Towards Customer-Centricity in the Aftermarket A Case Study of Customer-Centricity in an Aftermarket Logistics Organisation

Abstract

Customer-centricity is increasingly stipulated as a fundamental strategic goal in corporations across several industries worldwide. However, many organisations still experience difficulties in achieving customer-centricity in practice. Furthermore, there is limited research that investigates in-depth how a traditionally product-centric organisation within the aftermarket context should work to become customer-centric. Thus, this thesis project aims to address this research gap by exploring what is required from an aftermarket logistics organisation within the automotive industry to realise the shift from product-centricity. The case organisation recently commenced an initiative to achieve customer-centricity due to intensified competition, the digital transformation within the industry, and increasingly sophisticated customer requirements. The research was based on a qualitative case study with an abductive approach to theory development, comprising focus groups, semi-structured and unstructured interviews with managers and employees from the case organisation, as well as representatives from two benchmarking organisations. Moreover, the empirical data was analysed iteratively and thematically to deduce the key areas related to the research questions. A frame of reference was developed to support this analysis, encompassing the following areas: background to the aftermarket context, definition of customer-centricity, hindrances to achieving customercentricity, and basic capabilities supporting efforts to implement customer-centricity. This thesis project concluded that the product-centric aftermarket logistics organisation faces several hindrances when seeking to achieve customer-centricity. Some of the main identified hindrances were the following: ambiguity around who the customer is in the aftermarket, lack of senior management commitment among the actors in the aftermarket supply chain, power dynamics that somewhat restrict the case organisation from having deeper interactions with the customers, unclear roles and responsibilities related to the customer experience, lack of digital systems for efficient sharing of customer data, and lack of metrics assessing individual customers’ overall experience. Furthermore, it was concluded that the product-centric aftermarket organisation should, in parallel, take specific measures to address the hindrances while developing basic capabilities. These measures include, e.g., assigning roles with end-toend responsibilities accountable for the customer experience, and installing IoT devices to capture detailed end-customer data. The capabilities investigated in this study are the following: capture the voice-of-the-customer, customer-centric performance measurement, create value according to the service logic, and deliver high service quality.