Established businesses everywhere are under attack. The headlines are full of stories of business disruption. Entrepreneurs everywhere are building companies to unseat the entrenched firms.
While many think the answer is to invest in more technology, lobby government or follow their competitors actually the answer is right in front of them.
Our team in Sydney recently had the chance to sit down with Luke Jecks, the Global CEO of Naked Wines for his perspective. Listen to Luke talk about what he describes as the Kryptonite for disruptors, its a great lesson for anyone in business today:
So what’s the Kryptonite for disruptors? A Customer Culture or as Luke puts it:
“Love your customers”
If you spend time understanding and acting on your customers’ needs you will create loyalty that will keep you as immune as you can be to disruption.
So how did Naked Wines disrupt the wine industry?
Before Luke set up Naked Wines four years ago he was looking for an industry where customers felt disenfranchised. He found it in the Australian wine industry – a market dominated by two large retail chains owned by Coles and Woolworths that between them shared almost 70% of wine sales nationally. Not only did he find wine lovers who felt little connection with the vast array of brands but also boutique vineyards that were being squeezed out of the market by ever-narrowing margins and an inability to finance the next vintage.
Luke knew that if he could create a personal connection between winegrowers and consumers and a financial model that could provide more stability and certainty for wine growers he could build a new business.
He realized that he needed wine consumers as repeat customers and he came up with the idea of “angels’ – that is consumers as angel investors who would pay $40 per month and build up a credit in their account to be used to buy the boutique wines of their choice.
Four years after launch Naked Wines in Australia has more than 50,000 sustained angels, more than 35 boutique winery suppliers with an online communication and ordering system that connects them.
Annual Australian revenue of $30 million and more than $200 million globally is a testament to the fact that the whole Naked Wines team have a culture that enables them to “love” their customers.
Isn’t it time to create a customer culture in your business and build up your disruptor defenses?