New Peppers & Rogers Group Research Reports that Marketers Don’t Link Short-term Actions to Long-term Implications

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Study from the Peppers & Rogers Group Institute for the Advancement of Customer Centricity Underscores the Need for Long-term Thinking

It is indeed troubling that in spite of all of the information we have about how hard and expensive it is to acquire a new customer, the study shows that companies are still more focused on short-term activites that use up customer equity.

Global management consultancy, Peppers & Rogers Group released a new study today underlining the serious disconnect in business planning between short-term objectives and long-term implications.

The study was conducted by Peppers & Rogers Group's Institute for the Advancement of Customer Centricity (IACC) among subscribers to Peppers & Rogers Group's 1to1 Media publications. The IACC has been created to provide fact-based insight and direction on how to transform an enterprise from product-centric to customer-centric.
Study highlights include:

  •     Growth metrics are short-term focused: Few companies' target for growth is primarily defined in terms of increasing share-of-customer or customer lifetime value.
  •     Damage created in the long-term is overlooked: Achieving short-term financial goals without damaging the prospects for long-term success is a balance achieved by less than half of all companies.
  •     Customer-centric investments are delayed: Companies are willing to reduce or delay investments in a variety of areas in order to achieve short-term financial goals, including gathering and analyzing customer feedback and in improving customers' experiences.
  •     Trust is a secondary consideration: Many companies report taking actions that may erode customers' trust, with close to half stating that such actions occur sometimes, often or always.
  •     Customers are a commodity: Few companies state that their scarcest resource is customers.

Peppers & Rogers Group co-founder, and IACC Board Member Don Peppers comments on the latest results, "It is indeed troubling that in spite of all of the information we have today about how hard and expensive it is to acquire a new customer, the study shows that companies are still more focused on short-term activities that will use up customer equity."

Tom Lacki, Ph.D., the Executive Director of the IACC concurs, "The problem of a disproportionate focus on the short-term may arise from the failure of many companies to fully appreciate that customers are a scarce resource. Knowing the extent to which a marketing initiative creates (or destroys) value is a prerequisite for making wise decisions that enhance the likelihood of a company's long-term success."

Peppers & Rogers Group has created a metric to help companies track how they are balancing short-term and long-term decisions. The metric is called Return on Customer (ROC) and is explained in great detail in the Spring issue of the Peppers & Rogers Group executive journal, Customer Strategist. To learn more, visit

About Peppers & Rogers Group
Peppers & Rogers Group, is a management consulting firm, recognized as the world's leading authority on customer-based business strategy. Founded in 1993 by Don Peppers and Martha Rogers, Ph.D., the firm is dedicated to helping companies grow the value of their business by growing the value of their customer base. The firm is focused on driving bottom-line results from the delivery and implementation of customer initiatives. With expertise that cuts across vertical industries, Peppers & Rogers Group partners, consultants and subject matter experts have a deep understanding of the most powerful value levers that drive business results.

About the Institute for the Advancement of Customer Centricity
The Institute for the Advancement of Customer Centricity (IACC) is a global association of practitioners, strategists and scholars dedicated to empirically exploring the current state of the practice of customer centricity—and to advance that state through original rigorous research in order to confirm, to challenge or to cultivate the most promising and insightful concepts on the horizon. It its capacity as a catalyst, the institute widely shares those research findings and their implications through publications and presentations, with the expectation that the knowledge will serve to make the world a more pleasant place for customers—and, a more profitable place for those companies adhering to the proven principles and practices of customer centricity.

Specific research subjects investigated by IACC are chosen and approved by the Board, based upon guidance from the institute's academic and applied Advisors together with its distinguished Associates and Fellows. Additionally, the institute welcomes feedback on its current research and actively solicits input from the broad business and marketing community to identify the most critical and unanswered questions in the discipline. Please contribute your perspectives by writing to IACC (at) 1to1 (dot) com.


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Marjorie Chimes
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