The last two decades or so have seen a dramatic shift in the marketplace. Technology has enabled forward-thinking companies to diversify with ease, and the likes of Amazon and Alibaba have upped the ante for everyone.
Indeed who would have predicted that an online bookseller and modest B2B platform would become the world’s largest e-commerce businesses in the world – Amazon dominating North America and Europe, and Alibaba holding the China market – and together commanding $1.1 trillion in market capitalisation?2
The opportunities technology brings mean it’s difficult to know who the new market entrants will be and how they will transform existing processes or experiences.
Your next big competitor is just as likely to be a company or person you’ve never heard of as an established big player, and the best indicator will be how they use technology.
2) www.cbinsights.com
Tech-driven companies have revolutionised the nature of customer interactions, and that means customers have realised exactly what a good experience looks like.
To stay with the e-commerce example, the large majority of us use Amazon.
They have our address and credit card details, and within a couple of clicks we can order something that’s delivered within 24 hours to our home or work address, or even to a friend or family member complete with an optional note and gift wrapping.
The process is fluid no matter what device you’re using, working in the same way across your mobile phone, iPad or laptop. Plus, our preferences are stored and we get suggestions that are relevant and that we might not otherwise have considered.
It’s actually just too easy not to use. And that becomes particularly apparent when you try to use an alternative that doesn’t quite hit the mark.
Personal details and preferences aren’t stored, payment card details have to be entered multiple times, delivery delays and excuses, inaccessible user interfaces.
It’s frustrating – and this is friction first-hand. When contrasted to the easy, personalised, value-added Amazon-esque experiences, it is obvious which will make customers return again and again.
Simple, good interactions build loyalty, and loyalty drives revenue.
This is why technology has to be front and centre – not an add-on to business strategy.