The Pros and Cons of a Product-Centric vs. Customer-Centric

As a business, you need to decide whether to focus on your products or your customers. Each approach has its own pros and cons. Here’s a look at the key differences between a product-centric and customer-centric approach.

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A product-centric business is one that is focused on the products or services that it offers, rather than on the needs and wants of the customer. The main aim of a product-centric business is to sell as many products or services as possible, without necessarily taking the time to get to know the customer or to understand their needs.


There are a few advantages to having a product-centric business model. One advantage is that it can help simplify your marketing message. When your marketing is focused on one product, you can spend more time and money creating a marketing campaign that will speak to your target customer about the benefits of that product.

Another advantage of a product-centric business model is that it can lead to increased profitability. If you are able to successfully market and sell your product, you can see a direct increase in your bottom line. Additionally, a product-centric business model can help you build brand loyalty among your customers. If they love your product, they are more likely to continue to purchase it in the future and recommend it to others.

Focuses on product features

Product-centric companies tend to focus more on the product features rather than the customer’s needs. This can sometimes result in products that are not tailored to the customer’s specific wants and needs. Additionally, product-centric companies may have a difficult time making decisions that benefit the customer because they are more focused on what they want to achieve with their product.

May be less expensive

There are several reasons why a product-centric organization may have less expenses. In a customer-centric organization, the company has to support multiple channels such as retail stores, ecommerce, and catalog. A product-centric organization can focus on one or two channels and may not have the same high level of customer support. Product-centric companies may also be able to get by with a smaller research and development budget since they are not trying to be all things to all people.


There are a few potential downsides to being product-centric:

1.You run the risk of losing sight of your customers’ needs.
It’s easy to get caught up in making your product the best it can be without stopping to think about whether or not your target customer actually wants or needs it. This can lead to creating products that are innovative and well-made but that no one wants to buy.

2. You might alienate your current customers.
If you focus too much on developing new products and not enough on maintaining the quality of your current offerings, you could end up alienating the customers you already have. They’ll likely be eager for new offerings from you, but if they feel like they’re being neglected, they could take their business elsewhere.

3. You could miss out on potential growth opportunities.
If you’re so focused on perfecting your current products that you don’t leave any room for exploring new possibilities, you could miss out on chances to expand your business. This is especially true in fast-changing industries where new technologies and trends are constantly emerging. Being open to change is essential for any business that wants to stay relevant and grow over time.

Less customer interaction

The first con of product-centricity is that it decreases customer interaction. In a product-centric business, the team designs a product and then ships it off to the customer with little to no interaction. They may never even speak to the customer or get feedback on their experience with the product.

This lack of interaction can lead to products that don’t meet customer needs. The team may think they’ve designed something great, but if the customer doesn’t like it, they’re stuck with a dud. In fact, customers may not even bother using the product because it doesn’t fit their needs.

A product-centric approach also decreases opportunities for customer feedback. Even if customers do use the product and have opinions on it, the company may never hear about them. This feedback could be invaluable in making future products better, but without a way to collect it, the company will never know what customers think.

Product may not be what customer wants

A product-centric mindset can sometimes result in a company losing touch with what their customers really want. In a recent study, Forrester found that only 37% of companies surveyed were customer-obsessed. This means that there is still a large disconnect between businesses and the people they serve.

One of the dangers of being too focused on your product is that you may create something that your customers don’t even want. You may think you have the next big thing, but if no one is willing to buy it, then it’s not going to be very successful. A customer-centric approach puts the customer first and foremost, so you are more likely to create something that they will actually use and appreciate.


A product-centric company focuses on the features and benefits of their product, while a customer-centric company focuses on the needs of their customer. There are pros and cons to both approaches. A product-centric company is more likely to produce products that are innovative and unique, but they may not be tailored to the needs of their customer base. A customer-centric company is more likely to produce products that are tailored to the needs of their customer base, but they may not be as innovative or unique.


Product-centricity and customer-centricity are two approaches that businesses can take to frame their strategies. A product-centric approach focuses on making the best product possible and assumes that customers will be interested in purchasing it. A customer-centric approach, on the other hand, starts with the customer and tries to understand their needs before developing a product.

There are advantages and disadvantages to both approaches. A product-centric approach can lead to breakthrough products that customers didn’t even know they needed, such as the iPhone. On the other hand, a customer-centric approach can help businesses avoid developing products that no one wants, saving time and money.

Advantages of a product-centric approach:
-Can lead to breakthrough products
-Allows businesses to tap into unmet needs

Advantages of a customer-centric approach:
-Avoids developing products that no one wants
-Helps businesses better understand their customers

Focuses on customer needs

Both a customer-centric and product-centric organization have their pros and cons. A product-centric organization focuses on the products or services that they offer, without taking into consideration the needs of their customers. A customer-centric organization focuses on the needs of their customers and offers products or services to match those needs. There are pros and cons to each method.

A product-centric organization may have difficulty understanding the needs of their customers because they are so focused on their own products. They may also have difficulty making changes to their products or services because they are not customer-focused. On the other hand, a customer-centric organization may be more in touch with the needs of their customers but they may have difficulty determining which products or services to offer because they are not focused on any one product.

May be more expensive

One potential downside of orienting your company around the customer is that it can lead to decisions that are more expensive in the short-term. For example, a customer-centric company might be more likely to offer free shipping or returns in order to keep customers happy, even if it means eating into profits. While this strategy can pay off in the long run by boosting customer loyalty and word-of-mouth marketing, it can also put a strain on your budget in the meantime.


The customer is always right – this iconic phrase is the cornerstone of a customer-centric business model. It’s a way of thinking that places the customer at the center of every decision made about the product or service.

The customer-centric model has its advantages, but there are also some disadvantages that businesses should be aware of.

More customer interaction

1.1 More customer interaction
In a customer-centric business, the customer is always at the forefront of decision making. This means that there is more opportunity for customer interaction and feedback throughout the product development process. This can lead to a better understanding of customer needs and how to best meet them.

1.2 More focus on the customer journey
In a customer-centric business, decisions are made with the customer journey in mind. This means that every touchpoint along the way is designed to give the customer the best possible experience. From pre-purchase research to post-purchase support, everything is focused on making sure the customer is happy.

1.3 Higher quality products and services
When customers are involved in the decision-making process, they are more likely to be satisfied with the final product or service. This is because their needs and wants have been taken into account at every stage of development. As a result, customer-centric businesses tend to produce higher quality products and services.

##Heading: 2 Less risky
2.1 Less risky
In a customer-centric business, decisions are based on data and feedback from customers. This helps to reduce the risk of making wrong decisions that could negatively impact the business.

2.2 Fewer complaints and refunds
Because customer-centric businesses produce products and services that meet customer needs and expectations, there are fewer complaints and requests for refunds. This leads to lower costs for the business and happier customers.

2..3 Greater loyalty from customers
When customers feel like they are being listened to and their needs are being met, they are more likely to be loyal to a brand or business. This loyalty can lead to repeat business and referrals, which can help to grow a company’s customer base

May not be able to produce what customer wants

Product-centric businesses may have a difficult time being customer-centric because they are not able to produce what the customer wants. In order to be customer-centric, businesses need to be able to understand the customer’s needs and wants and be able to produce products that meet those needs. Product-centric businesses, on the other hand, are focused on creating products that they think the customer will want without really understanding the customer’s needs. This can lead to businesses wasting time and resources on creating products that the customer does not want or need.

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