Achieving deep customer focus

MIT Sloan Management Review

Volumn 45, Issue 3, 2004, Pages

  Vandermerwe, Sandra ^a  

^a IMPERIAL COLLEGE LONDON   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 3042812997     PISSN: 15329194     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Review

References (19)

1. A strong body of research has evolved around the importance of customer focus in innovation and strategic growth, and the importance of interacting with customers and delivering a unique experience to them. For recent relevant works, see R.C. Blattberg, G. Getz and J.S. Thomas, "Customer Equity: Building and Managing Relationships as Valuable Assets" (Boston: Harvard Business School Press, 2001); C.M. Christensen and M.E. Raynor, "The Innovator's Solution: Creating and Sustaining Successful Growth" (Boston: Harvard Business School Press, 2003); F.R. Reichheld, "The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value" (Boston: Harvard Business School Press, 2001); and A.J. Slywotzky and R. Wise, "The Growth Crisis - And How To Escape It," Harvard Business Review 80 (July 2002): 72-84. Discussions of customer interactions include G.S. Day, "Creating a Superior Customer-Relating Capability," MIT Sloan Management Review 44 (spring 2003): 77-82; and M. Vandenbosch and N. Dawar, "Beyond Better Products: Capturing Value in Customer Interactions," MIT Sloan Management Review 43 (summer 2002): 35-42. Major works on customer experience include B.J. Pine II and J. Gilmore, "The Experience Economy: Work Is Theatre and Every Business a Stage" (Boston: Harvard Business School Press, 1999); C.K. Prahalad and V. Ramaswamy, "The Future of Competition: Co-Creating Unique Value With Customers" (Boston: Harvard Business School Press, 2003).
2. A strong body of research has evolved around the importance of customer focus in innovation and strategic growth, and the importance of interacting with customers and delivering a unique experience to them. For recent relevant works, see R.C. Blattberg, G. Getz and J.S. Thomas, "Customer Equity: Building and Managing Relationships as Valuable Assets" (Boston: Harvard Business School Press, 2001); C.M. Christensen and M.E. Raynor, "The Innovator's Solution: Creating and Sustaining Successful Growth" (Boston: Harvard Business School Press, 2003); F.R. Reichheld, "The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value" (Boston: Harvard Business School Press, 2001); and A.J. Slywotzky and R. Wise, "The Growth Crisis - And How To Escape It," Harvard Business Review 80 (July 2002): 72-84. Discussions of customer interactions include G.S. Day, "Creating a Superior Customer-Relating Capability," MIT Sloan Management Review 44 (spring 2003): 77-82; and M. Vandenbosch and N. Dawar, "Beyond Better Products: Capturing Value in Customer Interactions," MIT Sloan Management Review 43 (summer 2002): 35-42. Major works on customer experience include B.J. Pine II and J. Gilmore, "The Experience Economy: Work Is Theatre and Every Business a Stage" (Boston: Harvard Business School Press, 1999); C.K. Prahalad and V. Ramaswamy, "The Future of Competition: Co-Creating Unique Value With Customers" (Boston: Harvard Business School Press, 2003).
3. A strong body of research has evolved around the importance of customer focus in innovation and strategic growth, and the importance of interacting with customers and delivering a unique experience to them. For recent relevant works, see R.C. Blattberg, G. Getz and J.S. Thomas, "Customer Equity: Building and Managing Relationships as Valuable Assets" (Boston: Harvard Business School Press, 2001); C.M. Christensen and M.E. Raynor, "The Innovator's Solution: Creating and Sustaining Successful Growth" (Boston: Harvard Business School Press, 2003); F.R. Reichheld, "The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value" (Boston: Harvard Business School Press, 2001); and A.J. Slywotzky and R. Wise, "The Growth Crisis - And How To Escape It," Harvard Business Review 80 (July 2002): 72-84. Discussions of customer interactions include G.S. Day, "Creating a Superior Customer-Relating Capability," MIT Sloan Management Review 44 (spring 2003): 77-82; and M. Vandenbosch and N. Dawar, "Beyond Better Products: Capturing Value in Customer Interactions," MIT Sloan Management Review 43 (summer 2002): 35-42. Major works on customer experience include B.J. Pine II and J. Gilmore, "The Experience Economy: Work Is Theatre and Every Business a Stage" (Boston: Harvard Business School Press, 1999); C.K. Prahalad and V. Ramaswamy, "The Future of Competition: Co-Creating Unique Value With Customers" (Boston: Harvard Business School Press, 2003).
4. A strong body of research has evolved around the importance of customer focus in innovation and strategic growth, and the importance of interacting with customers and delivering a unique experience to them. For recent relevant works, see R.C. Blattberg, G. Getz and J.S. Thomas, "Customer Equity: Building and Managing Relationships as Valuable Assets" (Boston: Harvard Business School Press, 2001); C.M. Christensen and M.E. Raynor, "The Innovator's Solution: Creating and Sustaining Successful Growth" (Boston: Harvard Business School Press, 2003); F.R. Reichheld, "The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value" (Boston: Harvard Business School Press, 2001); and A.J. Slywotzky and R. Wise, "The Growth Crisis - And How To Escape It," Harvard Business Review 80 (July 2002): 72-84. Discussions of customer interactions include G.S. Day, "Creating a Superior Customer-Relating Capability," MIT Sloan Management Review 44 (spring 2003): 77-82; and M. Vandenbosch and N. Dawar, "Beyond Better Products: Capturing Value in Customer Interactions," MIT Sloan Management Review 43 (summer 2002): 35-42. Major works on customer experience include B.J. Pine II and J. Gilmore, "The Experience Economy: Work Is Theatre and Every Business a Stage" (Boston: Harvard Business School Press, 1999); C.K. Prahalad and V. Ramaswamy, "The Future of Competition: Co-Creating Unique Value With Customers" (Boston: Harvard Business School Press, 2003).
5. A strong body of research has evolved around the importance of customer focus in innovation and strategic growth, and the importance of interacting with customers and delivering a unique experience to them. For recent relevant works, see R.C. Blattberg, G. Getz and J.S. Thomas, "Customer Equity: Building and Managing Relationships as Valuable Assets" (Boston: Harvard Business School Press, 2001); C.M. Christensen and M.E. Raynor, "The Innovator's Solution: Creating and Sustaining Successful Growth" (Boston: Harvard Business School Press, 2003); F.R. Reichheld, "The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value" (Boston: Harvard Business School Press, 2001); and A.J. Slywotzky and R. Wise, "The Growth Crisis - And How To Escape It," Harvard Business Review 80 (July 2002): 72-84. Discussions of customer interactions include G.S. Day, "Creating a Superior Customer-Relating Capability," MIT Sloan Management Review 44 (spring 2003): 77-82; and M. Vandenbosch and N. Dawar, "Beyond Better Products: Capturing Value in Customer Interactions," MIT Sloan Management Review 43 (summer 2002): 35-42. Major works on customer experience include B.J. Pine II and J. Gilmore, "The Experience Economy: Work Is Theatre and Every Business a Stage" (Boston: Harvard Business School Press, 1999); C.K. Prahalad and V. Ramaswamy, "The Future of Competition: Co-Creating Unique Value With Customers" (Boston: Harvard Business School Press, 2003).
6. A strong body of research has evolved around the importance of customer focus in innovation and strategic growth, and the importance of interacting with customers and delivering a unique experience to them. For recent relevant works, see R.C. Blattberg, G. Getz and J.S. Thomas, "Customer Equity: Building and Managing Relationships as Valuable Assets" (Boston: Harvard Business School Press, 2001); C.M. Christensen and M.E. Raynor, "The Innovator's Solution: Creating and Sustaining Successful Growth" (Boston: Harvard Business School Press, 2003); F.R. Reichheld, "The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value" (Boston: Harvard Business School Press, 2001); and A.J. Slywotzky and R. Wise, "The Growth Crisis - And How To Escape It," Harvard Business Review 80 (July 2002): 72-84. Discussions of customer interactions include G.S. Day, "Creating a Superior Customer-Relating Capability," MIT Sloan Management Review 44 (spring 2003): 77-82; and M. Vandenbosch and N. Dawar, "Beyond Better Products: Capturing Value in Customer Interactions," MIT Sloan Management Review 43 (summer 2002): 35-42. Major works on customer experience include B.J. Pine II and J. Gilmore, "The Experience Economy: Work Is Theatre and Every Business a Stage" (Boston: Harvard Business School Press, 1999); C.K. Prahalad and V. Ramaswamy, "The Future of Competition: Co-Creating Unique Value With Customers" (Boston: Harvard Business School Press, 2003).
7. A strong body of research has evolved around the importance of customer focus in innovation and strategic growth, and the importance of interacting with customers and delivering a unique experience to them. For recent relevant works, see R.C. Blattberg, G. Getz and J.S. Thomas, "Customer Equity: Building and Managing Relationships as Valuable Assets" (Boston: Harvard Business School Press, 2001); C.M. Christensen and M.E. Raynor, "The Innovator's Solution: Creating and Sustaining Successful Growth" (Boston: Harvard Business School Press, 2003); F.R. Reichheld, "The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value" (Boston: Harvard Business School Press, 2001); and A.J. Slywotzky and R. Wise, "The Growth Crisis - And How To Escape It," Harvard Business Review 80 (July 2002): 72-84. Discussions of customer interactions include G.S. Day, "Creating a Superior Customer-Relating Capability," MIT Sloan Management Review 44 (spring 2003): 77-82; and M. Vandenbosch and N. Dawar, "Beyond Better Products: Capturing Value in Customer Interactions," MIT Sloan Management Review 43 (summer 2002): 35-42. Major works on customer experience include B.J. Pine II and J. Gilmore, "The Experience Economy: Work Is Theatre and Every Business a Stage" (Boston: Harvard Business School Press, 1999); C.K. Prahalad and V. Ramaswamy, "The Future of Competition: Co-Creating Unique Value With Customers" (Boston: Harvard Business School Press, 2003).
8. A strong body of research has evolved around the importance of customer focus in innovation and strategic growth, and the importance of interacting with customers and delivering a unique experience to them. For recent relevant works, see R.C. Blattberg, G. Getz and J.S. Thomas, "Customer Equity: Building and Managing Relationships as Valuable Assets" (Boston: Harvard Business School Press, 2001); C.M. Christensen and M.E. Raynor, "The Innovator's Solution: Creating and Sustaining Successful Growth" (Boston: Harvard Business School Press, 2003); F.R. Reichheld, "The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value" (Boston: Harvard Business School Press, 2001); and A.J. Slywotzky and R. Wise, "The Growth Crisis - And How To Escape It," Harvard Business Review 80 (July 2002): 72-84. Discussions of customer interactions include G.S. Day, "Creating a Superior Customer-Relating Capability," MIT Sloan Management Review 44 (spring 2003): 77-82; and M. Vandenbosch and N. Dawar, "Beyond Better Products: Capturing Value in Customer Interactions," MIT Sloan Management Review 43 (summer 2002): 35-42. Major works on customer experience include B.J. Pine II and J. Gilmore, "The Experience Economy: Work Is Theatre and Every Business a Stage" (Boston: Harvard Business School Press, 1999); C.K. Prahalad and V. Ramaswamy, "The Future of Competition: Co-Creating Unique Value With Customers" (Boston: Harvard Business School Press, 2003).
9. Organizational transformation continues as a critical area of study, but to date, the literature in change management has not explicitly dealt with how to use the principles and practice to achieve a customer focus successfully. A notable work on change management is J.P. Kotter and D.S. Cohen, "The Heart of Change: Real-Life Stories of How People Change Their Organizations" (Boston: Harvard Business School Press, 2002). For related work on the public sector, see W. Chan Kim and R.A. Mauborgne, "Tipping Point Leadership," Harvard Business Review 81 (April 2003): 66-75.
10. Organizational transformation continues as a critical area of study, but to date, the literature in change management has not explicitly dealt with how to use the principles and practice to achieve a customer focus successfully. A notable work on change management is J.P. Kotter and D.S. Cohen, "The Heart of Change: Real-Life Stories of How People Change Their Organizations" (Boston: Harvard Business School Press, 2002). For related work on the public sector, see W. Chan Kim and R.A. Mauborgne, "Tipping Point Leadership," Harvard Business Review 81 (April 2003): 66-75.
11. S. Vandermerwe, "How Increasing Value to Customers Improves Business Results," Sloan Management Review 42 (fall 2000): 27-37.
12. For an example of recent research on the importance of energizers in evoking emotional reactions that lead to improved organizational performance, see R. Cross, W. Baker and A. Parker, "What Creates Energy in Organizations?" MIT Sloan Management Review 44 (summer 2003): 51-56.
13. A market space is defined as a desired customer outcome. It extends boundaries beyond core products and services but also frames the new competitive arena for the enterprise. See S. Vandermerwe, "New Competitive Spaces: Jointly Investing in New Customer Logic," Columbia Journal of World Business 31 (winter 1996): 80-102; and S. Vandermerwe, "Customer Capitalism: Getting Increasing Returns in New 'Market Spaces'" (London: Nicholas Brealey, 1999).
14. A market space is defined as a desired customer outcome. It extends boundaries beyond core products and services but also frames the new competitive arena for the enterprise. See S. Vandermerwe, "New Competitive Spaces: Jointly Investing in New Customer Logic," Columbia Journal of World Business 31 (winter 1996): 80-102; and S. Vandermerwe, "Customer Capitalism: Getting Increasing Returns in New 'Market Spaces'" (London: Nicholas Brealey, 1999).
15. The customer-activity cycle has three phases: pre, during and post, and maps the entire experience needed to get a customer outcome. Each phase has subcycles, sub-subcycles, sub-sub-subcycles and so forth to get to the level of detail that uncovers the opportunities. See S. Vandermerwe, "Jumping Into the Customer's Activity Cycle: A New Role for Customer Services in the 1990s," Columbia Journal of World Business 28 (summer 1993): 46-66. For the experiences of corporations using the tool as they make the transformation from products to customers, see S. Vandermerwe, "The Eleventh Commandment: Transforming To 'Own' Customers" (London: John Wiley & Sons, 1996).
16. The customer-activity cycle has three phases: pre, during and post, and maps the entire experience needed to get a customer outcome. Each phase has subcycles, sub-subcycles, sub-sub-subcycles and so forth to get to the level of detail that uncovers the opportunities. See S. Vandermerwe, "Jumping Into the Customer's Activity Cycle: A New Role for Customer Services in the 1990s," Columbia Journal of World Business 28 (summer 1993): 46-66. For the experiences of corporations using the tool as they make the transformation from products to customers, see S. Vandermerwe, "The Eleventh Commandment: Transforming To 'Own' Customers" (London: John Wiley & Sons, 1996).
17. For an example of how scholars calculate the lifetime value of customers, see E. Ofek, "Customer Profitability and Lifetime Value," Harvard Business School case no. 9-503-019 (Boston: Harvard Business School Publishing, 2002); R. Rust, V. Zeithaml and K. Lemon, "Driving Customer Equity: How Customer Lifetime Value Is Reshaping Corporate Strategy" (New York: Free Press, 2000); and R.K. Srivastava, T.A. Shervani and L. Fahey, "Market-Based Assets and Shareholder Value: A Framework for Analysis," Journal of Marketing 62, no. 1 (1998): 2-18.
18. For an example of how scholars calculate the lifetime value of customers, see E. Ofek, "Customer Profitability and Lifetime Value," Harvard Business School case no. 9-503-019 (Boston: Harvard Business School Publishing, 2002); R. Rust, V. Zeithaml and K. Lemon, "Driving Customer Equity: How Customer Lifetime Value Is Reshaping Corporate Strategy" (New York: Free Press, 2000); and R.K. Srivastava, T.A. Shervani and L. Fahey, "Market-Based Assets and Shareholder Value: A Framework for Analysis," Journal of Marketing 62, no. 1 (1998): 2-18.
19. For an example of how scholars calculate the lifetime value of customers, see E. Ofek, "Customer Profitability and Lifetime Value," Harvard Business School case no. 9-503-019 (Boston: Harvard Business School Publishing, 2002); R. Rust, V. Zeithaml and K. Lemon, "Driving Customer Equity: How Customer Lifetime Value Is Reshaping Corporate Strategy" (New York: Free Press, 2000); and R.K. Srivastava, T.A. Shervani and L. Fahey, "Market-Based Assets and Shareholder Value: A Framework for Analysis," Journal of Marketing 62, no. 1 (1998): 2-18.