What is the Difference Between Customer Centric and Customer Focused?

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The terms "customer-focused" and "customer-centric" are often used interchangeably, but there are subtle yet important differences between the two concepts:

Customer-Focused:

  • A customer-focused organization listens to what customers currently want and offers them that.
  • It focuses on the frontline and is self-serving in that it is used to achieve business objectives.
  • Customer-focused marketing tries to identify which products and services match the wants from each customer.

Customer-Centric:

  • A customer-centric company takes things a step further by trying to understand the customers' needs and behaviors to serve them in different phases of their customer lifecycle.
  • It focuses on core customer groups, identifying needs (not just wants), and seeking to solve problems.
  • Customer-centric companies work hard to understand what customers need, even if they themselves don’t know it yet.
  • They provide solutions, not just products or services.

In summary, customer-focused organizations concentrate on meeting the expressed needs and desires of their customers, while customer-centric organizations aim to understand and address the underlying needs and behaviors of their customers, providing tailored solutions and experiences.

Comparative Table: Customer Centric vs Customer Focused

The difference between customer-centric and customer-focused lies in the approach and emphasis each strategy places on the customer experience. Here's a table highlighting the key differences between the two:

Aspect Customer-Focused Customer-Centric
Definition Customer-focused marketing identifies products or services that match customers' wants. Customer-centricity refers to looking at the customer's lifetime value and directing marketing accordingly.
Approach Operating a business with a strong orientation towards achieving customer needs. Transforming business processes to serve the needs of the customer first and foremost.
Emphasis Focus on being nice to all customers and offering great service to everyone. Focus on customer lifetime value and key customers.
Customer Experience Creates good relationships with customers, but may not cover enough ground to create impactful experiences. Places the customer at the center of everything, driving repeat business, creating customer loyalty, and enhancing business growth.
Business Strategy Product-centric approach with a focus on design, manufacturing, and logistics. Customer-centric approach, anticipating customer needs and serving them first.

In summary, customer-focused businesses prioritize meeting customer needs and providing good service, while customer-centric businesses place the customer at the core of every strategy, focusing on their lifetime value and creating impactful experiences.