The document discusses embracing the customer revolution and thriving in the customer economy. It outlines that customers now have more power and choice due to technology. Businesses must relinquish some control and adapt to changing customer desires in real-time. To survive, businesses must recognize they are now e-businesses, see no difference between e-customers and customers, dynamically partner with customers, and respond flexibly as customer behavior reshapes industries. The key is to focus on customer relationships, monitor experiences in near real-time, and master the three principles that customers are in control, customer relationships determine value, and experience determines loyalty.

1. The Case of
Missing
Customer

2. S1.
The Customer
Revolution

3. Embrace the Customer Revolution and Thrive in the
Customer Economy
• Unless you act now to focus on the quality and consistency of the
customer experience you offer, your firm will be hopelessly lost in the
turbulence.
Customers have taken matters into their own hands, maximizing their power of
choice.
They prefer custom-designed experiences.
They want good service, fair prices, and innovative offerings.
If they don’t get it from your business, they will go elsewhere, and will tell the world
too.

4. Embrace the Customer Revolution and Thrive in the
Customer Economy
• Sweet Surrender
Relinquish control of your company’s destiny. The Internet and mobile wireless
devices arm the new customer with tools to access your business, as well as your
competitors. Take a look at some of these historic examples:
Peer-to-peer file sharing (Napster)
Open-source design communities (Linux)
Self-policing marketplaces (eBay)

5. Embrace the Customer Revolution and Thrive in the
Customer Economy
• Adapt to changing customer desires in real-time.
A customer-focused culture attracts and retains employees because these
companies are more fun to work in than those that are product-centric and
bureaucratic.

6. Embrace the Customer Revolution and Thrive in the
Customer Economy
• How to Survive in this Profound Revolution:
First, recognize every business is now an e-business.
Second, realize there are no e-customers, only customers.
Third, adopt new, dynamic partnering relationships as customers’ needs evolve.
Fourth, be prepared to participate in customer-led, self-organizing communities
and to respond flexibly as customer behavior reshapes your industry.

7. MAKE IT EASY
FOR
CUSTOMERS TO
DO BUSINESS
WITH YOU.

8. Embrace the Customer Revolution and Thrive in the
Customer Economy
• Focus on Customer Relationships
Investors want to know…
How many customers do you have?
How long have you been in an active relationship with each?
How are earnings per customer?
How much does it cost you to acquire a new customer?
How well are you able to retain your customers?

9. Embrace the Customer Revolution and Thrive in the
Customer Economy
• Monitor and Improve Customers’ Experiences (in Near Real-Time)
The companies that will thrive in the customer economy understand how to build
and maintain customers’ trust by carefully managing customers’ experiences with
their brands.

10. Embrace the Customer Revolution and Thrive in the
Customer Economy
• Master the Three Principles of the Customer Economy
1. Customers are in control and they’re reshaping businesses and transforming
industries.
2. Customer relationships count, the value of your present and future customer
relationships –your customer franchise—will determine the value of your company
3. Customer experience matters, the feelings the customers have when they
interact with your brand determine their loyalty.

11. Put your own text under the cartoon to illustrate your view
of the Three Principles of the Customer Economy