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Are we a client centric team?

  • Writer: Alfonso Papa
    Alfonso Papa
  • Jul 22, 2024
  • 2 min read




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Increasing market saturation and evolving client requirements necessitate a shift towards client-centric business models. Our classification model offers a hands-on and pragmatic perspective for companies and teams aiming to become more client centric.

A product focused business strategy centers around the product itself, driving the company to deliver the most innovative and superior products at competitive prices. Conversely, a solutions-focused business strategy emphasizes gaining and continually enhancing deep client knowledge to create solutions that meet client needs and requirements.


Along these two dimensions - product vs. solution and knowing your product vs. knowing your client - companies can be classified into four categories:


Aspect

Product-Centric

Product Pusher

Order Taker

Client-Centric

Focus

Development and refinement of products

Aggressively market and sell high-quality products

Production or sourcing of products, rely on intermediaries

Prioritizing needs, preferences, and feedback of clients

Product Cycle

Continuous loop of development, feedback, refinement

Quick development and market launch

Focus on production or procurement stages

Products designed and developed based on client feedback

Client Interaction

Limited to consideration during development

Sales force focuses on convincing buyers

Minimal direct interaction with end clients

High engagement, frequent direct feedback

Innovation

Focused on product innovation

Product innovation communicated by sales team

Limited to production efficiencies

Driven by client needs and feedback

Competition

Competes through superior products

Competes through aggressive marketing

Competes on terms and relationships with middlemen

Competes by tailoring products/services to client needs

Margin

Potentially higher but offset by R&D costs

Potential for quick sales growth, but high sales costs

Squeezed by intermediaries’ share

Potential for premium pricing, higher customer lifetime value

Advantages

Differentiation through superior products, strong brand reputation

Quick market penetration, strong customer relationships

Reduced marketing and distribution costs, focus on core activities

High customer satisfaction, loyalty, sustainable competitive advantage

Disadvantages

Risk of market misalignment, high costs, limited customer engagement

Resource intensive, risk of market misalignment, sales over client needs

Loss of direct market insight, dependency on intermediaries, reduced control over brand representation

Challenges in balancing customization and scalability, aligning the organization, managing customer expectations

Improving client centricity within a company requires a guiding framework that can be adapted and tailored to fit the unique context of each organization. A clear vision and a robust strategy are essential, and a pragmatic, disciplined approach leading to incremental improvements will ensure long-term success and sustainability in an increasingly competitive market.


No organization and no team should embark on such an adventure without any support and help.


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