Saturday, May 5, 2012

Transform or go out of business - it isn't an option


Recently, one of New Zealand largest music festivals, The Big Day Out, announced that this year would be the last.  It was not longer a profitable event and therefore it had run its course and it was time for the organizers to move onto something else.  I don't think that this will be the last of these events which will run themselves out of business.

We need to ask the question, why?  Why do these mega events which attract crowds of thousands, prove to be no longer financially viable?  Why is it that attendance drops by the thousands?

We live in changing times, people are wanting something new and fresh.  They are looking for new thrills, not an experience of the same thing year after year.  The key thing is to understand what your customer is looking for, allowing the masses to provide information which could transform an organisation as new markets evolve.

The thing about these large gatherings/festivals, is that the organizers can make use of crowd-sourcing techniques.  This is when you draw on the collective intelligence of the masses for ideas, discussion and interaction.  Part of the discussions I have around Social Business, cover the need for customer intimacy.  Getting close to your customer and understanding them can not only drive increases in profit, but also transform your business into a market leader showing innovation which will become a competitive differentiator.

I guess I would sum this post up as - It is one thing to copy the competitor, but another thing to harness the collective intelligence of the masses

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