Recently introduced European legislation on extending the rights of customer’s ‘free warranty’ periods, will have a profound impact on the product and services delivered by consumer products manufacturers in that it will raise customer expectations of service and at the same time potentially lead to significant loss of revenue through reduced ‘extended warranty’ and repair revenue.

Businesses are beginning to realise that ownership of the customer is fundamental to that customer’s repurchase and upgrade decisions; therefore businesses are starting to invest heavily in acquiring and owning the customer. This has resulted in suppliers having to determine customer needs, and pay attention to customers in the mass-market environment, in much smaller segments in an attempt to deliver the necessary customer focus.

Today, companies that are measuring customers needs and have organised themselves to retain customers have a strategic advantage. Customers expect their supplier to know who they are and deliver to their needs. Within two years companies that identify and work with their customers, will be the norm. Firms selling product families to anonymous customers will be struggling to survive. Leading edge companies, recognising this change in the market place, have made significant strides towards customer focus and advocacy, as a way of increasing revenues and margins.