I’m just finishing the book Socialized by Mark Fidelman. It is one of the better books I have read of late about harnessing social media. Many of these books date very quickly, but the information in this 2012 book is still very relevant and I recommend you read a copy.
Towards the end Mark relates the story of a girl who suffers from Congenital Insensitivity to Pain, aka CIPA. It was an analogy to businesses who are heading down the gurgler at a rate of knots and don’t even realize it. Those of you who read my blogs will know about how frustrated I was to see Borders self implode, when they didn’t need to. As I mentioned earlier this week, many businesses are being hurt but not realizing it, or not knowing what to do about it. It’s that frog in the pot of simmering water. We all know the story, but many of us are sitting in that pot, enjoying the warmth and then getting severely cooked.
In my experience, it is people who aren’t institutionalized in your business who you need to talk to. If it’s not consultants like myself, at least talk to your customers, the ones you have left. Ask them why they come to your business. What is it that drew them in and how can you give them what they want and stay profitable?. I had loads of answers for the book industry, but they ‘knew what they were doing”. They focused on best sellers, general merchandise goodies and even fluffy toys. The questions you need to ask have to be qualitative, don’t give them choices you think they should answer, have conversations with them. Or get out quick and sell your business to someone while it still has some value. I still maintain if I had been on the management team or board of Borders in NZ, they wouldn’t have floundered, they would have risen like a phoenix out of the ashes of the past and their stores would be full of people, in many cases still buying paper.
Do does your business have CIPA? Are your margins declining, is your stock-turn going down? Are people buying similar products online instead of from you? Are your customers slowly churning to other sources or evolutions of the goods and services you offer? What have you done to future proof your business? As I said in my other blog earlier this week, people are reading more, listening to more music and taking more photos daily than ever before.
Got any questions? Feel free to leave them as comments and maybe we can have a discussion about this.
Great point for ailing businesses!