THE COMPETITIVE ADVANTAGE OF CUSTOMER CENTRICITY: USING CUSTOMER CENTRICITY TO DELIVER SUSTAINABLE

Achieving a sustained competitive advantage can now be explained by customer lifetime profitability. Creating competitive advantage is about increasing the value realized by customers from their relationship with the firm. The conventional view is that loyal customers: are cheaper to recruit for up-selling and cross-selling; cost less to serve because they are familiar with the company’s offerings; become credible advocates by “spreading the word” about the company; are more forgiving to occasional inconveniences; and the longer they stay with the firm the greater the chance they will concentrate their buying on the company’s offerings.