Experiential Benchmarking
The new competitive frontier.
Previously, on Giuseppe’s Glimpse: In the last episode, we explored the parallels between Darwin's theory of evolution and transformative business journeys. If you want to know more about it, click here.
Good morning from the city that never sleeps! It's been a bit of a wild ride here in New York lately. Juggling the exhaustion and the excitement because, guess what? My new book has finally hit the shelves and I’ve had the honour of receiving the Thinkers50 Radar 2024 award.
These achievements aren't just trophies; they're like road signs on my journey, pushing me to climb new heights and roll with the changes. Life lesson: adapt and learn or get left in the dust – a mantra that's true in business too.
Now, let's dive into today's chat: think business, innovation, and the quest for excellence. No suits required; let's keep it casual and explore these dynamic worlds together. 🚀
Passing on the Right
Way too often, companies have their eyes glued to what their direct competitors are up to.
But guess what? The business landscape is evolving, and so are customer expectations!
Simply outdoing your competitors won't cut it anymore. Today, businesses need to go beyond industry rivals and leap beyond. I’m talking about stepping up the game to a whole new level! 🎯
The focus has shifted from upstream activities like sourcing and production to downstream activities like service design, customer experience, and marketing.
It’s a fundamental change in how we approach the very idea of value creation and a company’s value proposition. It’s no longer about what else we can make, but what else we can do for our customers. 🔄
Who’s setting the standards?
This is where ‘experiential benchmarking’ comes into play.
It’s the idea that customer expectations are now set not by industry standards but by the best in class across all sectors. Once a top-tier company raises the bar, our brains get wired to this new level of service, making it challenging to accept anything less. 🧠
Consider Amazon – they've redefined delivery expectations, setting a benchmark that transcends industries. Whether you're in retail, tech, or hospitality, customers now expect Amazon-level efficiency.
And don't even get me started on Netflix! Building a content platform? You better match their user experience, from predictive analytics to a search engine that's as slick as a catwalk and a content library vaster than a Hollywood blockbuster. This expectation persists, even in industries far from home entertainment. 📺
And you know what? Even the old-school sectors aren't spared. Take banking, for instance. The rise of digital banks and fintech wizards made the traditional players pull up their socks, revamp their game, and offer a customer experience that's, well, as cool as a fintech start-up.
It better be quick and easy
In this era of digital transformation, every industry is feeling the heat. People's expectations are evolving faster than companies can keep up!
Consider the big players in customers' purchase criteria – convenience and flexibility.
The Wunderman Thompson's 2022 Future Shopper Report spills the tea – in 2022, 41% of global consumers expected deliveries in less than 24 hours, with 24% expecting them in less than 2 hours. Impatient much? Oh, and the obsession with free delivery and returns? Yeah, 23% of everything ordered online gets returned, and 39% admit to some over-ordering mischief. 🕒📦
So, what does all this mean? We can't be stuck in our old ways, peeking over the fence at our close industry neighbours.
People’s buying preferences are now influenced by the market’s top dogs, regardless of the sector. And once the benchmark is set, there's no going back. Customers won't settle for anything less than the best.
Challenge or opportunity?
Sure, this reshaping of expectations brings challenges for the old guards.
Changing the game is easier for nimble start-ups with tech at their core, but what about the traditional players? They've built their empire around atoms, not bits, making the shift a tad slower.
But hey, challenges are just opportunities in disguise, right?
Take BMW. In 2021, on Milan’s most luxurious fashion street, they opened House of BMW - an artistic, experiential marvel aligned with the standards of high-end fashion houses and luxury hospitality.
It's not just about selling stuff; it's about creating an unforgettable experience. ✨
So, are you ready to ride this wave of change? Let's not just adapt; let's set the standards. Who knows, your company might just be the next trendsetter everyone's talking about!
Share your thoughts in the comments down below 👇
Stay curious! 🙌🏽
-gs
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