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Customer Centricity Doesn’t Mean Treating Everyone Nicely

contrarian insights customer centricity

There’s a popular misconception that being “customer-centric” means treating every customer the same. That’s not centricity. That’s democracy. And while democracy may be noble, it’s not particularly profitable. 

Peter Fader at Wharton (CX Iconoclast, Peter Fader and Daniel McCarthy – Customer Value, Disclosable Metrics, and Data to Guide Changehas been reminding us for years: true customer centricity is about aligning your company with the customers who matter most economically. Yet many organizations continue to spread their resources like peanut butter—thinly, evenly, and with no real impact. It feels fair, but fairness doesn’t pay the bills. 

 

Here’s the Uncomfortable Truth

Some customers just don’t matter as much. They buy low-margin products. They churn quickly. They cost more to serve than they’ll ever contribute in revenue. In fact, they may actively damage your reputation on the way out the door. And yet, companies bend over backwards to keep them happy while their most profitable customers quietly subsidize the effort. 

Modern analytics—and increasingly, Customer AI—make it impossible to ignore the imbalance. With predictive models, we can identify which accounts are genuinely loyal versus those hanging around until a cheaper option appears. With prescriptive analytics, we can direct scarce resources to the customers who actually move the revenue needle. 

This isn’t about being cruel. It’s about being deliberate. Customer-centric organizations accept that their job is not to delight everyone, but to design their operations, metrics, and culture around the customers who drive long-term growth. 

If that sounds cold, remember this: every great management revolution was powered by measurement. Timekeeping drove the Industrial Revolution. Workflow analysis fueled mass production. Today, Customer AI and predictive measurement are redefining customer experience.