Lean Start Up and the importance of Why

On the second semester of my MBA at IE we have started the course on Entrepreneurial Management. During our first class Paris de L'etraz, EM professor and Managing Director of the IE Venture lab shared interesting insights:

1. Thinking lean! Just like recent article in HBR is suggesting in the dynamically changing world of today we can not rely on the standard Business planning. Business world has no fixed rules like in chess it is rather a set of Poker rounds. Lean Start Up approach perfectly corresponds to the market reality. Customer involvement represents the foundation of the "system". It suggests that instead of calculating cash flows and income for the next 5 years it is better to invest time in getting the prototype of the product to customer (e.g. real prototype, visualization). This approach will ensure the acid test for the product showing its viability and providing with valuable customer feedback to make the product a success or drop the idea.
2. Monday of Friday? The question “Are you a Friday or a Monday person” seems very simple the answer to which though carries an important reveal whether we are happy or not with what we do in our work/life. It is an important indicator of whether the moment for a career change has arrived. Entrepreneurship offers a thrill of on-going Monday.
3. Involvement or commitment? This derives logically from the Monday attitude. Venture capitalists and investors are looking for the “Why” when entrepreneurs are seeking capital. The personal “why” of pursuing the project represents commitment, which gives assurance that even in case of difficulties an entrepreneur will not give up on idea fighting to make it a success.

The three simple ideas taken from Entrepreneurship Management class I believe are well applicable for all “entrepreneurs of own life” for both "solos" and "corporates".

Must read on New Consumer by Accentures

An interesting study of Accentures on Consumer trends. How do deal with consumers, who are:

• More empowered
• More prone to switching providers
• More connected - to companies and each other
• More regionally, globally diverse

The company offers sound solutions of business focus dividing Consumers in 4 key segments:

• Digital 
• Transitional
• Experimental 
• Traditional 

The age of Prorsumer or how to build loyalty 2.0

During the METRO's Marketing Summit in Duesseldorf I had a chance of enjoying and excellent insight into the changing dimensions of loyalty. The presentation was done by Collin Bradshaw, CEO of RAPP consultancy. Here I will give a short outline of key facts of what has been said. 

What are the trends on the market?

• marketing is progressing from anonymous to aggregated model. 
• the crisis will get worse by 2015, the recovery is expected somewhere around 2018
• Reward and loyalty come stronger into focus

How can the loyalty program look like today

• Reward my loyalty - show me that you care, don't tell
• Be transparent what you are doing and let me see what is going on in your channels. Please be consistent
• Offer me some help and advice don't just sell

Prosumer - who is that?

I want apps from brands that tell me what kind of stuff I like and then pings me notifications of what is in stock and where. What others are saying and what is the price in other stores.

As real income declines for the past 4 years why not help the prosumer to find the best offers? 

Prosumers are savvy - people are taking more control for customer reviews - are  more informed. Future Foundation 

Jim Murphy, Future Foundation

Traditional marketing and pricing is dead. Conventional marketing discourse, circumvented. Brands will turn back into products. Consumers are becoming more savvy. They will find there own way to find the best for themselves. 

Proactive pursuer negotiation

• Increased planning and impulse purchase is seen as a weakness
• Smarter then you, "knowledge in my palm"
• Plotting my won journey 

Prosumer: 

• 74% compare price
• 44% spend more time choosing
• 70% would use real time price monitoring 

Journey through many 

Typically today 54% will use more than 2 channels to check before buying, 30% use more than 3 channels before buying (Oracle CRM 2012)

Mortar stores in a way become just a shop window. Research online, come and check in the store and complete the purchase most likely online again - if cheaper. 

Some more facts:

• 87% if with enabled web phone will decide what to buy
• 54% if the value retail sales will be influenced by web
• 50% of consumers will purchase within 

Important to know that it's not a niche and the number of customers dramatically grows. The potential for total movie: give them speed, accuracy, security and value added.

Fine for me, compare real time, locate using GPS, see, feel, touch, share; order, pay

Exceptional experience 

Media markt is helping me to understand how technology will work at home… example. Dulux - how will it work at my home. Easy to understand technical guys. 

Prorsumers are not demanding the purchase - they want end to end experience

technology to empower them. Hence special attention is needed to be paid to online experience. 

Oracle CRM 2012 says that customers:

89% will swop provider in case of bad experience

86% will pay to 25% more if good experience

27% will post online about bad experience. 

Online experience

60% will not visit again in case it was not a positive experience 

40% will visit another company that offers similar service

25% will share poor experience

21% less likely to make a purchase 

Can not close the eyes to one of the channels

Russel March, Group Strategy Officer RAPP

• mobile will be critical 
• understanding the time and device that is used by consumer
• understand the state of mind and how they choose to interact with your brand
• 
  

Experience is from dream-explore-locate-experience and we are not in control of it. Which partners can we involve to ensure that we affect the journey?

Tim Greenhaigh, Chief Creative officer, Fitch

Fulfilling the needs drives loyalty - understanding consumer

There is no line - it blurred and disappeared. When I share info about myself I expect that I ma guided where I want. It is all about "me". 

All touch points. Prorsumers do not differentiate between the store and online, for them it is one and all. 

75% agree that the economic situation has caused them to reevaluate which brand stye value

Combating show rooming is the first step (best Buy)

• 2 minute miracles (you tube)
• exclusive products
• walk out working initiatives
• geek squad guide
• Price matching online gives the store an instant advantage 

Getting it right in, out, and on

The high street and online will blue

Beyond 2020 some brands will use their estate simply as the last touch pint for customers who have already shopped

• final approval
• alterations
• pick up

Touch will remain important

• online will become more sensory (St. Louis, Tesco)

Prorsumers are inherently disloyal. Traditional rewards based programs don't spark their imagination or get participate din

New more interesting models are emerging based on what people think is interesting and differentiating - information, knowledge and contact, access

Low frequency category 

The death of loyalty: nectar (too complicated), boots (how much shampoo I need?), avios (I do not fly at 5:30)

80% collect points int he store

30% redeem points 

Loyalty is redefined by social media:

• 40% to receive discounts and promotions 
• 39% to show support fro the company to others 
• 37% to receive freebies (consumer futures 2020)

New ways of doing it

• waitrose (shopping preferences reflected in the offer and free coffee)
• Zappos (personal emotional connections)
• Reward zone (members onl specials) 

Powerful communities of interest

• Barclaycard
• Forrester Groundswell award

Gamifying loyalty - Goodman shoestore. The shoe of the day - keeping engagement

Data is everywhere

• every interaction pops to collect
• likes and presences, products and chanlles
• actions speak loaders
• we have to have systems to read this information 

Gloomy future says prices will be further pressured, so for success the discussion should be shifted to price + additional future. Europe is resigned to dull future. The meaning of value is changing: dominant code to emergent code (friendly) its about price worth

Orange Rockcorps - rewards for social work

KIva - loans that change lives - small businesses looking to attract funding 

Accessible, empowering - 111 when it is less urgent then 999

Zopa - house sale website. Average prices, reports on crime, reports on schools 

Human and experiential - planning for people, hockey auction (master card)

insider, unfinished - MUJI, Chrome beta - never fully finished 

Price becomes dictated by the customer - BAG that com (collect people and then negotiate)

Tomorrow starts today

• technology empowered decisions
• own journey dream to dress
• be the same for me everywhere
• access and information
• guaranteed value
• redefine the category