Product vs Customer Centric Approaches
by Shao Kang • 20 August 2024
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When it comes to designing and developing products, the terms "product-centric" and "customer-centric" often come up, each representing a distinct philosophy in how companies approach their craft. But what do these terms really mean, and how do they impact the way products are shaped? In this article, we’ll delve into the nuances of both approaches, exploring their strengths, challenges, and how companies can successfully transition between them to create products that not only stand out in the market but also resonate deeply with customers.
What is a Product-Centric Design Approach?
Dyson Products
A product-centric design approach is an approach that companies adopt when the key focus is on building excellent products with excellent features. This approach is not particularly sensitive to the market demand or what the customer’s needs are. Efforts are usually invested towards the research and development side to continuously develop their product features iteratively to maintain their competitive edge. Through the excellent product features, these companies would create a unique brand positioning and stand out in the market, building a loyal customer base and improving customer loyalty. One example that is familiar to most of us would be Dyson.
What is a Customer-Centric Design Approach?
FoodPanda
A customer-centric design approach is an approach that companies adopt when the key focus is on creating solutions that directly addresses customer’s pain points and needs. Companies do so by keeping their customers in mind when designing products. In order for companies to appropriately serve their customers, they often engage in extensive market research, keeping in mind the various user profiles and target groups, as well as engaging customers at every stage of the design and development process. With user feedback as its foundation, the product then undergoes iterative development to ensure that the product is up to date in addressing customer’s pain points and issues in a targeted manner. One example that is familiar to most of us would be Foodpanda.
Key Differences Between Product-Centric and Customer-Centric Approaches
When analysing both approaches, one might find that they do not stray away from the principles of value creation and customer satisfaction as that is the basis that ultimately leads to the products being bought by customers. However, the methods in which both are achieved vary slightly.
Value creation is achieved by the product-centric approach simply through creating superior products, whereas a consumer-centric approach creates value through tailored solutions and products designed to address customers needs and pain points.
Customer satisfaction is achieved through high-quality products from a product-centric design whereas understanding and addressing customer needs is what achieves customer satisfaction for the customer-centric approach.
When it comes to selecting between the two approaches, there isn’t a one size fits all solution. Most companies actually tend to adopt a hybrid approach. A company cannot be purely product-centric or consumer-centric. Being completely product centric runs the risk of losing touch with its customer base and ultimately cannot stay connected to the market and its users. Whereas, being completely customer centric runs the risk of the companies falling behind in terms of innovation as they focus less on research and development and may lead to product homogeneity.
Conclusion
In conclusion, most companies actually do adopt both approaches, albeit to varying degrees. The predominantly product-centric Apple also does incorporate customer feedback and provides excellent customer support in order to enhance the experiences of their users. Grab adopting a predominantly consumer-centric approach has to also continuously maintain its competitive edge by engaging in product-centric elements through using advanced technology like AI and machine learning to improve certain app functionalities like route-planning etc… A company that balances both approaches is able to remain competitive and relevant while being in a good position to meet both current and emerging market needs.
About the Author
About the Author
#55: Seetoh Shao Kang
#55: Seetoh Shao Kang
As an active member of King Edward VII Hall in his freshman year, Shao Kang has recently joined our Publicity Team to further utilise his background in information systems to explore the world of Product Management. His new role with us will involve curating blog articles to appeal to prospective enthusiasts of product, while honing his own interest in its different aspects. He was also previously in charge of securing logistics and sponsors for Ethelontêr 20 - the flagship Freshmen Orientation Camp of NUS Students’ Community Service Club.
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