Quite Simply, The Customer Comes First
The recession is taking a heavy toll on retailers. Some, like Circuit City, folded while others, like Best Buy, continue to hold on. Jay Galbraith, in his article You’re Organized … How?, suggests that one reason a lot of retailers experience losses – even in boom economies – is because they are more product focused than consumer focused.
Best Buy, Galbraith says, realized its mistake and worked diligently to correct it. By focusing on the needs of the customers, Best Buy was able to provide a more enjoyable shopping experience that – pretty much always – translated into increased revenue.
“Customer-centric organizations essentially become more complex organizations that are grouped around experience, consumer segments, products, services and software,” says Galbraith. He goes on to add that the complexity should only be on the organization’s side of the equation, never on the customers.
It’s not easy for retailers these days; consumers continue looking for more ways to save money. But retailers who remember to focus their energy on satisfying their customers’ needs and wants stand a much better chance of surviving these dire economic times.
