The world is presently in the midst of a wave of revolutions, spanning from massive changes in global politics to the ever-exploding presence of social media and online technology into our everyday lives. Through all of this, however, business must go on, but it isn’t business as usual. I recently wrote a short post on who might be influencing your next business deal.
After delving a bit deeper, and surviving some great brainstorm sessions (if you don’t have a group of trusted advisors, get one), I started to take a look at the bigger picture – not just “who” might be influencing business deals, but what are some of the major trends that are helping to redefine how we do business while the world around us transitions from the past of the 20th century to the new realities of the 21st.
Here are 5 trends that I think are worth watching:
1) The Importance of the Customer
The phrase “customer-centric” has never been more important than it is today. With the arrival of the “information age”, consumers world-wide know what is available, what everyone else is buying and how to find it online at the lowest cost. With this power has come the ability to shape markets, and define the products that they want. Manufacturers no longer have the power to define a market in their own closed space. The phrase “build it and they will come” no longer applies – you must know what the customer wants in advance if you want any chance of survival. And once you have delivered what the customer wants, your product and your customer support must both be perfect, because in this age, word-of-mouth doesn’t just reach family and friends, it reaches the world.
Place the customer first. Listen to them before you build your product and they’ll tell you what to make. Listen to them after they buy your product and they’ll tell you how to keep them as repeat customers (and brand advocates).
2) The Rise of Search
Search has changed everything. Anybody with a laptop, tablet or even a phone can find any piece of information they need. They can find just about everything regarding both a product and the company that makes it, including the opinions of others. But more importantly, search is becoming personal, and that is having a dramatic impact on both the consumption of information and the consumption of product and services. Search is no longer “your father’s SEO”.
To drive revenue & growth, Google, Bing/Yahoo, etc. have always tried to present the most “relevant” search results (and advertisements) on your search page. Relevancy = dollars. But we’ve moved into a stage of technology, and “business to business” information sharing, where this refinement has evolved to where not just ads but content (search results) are now unique to individuals, based on their past search history, sites they frequent, their geographic regions, social/economic groups, etc. For example, Google uses 57 different “signals” to track who you are and what content is most appropriate specifically for you. Couple those 57 signals with information that they can obtain about you (either directly or through other “information partners”) and you have a powerful tool.
Businesses need to recognize the importance of personalized search, how it impacts their own online strategy and figure out the best way to leverage it to their advantage.
3) The Globalization of “Message”
There was a time when a brand’s “message” was local. Even corporations that had a global footprint (General Motors, SONY, Coke/Pepsi, etc.) still had customized messages that were appropriate (and targeted) at the local, or at least regional, level. And they stayed there.
Today, that world is gone. With the rise of the Internet and a population that increasingly views world travel as just another part of life, messages and brand images no longer stay where you put them. Instead, they go viral. They get picked up on YouTube. They’re seen by travelers. They’re found on the Internet (occasionally in a blog with a title like “the 10 worst marketing translations”). They are everywhere. Moving forward, the “message” that a corporation presents must be global in nature, or at the least, local and regional messages must be cultivated in such a way as to work on a global scale. From a business perspective, this isn’t a bad thing at all. In fact, get creative with your international message and perhaps you’ll get lucky and it will go viral.
4) The Power of “Same”
Not only can you buy the same thing anywhere, people have grown to expect the same thing everywhere! While we still pride ourselves in finding that unique place or product, the reality is that the world is becoming one giant franchise. The “bland effect” (the ability to eat at a McDonald’s or Burger King in just about every country in the world) has moved into most major industries, from automotive to online, and shows no signs of slowing.
Perhaps the greatest example is the global domination of major online firms (Google, Facebook, Amazon, eBay, etc.) who have created wildly successful brands that require little or no customization to reach into any country. And if a business can’t get there themselves, the clones will. Here’s a great column from Shane Farley at Business Insider on how Sina Weibo (a Chinese version of Twitter) is outpacing Twitter’s own growth curve. If you are bringing a major product or brand to market, you must expect and drive global demand.
5) The Fall of Nations
What is more important in the world today: nations or businesses? I’d argue businesses. Who has more influence today: nations or businesses? Again, I’d argue for businesses. The globalization of brands, and the ability of consumer demand to occur on a world-wide scale, are tipping the balance of power. Commerce and trade, and consumer demand, doesn’t respect political borders. In fact, it makes them less relevant as, in this information age, we become a globe of increasingly “similar” consumers. Nations, of course, will push back and continue to try to regulate international commerce and trade. But in the long run, power is increasingly in the hands of the consumer, and the businesses that meet their needs.
What are the trends that YOU are seeing?
These 5 trends are a few of the trends that I see shaping and influencing the world of business today. What trends are shaping your business, and how are you adapting?