Advantages & Disadvantages of Client-Driven Goals
To broadly say a company has "client-driven goals" means its primary focus is to satisfy the needs of customers or clients. As a general business approach, this contrasts product or production-oriented operations where product quality or efficiency is primary and clients are similar. Each strategy has pros and cons.
The ability to respond quickly to changes in customer needs and wants is a key benefit of being client-driven. Companies normally spend more time conducting customer research to figure out what additional functions or product improvements the market demands. Even more aggressively, some companies use focus groups and customer advisory councils to learn about customer interests ahead of even the broad marketplace.
If effectively implemented, client-driven objectives can lead to customer service strength and high rates of customer retention, loyalty and revenue optimization. Having a customer-centric approach causes companies to more often review customer service strategies relative to product improvements. A general attitude of trying to satisfy each client tends to produce greater levels of satisfaction. Satisfied customers are more willing to pay top dollar for good experiences and will likely buy additional products over time.
Thought not inherent, it is typically more challenging for client-first companies to keep up with product-driven companies in regard to cutting-edge technology and product features. Product-centric companies usually invest much more time and money in developing top-of-the-line products. Client-driven organizations develop and improve products in response to customer needs. This tends to play well in the long term, but can lead to a lag in keeping up with industry and product evolution.
Client-driven companies may also overlook infrastructure needs, such as new technology and equipment, while focusing on customer service improvements. This can lead to a decline in capabilities to improve products or ramp up production quickly. Client-oriented companies do usually have some technology infrastructure, including customer relationship management software, to manage key customer relationships. However, more tools are usually needed to ensure quick response to market conditions.