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There was a time when most companies focused heavily on selling a product-first experience. They believed that having the best product with great features was enough to win the trust and loyalty of customers. While everything was good with this approach, it ignored one key aspect – the customers.
A product-centric approach was fine until customers were not evolved but times have changed. Today, customers matter the most, and a business that works on meeting their needs and preferences stays ahead of its competitors.
This clearly explains where product-centric and customer-centric approaches differ and where they align. If a customer is not happy with the experience with your product or your brand, no matter how amazing products you have, it won’t matter much.
For that reason, a growing number of organizations have started to strike a balance between product and customer-centricity to keep customers satisfied and also increase revenue as well.
In this blog, we will explore the key differences between product and customer-driven organizations and also see some customer-centric and product-centric examples from the industry.
But first, let’s get started with understanding what exactly is a product-centric approach…
The product-centric approach is a business strategy where the main focus is on creating and delivering quality products to meet customer needs. In this approach, the primary emphasis is on the design and development of high-quality products so that the business can stand out in the market.
When a company is product-centric, all its goals and decisions revolve around the product itself. That is why they always analyze product quality, track performance, and customer response. Many businesses find it necessary to use various product analytics tools for deeper understanding to track every metric about their products. These insights help make plans to satisfy what customers want.
In this approach, the main focus is given to product features, quality, and innovation. Great attention is offered to creating products that are superior to competitors, and that can help attract and retain customers. In addition, in a product-driven approach, businesses prioritize promoting the features and benefits of the product.
The customer-centric approach is a business strategy that emphasizes on understanding and meeting the needs of customers. In this approach, organizations give focus on building strong relationships with customers by ensuring amazing service and great experiences.
When a company follows a customer-centric approach, all its goals and decisions revolve around the customers and offering tailored solutions to their problems. In successfully following this approach, the role of customer service and support teams is big as it identifies pain points and ensures the relevant solutions.
When a company is driven by customer-centricity, it means it prioritizes customer satisfaction, loyalty, and retention. It means customer obsession is a top priority for it. The primary goal is to create a customer experience that helps in attracting and retaining customers, resulting in strong relationships.
Being product-centric is directly related to placing a strong focus on meeting the needs and desires of the customers. After all, 66% of customers expect brands to understand their needs. While the end goal is to achieve happier customers, the methods and routes could be varied, from improving products to services.
The benefits of adopting a product-centric approach are many, including –
A customer-centric company puts the customers at the center of all the activities and decisions. This approach can ensure increased customer satisfaction and loyalty. Adopting this strategy can also get improved trust and revenue for the business. After all, such companies are 60% more profitable than others.
The benefits are many when an organization adopts a customer-centric strategy.
Creating value for customers is the common theme whether a company is a product or customer-centric. In both these strategies, organizations need to innovate to stay competitive and make customers happy if they want to make a profit.
Here are some of the similarities that customer and product-centric approaches have –
Both approaches aim to create value for customers either directly or indirectly. A product-driven approach puts a direct focus on creating innovative products that can meet the needs and demands of the customers. On the other hand, a customer-focused company looks to create a positive experience that can meet the needs of customers.
Whether a company is customer or product-centric, it requires innovation to stay ahead of the curve and meet the ever-growing expectations of customers. For a product-driven company, the real emphasis is on creating innovative products that meet the expectations of the audience. On the contrary, for a customer-focused company, the real goal is to create a customer-centric culture with innovation at the core of all business areas.
A successful business is one that consistently meets and exceeds the needs of its customers. To achieve this goal, the first important thing is need analysis which can be done by market research. A product-centric company researches the market to identify gaps in what their products deliver and what customers expect. On the other hand, a customer-centric company uses research to understand the exact customer needs and then develops & delivers services to meet those needs.
Ensuring customer satisfaction is always the main of a business whether it follows a product or customer-centric strategy. While a customer-driven organization uses the power of personalized services to achieve customer satisfaction, a product-driven company offers high-quality products to achieve the same goal.
Generating a profit is the main focus of both approaches. Creating quality products is one way of generating revenue as then customers get attracted to the innovative features and do purchase. Offering excellent service is another way to make customers loyal and get repeat purchases.
A company can be either product-driven or customer-focused, depending on what it prioritizes. Both approaches have many things similar such as ensuring quality products to customers and working for improved customer satisfaction. However, there are some key differences as well that separate one from the other.
Some of the key differences between a customer and a product-centric approach are as follows –
When a business follows a product-centric approach, its main focus will be on the product and also on how to create and sell quality products to customers. On the contrary, when a company is customer-driven, its main goal is to first understand and then meet the needs of customers by offering them great services and support.
The main strategy of a product-oriented company is to use its own perspective in developing, innovating, and improving its products. In contrast, the main strategy of a customer-centric company is to seek customer feedback and analyze their needs before improving the product and service experiences.
For a product-focused company, the focus of innovation is always around the product itself with the main goal to create something that is better than the rest. On the other hand, the real purpose of innovation for a customer-driven company is to enhance the customer experience and take measures to meet their specific needs.
A company that is focused on the product often markets the features and benefits of the products. It offers its product as the best in the market, In contrast, a company that is customer-driven often markets its products on its ability to improve customers’ experience and solve problems.
There are many companies that have historically focused on developing and improving their products rather than giving too much focus on meeting the needs of the customer. This approach has served them well in ensuring innovative and successful products.
Here are those examples –
Many brands understand the significance of being customer-centric to gain an edge in the market and build a loyal customer base. They have not only achieved success with a customer-driven approach but have also ensured quality products and services as well.
Some examples of bands that focus on customers include –
Customers should be the foremost priority for any business. Giving them superior experiences has to be a top focus for your business. To achieve all this, you will need the right set of engagement tools and technology.
With REVE Chat, your company can find top-class customer support tools such as AI-powered chatbots to engage and interact with your customers.
In addition, we have video chat and co-browsing software as well that can help improve the level of support. Using all these tools can prove helpful in elevating the overall service experience for the customer.
In addition, we have live chat software which your business can add to the chatbot and start offering hybrid support to customers. In this type of support, a bot can handle routine automated queries while human agents can take over complex issues.
Both customers and products are two of the most important things a business needs to control. If the product is not good, no matter how much a business tries it can never make the customer happy. If the customer experience is not great, an amazing product can’t do much beyond a point.
At REVE Chat, we realize how companies need to keep a nice balance between both approaches of customer and product-centricity.
You can sign up with us and check our engagement tools to enhance customer experience with your brand.
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