The Customer Centricity Playbook: Implement a Winning Strategy Driven by Customer Lifetime Value

DIAMOND
RATING
Senteo Rating 2.5
04/27/23
views 2039
comments0
Author:Peter Fader, Sarah Toms
04/27/23
views 2040
comments0
Author:Peter Fader, Sarah Toms
DIAMOND
RATING
Senteo Rating 2.5

The Customer Centricity Playbook: Implement a Winning Strategy Driven by Customer Lifetime Value
Peter Fader & Sarah Toms, Wharton School Press, 2018
Senteo’s Review information

In the book The Customer Centricity Playbook: Implement a Winning Strategy Driven by Customer Lifetime Value, authors Peter Fader and Sarah Toms provide a guide to their version of the fundamental ideas behind customer centricity, but really focusing on customer lifetime value. Peter Fader is the Frances and Pei-Yuan Chia Professor of Marketing at The Wharton School of the University of Pennsylvania. His research is on the analysis of behavioral data to forecast customer shopping/purchasing activities. Sarah E. Toms is executive director and co-founder of Wharton Interactive. She is a demonstrated thought leader in the educational technology field.

The Customer Centricity Playbook has been written as a “one-stop shop” guide for business professionals and executives who are responsible for or are looking to develop their business models to become more adaptive and focused on the most valuable customers. With a serious emphasis on customer lifetime value and future customer lifetime value, this book takes a particularly unique perspective on their notion of “customer centricity”.

The book starts off with an explanation of the need to “maximize customer value”. The way Fader and Toms explain this is then followed in the book with the idea of targeting and acquiring your best customer base, or in other words the customer base which will be most profitable to you. The book then goes on to focus on retention, customer development, CRM, and agile change management. It drives the basic thesis of the book as it attempts to drive home their methodology of what customer centricity is and provide actionable advice on implementing these theories. In practicality, though, the vast majority of the book is focused on Customer Lifetime Value, and finding ways to find consumers who CLV is maximized for your business.

This book does a great job in providing its advice and information in a succinct and straight to the point style which is greatly appreciated. Unlike many other business books nowadays, there is not much room left for droning on about the same topics and information but in fifteen different ways. Moreover, the book does provide some tangibly useful advice in the field of customer base development but be aware that they use “customer centricity” in a very different way than business transformation professionals.

While the book is well written and is succinct, it is unfortunately misleading and misses hitting the nail on the head. The title of the book would lead one to believe that this book will focus on customer centricity in the business model and development sense, but they use a completely different approach and definition of this topic. Their core thesis is that each company has an ideal consumer with a maximized customer lifetime value and then it provides a loose roadmap to finding and engaging those particular customers. While this is definitely an important facet of marketing for businesses to invest in, it is absolutely not what customer-centric business models are built around.  They seem to define customer centricity as finding the most valuable customers for the business rather than designing the business to provide the most value for customers – feels a bit backwards.

2019 BEST BUSINESS BOOK, DIGITAL BOOK WORLD
2019 AXIOM BUSINESS BOOK AWARD WINNER

Featured in Forbes, NPR’s Marketplace, and a Google Talk, The Customer Centricity Playbook offers “actionable insights to drive immediate value,” according to Neil Hoyne, Head of Customer Analytics and Chief Analytics Evangelist, Google.

How did global gaming company Electronic Arts go from being named “Worst Company in America” to clearing a billion dollars in profit?

They discovered a simple truth—and acted on it: Not all customers are the same, regardless of how they appear on the surface.

In The Customer Centricity Playbook, Wharton School professor Peter Fader and Wharton Interactive’s executive director Sarah Toms help you see your customers as individuals rather than a monolith, so you can stopwasting resources by chasing down product sales to each and every consumer.

Fader and Toms offer a 360-degree analysis of all the elements that support customer centricity within an organization. In this book, you will learn how to:

  • Develop a customer-centric strategy for your organization
  • Understand the right way to think about customer lifetime value (CLV)
  • Fine tune investments in customer acquisition, retention, and development tactics based on customer heterogeneity
  • Foster a culture that sustains customer centricity, and also understand the link between CLV and market valuation
  • Understand customer relationship management (CRM) systems, as they are a vital underpinning for all these areas through the valuable insights they provide

Fader’s first book, Customer Centricity, quickly became a go-to for readers interested in focusing on the right customers for strategic advantage. In this new book, Fader and Toms offer a true playbook for companies of all sizes that want to create and implement a winning strategy to acquire, develop, and retain customers for the greatest value.

For aspiring business professionals who are open minded and eager to develop their business models to incorporate new ideas, this book has a number of valuable insights to offer.  While this book will not give you a solid foundation of understanding customer-centric business models, it does have a unique perspective and take on marketing and resource allocation for acquiring new customers.

Senteo Subject Category
Senteo
The best book reviews in your inbox!
Subscribe now and receive a special gift with your subscription.


    Leave a Reply

    The Customer Centricity Playbook: Implement a Winning Strategy Driven by Customer Lifetime Value
    Peter Fader & Sarah Toms, Wharton School Press, 2018
    Have you already read this book?
    Here, are people invited to rate the book?

    How useful was this post?

    Click on a star to rate it!

    Average rating / 5. Vote count:

    No votes so far! Be the first to rate this book.

    See content on this topic

    Does a good customer experience guarantee a strong customer relationship? This article explains how positive and fulfilling experiences can be utilized to develop mutually beneficial relationships.
    Why do customer relationships really matter? Michael Ruckman explains the fundamentals of healthy customer relationships and why they are important to businesses. The Relationship-Centric Bank
    Michael Ruckman Talks about Customer-Centric Business Models
    What is the difference between retention and loyalty, and between customer-centric and relationship-centric business models? How exactly can one monetize customer experience? Michael Ruckman answers these questions and more…
    Voice On Demand Retail Podcast: Part 2 – The three faces of Digital for Retailers
    Michael Ruckman talks about Customer Experiences & Customer Journeys, The three faces of Digital for Retailers and the state of leadership in the retail market today.
    How to Build a Business That Lasts 100 Years
    Join strategist Martin Reeves as he explains how executives can apply six principles from living organisms to build resilient businesses that flourish in the face of change.
    Start With Why: How Great Leaders Inspire Everyone To Take Action
    Simon Sinek explains that starting with ‘why’, having a strong driving motivation behind the work you do, can be the deciding factor between success and failure for a business venture.
    Senteo Rating
    Good to Great
    Senteo Rating
    Thinking, Fast and Slow
    Related Book Reviews & Education
    John DiJulius examines how to improve customer service in your organization. He underscores the importance of interpersonal skills, which he argues have declined due to increasing reliance on technology.
    In CRM at the Speed of Light, the author seeks to address all the changes that have occurred since the previous edition as a result of technology and social media.
    Edited by Don Peppers and Martha Rogers, this is a textbook-style volume on customer relationship management, collating materials and chapters from leading authorities in the field.
    Sinek’s book is intended as a follow up to Start With Why, aimed specifically at helping people to find their own source of intrinsic motivation.