The Paradox At The Heart of Customer-Centric Business

I am no longer a fan of customer-centricity nor customer-centric business. I am not a fan of the way many are going about customer focus, customer-centricity, or customer obsession.  It occurs to me that the approach taken by many towards arriving at customer focus, customer-centricity, and customer obsession is not gold, it is fools gold.

Why? Because it occurs to me that an organisation that shows up as customer-centric does not centre itself on its customers. At least not in the simplistic sense that is being written-talked about, promoted and acted upon by many.

I get that I make a bold, even controversial statement, and it highly unlikely to win me applause. That is OK, given that my commitment is to write my truth and take a skeptical stance towards the dominant ideologies and practices.

I get that you might want to better understand why it is that I assert that which I assert here.  Allow me to point at, illustrate, and unconceal that which I am getting at here by sharing with you some quotes.  Let’s start with Emmy Van Deurzen, chartered counselling psychologist and registered existential psychotherapist:

…. one can never ignore the needs of others when making personal decisions but neither can one allow others to entirely determine oneself even when alone. This is a paradox

Yes, you do need to consider customers – their needs, their desired outcomes, their ‘jobs-to-be-done’, their preferences etc.  And you cannot run a successful business just by focussing on your customers. The game of business involves other players whose needs have to be considered.  For example, a facet of business life caught my attention whilst working with smaller businesses, which had not so gripped me for most of my life working in big businesses.  What facet? The critical importance of finding, hiring, organising, enabling, inspiring, channeling, and retaining the people who actually work inside the business to do that which is necessary to create value for customers.  It occurs to me that this is just as important for big businesses, it is not so evident because the dysfunctions of a demotivated workforce don’t show up as vividly in a huge organisation.  Or take a look at Zappos, its success is partly built on the way the founders and management team treated suppliers (as a valuable part of Zappos) and thus called forth co-operation from them.

Furthermore, if you simply follow what customers are telling you then you leave yourself open to the disruption caused by those who can see beyond what customers are saying in market research and customer surveys. Here, I share a passage from Matt Watkinson, the author of The Ten Principles Behind Great Customer Experiences:

It is not only consumers who have shifted towards other-directedness and ended up struggling: businesses have too. The dominant obsession with market intelligence, competitor analysis, and customer research is all about developing a more powerful radar, and the endless hand-wringing and strategising over social media betrays the kind of anxieties that are most often found in those eager for the approval of others.

In contrast, we most admire those businesses with a strong inner direction – a clear set of values, integrity and sense of purpose – and tend to lionise celebrity CEOs who bring that ethos to life…….. Customers churn between suppliers to find the best deal, not because we are all extremely price sensitive, but because there is nothing to be loyal to.

What Matt is pointing at here is that we are not simply the kind of beings that economics says we are.  Nor are we the kind of beings that rationalist philosophy, behavioural psychology, and scientific management assumes that we are.  The human being is a richer human being. A human being that strives for meaning and connection, open to being loyal to ideals, values, missions that elevate human life.

Finally, I want to leave you with wisdom from John Kay, an British economist:

If you want to go in one direction, the best route may involve going in another. This is the concept of ‘obliquity’: paradoxical as it sounds, many goals are more likely to be achieved when pursued indirectly. Whether overcoming geographical obstacles, winning decisive battles or meeting sales targets, history shows that oblique approaches are the most successful, especially in difficult terrain.

Obliquity is necessary because we live in an world of uncertainty and complexity; the problems we encounter aren’t always clear – and we often can’t pinpoint what our goals are anyway; circumstances change; people change – and are infuriatingly hard to predict; and direct approaches are often arrogant and unimaginative.

So let me remind you of my central assertion:

A customer-centric organisation does not centre itself on its customers. It is a paradox. And I say that it occurs to me that the way that many organisations are going about customer focus and customer-centricity, will not get them there. The path heavily promoted, and commonly taken, is fools gold.

Whilst I abhor combat, I do welcome conflict: conflict is simply the showing up of difference. And if difference is approached through the spirit of dialogue then it unconceals aspects of the world that are hidden from each of us. So if you disagree with that which I have written then please speak your mind, educate me, share that which you see and which I do not see.  I wish you a great day and thank you for making the time to listen to my speaking.

Posted on October 16, 2013, in Customer Philosophy, Employee Engagement, Leadership / Change / Transformation and tagged , , , , , , , . Bookmark the permalink. 10 Comments.

  1. Maz, I absolutely agree with you. The business has to focus just the same on its employees as well as on making a profit thats why I have always called it the Magic Triangle – Customer/Employee/Owner!

    But what is even worse is what is happening today:

    * Businesses do not focus on the customer, as they do not even focus on the employee and they do not even focus on the shareholder but they focus on analyst guesses!

    * When they say they focus on the customer they actually just focus on customer DATA! They think thats where all the knowledge is and are not interested to talk to the customer as that requires manpower and is expensive.

    * And worse again, because they do not focus on real-time data, but on old collected data.

    * And worse again they process these old data sets statistically through models of which no one knows if they have any relevance to what is actually going-on.

    * And worse again they use these data to make analytic predictions as to how these customers that they have never communicated with are going to make decisions tomorrow.

    And the oblique ways are just as true for improving shareprice – it leads through the long path of spending more money on ones customers and employees !

    So yes, something is rotten in the state of Denmark …

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  2. Maz, your post is both intriguing and confusing. You’ve stated what you’re against, but I’m not sure that you’ve clearly articulated what you’re for. You do make the point about business being an ecosystem that’s larger than the customer and yes that’s true.

    I would argue that the decisions you make about hiring, treating suppliers, revenue models, etc. are all in service to meeting and exceeding the needs of customers – the reason you have a business at all. All the questions about how the business operates should be answered through the lens of with what will help us do the best job for customers in the marketplace.

    So many have awakened to the reality that more outward attention must be paid to the customer and you may consider much of what’s being said and done simplistic (as you stated). If a customer centric business does not center itself on its customers, then what if anything is at the center and/or what should it be? Thanks.

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    • Hello Christopher,
      I acknowledge and thank you for taking me up on my invitation and sharing your perspective. And I propose to put forward my response to your questions in a follow up post which I intend to publish this week.

      Maz

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  3. Maz, I have to admit I am also a little confused by this post.

    Are you saying that the best organisations meet the needs of everybody? Customers, suppliers, employees, owners…

    Is this an aspiration? Or something that some manage to achieve?

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    • Hello James,
      I am saying that ‘customer-centric’ is widely misunderstood, has become an ideology for the crafty to take advantage of the gullible or greedy. And in any case business is not and cannot be a game of centricity. So any pursuit of customer-centricity as commonly articulated-understood is fools gold. I will spell this out in more detail in a forthcoming post – to address the questions that you and Christopher have posed.

      I thank you for sharing your perspective.

      Maz

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  4. Hi Maz,
    Personally, I don’t think that customer centric’ organisation are helpful terms or is something to aspire to. Being a successful, responsible, sustainable and profitable business that takes care of its customers, employees and stakeholders is better and makes more sense to me.

    Adrian

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  5. amen, maz! great brands start brand-building inside — they start by cultivating a focused, aligned, and inspiring corporate culture because culture is what determines whether a brand is embraced and appropriately interpreted and reinforced to customers. — denise lee yohn

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    • Hello Denise,
      I find myself to be in agreement with you.

      Stand for a meaningful possibility that touches the human heart, create-deliver a product-service that enriches the human life, design your business so that you make it simple-easy-painless for the customer to do business with you …. And the bedrock of all this is the culture – the way ALL the people (especially the Tops and Middles) show up and operate.

      All the best for you, and thank you for stopping by and sharing your voice so that I can hear and respond.

      Maz

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