The DifferenceA product-focused firm continuously improves their products and measures results in product terms such as product revenue.A customer-focused firm is flexible about their products and is continuous working to address customer needs and improve customer experience. They measure results in terms of the customer using metrics such as customer acquisition cost, customer lifetime value and customer satisfaction.
InnovationCustomer-focus is currently in vogue because it avoids marketing myopia whereby a firm is focused on adding product features nobody wants while an innovator is taking their customers. By focusing on customer needs a firm can find new ways to solve problems that may involve completely new products and approaches. art. For example, a winemaker who is obsessed with the art of winemaking without regard to customers may be successful if their product is superior.
|Product Focus vs Customer Focus
Defining strategy, operations and measurements in terms of your product.
Defining strategy, operations and measurements in terms of your customer.