Pasig Catholic College

College Department

Marion Niko C. Angeles Prof. Majean R. Menor

BSBA – 3 MM Irregular Retail Management

Customer-Centric Approach in Product Management

Situation No. 1

This hypothetical example effectively illustrates how a customer-centric approach can guide a
company like LinguaLeap in developing a successful product.

1. Understanding the Customer

 Initial Assumption (Wrong Approach):

o Relying on preconceived notions about what users want (e.g., gamification and
vocabulary focus) can lead to a misaligned product.
 Customer-Centric Research (Right Approach):
o Using surveys, interviews, and competitive analysis ensures LinguaLeap understands
diverse user needs, frustrations, and preferences.
o Creating user personas helps visualize different customer segments and tailor
features to their specific goals.

2. Integrating Customer Feedback

 Minimum Viable Product (MVP):

o Developing an MVP based on core needs avoids unnecessary features that don’t add
immediate value.
 Feedback Mechanisms:
o In-app surveys and beta testing programs ensure users can influence the app’s
evolution.
 Iteration:
o Addressing real-time issues, like adding speech recognition for pronunciation
challenges, ensures the app continuously meets user expectations.

3. Focusing on Value Creation

 Value Proposition:
o "Learn to speak confidently in real-world situations" aligns with users' desire for
practical language skills.
 Feature Prioritization:
o Core features like role-playing scenarios, personalized learning plans, and community
tools directly support the value proposition.
 De-prioritization:
o Features like gamification are added only when and if they enhance learning,
avoiding feature bloat.

4. Building a Customer-Centric Culture

 Team Training:
o Teaching employees to empathize with users ensures decisions reflect customer
needs.
 Customer Support and Open Communication:
 Pasig Catholic College
College Department

Marion Niko C. Angeles Prof. Majean R. Menor

BSBA – 3 MM Irregular Retail Management

o Direct and responsive interaction with users fosters trust and loyalty.

5. Using Data to Drive Decisions

 Metrics:
o Metrics like engagement, satisfaction, and learning outcomes provide quantifiable
insights.
 Data Analysis:
o Revising lessons or features based on data ensures the app evolves with user needs.

Expected Outcome:

By focusing on customer insights, feedback loops, and iterative improvement, LinguaLeap avoids
costly missteps and delivers an app that resonates with its audience. This approach enhances user
satisfaction, drives engagement, and positions LinguaLeap as a leader in the competitive language
learning market.

Situation No. 2

This is an excellent example of contrasting a traditional product-centric approach with a

customer-centric approach tailored to a local Philippine context.

Hypothetical Example: Mobile Language Learning App

Traditional Approach (Product-Centric):

1. Focus on Product Features:

o The company develops an app that offers a wide range of language courses, such as
Spanish, Mandarin, and French.
o They highlight advanced features like gamification, progress tracking, and AI-based
pronunciation feedback.
2. Sales-Driven Marketing:
o Marketing campaigns emphasize the app's extensive course library and competitive
subscription pricing.
o They focus on acquiring as many users as possible through discounts and
promotions.

Customer-Centric Approach:

1. Understanding the Customer:

o The company conducts surveys and interviews to understand the language-learning
goals of potential users.
o They discover that many users in the Philippines are interested in learning languages
for overseas job opportunities, travel, or personal growth.
o Feedback reveals that many learners struggle with motivation and prefer bite-sized
lessons due to busy schedules.
 Pasig Catholic College
College Department

Marion Niko C. Angeles Prof. Majean R. Menor

BSBA – 3 MM Irregular Retail Management

2. Integrating Customer Feedback:

o The company introduces local language support (e.g., Tagalog or Cebuano
instructions) to make the app accessible.
o They add lessons focused on practical language skills, such as workplace
communication or travel-specific phrases, based on user requests.

3. Focusing on Value Creation:

o The app incorporates culturally relevant content, such as mock job interviews for
overseas work.
o They introduce features like "Learn with a Friend," allowing users to practice
conversations with peers, fostering a sense of community.
o A free tier with essential lessons is offered to cater to users who cannot afford
premium plans.

4. Building a Customer-Centric Culture:

o The company trains customer support to handle queries in local languages and
resolve issues promptly.
o They create forums and social media groups for users to share tips, success stories,
and feedback.

5. Using Data to Drive Decisions:

o Analytics show which lessons are most popular, allowing the company to focus on
expanding those areas.
o Feedback about user drop-off points leads to optimizing lesson lengths and
gamification features.

Expected Outcome:

By adopting a customer-centric approach, the app aligns closely with the needs and
aspirations of its users. It builds trust by addressing challenges unique to its target audience
and fosters loyalty through personalized experiences. This approach drives user retention,
positive reviews, and organic growth through community engagement.

Key Takeaways:

 A deep understanding of customer behavior and preferences enables targeted

improvements and innovations.
 Personalization and cultural relevance enhance user satisfaction and engagement.
 Regular feedback loops and community involvement solidify brand loyalty and long-term
success.

Situation No. 3

This example of Aling Nena's shift to a customer-centric approach showcases how a small
business can thrive by putting customers at the heart of its operations.
 Pasig Catholic College
College Department

Marion Niko C. Angeles Prof. Majean R. Menor

BSBA – 3 MM Irregular Retail Management

1. Understanding the Customer

 Practical Benefit: By recognizing customer preferences (e.g., healthier options,

family-friendly needs, quick lunches), Aling Nena can tailor her offerings to meet
specific demands. This ensures customers feel seen and valued, making them more
likely to return.
 Actionable Example: Introducing casual conversations and observing customer
behavior allowed her to identify and respond to unique dining needs, such as healthier
options for health-conscious individuals or affordable bundles for office workers.

2. Integrating Customer Feedback

 Practical Benefit: Soliciting and acting on feedback demonstrates responsiveness and

builds trust. Customers feel their opinions matter, fostering loyalty.
 Actionable Example: The whiteboard for suggestions and social media engagement
make feedback collection easy and actionable. Adjustments based on feedback (e.g.,
less salty dishes) immediately improve customer satisfaction.

3. Focusing on Value Creation

 Practical Benefit: Offering personalized options (e.g., healthy meals, family platters)
and bundling popular dishes adds perceived value without necessarily increasing
costs. It aligns her offerings with customer needs and maximizes profitability.
 Actionable Example: Affordable lunch sets cater to busy office workers, while
weekend family platters turn casual dining into an experience.

4. Building a Customer-Centric Culture

 Practical Benefit: Staff friendliness, remembering regular customers, and a warm

ambiance elevate the dining experience beyond just food. This builds emotional
connections with customers.
 Actionable Example: The loyalty card system and homey décor create an inviting
environment that encourages repeat visits and spreads positive word-of-mouth.

5. Using Data to Drive Decisions

 Practical Benefit: Simple data collection helps Aling Nena refine her business
strategies. She can focus on best-selling dishes, reduce waste, and introduce popular
options.
 Actionable Example: Tracking which dishes sell well and analyzing social media
feedback helps her make informed menu updates, keeping her offerings relevant and
in demand.

Expected Long-Term Impact

 Pasig Catholic College
College Department

Marion Niko C. Angeles Prof. Majean R. Menor

BSBA – 3 MM Irregular Retail Management

 Competitive Edge: Aling Nena's carinderia becomes more than a place to eat—it’s a
community hub where customers feel appreciated.
 Sustainable Growth: Loyal customers bring in consistent revenue, and positive
word-of-mouth attracts new diners.
 Adaptability: By continually listening to her customers and using feedback, Aling
Nena ensures her carinderia evolves with changing trends and needs.

This transformation highlights how even small businesses can achieve sustainable success by
adopting a customer-centric approach.

Situation No. 4

This example highlights the transformative potential of shifting from a traditional product-
centric mindset to a customer-centric approach.

Traditional Approach Limitations:

 Focus on the Product: Casa Bella's designs reflect their internal preferences, limiting
responsiveness to market trends or customer desires.
 Minimal Engagement: Customer interaction is transactional, missing opportunities to build
relationships and gather insights.
 Limited Differentiation: Marketing primarily emphasizes quality, which competitors can
easily replicate, making it hard to stand out.

Customer-Centric Transformation:

1. Understanding the Customer:

 Proactive Research: Casa Bella goes beyond assumptions, using surveys, focus groups, and
trend analysis to deeply understand customer lifestyles and challenges.
 Competitor Insights: Analyzing competitor reviews reveals gaps and opportunities Casa Bella
can exploit, such as offering smaller or modular furniture for urban living spaces.

2. Integrating Customer Feedback:

 Two-Way Communication: Casa Bella opens feedback channels, fostering dialogue with
customers and gaining real-time input on preferences.
 Customization Options: Offering personalization creates emotional connections with
customers, making products more desirable.

3. Focusing on Value Creation:

 Innovative Offerings: Modular furniture, personalized consultations, and virtual staging

services address customer pain points, enhancing their experience.
 Pasig Catholic College
College Department

Marion Niko C. Angeles Prof. Majean R. Menor

BSBA – 3 MM Irregular Retail Management

 Strategic Partnerships: Collaborating with interior designers and homebuilders expands

reach and strengthens Casa Bella’s position as a lifestyle brand.

4. Building a Customer-Centric Culture:

 Empowering Employees: Training and empowerment ensure employees can deliver

empathetic and efficient service, improving customer satisfaction.
 Celebrating Customers: Featuring customer stories builds community and demonstrates
Casa Bella’s commitment to its patrons.

5. Using Data for Insights:

 CRM Implementation: A robust system tracks customer interactions, enabling targeted

marketing and personalized experiences.
 Actionable Analytics: By analyzing online behavior, Casa Bella refines its digital platforms to
reduce friction and enhance usability.

Outcome:

 Enhanced Customer Experience: Personalized offerings and responsive service create a

memorable buying journey.
 Brand Loyalty: By making customers feel heard and valued, Casa Bella fosters trust and
loyalty.
 Competitive Edge: Their unique focus on solving customer problems and providing value
differentiates them in the crowded furniture market.
 Sustainable Growth: Satisfied customers drive repeat business and referrals, supporting
long-term success.

This shift from merely selling products to solving customer problems and creating value
highlights the power of a customer-centric approach.