Last Updated Apr 15, 2010 10:54 AM EDT
In essence, Gulati preaches that our job as creators and sellers of products and services is to understand our customers in terms of what problems they need solving, not what products they should buy. This understanding was crucial to a revival at Best Buy, which had learned that although 55 percent of its customers were women, they "loathed" shopping at the consumer electronics giant.
When buying electronics stuff, women want a solution, not a product, Gulati writes.
"Men look for a specific product at a discount price. Women want not just a digital camera, but a printer, cable, and other accessories -- and they care far more about these things than price. Equally important, they want help with installation, while most men prefer to try to put things together themselves."With this understanding, Best Buy:
- Bundled related products together.
- Added play areas for kids to allow moms to browse.
- Acquired Geek Squad to help with customer support and installation.
What about your company? Are you truly customer-centric? Are you in the business of selling solutions or selling products?
Gulati's post, Inside Best Buy's Customer-Centric Strategy, is the first in a series of blogs from HBS faculty.