Competition In The New Economy. Nothing New.
Not everything in the new economy is new. Sure, it’s easy to get caught up in the drama: Information technology is ubiquitous and rapidly advancing. Global economies are heating up. But when it comes right down to the essence of business. It’s the same as it has always been–understand what drives a customer’s behavior and provide an experience, which will attract that customer’s behavior over time. It’s still all about building relationships. The issues today is one of emphasis.
In the old economy, business altering technological advancements were infrequent. In addition, consolidations, due to mergers and acquisitions, were relatively rare occurrences. The competitive playing field was fairly stable. But today, new ways of doing business–of providing unique and valuable customer experiences–are springing up like weeds in a field. This increasingly intense competitive activity creates a huge sense of confusion. The good news is that when business conditions get chaotic, your customers inevitably face the same inextricable conditions. They are also overwhelmed with choice, drowning in information, time and attention starved, and therefore, confused, skeptical and frustrated.
Remember too, that today’s global glut of business model choice has created an explosion in expectations. Customers are demanding the same value propositions across product categories. You can almost hear them asking: “Why can’t I configure my new car (build-to-order) the way I did my computer?” “How come I can’t get my hamburgers delivered like I did my pizza?” “Why can’t I do an on-line search at my bookstore, the way I do at my desk?” What they’re asking for is growth in the relationship–growth that will allow them to either maximize pleasure or minimize pain.
The companies that prosper in this new economy will therefore be those with business designs that are defined by customer motivations and redefined to address their rising expectations. Think of it as incremental relationship development. The key to your success is to truly understand and empathize with customers’ “feelings”, and to increasingly delight them with what Tom Peters has described as the “look and the feel and the smell and the taste” of doing business with you.
Let’s face it. Customers now insist on high quality, quick delivery, consistent service and relatively low prices. These “pleasures” are expected, and as such, are not relevant differentiators. The competitive environment has made marketing and selling much more challenging. Customers can compare suppliers in real time and at any time, which places them firmly in the driver’s seat. To stand out and build superior loyalty in this new “customer-controlled” economy, you must give up the need to be in control of your situation, and instead, be other-focused and help customers improve theirs.
Yes, your promise of reward–the “pleasure” –must still be worthy of their consideration. But success comes from a strategic fascination with reducing your customers’ “pains” –the pain required to find you; to learn about you; to compare you; to interact with you; to help guide you in satisfying their unique wants; and most importantly, to trust you. You must work unceasingly to help them reduce effort, minimize anxiety, and save time while doing business with you. Yes, there are many things new about the new economy. But winning loyal customers isn’t one of them.
Tom Asacker is an author, corporate advisor and public speaker with a unique specialization–advancing business relationships by helping organizations transition from “economically driven” to “emotionally driven.” His philosophies are outlined in his highly acclaimed book Sandbox Wisdom and its sequel The Four Sides of Sandbox Wisdom.
