Managing Customers as Investments The Strategic Value of Customers in the Long Run

Chapter 6. CUSTOMER-BASED ORGANIZATION

The value of a customer is more than a concept, tool, or metric. It is a mindset. Its implementation requires a cultural change within the organization and needs to be supported by appropriate changes in the organizational structure and incentive systems. In this chapter, we highlight five key organizational changes needed to make a customer-based strategy work. We then describe specific priorities for decision makers ranging from CEOs and CFOs to product managers and marketing research executives.

ORGANIZATIONAL STRUCTURE

Almost a century ago, consumer packaged goods companies introduced the brand, or product management, system as a new and innovative organization structure to manage brands. In this system, ...