Chapter 10

Question 1

Organization-Wide Focus

Answer 1

• while one part of the company creates value, another part is destroying it
• marketing strategies will fail without total organization-wide focus

Question 2

Example: GE Healthcare

Answer 2

• lacking a shared viewpoint of the customer
• equipment salespeople had a hard time explaining the value of the consulting service
• redesigned service to extend beyond GE products and focused on customer generating $500MM

Question 3

Customer Centric Approach

Answer 3

• serve customers; all decisions start with customer
• relationship oriented; building long-lasting customer relationships is the key
• highlight what the product can do to meet customer needs
• externally focused
• all employees are customer relationship builders
• performance metrics are customer satisfaction, customer lifetime value
• how many products can we sell to this customer

Question 4

Product Centric Approach

Answer 4

• sell products; we will sell to whoever will buy
• transaction oriented; there will always another customer
• highlight product features and benefits
• product profit centres, product managers and product sales teams
• internally focused
• marketing is responsible for customer relations
• performance metrics are # new products, profitability and market share
• how many customers can we sell this product to?

Question 5

Example: McDonalds

Answer 5

Customer Focus is a Multi-Dimensional Issue

• teaches managers to care about every aspect of the customer
• follows trends and customer desires
• first to offer breakfast, McCafe etc.

Question 6

Customer Focus

Answer 6

• a management philosophy (senior mgmt dedicated to making decisions based around customer)
• clear and shared understanding of customer throughout organization
• commitment to make every employee interaction an opportunity to reinforce brand values
• use data collected in customer relationship management (CRM)
• redefine how success is measured

Question 7

Four Key Building Blocks to building a customer-centric business

Answer 7

• leadership commitment
• organizational realignment
• systems and process supports
• revised financial metrics

Question 8

Example: Greystone Property

Answer 8

1. Leadership Commitment: allocating resources, changing policies, shifting focus
2. Organizational Realignment: customer now served by a team not individuals
3. Systems and process support: cross-trained members and
4. Revised Financial Statements: judged the whole team not individual departments

Question 9

Common Traps in Customer-Focused Business

Answer 9

1. Wavering senior management support
2. Lack of support systems and processes
3. Wishing for functional alignment
4. Unrevised metrics
5. Not willing to stay the course

Question 10

Example: British Airways

Answer 10

Senior Management crucial role in fostering customer focus

- British Airways new CEO focused on giving the customer a premium experience not a commodity/bus like

Question 11

Arbol Customer Focused Business Shift

Answer 11

• was shipping wood that was larger than standard size which caused a lot of waste for the customer and inconvenience
• since manufacturer is measured on factory efficiency it was easier to make the longer wood
• comprised a committee with heads from all functions and redesigned metrics to support vision

Question 12

Marketers that devote 50% of their time to customer centric marketing will achieve what ROI?

Answer 12

30%