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Customers rule. Companies drool. That’s how my seven-year-old daughter (who more frequently says that girls rule, while boys drool) might describe what’s going on in business these days and, more specifically, might state the theme of this issue. E-commerce gives customers leverage over companies because competing products are just a click away and because buyers can compare prices more easily. Meanwhile, as the economy softens and consumer confidence drops, buyers are getting choosier, so companies have to chase harder after them. Our book excerpt ["Customers Rule"] tackles the issue head-on. Technology seer Patricia B. Seybold says that, to make customers loyal at a time when they hold most of the cards, companies need to adopt a sort of New Golden Rule: "Develop a corporate culture and core values centered on caring about customers—not as revenue targets, profit centers, or advertising magnets, but as people." She offers compelling success stories that range from a helpful bookshop in Galway, Ireland, to Wall Street powerhouse Charles Schwab. In The Great Lie ["Focus-Pocus"], authors B. Joseph Pine II and James H. Gilmore say companies need to forsake focus groups and, instead, get better at observing customers in real settings. Pine and Gilmore say focus groups provide too limited and artificial an environment to figure out what customers really want. In the CEO User’s Guide ["Awake at the Switch"], consultant John Sviokla offers three simple ways for companies to solve problems that can drive away customers. He also offers exercises so you can see how your company stacks up. In The Last Word ["Future Imperfect"] technologist David Reed and innovation expert Larry Keeley explain what not to do. They say that, in thinking about the possibilities of wireless technology, companies are misunderstanding what customers want and aren’t giving themselves enough flexibility to adapt products as they learn what customers do want. The good news is that, if used right, technology is creating opportunities to innovate and continually serve customers better. A feature ["Revival of the Fittest"] shows how Reuters has aggressively used all sorts of technologies—beginning with the telegraph, augmented by that cutting-edge "technology" carrier pigeons—to help customers and beat the competition. Another feature ["E is for Efficiency"] demonstrates that, even while helping customers, companies in any industry can use the Internet to streamline operations and cut costs by collaborating better with suppliers, partners, and distributors. In Impact ["Upwardly Mobile"], e-commerce pioneer Sheridan Forbes lays out numerous ways that wireless technology, while currently misunderstood, can help companies both operate more efficiently and provide new services to customers. To rise above the confusion that currently surrounds us, read the lyrical interview with music great Quincy Jones ["Perfect Pitch"]. Reinventing himself repeatedly over a half-century career, Jones has been a trumpeter; a music arranger for Frank Sinatra, Barbra Streisand, and others; a movie producer; and a magazine publisher. The secret of his continual success? A soulful affinity for people, an inquisitive need to change, and a willingness to, as he puts it, cherish mistakes and learn from them. "I trust my instincts rather than sit down and study what the public wants and all that nonsense," he says. My final thought is that, as far as Context is concerned: Readers rule! So, if you have any thoughts about this issue, I’d love to get a conversation going. Cheers, Paul B. Carroll |
