Analysing the different influences of product vs. customer orientated strategy: Focusing on small and medium-sized companies in the contiguous German and Dutch border region

The goal of this research paper is to close the research gap between product focused strategy and customer focused strategy in SME`s. The cross-border region of North-Rhine Westphalia, Germany and Limburg, Netherlands is the target focus during the research. As the market is steadily evolving more and more towards customer focus, it is from utmost importance to compare both strategies, in order to determine opportunities and threats. In particular, at the defining possibilities to improve customer relationship and customer retention is the main aim in this paper. Qualitative and quantitative research has been conducted, in order analyse the research gap and to deliver appropriate results. Expert interviews with SME´s in Germany and Netherlands have reflected the current situation in product and customer orientated companies as well as their perception of the customer relationship. In contrast, tailored surveys in form of Kano questionnaire have been used to determine the perception of customers who experienced either one of both strategies. Moreover, needs and demands has been contrasted to company perception of customer needs and demands, in order to evaluate potentials to adapt. The comparison of qualitative and quantitative research results has shown that customer orientated companies are already doing better based on customer relationship and customer retention. Moreover, these companies are better prepared for the trend towards customer focused market and to maintain satisfied customer and therefore their retention. Nevertheless, having a product focused strategy is still promising to be profitable in the current market, as the shift towards customer centric is not as strong as it will be in the future.Based on these research results it is advisable to slowly adapt towards customer focused strategy, in order to stay competitive in the long run. Acclimatising from department to department would be a good opportunity to adapt healthy to the new strategical orientation.