Serendipity is the Key.

Most of the established businesses get into a pattern of finding out what is working and doing 'more of it'. This is good for bottom line, margins, and retention of your existing customers. But, is it good for breaking new grounds ? Making the pie bigger ? Your Top-line?

Business-as-Usual is to work hard consistently, trying to cash out on the idea that made the business successful. They work hard at establishing Cliches. Cliches are good. They are 'time immemorial'. They express ideas in simple words, but they lack the freshness and eloquence of a magical orator. If you have read the blogs of Seth Godin or heard president Obama speak or have followed the marketing of Apple, they do not rely on Cliches. They break the mold, create new meaning, speak different truth, change the worldview, present their stories in a more innate yet excitingly new package. They are Contrarians. They are Serendipitous. Here is what Seth Godin has to say about Cliches

Imagine that you are a T-Shirt vendor with a inventory of T-Shirts made of several attributes. Lets say you have 4 sizes (S, M, L, XL) and 4 Colors (Red, Blue, Green, White). When you first set shop, you do not know how many of each T-Shirt variant to carry (how many of Blue-XL will sell?). So you start with 10 shirts per variant combination and open business. Now, the first month you sold all the Green-L shirts, some Blue-XL and none of the others. What do we do? We decided that Green-L sells more in this catchment and order a bigger inventory of Green-L and lesser of others (Finding out what is working and doing more of it). If for the next few months, the trend continues, then, going by the pace, you may land up being a Green-L T-Shirt vendor. Its obvious that the more Green-Ls you have, the more your sales-report shows that you have sold the same. You already know whats wrong in this analogy. Yes, its a simple example, its so easy to see. Its a no-brainer.

But then, how come you do not see this analogy in the business strategies you follow ? How come you are not trying to find out what else your consumers are willing to try ? Why do we intellectualize for ages on why something "may not" work because "your" past data provides facts to your beliefs. Is it Fear ?

Start-ups on the other hand does not fear to be serendipitous (In a way, they have nothing to loose). An entrepreneur identifies an opportunity to make meaning. A passion-fruit colored T-Shirt, A Vanilla-Sky colored Tshirt. Try something afresh yet innate. Change the fabric, the texture, the weaving, the grain count, whatever... But be eager to explore, break the Cliche, turn it upside down. This is why it works and new tribes are formed. This why the most successful ones are Genre-Bending.

Every time you support your views on past-data, think again. Question yourself. Give Serendipity a chance. Believe in the art of possible.

The Worth of Value

How does one sell in a down economy ? Given that consumers are becoming value conscious, many of the Retailers I am speaking to are seemingly trying to answer the question "How do I assess, reach out and offer what is 'valuable' to consumers contextually ?

Why is Value contextual ? Because, it is based on the end user, end-usage and the environment. This is a coarse grained dimension of Value. Let's delve into the intricacies further and understand this point.

Marketing gurus exemplify that other fine grained dimensions of value exists.
- Value is Relative; relative to alternatives available within the given context.
- Value is Perceptual; driven by the current senses.
- Value is Provisional; New information can change percepts.

Given these, the dimensionality of value from a economic perspective brings in the concept of the "worth" of value. The risk in acquiring a value target determines the worth of the target.

So are consumers really value-conscious or worth-conscious. I guess they are both. Once they (some how) determine that something is valuable, then they start seeking to find if its worthy. How can Retailers determine the worth of a value for the consumers? For one, the worth is driven by what the consumer perceives as intrinsic risk in acquisition of value. Mostly, the risk of "being wrong" in whatever sense it may be is the biggest risk I foresee in determining the worth.

What if I paid too much ? What if I could have got a better product at the same price ? Does this look good on me ? What does my spouse think of it ? Does this product convey a better meaning of me (Cool, Smart, Sharp) ? Is it hygienic ? Do I have place to keep it ? etc... etc... are the risk driven questions in the consumers mind.

The exploding choice of products providing same/similar value is going to add to the "risk quotient" in determining the worth of value. The lesser the choice, the higher the worth. The higher the worth, the higher the price.

In essence, it does boil down to offering value to consumers across all dimensions while making it worthy (Branding). Especially from the dimension of 'Value being provisional' where the Retailers provide differentiated clarity for the value being offered. Providing that differentiated clarity should start way early in the consumption life-cycle. Typically the consumption life-cycle from a consumer perspective (Not the retailers perspective) is across the phases of Awareness, Research, Transaction, Delivery and Consumption. It is primarily important that the clarity is provisioned through out this lifecycle.

Providing clarity requires personalized touches and individual reciprocation with each of your consumer. Knowing the consumer including likes, dislikes, opinions, past purchases, current context, psychography etc. along with the intrinsic knowledge of the product assortments offered is a requirement. Building a value/worth grid based on this knowledge is essential. Engaging the consumer interactively through differentiated (not different) marketing channels is important. I guess this is the place where technology should gear-up to enable the "Experiential Economy" to make the while worth.

Convergence of Proximity based Technologies, Social Media, Collaborative Filtering, CRM and other such Simulacrum may offer probable solution. It shall be some while before true convergence can happen. Disruptions in marketing channels, technology, loyalty programs, product management and category management may be inevitable before it gets worthy more than valuable.