Are You at Risk of Being “Uberized”?
Are You at Chance of Being “Uberized”?
If you might be like many Business Entrepreneurs and Leaders you likely sense quite superior about the position you hold in your industry… so did the taxi cab corporations and motorists before Uber became a truth. Now they are scrambling and seeking to discover a way to survive… even to the stage of attempting to get political aid in different cities to continue to be afloat.
Disruption and Commoditization have impacted just about each individual industry these days. There in all probability isn’t a one industry that has not been impacted by a disruptive corporation moving into their market place and thieving some of their current market share. Uber is an excellent illustration but there are lots of other people that have been equally disruptive. Organizations such as LegalZoom have taken billions of pounds absent from attorneys about the previous numerous decades. They captured and disrupted a doc and transaction-centered business and turned it into a commodity by significantly lowering the pricing of doc preparing… impacting lawyers all over the region.
Amazon was an early disruptor to the full reserve business… taking major sector share absent from Barnes and Noble and Borders who have been identified giants in the reserve industry. And we definitely won’t be able to neglect about Blockbuster’s demise when Netflix entered the marketplace. They were the unquestioned dominant leader in video rental and ended up almost changed overnight by an not known company with a new disruptive business model that matched the requires of prospects at sizeable price savings.
Even though these illustrations are in fully different industries there is just one common thread that runs by all of them… they didn’t believe that everyone could disrupt their dominance in their market. Although it really is magnificent to imagine in your product or service, it is risky to believe there isn’t really anyone ready in the wings to take absent your position. Unlike any other time in heritage, we are now seeing new corporations coming into classic industries from many unrelated places and establishing a disruptive model and capturing significant market share. This trend is only going to go on now that it has proven significant accomplishment in excess of the past few several years.
So what can you do, as the chief of your business, to either prevent or lessen the effect of this prospective disruption?
Even though commoditization is tough to overcome with items and providers in excess of a lengthy period of time, there is at minimum 1 alternate that seems to endure the test of time and provides differentiation in the sector… your Client Working experience.
It is tricky to frequently occur up with new items and providers to satisfy the ravenous urge for food prospects have now. Just when you consider you have the finest and foremost edge product or most recent service, someone comes in and “one particular-ups” you and normally takes absent the leading location. While you may well continue being there for some period of time, it is tricky to remain at the major for extended periods of time. Apple is 1 of the handful of that has been thriving at this… but it took them many many years of living in the shadow of Microsoft and other folks just before they grew to become the dominant leader. Right now, Microsoft is in this unenviable position and attempting to fight their way again to the leading… particularly in the race for the Cloud.
But these are behemoth businesses… not the SMB current market. They can toss billions of pounds at innovation and products and solutions and hope they come across a winner. The small and mid-sized business (SMB) cannot be this frivolous with their cash and producing far too several product/support errors can wipe out a business ahead of everything will come to fruition. The verified choice to this insanity is to emphasis on the 1 Point that is totally in their regulate to structure and provide… their Shopper Working experience.
Consumer Experience has both limited and extensive term pros. It is one thing that can be made and carried out inside of the year but last for many a long time to arrive when applied properly. And by thoroughly I’m not speaking about telling all your staff members they need to be nicer to the customer… that hardly ever operates for the lengthy term… every single company can be great to their buyers if they try out. This is not the respond to… this isn’t really the differentiator… but it really is on the proper monitor.
Making a tailored Consumer JOURNEY that is designed upon a extremely very well outlined Purchaser Encounter Course of action (a little something we call Shopper Encounter Mapping) is what will allow providers to experience these benefits for several several years into the potential. Assume Disney… they produced “the happiest position on earth” and go on to deliver this expertise yr right after calendar year soon after year. This failed to take place by holding a meeting and telling all their workers and characters to be nicer to their attendees… it happened since they have a really perfectly outlined Consumer Journey that is constructed on a foundation of a nicely-made and executed Customer Knowledge.
Nordstrom did the exact same point numerous a long time ago. They began selling footwear… then garments… all at substantial price ranges. But they started out with a very distinct method within the firm for providing an unbelievable consumer practical experience day in and working day out. Zappos adopted this very same model… sold sneakers… a person of the greatest commodities in the garments industry… and they dominate today. They really don’t give bargains and foolish things like “a single working day only” sales (each day)… they basically produce a remarkable Shopper Working experience to each consumer each and every working day… and their prospects love to buy from Zappos. And it has labored out fairly very well when you contemplate they went from zero to about $1 Billion in revenues in a lot less than 10 a long time and ended up bought to Amazon for more than a billion pounds. Not a terrible model if you ask me.
One particular way to prevent getting COMMODITIZED and dropping customers is to layout a little something even new entrants are not able to duplicate… the working experience you present. If your Purchaser Encounter is so extremely remarkable and remarkable… WOW… each solitary working day with each and every interaction, this produces instant differentiation and a long tail of results. It is the ultimate weapon versus commoditization or even new entrants into a current market. For a new disruptive entrant to choose absent sector share they would want to be so considerably far better and much less expensive than everything you available… which is tricky to do nowadays.
And for individuals of you that are expressing to oneself right now, “Yea but we are diverse, we do a very good quality job and address our customers perfectly so we are not at threat,” I would offer you some quick suggestions… choose the blinders off and get authentic with seeking at your business. This is dwelling in a fantasy entire world… this isn’t hunting at your company from the eyes of your customer… they are observing a little something pretty distinct. And if another person arrived into your sector today and supplied a totally various (and great) working experience to your shoppers at or beneath your price they would be long gone in a heartbeat.
Acquiring lengthy-term dominance doesn’t occur by “getting nicer to your shoppers” and thinking you have designed differentiation… you haven’t. Getting Customer OBSESSED and building a system based Buyer JOURNEY that has a well laid out and documented Shopper Expertise Process at the heart of it is what will help you prevent becoming “Uberized.” This strategy gives you differentiation, uniqueness, and a unique spot in your consumers coronary heart and thoughts… it gives you the “extensive tail” of success.
I would strongly and passionately encourage you to discover more about why and how this is totally diverse than what you are likely accomplishing now. If there was 1 Detail TO Concentration ON IN 2017 it would be to produce a strategy based about a nicely-planned Purchaser Journey which incorporated an amazingly magnificent Customer Knowledge by Mapping out all the experiences your client will receive when they interact with your business (there are normally over 20 for most organizations in the SMB current market). If this is of interest and you want to find out additional, let’s get coffee and I can share how some of the finest organizations in the environment have adopted this route… for many years… and nevertheless dominate in their industries. I assume you will find it a interesting discussion…