, wants andresources of customers as the starting point of the planning process. In this age of digital marketing,it is imperative that a two-way communication exists between the brands and the customers. Thismakes it essential for customers to be able to communicate with the brands and in return for them totake their cognizance. The major innovations have primarily been in the area of digital marketing,thus making the dialogue with the customers more compelling and customer – centric.

However, Osborne and Ballantyne (2012) have a different point of view. They are of the opinion thatthe firm- centric approach to value creation should overcome marketing’s customer -centricity. Theyhave are of the belief that a discussion ought to commence on whether marketing may indeed becustomer centric. They establish that new directions of enquiry are needed to be able to come forth with certain new viewpoints that allow marketing the means to release itself from its enduring, firm-centric paradigmatic trap.

Issues and challenges in Customer Centric Marketing are gaining momentum in the present times.Interestingly the concept has found relevance in multiple areas which have given rise to major trendsin marketing, including disruption, emotive storytelling, user-generated content and diversity.

What persuades us to arrive at a particular decision? Are the decisions based on information orknowledge? If so, then perhaps one should reconsider their development process. Whilst informationand knowledge are essential thoughts to deeper understanding of our customers, it is only after asuccessful integration of the two, that one can begin to develop insights that will positively impact the customers’ behavior.