1. Product Centricity is Good, but……
………Customer Centricity is Even Better
Dr. Mary Ritz
December 15, 2015

2. Outline: Business of the Day
 Introduction/Background
 What it means to be Product Centric
 What it means to be Customer Centric
 A comparison of Product Centricity & Customer Centricity
 Benefits of Customer Centricity
 Customer Centric Trips
 Q & A

3. Our World: Almenta International
What?
 Customers
 People/Teams
Why?
 Most important assets to
drive business
performance,
productivity and
sustainability
How?
 Training
 Consulting
 Speaking Engagements
Value Proposition
 Based on a 5 Step
Methodology (Optional)
 Grounded in Systems
Thinking
 Experiential and Action
Learning
Areas of Focus:
 Customer Centricity
 Customer Service
 Customer Experience
 Leadership &
Management
 Resilience
 Emotional Intelligence
 Conflict Management
 Effective Communication
 Teamwork
 360 Degrees
 People Management

4. If it is WORKING and PROFITABLE, why fix IT?
…. But what if there is something BETTER and GREATER? Imagine
the POSSIBILITIES…..

5. Stuck in the “It’s Working Mode…?”
And we thought the FAX was the best
thing that happened to us….
The BLACKBERRY was the smartest
phone…

6. Product Centric or Customer Centric?
 Apple
 Amazon
 Walmart
 Nordstrom
 Neiman Marcus
 Starbucks
 IBM
 The Ritz-Carlton

7. Traditional Paradigm
 Strategic advantage is based on the product and the product
expertise behind the product
 Divisions and teams are arranged according to products
 Staff are rewarded based on ability to create new products or
sell existing ones
 The long-term motivation is about product portfolio
reinforcement and constantly finding new ways to expand it
 The brand is perceived to have greater value than the customer
 Profits are maximized through volume and market shares – its
about driving shareholder value
 One size-fits all mentality
ProductCentricity
Product-centricitytakesaninside-outapproach
CreateaProduct,MarketaProduct,SellaProduct,
Repeat
99% of organizations are product centric and are
effective, HOWEVER…….

8. Cracks in Product Centricity
 Globalization/Lost Geography advantages
 Technology advances and the speed they are created and copied
 Extraordinary competition
 Power is shifting into the hands of customers: knowledgeable, social media
influence, unlimited resources.
 The “Butterfly customer” – not loyal yet very demanding. E.g. MILLENNIALS

9. The World Economy Landscape
Our world is undergoing rapid transformation, especially in the economic,
political, social and technological arenas. In this tide of change and
upheaval, your customers are also stepping into their power and making
demands of business the likes of which have never been seen before.
Building sustainable competitive advantage requires you to review your
business models and ensure that the customer is central to its design.
Leather, 2013
In today’s economy, companies are being driven to compete globally in order to
maintain their competitive advantage. The driving force behind these actions is
the customer who demands more and better. As a result of the tough
competition among businesses, the customer experience seems to have become
of great significance – therefore customer management can no longer be
treated as “business as usual” - Gestin, 2011

10. The Opportunity
Given the above facts, there is an opportunity for a business
model that is based on a deep understanding of what customers
actually want, when and how they want it, and what they are
willing to give in exchange
The Opportunity requires:
o A new paradigm shift
o Reframing of the mind
o A radical way of doing
New, Better &
Sustainable
Results
FOR

11. Progressive/Future Paradigm
 All strategic advantage is based on the “right” or “profitable”
customer
 Based on the fundamental understanding that not all customers
are created equal
 A system and end-to-end operating model offering differentiated
customer experience
 “Immerse” in customer’s world, understand their “problem” and
provide an “outcome”
 Profits are maximized through customer loyalty, customer lock-
on, retention, up and cross selling and Customer Life Value
 Not driven by shareholder interest only, but based on Triple
Bottom Line. “Higher Purpose” philosophy
 Value creation is two dimensional: Customer & Organization
 Employee performance measurements include customer KPIs
CustomerCentricity
•Customercentricitytakesanoutside-inapproach
•Itisnotcustomerservice,itisnotcustomerexperience,
IT’SMORE

12. CUSTOMER CENTRICITY: “The eco-system and operating model
that enables an organization to design and deliver a unique and
distinctive customer experience”, (Leather, 2013
CUSTOMER CENTRICITY: “The entire business engine takes a
laser-focus on the customer, works in collaboration and makes
the customer central to all business decisions creating
sustainable profits and great value.” (Ritz, 2015)

13. Basis of Customer Centricity: Systems Thinking
When the USA stock
market sneezes the
entire world stock
market catches a
flu…….
Think about what happens
when oil prices go up or
down? How is the world
economy affected? What
happens in your organization?
What happens in your
household?

14. Systems Thinking
 The Whole is Greater than the Sum
of its Parts
 Systems-thinking views an
organization or situation as a whole
comprised of many parts and the
same time it is more than the sum of
its individual parts.
 Principles of Systems-Thinking
 Each part affects the behavior of the
whole
 No part has an independent effect on
the overall system
 Customer management is a system built on complexity and interconnectedness
of people, culture, attitudes, behaviors; etc.
 To achieve the customer centricity – an organization must develop
interconnectivity and integration across all business functions

15. Customer Centricity Hurdles
 Traditional model is working , consequently, there is no motive to change
 Lack of leadership buy-in and commitment therefore lack of strategy, vision
and planning
 No clear understanding: Managed in isolation and independently
 Implementation issues: Complex and chaotic
 Hard to measure and quantify: Soft-issue

16. Why Customer-Centricity Matters
 Profitability and Sustainability
 Two dimensional value creation
 Resilience and Relevance
 Higher Purpose
 Agility
Is the business case strong enough to transition from
Product Centricity to Customer Centricity
In the long-term, customer centric organizations outperform
organizations that are not

17. Roadmap to Customer Centricity - Tips
 Leadership Commitment and Buy-in: Leadership must be totally customer focused, and not
offer lip service. Example: Must commit capital, appoint Chief Customer Offer, “ have customer-
in the boardroom”, communicate need for a customer culture, define it and articulate it
 Hire the Right Employees: HR becomes a strategic role not a support role. Employees must fit
and align with the customer culture. Must take ownership and understand the big picture. E.g. a
frontline team member must know how important their role is to the company mission &
vision
 Vision, Strategy and Planning: Clear and practical vision and strategy that translate into actions
/behaviors that can be measured, management should install measures to ensure the vision
guides employee mindset – for example, by implementing a code of behavior, Market
Responsiveness Index (MRI). Incentives and rewards should align with customer loyalty.

18.  Integrate all Departments: Departments must not work in silos, they must collaborate and align
with the customer vision. Customer centricity is not a “department”. Sales, Marketing and
Frontline are not sole owners of the customer
 Immersing in the Customer’s World: Understand the customer’s world. Know and outstand their
problems and provide outcomes, Example: The FRANK CONCEPT (Frankly speaking) – Oversea -
Chinese Banking Cooperation in Singapore.
 Drop the one-size fits all mentality: Not all customers are equal, differentiated experiences. Offer
customer options
 Adopt the Outside-in approach: Listen to customer feedback and act upon it, social media,
surveys, focus groups. See through the lens of the customer. Partner and co-create with
customers. Do not let internal processes, systems and procedures limit you. Example: Website
developer
Roadmap to Customer Centricity - Tips

19.  Increase Sales and Profits by focusing on Customer Needs and the Right Customer: Market
segmentation, identify Customer Life Cycles, identify most profitable customers, Customer
Loyalty, Advocacy/Lock-on., Customer Life Time Value. Agility to create new products to meet
customer needs. E.g. Neiman Marcus
 Empower Frontline Staff: Empower frontline teams members, ensure they can solve customer
issues without difficult, they must take ownership of the customer experience, E.G. Disney has
created a culture where frontline staff take ownership and deliver excellent service and
experiences. Frontline staff are encouraged to have long and deep interactions with
guests/customers
 Consistent customer experience at every touch point: Adopt the Customer Journey” tool, which
traces the touch points a customer has throughout the entire purchasing process. Simple things
like clean bathrooms, clean restaurant floors and cutlery/silver ware go a long way, website
experience, branch experience, over the phone experience
Roadmap to Customer Centricity - Tips

20. The California Redwood Trees - reach in all directions, intertwining
with roots of other redwoods. Locked together in this way, all the
trees support each other in wind and storms. Like CUSTOMER
CENTRICITY – all departments must work together towards a
customer centric organization
Conclusion

21. Questions?