What is the Difference Between Customer Centric and Customer Focused?
🆚 Go to Comparative Table 🆚The terms "customer-focused" and "customer-centric" are often used interchangeably, but there are subtle yet important differences between the two concepts:
Customer-Focused:
- A customer-focused organization listens to what customers currently want and offers them that.
- It focuses on the frontline and is self-serving in that it is used to achieve business objectives.
- Customer-focused marketing tries to identify which products and services match the wants from each customer.
Customer-Centric:
- A customer-centric company takes things a step further by trying to understand the customers' needs and behaviors to serve them in different phases of their customer lifecycle.
- It focuses on core customer groups, identifying needs (not just wants), and seeking to solve problems.
- Customer-centric companies work hard to understand what customers need, even if they themselves don’t know it yet.
- They provide solutions, not just products or services.
In summary, customer-focused organizations concentrate on meeting the expressed needs and desires of their customers, while customer-centric organizations aim to understand and address the underlying needs and behaviors of their customers, providing tailored solutions and experiences.
Comparative Table: Customer Centric vs Customer Focused
The difference between customer-centric and customer-focused lies in the approach and emphasis each strategy places on the customer experience. Here's a table highlighting the key differences between the two:
Aspect | Customer-Focused | Customer-Centric |
---|---|---|
Definition | Customer-focused marketing identifies products or services that match customers' wants. | Customer-centricity refers to looking at the customer's lifetime value and directing marketing accordingly. |
Approach | Operating a business with a strong orientation towards achieving customer needs. | Transforming business processes to serve the needs of the customer first and foremost. |
Emphasis | Focus on being nice to all customers and offering great service to everyone. | Focus on customer lifetime value and key customers. |
Customer Experience | Creates good relationships with customers, but may not cover enough ground to create impactful experiences. | Places the customer at the center of everything, driving repeat business, creating customer loyalty, and enhancing business growth. |
Business Strategy | Product-centric approach with a focus on design, manufacturing, and logistics. | Customer-centric approach, anticipating customer needs and serving them first. |
In summary, customer-focused businesses prioritize meeting customer needs and providing good service, while customer-centric businesses place the customer at the core of every strategy, focusing on their lifetime value and creating impactful experiences.
- Client vs Customer
- Customer Care vs Customer Service
- Customer Value vs Customer Satisfaction
- Consumer vs Customer
- Brand Loyalty vs Customer Loyalty
- Internal vs External Customers
- Customer Loyalty vs Customer Retention
- Cost of New Customer vs Retaining Customer
- B2B vs B2C Marketing
- Cost Center vs Profit Center
- Customer Expectation vs Customer Perception
- Customer Retention vs Acquisition
- Core Competencies vs Competitive Advantage
- Market Segmentation vs Target Market
- Core Competencies vs Distinctive Competencies
- Selfish vs Self Centered
- Profit Center vs Investment Center
- Product Marketing vs Service Marketing
- Marketing vs Selling