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While a focus on lowering costs, improving quality, and providing consistent, reliable service will continue to be important, I see a shift in the coming decade to combining operational excellence with customerintimacy: tailored solutions for individual customers based on a deep understanding of their needs.
What is more important to company success, a strong external focus on customer experiences or an internal focus on effective and efficient operations? I described in an earlier post how Tesco worked for years to improve its supplychain capabilities, then leveraged this value by using deeper customer knowledge to enrich customer experiences.
Yet at the same time they use these standards as a springboard for creating unique solutions for each customer based on a deep understanding of their needs. (I I call this understanding and tailoring "customerintimacy" ). The result is a powerful combination that fulfills two customer value propositions at the same time.
retailer, spent the last three decades improving its supplychain processes, and designing and launching a series of services, including smaller local convenience stores and online shopping. having sacrificed customerintimacy for increased operational excellence gains through widespread cost cutting, are well documented.
Further, they can combine John Smith's transaction with others to better understand buying patterns, improve their supplychains, lay stores out more effectively, and so forth. One retailer develops an insight into customer behavior and others follow suit.
Improved customer insight : The increased customerintimacy that comes with co-creation deepens your understanding of your market, enabling you to serve it better. When customers co-create and have a vested interest in its success, they are more willing to share personal data and other assets with it.
Going to market effectively these days, no matter what business you''re in, means relating to customers as individuals — even if there are millions of them. retailer Tesco built detailed profiles of customers and then used these insights and a flexible supplychain to customize their products and offers.
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