Have you heard the news? According to NASA, planet Earth is slowing down thanks to the moon. And in a mere 180 million years or so our planet’s 24 hour-long day will slow, adding a full hour to each day. Wow. That’s welcomed news. Because while NASA is busy studying the impact of a slower future, these days if you’re in a business, being too slow is the kiss of death, because Speed is the new currency of convenience, thanks to the internet, and Amazon.
I know what you’re thinking, speed (aka being fast at something) is not a new concept to CEOs and business owners; rather it’s been around for a very long time especially as a customer-centric sales strategy. This time is different though. Because while companies struggle to identify more ways to stay ahead in the game, delivering high quality products is still #1, and being environmentally responsible is also still #1, and being socially sensitive is still #1, and being the top drawer most awesome customer friendly business ever is still #1. While all these compete for resources to drive new sales, Speed, which translates into convenience is the new #1, And by passing them all, ‘speed’ has recently become its own product category addition, racing past the rest to become the newest must-have competitive differentiator for nearly all businesses everywhere today.
The upside for the winners (aka younger new market entrants and early online adopters) is increasing sales, increasing marketshare, and a chance to shake up the old line status quo; All this by recognizing how adding “speed” as “convenience” in every conceivable customer-centric way to their core value proposition is genius! The downside for the laggards is a bumpy ride down the rapids; losing existing customers, new customers, and hard-earned profits – maybe forever.
So how is Speed related to convenience?
To a business speed is a simple thing defined as “removing the bottlenecks in any process.” To your customer though, it’s more like “a faster order-to-delivery cycle time experience that satisfies.” In other words, in your customers’ mind they want everything faster. Do you know what that is worth to them? Turns out, increasingly it’s a lot! Convenience means that your customers have better things to do with their time than to wait for you. Waiting at a loading dock, or in line at a restaurant is no fun. Give them back some time and your customers will reward you – becoming more loyal and satisfied. This in particular explains why delivering speed, for example, created a dozen new delivery services in the food industry.
So how did we get here? And why is speed the best new product?
30 years ago in 1988 there was no internet as we know it today. And as large Consumer Packaged Goods manufacturers dominated consumer purchasing choices by controlling end-to-end how a customer perceived value and convenience, retailers let them do it — because it helped drive traffic. But even after the first “.coms” came on the scene in the mid-1990s many would have expected the internet to have completely dissolved the old-school formulas years ago. But of course given the intervening Financial Crisis aka The Great Recession slowed things down, a new catalyst was needed. I’m talking about Jeff Bezos, Amazon, and the instant addictive satisfaction we all get from convenience at the push of a button.
The result is a renewed feverish increase in the pace of business transactions that is today part of Web 3.0 – companies using Big Data, Robotic Automation, Artificial Intelligence, Amazon and Uber, are all together elevating the need for speed as convenience in favor of embracing a new utopian customer-centric “deliver to us everything now internet model.”
But as many business owners and CEOs are still slow to adopt, they are now consequently looking up at a fracturing water dam wall about to burst down on them. Yet these companies, reluctant laggards, are still building products the old way, still selling to customers the old way, still advertising to customers the old way, and still hoping business will go on the old way… But it won’t and companies caught behind will go under.
So what should you do now? And can you fix it?
Yes. You have already most likely given this some deeper thought as you sense the ground shaking. But all will not survive the deluge. Here’s why. Remember these two existential questions your strategy consultant once asked you to think about separately?
- Why does my business matter?
- How does my business matter?
Well they’re not separate any longer. Because while nearly all CEOs can answer ‘Why’ their business matters, many at the same time are learning it’s not enough. Because the ‘How’ your business matters is newly arrived at the top of Why your business matters today. And as it turns out (at least in my experience), nobody really cares about Why your business matters. Customers don’t. They only want to know How you can help them, right now. Because companies like Amazon and those that followed have finally and completely redefined the old internet shopping experience, and perhaps inadvertently created an entirely new categorical customer expectation not only for B2C companies but also for B2B companies as well. Take note! Today, the new perception of added product or service value is speed as convenience. And it’s like striking gold if you get it right, especially if your customers think it’s free.
There is however still the matter of How your business matters, because How it matters these days is quickly outpacing Why. In other words as more and more higher quality products all compete for the same, increasingly online sale, the new best product offering for How a business matters is SPEED. Not just slashing delivery times to the home, but in every aspect of your business, from supplier-to-manufacturer –to-retailer. The entire business value chain in cycle times is now on steroids, and will soon be poised ‘at the ready’ to please any customer, anywhere — instantly. And if you don’t prepare for that reality now – you’re going to feel it.
So here’s the key takeaway
Once treated as an add-on feature at the bottom of your web page, speed as convenience is now at the top, winning over new customers and increasing sales from newer competitors. This makes SPEED; the hands down ‘winner of best product for 2018.’ Because regardless of your size or market share, big or small, as all businesses switch targeting from a “mass” market to a “me” market, from front office to rear dock (if you want to survive), adding speed and selling it as a differentiating competitive feature that delivers convenience is what is winning the day; Something that could help save a lot of slow-to-adopt laggards when the dam breaks from smashing up against the rocks.