Customer Logic Versus Producer Logic 

"Most businesses today say they service customers.   In reality, they serve themselves." 

From "Frontiers of Management" by Rosabeth Moss Kanter

All organisations claim to understand the difference between the way customers think and act and the way that they as sellers of services and products think and act. That is, between Customer Logic and Producer Logic. It's easy: customers have unmet needs, we the suppliers come up with products and services to meet those needs at a price. It's a virtuous circle and everyone is happy.

However, time and time again when working with our consulting clients we experience a profound and often frustrating inability and unwillingness of both leaders and employees to really understand what their customers want and expect. Examples abound. When a customer has an issue with their mobile phone they expect to ring their service provider and have the problem resolved - preferably in one call. Yet the annual growth in consumer complaints to the telecommunications authorities indicates the opposite. Similarly, surveys consistently show that people want and are prepared to pay for expert customer services when making in-store purchases. However in the absence of value-adding service, consumers are voting with their feet and migrating to on­line shopping. Dell Computing creating a whole business model based on this one observation of customer logic.

What is happening? Why does customer frustration continue to grow?  

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Michelle Stewart,
2 Jun 2015, 23:17