by Noriyuki Morimoto
As the basis of capitalism, there lies the fulfillment of passionate desire, irrational and emotional impulses, and illogical and wasteful consumption. Without satisfying such human desires—that is, without pursuing customer satisfaction—the economy will not function.
In contrast, being customer-centric is to appeal to the customer’s reason, enabling them to rationally recognize their true interests. In other words, it makes customers wiser. Therefore, it is the opposite of pursuing customer satisfaction, which is to appeal to customers’ feelings or psychological weaknesses, suspending rational judgment and inducing irrational behavior.
The economy rides a delicate balance between emotional customer satisfaction and rational customer-centeredness. Meanwhile, in regulated industries like finance, healthcare, and education, the very purpose of regulation demands a thorough commitment to customer-centeredness that often conflicts with customer satisfaction.
For example, universities could boost customer satisfaction by making graduation easier, hospitals by readily prescribing medication, and banks by lending money under relaxed conditions. Yet, if genuinely acting in the customer’s best interest, universities should make graduation more challenging to enhance academic skills, hospitals should promote health discipline to prevent visits, and banks should advise rationalization of household finances to prevent excessive loans.
The essence of regulation lies in protecting businesses within sectors demanding true customer-centricity, enabling them to operate even when contrary to customer satisfaction, while also imposing restrictions on their actions to ensure that they remain truly customer-centric. Finance, education, and healthcare are prime examples of sectors where such regulation operates.
Yet even within these regulated industries, customer satisfaction is pursued within established frameworks. Thus, the relentless pursuit of customer satisfaction is the very essence of capitalism.
[Category /Deconstruction of Finance]
Chief Executive Officer, HC Asset Management Co.,Ltd. Noriyuki Morimoto founded HC Asset Management in November 2002. As a pioneer investment consultant in Japan, he established the investment consulting business of Watson Wyatt K.K. (now Willis Towers Watson) in 1990.