222 The Customer Centricity Playbook by Peter Fader

Apr 12, 2019

In this engaging discussion, Peter Fader, a Wharton professor and co-author of The Customer Centricity Playbook, dives into how businesses can transform customer relationships. He explains why not all customers are created equal and introduces innovative concepts like customer lifetime value. Fader also emphasizes the importance of understanding customer behavior over demographics and warns against the pitfalls of a product-centric approach. With insights from companies like Electronic Arts, he outlines strategies to prioritize high-value customers and enhance retention and development efforts.

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INSIGHT

Customers Differ In Predictable Value

Customers differ in predicted future dollar value even if they look identical today.
Focusing on average customers wastes opportunity compared to targeting high CLV customers.

ANECDOTE

Phelps Metaphor For Customer Nature

Peter Fader and co-author Sarah Toms are avid swimmers and use Michael Phelps as a metaphor.
They argue you can't turn most customers into 'Phelps' through training; find customers born to be great.

ADVICE

Bring Finance Into CLV Work

Involve your CFO when building CLV-based strategies because finance understands forecasts and risk.
Use customer-based valuation to align marketing decisions with investor expectations.

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The Customer Centricity Playbook: Implement a Winning Strategy Driven by Customer Lifetime Value by Peter Fader and Sarah Toms

Click here to view the show notes!

https://www.salesartillery.com/marketing-book-podcast/customer-centricity-playbook-peter-fader

How did global gaming company Electronic Arts go from being named "Worst Company in America" to clearing a billion dollars in profit?

They discovered a simple truth—and acted on it: Not all customers are the same, regardless of how they appear on the surface. The most successful companies, from Amazon to Best Buy, understand their best customers are their most valuable asset, and they tailor their acquisition, development, and retention efforts to those customers.

In The Customer Centricity Playbook, Wharton School professor Peter Fader and Wharton Interactive's executive director Sarah Toms help you see your customers as individuals rather than a monolith, so you can stop wasting resources by chasing down product sales to each and every consumer.

Fader and Toms offer a 360-degree analysis of all the elements that support customer centricity within an organization. In this book, you will learn how to: -Develop a customer-centric strategy for your organization

-Understand the right way to think about customer lifetime value (CLV)

-Finetune investments in customer acquisition, retention, and development tactics based on customer heterogeneity

-Foster a culture that sustains customer centricity, and also understand the link between CLV and market valuation

-Understand customer relationship management (CRM) systems, as they are a vital underpinning for all these areas through the valuable insights they provide

Fader's first book, Customer Centricity, quickly became a go-to for readers interested in focusing on the right customers for strategic advantage. In this new book, Fader and Toms offer a true playbook for companies of all sizes that want to create and implement a winning strategy to acquire, develop, and retain customers for the greatest value.