Customer Centric versus Customer Driven

Which business model sounds better: customer centric or customer driven?  They sound similar but one can lead to greatness; the other, failure.

Customer centric organizations are externally focused.  They know what their clients need, they understand their clients’ challenges, and they seek to provide value.  Customer centric organizations are keenly aware of their key differentiators because they think in terms of client value first.

Customer driven organizations are typically those in which a small number of clients represent a disproportionately large percentage of overall revenue.  When the client makes demands, the serving organization mobilizes – often without first thinking it through.  When large clients are unhappy, the customer driven company sounds the alarm and creates activity.

If you’re still scratching your head on this one, consider this.  In the customer centric organization there are no knee-jerk responses to market challenges and client demands.  They are taken very seriously, weighed carefully, discussed…  But they are not allowed to disrupt the business as a whole.  There are no emergency executive meetings, no pulling out of hair, no recriminations.  The customer centric business takes on a stance of open curiosity.  Can we improve delivery?  What would that look like?  Are there increased costs?  How does this align with our vision or long-term business plan?  Once a solution is found, the customer centric business executes swiftly.

Which one would you prefer?  Are there other considerations or other business models to recommend?


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One comment

  1. [...] Customer Centric versus Customer Driven (there is an often undiagnosed meeting problem that goes along with the customer-driven scenario) [...]

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