Issue 174 - 03 | The Customer Centricity Manifesto: Leverage Customer Lifetime Value to Create a Winning Strategy

By Peter Fader & Sarah E. Toms
Published March 22, 2019 10:00 a.m.
“Back in the 1950s, when marketing emerged as a critical function for product-centric firms to keep demand in line with supply, businesses started to notice that their customers were inherently different from one another.

This discovery was a nuisance because it meant that one-size-fits-all approaches to marketing, while cost-efficient, were no longer feasible. So businesses had to start differentiating their messaging and product offerings—but they’ve tried to do so as little as possible to keep the costs down.

Thankfully, there has been a 180 in thinking since those times—companies are starting to see that these differences across customers provide an opportunity to make more money by targeting the right customers and investing in them to develop long, profitable relationships.”

About Peter Fader & Sarah E. Toms | Peter S. Fader is the Frances and Pei-Yuan Chia Professor of Marketing at The Wharton School of the University of Pennsylvania. In 2015, Fader co-founded Zodiac, a predictive analytics firm that was acquired by Nike in 2018. More recently, he co-founded Theta Equity Partners, which focuses on customer- based corporate valuation. Follow him on twitter @faderp.

Sarah E. Toms is executive director and cofounder of Wharton Interactive. She is a thought leader in the technology field, with over two decades experience in a wide variety of industries, and was an entrepreneur for more than a decade, founding companies that built global CRM, product development, productivity management, and financial systems. Her passion to democratize education led her to co-invent, an open-source simulation framework. She is also dedicated to supporting women and girls in technology through her work with the Women in Tech Summit and Follow her on twitter at @SarahEToms.

Related Books

Implement a Winning Strategy Driven by Customer Lifetime Value
Paperback  (9781613630907) 
Published 10/2018  by Wharton Digital Press 
Price: $17.99
Focus on the Right Customers for Strategic Advantage
Paperback  (9781613630167) 
Published 05/2012  by Wharton Digital Press 
Price: $12.59 to $14.39
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