Your customers are being stolen by the new digital disruptors – Are you fit enough to compete?

digital_disruption

FitNow, launched in 2008, produces Lose It!, the top application in the iPhone’s health and fitness category. FitNow is based on the premise that your phone is always with you and is the perfect platform for tracking your calories. It now has more than 10 million customers.

This business with less than 10 employees is extremely focused on assessing digital customer feedback, revising the app regularly and adding new benefits like social connections among users. It is continually looking at ways to add benefits without increasing costs.

How should Weight Watchers and Jenny Craig respond?

There are a growing band of companies like this – digital disruptors using platforms like iPhone and iPad apps and Facebook to reach millions of people. These new companies have just a few people and move almost at lightning speed. They ignore competition and traditional channels to market and go directly to end customers. Their costs are low, so their margin per customer is high enough to generate profit through volume.

We are all now in a faster moving, more competitive digital environment, no matter what we make and sell. Gear up everyone in your business to understand it and get “fitter” to compete.

So, consider this. If there are no barriers to entry in your business and competitors are easily able to compete with you off a low cost base and from all directions, what would you need to do differently?

Probably a lot of things. Disruption of this type usually needs a transformative change to the way you do things. A good start is to quickly review those things that drive competitiveness, growth and profitability in your business.

You will find that there will be a need to change peoples’ habits around speed of innovation and new products/services to market.

There will be a need to gain greater insight into customers and how their needs are changing. You will need to look for some benchmarks from these disruptive digital competitors. But most of all, you will need to embark on a journey to strengthen your customer-focused culture.

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