1. Customer Centricity: A Sense Making Framework
for Developing Economies
Mary Ritz, PhD
September 2015

2. Business of the Day
 Objective
• Understand the customer management phenomenon from a systems thinking perspective (complex
& Chaotic)
• Introduction of the customer centricity concept as a strategic imperative
• Understand the customer centricity from a developing economy perspective (challenges)
• Understand what constitutes a customer centric model in a developed world versus a developing
world
• Share insights and findings of a customer centric model that could be adopted for a developing
economy (based on PhD Research)
 Benefits
 Gain better understanding of customer centricity
 Participants will be able to identify challenges associated with customer centricity and how to
overcome them
 An introduction to a customer centric blue print that could be adopted

3. The Customer Management World
 A dichotomy : Customer’s Importance versus the Ineffective Management of the Customer
 Inadequate Customer Management Strategies Managed in Isolation (Customer Service,
CRM, Customer Experience, etc.): A “trendy” sort of approach & Simplistic Approach to a
Complex and Chaotic Phenomenon
 Lack of a Systemic Approach: Customer Management is a system and must be managed as
such

4. The Customer Management World
 Definition of Customer Management ( & Other Components) : Customer management
means different things to different people, and that makes it difficult to measure and
improve
 Managed without being context specific: Most customer management frameworks tend to
take the developed world perspective (business performance & culture)
 Short Term Focus versus Long Term Focus: Short term focus is driven by creating shareholder
value mainly

5. In today’s economy, companies are being driven to compete globally in order to
maintain their competitive advantage. The driving force behind these actions is the
customer who demands more and better. As a result of the tough competition
among businesses, the customer experience seems to have become of great
significance – therefore customer management can longer be treated as “business as
usual” - Gestin, 2011
Our world is undergoing rapid transformation, especially in the economic, political,
social and technological arenas. In this tide of change and upheaval, your customers
are also stepping into their power and making demands of business the likes of which
have never been seen before. Building sustainable competitive advantage requires
you to review your business models and ensure that the customer is central to its
design.
Leather, 2013

6. Customer Centricity
 Customer Centricity Definition – takes a systems thinking approach
“The eco-system and operating model that enables an organization to design and deliver a
unique and distinctive customer experience” Leather , 2013
Customer centricity takes an outside-in approach which focuses on creatively delivering
something of value to customers instead of obsessing over pushing product portfolio (inside out
perspective) Gulati, 2009
The entire business engine takes on a laser focus on the customer, works in collaboration and
makes the customer central to all business decisions by offering exceptional and consistent
customer experiences that create sustainable customer and organizational value; attaining
sustainable business performance. (Ritz, 2015)

7. A Comparison: Product Centricity vs. Customer Centricity
Product Centricity Customer Centricity
Philosophy Selling Products Serve Customer/Identify problems &
offer outcomes
Orientation Market Orientation Interaction Orientation
Management Criteria Portfolio of Products Portfolio of Customers/Individuals
Organizational Approach Inside-out Approach Outside-in Approach/Through the
lens of the customer
Strategy Motivation Increase Customer Satisfaction Increase Customer
Profitability/Loyalty/Lock-on
/Advocacy
Selling Approach How many customers can we sell
this product to?
How many products can we sell to
this customer?
Strategy Outcome Sales Maximization Customer Life Time Value
99% of organizations are Product Centric but are not as resilient as Customer
Centricity organizations that can prevail over unstable and unpredictable
economic conditions

8. Systems Thinking
 The Whole is Greater than the Sum of its Parts
 Systems-thinking views an organization or situation as a whole comprised of many parts and the same
time it is more than the sum of its individual parts.
 A system is also defined by the function it fulfills in the wider system, .e.g. the body etc.
 Principles of Systems-Thinking
 Each part affects the behavior of the whole
 No part has an independent effect on the overall system
 The system itself has properties which none of its parts have
NOTE: Dr Russell Ackoff argues that the lack of systems thinking is the problem that
organizations face when implementing improvements in customer management

9. Systems Thinking Approach to Customer Management
 Customer management is a system built on complexity and interconnectedness of people,
culture, attitudes, behaviors; etc.
 An analytical and component view of customer management will not allow a GENUINE understanding of
the customer management dynamics, will not allow organizations to create, deliver and capture value.
 Principles that are fundamental in understanding customer management from a systems
thinking
 Customers are an economic asset that yields future cash flow
 Cost incurred to build a customer base is an investment not an expense
 Good management of customers is critical for long-term success and profitability
 To achieve the above principles – an organization must develop interconnectivity and
integration across all business functions
 It requires deep integration of customers’ experiences end-to-end across the entire life cycle, all channels,
partners , etc. must offer consistent and differentiated customer experience

10. Customer Centricity Business Case
 Unpredictable and unstable world economy
 The “Butterfly Customer”: Not loyal yet demanding
 High competition with power shifting into the hands of customers: knowledgeable, social
media influence, unlimited choices, etc.
 Sustainable business performance/Critical for long term profitability and sustainability

11. Opportunities for Development
 The Implementation and sustainability of customer centricity is a challenge for most
organizations:
 Lack of strategy, vision and planning
 Lack of leadership and employee buy-in and commitment
 No clear definition of customer management/customer centricity
 Hard to measure and quantify
 Customer management is left to the responsibility of front facing staff
 Not context specific (socio-economic environments) – takes a one size fits all
 Lack of capital investment (developing economies)
 Unstable economic, political, social environments etc.

12. External
Factors
Economical
External
Factors
Political
External
Factors
Social
External
Factors
Globalization
Internal Factors
Strategic Intent
Implementation
& Sustainability
Underpinning
Structures
Customer Management
Undertakings
Measurement & Monitoring
Financial & Non
Financial Performance
Flexibility
Adoptability
Agility
Uncomplicated
• Strategy
• Vision
• Purpose
• Value
Proposition
• Values &
Beliefs
• Market
Segmentation
• Customer
Insights
• Customer
Knowledge
• Customer Centricity
• Customer Satisfaction
• Customer Loyalty
• Customer Advocacy
• Profitability &
Revenue
• Processes &
Systems
• Creativity &
Innovation
• Education & Training
• Leadership Commitment
• Employee Engagement
• Communication & Collaboration
• Cooperation & Teamwork
• Customer at the Center
Challenges
Customer
Centricity:
Resilient
Organization
Culture
Implications
Culture
Implications
Culture
Implications
Culture
Implications
Budget
constraints
may require
organization
s to
implement
certain
aspects of
the model
according to
levels
3rd Layer –
Implementat
ion of all
aspects and
more
2nd Layer –
Implementat
ion of above
average
aspects
1st Layer –
Implementat
ion of basic
aspects
Customer Centricity: Sense Making Framework for Developing Economies

13. Thank You!

14. Copy Right Reserved Almenta International 2014
Mary Ritz: Owner & Founder
Email: info@almentainternational.net
Website: www.almentainternational.net
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