Customer is King is an adage that most companies across the globe have embraced. The need to concentrate on customers and be responsive to their demands has long been acknowledged by organizations. However, with globalisation and technological revolution the dynamics of business, the meaning of customer and market knowledge have all undergone a transformation. Today, the customer is the controlling factor in business and to be market-driven, an organisation has to evolve a culture that constantly listens to the customer, analyses competition and has strategies that meet existing, anticipated and even unanticipated needs of the customer. Going one step further, organizations must focus on customer relationship management which has given way to customer knowledge management. Given the international environment and knowledge economy, market and customer intelligence serves as a core competency and a principal source of competitive advantage. Leading by listening
Practically every success story in today’s corporate realm reflects how awareness of customer needs shapes competitive business strategy. Let’s look at some examples. Procter & Gamble
When P&G, the largest consumer goods company in the world, chose to offer its products to the lower income customer in developing countries, it had research teams associating with the poorest of homes for weeks. This gave the company valuable insights, which aided the company in creating a range of products that suited the pockets of this segment, enabling it to gain substantial market share. Amazon.com
Amazon.com, the first e-retailer of books in the world, attained competitive advantage by emerging as book lovers’ forum where they could also share knowledge. It maintains customer knowledge through services such as book reviews, access to order histories and product recommendations based on preceding orders. Consequently, Amazon has recorded more than 70% repeat orders...