New Game, New Rules.
Two important things happening right now that together have a powerful impact on business are the ‘Subscriber Economy’ and the ‘Gig Economy’. The Subscriber Economy is the fast-growing trend towards paying monthly for a service instead of paying in full upfront. Like your iPhone X contract. The Gig Economy means people working in temporary or part-time jobs that don’t provide traditional benefits like a pension or healthcare but deliver benefits around flexibility.
Consumer Buying Behaviour
This is changing and it is changing for good. It is happening in our work and our personal lives. Think about how you used to watch a film. You probably reluctantly took a stroll to your local Blockbuster. Gone are the days when you would default to buying a DVD from HMV. If you’re like me and many others, your movie is downloaded or streamed on demand and your music is from a subscription service: the list goes on.
This behaviour transitions into business and is relevant to every size of business and every industry.
Any business that doesn’t stay relevant to their customers or their industry is dead in the water – you could become the next Blockbuster and be left out of business. How do you stay relevant? By embracing the opportunities of the digital age. For me, we are either (a) born digital, (b) transforming to digital or (c) dying out. Which are you?
In the past, businesses would create products, select the channel to market, find a customer and sell them a product. The customer walked away happy at that moment and, if they were lucky, would get a phone call a year later as they left. This is the Old Game with Old Rules.
Today’s customer engages with multiple channels. They will not pay large sums up front, instead of expecting to pay a monthly amount that they deem reasonable. As a monthly subscriber, they are free to leave at any time. And they will.
Now, this does two things: first, it means you must focus on creating a bond between you and your customer – trust is the bedrock of everything. Secondly, it means constantly reinforcing that bond by repeatedly engaging with each customer and adding value to your relationship. That’s right, value has a time limit. What had value at the time of the initial purchase does not necessarily retain that value for long, and certainly not forever.
And The Gig Economy?
With customers increasingly wanting on-demand services with a great experience how does this marry up with the Gig Economy and the people in our business?
Temporary work ‘gigs’ can be controversial, depending on your perspective, but it is a fact the number of temporary or part-time workers is increasing. A US market report by Intuit predicted that 40% of workers would be contractors by 2020.
So What Do We Do?
Think differently. Work for our customer, rather than just sell to them. Embrace a cultural shift across the business where everybody is working towards delivering:
- great outcomes and positive experiences from engaging with us
- services that are available on demand, not when we’re ready to sell them
- mobility – this is critical – available anywhere
- repeating value through services, support or advice
To do this means thinking about meeting customer needs, not selling products. It means building a relationship, not one-off sales. This is the New Game and New Rules.
Using the cloud to provide the very latest technology and only paying for what you need, when you need it, is rapidly becoming the best choice for businesses and customers alike.
For a business, buying computers, servers and software puts pressure on cash flow and leaves you with depreciating assets. Using cloud infrastructure and software means paying monthly for only what you need.
Selling and walking away is the Old Game, Old Rules. Building trust and developing a mutually beneficial relationship is the New Game and providing customers what they need and removing what they don’t are the New Rules.
At YouCloudIT we play New Game, New Rules. Which game are you playing?
COMPANY NAME: YouCloudIT
PHONE: 03330 500 600