Technology for storing and analyzing data has advanced to the point where there is no barrier to track the relationship a customer has with a company, whether it be through commercial transactions, social media interactions, other means, or a combination of several channels.
That ability to get a more complete view of top customers should get companies to change their corporate philosophy from finding buyers for the products they produce to producing products their customers will buy.
That is what Peter Fader calls “customer centricity.” Fader is a professor of marketing at the Wharton School of the University of Pennsylvania and the co-director of the Wharton Customer Analytics Initiative.
Fader, who has recently written a book on the topic, said the wealth of data will allow companies to focus on high-value customers. If you know what those customers like and what they’ll pay for high-quality services, you can tailor your business to that specific customer segment to promote company growth and guide long-term product decisions.
In this interview with Data Informed staff writer Ian B. Murphy, Fader discusses the differences between customer-centric and product-centric businesses, why data-driven decisions are essential to embracing customer centricity, and how to avoid privacy landmines by a smart, measured approach to gathering customer data.
Fader is speaking at the upcoming Marketing Analytics and Customer Engagement conference. His session, titled “Establishing Competitive Advantage Through Customer Centricty,” will show how customer centricity is a management framework that allows companies to build stronger relationships with customers by better understanding their behaviors and anticipating their needs.
The Marketing Analytics and Customer Engagement conference is June 24-25 in Philadelphia and was created to provide marketing, sales, and customer support managers with the information they need to create an effective data-driven customer strategy.