Are You Product Focused or People Focused?
- Chad Ghastin
- Apr 5, 2016
- 2 min read
Having spent a considerable portion of my career on the marketing side of new product launches, I’m intrigued by the direct connection between the “front-end” product experience and the “back-end” service experience. At an academic level it’s known as connecting the value chain. For years, the credit card companies and airlines have created premium products (i.e., gold card) that include a unique and value-driven back-end service experience, so the model isn’t anything new.
Why is it then that we see so many new online premium products that deliver exclusive front-end value (i.e., exclusive access, offers), yet fail to match this with a service experience that is equally exclusive? Is it a lack of a holistic strategy, organizational silos, a rush to market? My guess is it’s a combination of these factors, but more often leadership that focuses on products rather than customers. Only when customers publicly complain or churn becomes a problem, do they realize that customer service experience planning should have been more than updating the FAQ page.
Some could argue that focusing on products is the same as focusing on customers. However, recent events show that the days of leaning on brand equity to launch products that only appeal to the business are over. Even customer-centric Netflix had to learn this lesson the hard way.
In July, 2011 Nextflix announced that they would split apart streaming and DVD-by-mail plans, amounting to a 60% price increase for customers who previously paid for $9.99 a combined plan that offered unlimited streaming and one DVD out at a time. The result was swift online backlash from customers which forced Netflix to abandon the decision and issue a public apology from CEO Reed Hastings saying: “I slid into arrogance based upon past success.”
So what’s the lesson here?
1) Focus on people, not products: If you’re close to your customer segments then you’ll learn which products create value and profitability. This is why it’s critical that you have some form of a voice of the customer program and customer personas that are shared across the organization.
2) Include your customers at every stage: Customer insight shouldn’t end at the product development stage, but continue on through the design of the service experience. A customer advisory board is a great tool for gathering insight.
3) Execute holistically: Go beyond use cases and scenario planning and map out the entire customer journey from the eyes of the customer. Ensure that all of the front-end value isn’t lost on a subpar back-end service experience. Remember the value chain!
4) Don’t forget: Post examples of brands that have learned the hard way (i.e., Netflix) to remind you that customers come before products.
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