The sovereign customer
The sovereign customer
The changing landscape of competition in the last three decades underscores the fact that in today's global business environment neither competitors nor customers are passive players. Corporations compete to sustain close relationships with their existing customers and to gain access to new customers in various parts of the world. Achieving this goal, however, requires persistent pursuit and a creative response to an emerging reality: customers across the globe have become increasingly sovereign.
Traditionally, the concept of sovereign and sovereignty was primarily confined to a nation-state, people, or an absolute power. The concept generally implies the legitimate and actual right to exercise power. In fact, the application of sovereignty gained a widespread legitimacy after the emergence of the nation-state in Europe. The French Revolution in 1789 further reinforced the essence of territorial integrity and the emergence of a sovereign nation. Furthermore, some theorists extended the concept to individuals; the right to have effective control over their affairs. Unlike the nation-state or monarchy,individual sovereignty is seriously curtailed, as it is possible only when such individuals have easy or enough access to resources to satisfy their primary needs.
Recently, the globalization of business highlights the fact that a sovereign customer is in the making and is a powerful force to reckon with in the marketplace. Corporations and policymakers, alike, are not in a position to either ignore or dismiss the emergence and existence of an independent active actor; the sovereign customer. Globalization has accelerated the rise of these customers due to increasing connectivity, interdependence, and integration in the world community. These customers are aware and informed about new products and services in the global marketplace. They are empowered not only by the unlimited choices they have, but also by their access to and possession of information and their ability to act upon such information independently in the marketplace. The power to ponder possibilities and to act rationally enables sovereign customers to influence corporate strategic choices and shape competition.
The challenge that corporations face in dealing with sovereign customers is similar to that of the State in its dealing with informed and independent minded citizens. The latter do not take anything for granted, demand transparency, and question governments policies and actions. These citizens have always constituted a threat to government bureaucrats and corrupt politicians. And, it is they who advocate change and assertively voice concerns. Sovereign customers appreciate choices and value possibilities, demand consistency in practice, and expect quality products and service, question fraud and market gimmicks, and most importantly show loyalty to corporations which practice integrity in the global marketplace.
Sovereign customers are not confined to individualistic societies. Rather they are emerging from every corner of the world and they are forcing corporations to take note of their presence. These customers may have different lifestyles and aspirations, and come from various social, racial, and religious backgrounds, nevertheless, they all seem to be vibrant and active actors in the marketplace and enthusiastically espouse change that reaffirms their presence without obstructing creative thinking.
Corporations that expect or seek passive customers may find dealing with sovereign customers a difficult task. These corporations have no choice but to profoundly change their market approaches and strategies. Globalization has made sovereign customers a reality. Neither globalization of business nor sovereign customers are expected to disappear in a foreseeable future. Ultimately,corporations will come to appreciate sovereign customers and treat their existence as an opportunity.
Abbas J. Ali
