Can Customer-centric move organizations towards a theory of customer value co-creation

CanCustomer-centric move organizations towards a theory of customervalue co-creation

Customerservice standards are what businesses nowadays need. An organizationneeds to be ‘customer-driven’ in order for it to be ‘market-led’.Management-led obsession is the only way that customer service can beembedded into a business culture (Ferrari, p. 32). There is,therefore, need to understand that clients are the most vital corewithout which the business cannot exist. This being the case,organizations need to develop a customer centric approach, thattouches on all points of customer interaction.

Justas Arnould and Thompson suggest A customer-centric theory thatinvestigates how customers allocate social, economic, and culturalcapital and use them to enrich their endowments could move us towarda theory of customer value co-creation. Why is this the case? Thereis the traditional conception of process value creation, that showsconsumers being ‘outside the firm’, leading to value creationbeing created inside the firm. (Osborne, &amp Ballantyne, p. 166). Needless to say, this traditional concept is company-centric and,therefore, enhance the process of value creation. Being sensitive toa client’s needs and customer interaction are the two mostessential ingredients for a customer centric approach. A keydifferentiator of businesses today is the efficient management ofclients, a significant aspect in customer value co-creation. (Yi &ampGong, p. 1280).

Takethis example, that clearly proves the above theory. In the logisticsbusiness, there needs to be a lot of coordination between clients andthe various clearing agencies. These agencies are tasked with thecrucial completion of clearance and forwarding. A slight delay in theclearing process can result in huge losses, that may have cascadingeffects. There is, therefore, the need for LogisticsService Provider (LSP) to ensure that there are no delays caused byslow or non-performance of tasks by keeping track of each and everyprocess. A good concept would be to ensure that there is a creationof a mechanism that would keep timely information on all tasks athand, ensuring that clients are alerted early on any discrepanciesthat would cause delay.

References

Ferrari,A. (2012). CIGNA: Setting new standards in corporate customerservice. ManagingService Quality,30-34.

Osborne,P., &amp Ballantyne, D. (2012). The paradigmatic pitfalls ofcustomer-centric marketing. MarketingTheory,155-172.

Yi,Y., &amp Gong, T. (2011). Customer value co-creation behavior: Scaledevelopment and validation. Journalof Business Research,1279-1284.