Understanding your customers’ reasons for buying is as important to be able to adapt to disrupted markets.
Kodak missed the point of WHY people printed pictures. If you’re old enough to remember printed pictures being the only way you could see pictures, you’ll remember when your family or friends came back from holiday. You’d all gather round and look at the pictures they’d printed off the film.
A common misconception is that Kodak didn’t invest in digital cameras at all, like Blockbuster didn’t adapt to Lovefilm (which evolved into Netflix.) Actually, it was a Kodak employee who first developed a digital camera in the ‘70s. Kodak even invested into an online photo sharing site. Their problem was that they focused in trying to use that to promote printing the photos that people shared.
What they didn’t realise was the whole reason people printed photos was to share them. Their platform fell in the wake of a platform you might have heard of that specialised in photo sharing as the focus. (Hint: it starts with “I’ and ends with “nstagram.”)
Had they realised that was where their customers saw the value, their position in the market would have given them an advantage and they could have been the Instagram. Instead, they filed for bankruptcy.
In the Digital Age, the next disruptive tech is just around the corner. Constantly reviewing your customer feedback will help you to stay in tune as to what opportunities are brought with the disruption.
Social Media now makes it easier than ever to keep your finger on the pulse of your customer’s needs.
Bad News (but not that bad)
You’ve actually got to do something to get it. People are unlikely to give feedback or tell you what they’re thinking unless you ask for it.
Key Points to Consider:
Testimonials/feedback – constructive criticism is just that, if you want to build, you need construction.
Individual conversations with your customers will also help your relationship with them as well as your overall strategy.
Being fluid enough to adapt (link to Blog 1 open in new page) to and incorporate customer feedback
How do you set up a culture where feedback is encouraged? What do you do with positive and negative feedback?
Do you ask for referrals and testimonials? Do you ask for feedback on performance?
Incorporate & use tech e.g. Google, Facebook, review sites (Trip Advisor)
You will fear it – but be curious – recognise what works and what needs to change.
Facing impending disruptions to your business can be daunting and frightening, but shutting your eyes and pretending it isn’t there isn’t a good survival technique.
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