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Does Customer Centricity Mean Treating Everyone Nicely?

on the contrary

 

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 has been reminding us for years: true customer centricity is about aligning your company with the customers who matter most economically. Yet many organizations still spread resources like peanut butter—thinly, evenly, and with no meaningful impact. It feels fair, but fairness doesn’t pay the bills.

 

Not All Customers Are Equal

 

Here’s the uncomfortable truth: some customers simply don’t matter as much. They buy low-margin products, churn quickly, and cost more to serve than they’ll ever generate in revenue. In some cases, they even damage your reputation on their way out. Meanwhile, the customers who drive growth end up subsidizing this effort.

Customer centricity means making deliberate choices. It requires spending disproportionately on high-value customers and consciously investing less in those who bring little or negative value. In the Customer AI Masterclass (Lesson 1.1), we define this as aligning strategy, operations, and measurement with the segments that matter most—not chasing universal satisfaction.

 

Analytics and AI Shift the Balance

 

Modern analytics—and increasingly, Customer AI—make this imbalance impossible to ignore. Predictive models reveal which accounts are truly loyal versus those hanging around until a cheaper option appears. Prescriptive analytics guide scarce resources toward customers who actually move the revenue needle.

In the Customer AI Masterclass (Lesson 3.3: Data Architecture), we show how firms can connect customer journeys, operational data, and financial outcomes into a unified framework. This enables leaders to pinpoint where investment produces loyalty, growth, and retention.

 

Measurement as the Engine of Change

 

This approach may sound cold, but every management revolution was powered by measurement. Timekeeping drove the Industrial Revolution. Workflow analysis fueled mass production. Today, predictive measurement powered by Customer AI is redefining how organizations design customer experience.

In the Customer AI Masterclass (Lesson 1.3: Metrics), we explain why Net Revenue Retention (NRR), churn probability, and customer lifetime value are better indicators of economic outcomes than vanity survey scores. Success comes from tying metrics directly to financial results—not just to satisfaction ratings.

 

From “Nice” to “Deliberate”

 

Customer-centric companies don’t strive to delight everyone. They deliberately align operations, metrics, and culture around the customers who matter most. As shown in the Customer AI Masterclass (Lesson 5.6: Next Best Action), the power lies in focusing interventions where they will produce long-term economic growth—not wasting effort on customers who will never return the investment.

So let’s stop pretending that “nice” equals “centric.” The organizations that win in this next era will focus less on being universally accommodating and more on being economically rational. Your most valuable customers are already voting with their wallets.

This is exactly the type of leadership discipline taught in the Customer AI Masterclass, where CX, CS, and RevOps leaders learn how to apply AI frameworks to focus resources where they matter most