In a recent Bain report, The Firms of the Future, they look at 5 key areas.
We’re starting off with Business scale and intimacy with the customer and are using extracts from their report.
Traditionally businesses grew to achieve economies of scale. It was thought that big was economic but, almost by definition, took the company away from the customer. Businesses of the future, whilst not giving up the power drawn from scale, are already achieving a totally new level of intimacy with their customers by relating to them through the digital world. Amazon, Tesla, Alibaba all mix both things in their own environment. Change doesn’t all have to be in the tech world, although the technology does enable it.
Did you know that Nordstrom, the $14 billion apparel retailer long famous for its strong customer advocacy, has grown its revenue by 50% over the past five years in part through a series of investments to get even closer to customers. These include software that allows store associates to communicate with customers via texts and the purchase of Trunk Club, a personal shopping service. Starbucks delivers intimacy through the baristas at the front line while investing in a superior mobile experience, personalization and value based on loyalty program insights.
So, what are you doing in your company at a senior level to prepare for these changes?
It’s shocking to think that some of the largest companies out there would go out of business. With hindsight we can see that some of these great names just weren’t close to what their customers wanted and how the market changed; memorable companies such as HMW, Compaq, Toys R Us. Of course, we also have Debenhams and House of Fraser, two long established and large companies both closing stores and like many other high street retailers, in real trouble.
Do you know what your customers want? Is your business agile enough to deal with their changing demands, or are you losing them to your competitors?
Our UpAGear programme helps executives like you review the vision and mission statements, and incorporates working with your Leadership Teams to achieve your business goals, create a high performance leadership and full team alignment, all with an aim of turning your business around.
Isn’t it time you helped your company achieve its goals by getting closer to the customer, and achieving your targets too? We’d love to help you and your team – our professional coaches are ready when you are.
Get in touch and I’ll tell you more.