Customer Centricity

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Customer Centricity ................................................................................................... Pg. 3 Types of pressures .................................................................................................... Pg 3-5 Mitsubishi Electric & its focus on customer centricity............................................... Pg. 5-7 Climate change and its impact on Mitsubishi Electric ...............................................Pg. 7-8 Mitsubishi Electric’s & its stakeholders .......................................................................Pg 9-11 Strategic decision ................................................................................................... Pg. 11 Example of influence of stakeholders in strategic decision

of Mitsubishi Electric .................................................................................................. Pg.11- 12 Reference .................................................................................................. Pg. 13- 14

Customer Centricity is about seeking to determine the needs of customers and taking action to satisfy them. It is radically different choice in comparison to the ways many companies traditionally operate. In addition, the concept of customer centricity understands the demand and predicting the shift of demand. Therefore, in general, knowing customer’s behaviour and understanding their values in terms of purchasing behaviour and future potential is the focus for customer centric organizations. This concept is value based approach and is supported by the 4 C’s, i.e. Customer wants and needs, Cost to customer, Convenience of purchase and Communication between company and customers. Herrington (2008) states that, all who interface with customer must change their skills and behaviours in order to support a customer centric focus. Often this is the area where implementation becomes difficult, if not impossible, under pressure. Furthermore, due to the presence of dynamic environment, organizations are bound to experience regular pressures to develop on the operational side of the business and adherence to regulatory requirements while meeting rising customer service expectations. Meeting customer service expectations could demand for change in organizations concept of operation. Therefore, while determining change, an organization should begin with a clear understanding of the environment it exists and functions. Some major reasons causing escalating pressures for an organization to be customer focused can be identified as follows: Firstly, Vicious Competition among organizations builds pressures to cut down on prices while, increasing profits and drive efficiencies. Due to this, organizations feels being under pressure to emphasize on long term plans. In contrast, if the organization emphasizes on future plans on higher degree in comparison to focusing on customer satisfaction could ultimately result on brand erosion, customer churn and unsustainable business models. Therefore, in order to maintain the customer loyalty, organizations should focus on long term customer relationship rather than long term plans. Also, Maintaining Relationships with the customer and improving over time is another reasons for an organization to consider being under pressure. Findings on this issue states that, generally relationship between the organization and customer degrade over time. Customers seek for higher level of relationship between them and the company, therefore, organizations should emphasize on improving the relationship between them and the customers creating positive impression of the service quality and other facts which impact on relationship between these two. On the other hand, customers related to industries of supermarket, mobile phone companies, electricity providers and specially car insurance where the benefits of no claims bonuses...
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