Disruption is a buzzword these days. It’s pretty much everywhere in the popular business media today. As a theory, it’s great to debate but as a business owner, being disrupted can mean serious consequences to your survival.
In spite of the seriousness, as a business leader we get busy and success can make us complacent regarding competitors. So what can we look at in our own business to see if you are vulnerable to disruption?
Here are 7 signs that you are on the path to being disrupted.
1. You maintain the attitude that “We know what customers want”
Markets shift, competitors change, customers can be drawn away. If your business at one point did have the magic recipe your customers wanted you can rest assured that what they want will change. This attitude can cause you to miss key indicators that could result in missing disruptive forces.
2. You aren’t engaged with your customer
Surveys? Focus Groups? Customer Interviews? Customer feedback forums? Oh you stopped doing those?
If you are ignoring these and the other avenues of available customer learning, your business is quickly becoming blind to customer changes and evolving needs.
Because of the changes that are constant and increasing in pace in any market, your business must actively seek customer involvement and insight. One of my takeaways from Big Bang Disruption was the sheer speed that a market can change. Your customer can change direction quickly and if you aren’t engaged with customers, you will miss the bus.
3. You don’t carefully watch your market
Are you neglecting sources of intelligence regarding your market, competitors and products? If you don’t participate in industry forums, conferences and other events you will have difficulty knowing what’s happening. You will miss clues and potential changes that could impact your business. And, you could miss potential opportunities for partnering and other collaborative growth strategies.
4. You laugh at new market entrants
The barriers to entry in many markets are lower that at any other time in history. It is easy and quick for new market entrants to introduce new Minimum Viable Products(MVP) directly to your customers. These MVPs may be lacking features or the polish of many iterations, thus inviting ridicule from you or your staff. However, it is the learning that comes from engaging markets with new MVP’s that enable new entrants to learn and overtake market leaders with fast iterations.
5. You are under pricing pressure from competitors
Your business may have entered the market as the low price alternative. As you grew and claimed market leadership you had pricing flexibility. Fast forward a few years and now, new lower priced entrants have invaded your market. Now your value proposition is not as clear to customers who are being courted by lower cost alternatives.
6. Customers keep saying the same things about your products but nothing changes
Are you getting consistent feedback from customers that your products or services need some changes? Have you decided that those changes are not possible or viable? Or have you chosen to add other features or offerings? Are you ignoring the feedback altogether?
7. You ignore customer experience
Is your product not as convenient to use as competitors? Is your interface not quite as polished? Does your site take 5 clicks to do the same thing your competitors do in 2? Choice, ease of use, personalization are all required in todays interfaces and products. If you neglect this important aspect you are inviting your customers to court other vendors.
If you as a business leader, take a moment and assess your business.
Do you see these signs?
Do you see several of them in your business?
If so, let that be the wakeup call to make changes proactively before your competitors force it on you by disruption.