book.chapter Reboot business

Businesses are increasingly prioritizing sustainability and social responsibility, integrating ESG and circular economy principles into their strategies. Concurrently, advancements in AI, automation, IoT, and blockchain are revolutionizing operations and enabling innovative business models. Consumer expectations are also shifting, with millennials and Gen Z demanding authenticity and transparency. Industry convergence is leading to sector boundaries becoming indistinct, allowing new players to disrupt traditional markets. Lastly, the trend towards personalization is replacing mass production, as consumers seek customized products and services, prompting a fundamental overhaul of business strategy. Direct brand relationships In recent times, progressive companies have prioritized establishing direct relationships with customers, moving away from sole reliance on traditional retail or distribution channels. This customer-centric strategy is crucial for success in the next five years, as consumers increasingly prefer to engage with companies that understand and cater to their personal needs. The focus is not merely on accumulating social media "likes", but on genuinely understanding and connecting with customers. Apple is a prime example of this approach, with its retail stores launched in 2001 designed to offer a seamless customer experience. Unlike traditional electronics stores packed with products, Apple's forward-thinking retail strategy invests in customer relationships. Adopting a customer-focused approach necessitates viewing everything from the customer's perspective, rather than from a business standpoint. Kickstarter exemplifies this by allowing entrepreneurs to assess market demand and cultivate customer relationships well before product launch. Direct customer connections are increasingly becoming the driving force behind startups and product development. While there are no guaranteed formulas for success, five beneficial philosophies can be identified: delivering exceptional value to earn customer loyalty; maintaining openness and transparency, particularly when mistakes occur; communicating clearly and consistently; creating mutual benefits with partners to deliver superior customer value; and nurturing true fans who passionately advocate for your product or service. Ultimately, the top priority should always be to provide positive customer experiences. Seeking value Once upon a time, broadcast advertising worked well to reach consumers. Today's consumers, however, have so many options that they value utility above all else. The most effective way to market now is to provide genuine value to customers by addressing their pain points. If a company does this, customers will appreciate and support them. As Mitch Joel says, "If you give something to people that they actually want and need, they will love you forever. It doesn't have to be sexy. It has to be useful." Insurance company Nationwide exemplifies this utilitarian approach with its Mobile App which guides people through the process after a car accident. It prompts them to collect information, take photos, and has a flashlight for night accidents. By streamlining claims filing on the spot, the app saves customers major hassle while also expediting Nationwide's processes. This app shows how addressing customer frustrations can benefit both parties, representing the future of marketing. To adopt this approach, companies should identify customer pain points and leverage technology to alleviate them, not focus on what the company wants customers to do. They should reduce friction by emphasizing the customer experience over sales. Delivering genuine value earns customer goodwill regardless of expectations. Companies should continually evaluate if their offerings are so useful customers would feature them prominently. And they should keep solutions simple yet enriched by integrating broadly used technologies. Rather than broadcast ads, marketing that removes customer headaches sustains companies for the long haul. Blending engagement The media landscape is undergoing significant transformations, with traditional broadcast television being replaced by on-demand, mobile content accessible anytime, anywhere. This shift has led to a blurring of lines between different media formats, moving towards a unified digital platform for content delivery. Despite these changes, media products can still be categorized as either passive or active. Passive media involves content consumption without interaction, while active media requires audience engagement. Advertising strategies differ for each, with passive media benefiting from widespread advertisement dissemination and active media thriving on interactive brand experiences shared by users. Although it's tempting to view active engagement strategies as superior, the effectiveness of either approach depends on the brand's specific needs and goals. Building a strong brand narrative is crucial, regardless of the media type, providing context and meaning to the brand's message. As businesses navigate this evolving landscape, they should evaluate their current media mix, research their target consumers' preferences, invest time in understanding active media, prioritize building relationships, and appreciate the current transitional moment in advertising. Adopting a digital-first mindset is essential, focusing on creating media that serves customers effectively, whether through active or passive channels. This approach emphasizes the importance of developing connections with consumers, rather than adhering to what works for other brands, ensuring a stronger brand-consumer relationship in the long run. Beyond analytics Big data, which involves collecting vast amounts of information to uncover insights into consumer preferences, is increasingly important. This data comes in two forms: passive, like enjoying a TV show, and active, like engaging on social media. Additionally, there's circular data, discovered through social media recommendations, and linear data, obtained when people directly sign up for more information. The most exciting innovations happen at the intersection of these data types, allowing businesses to not only identify who opted into their services but also to access their social networks on platforms like Facebook and Twitter. This opens up new possibilities for targeted recommendations and marketing strategies. For example, Amazon's Price Check app aggregates pricing data and links it to users' accounts, blending linear and circular data to tailor future sales strategies. Similarly, brick-and-mortar stores can combine these data types to enhance customer experiences, such as offering in-store online ordering for out-of-stock items. To leverage these opportunities, businesses should first master linear data collection, then integrate circular social media data, and finally mix these data sources for comprehensive insights. Developing mobile apps and sharing data with partners can further enhance data collection and analysis. As technology evolves, investing in the infrastructure to blend linear and circular data will be crucial for personalization and understanding consumer behavior, ultimately leading to better customer acquisition and retention strategies. One screen dominance As the digital landscape evolves, the distinction between devices fades, with smartphones becoming the primary screen for many consumers. In 2011, while PC manufacturers sold 350 million units, Apple sold 175 million iPads, and smartphone sales topped 700 million, with projections of reaching 1.5 billion by 2016. Tech giants like Google, Facebook, and Twitter are investing heavily in mobile, driven by decreasing smartphone costs, more affordable data plans, the popularity of apps, cross-platform media, and the predominance of mobile data over voice. The trend towards mobile connectivity presents challenges and opportunities. Companies must avoid the pitfall of treating mobile sites as mere digital brochures; instead, they should leverage mobile for its unique capabilities. Many consumers' first interaction with a business will be via a smartphone, necessitating a mobile-first approach. Strategies include surveying customer connectivity, simplifying mobile experiences, ensuring easy mobile discoverability, and considering smartphones as platforms for rich interaction. Integrating social media and providing timely content can also enhance mobile engagement. Moreover, as household appliances become Wi-Fi enabled, even traditionally fixed devices are entering the mobile realm. Apps now allow remote control of home systems, and the future points towards context-aware applications that anticipate user needs based on various factors like location and schedule. Gartner predicts context-aware systems will be a significant trend, suggesting that businesses should prepare for these developments to stay ahead.