Mailing list providers were the original third party cookies. They gathered contact details of different demographics and you could buy lists to mail (junk mail) to them.
B2B Technology markets can make switching by the customer too easy. Existing or legacy technology can become too cumbersome to use . Or refuses to realize its promise after trying for years. The client, in despair, becomes willing to try a new supplier. That supplier is willing to transfer the legacy system.
The solution is not to become sticky by merely embedding your technology in the customer’s processes. Or make the customer a hostage to your technology. Instead, it’s useful to think of what we learnt in the industrial B2B era as we continue to compete in the knowledge economy.
If you research “B2B buying process” you’ll come up with the steps that a business goes through in the B2B buying process. These include (1) Business need recognition (2) Developing specifications of what will meet the need (3) Request for proposals (RFP) (4) Comparison of proposals/bids and negotiate with suppliers (5) Purchase order placement (6) Delivery and receipt of goods or services (7) Evaluation of suppliers.
The primary challenge for their innovation teams, according to the Innovation head of a Fortune 50 corporation, is to consciously engage the bosses at the front end of the project. The bosses sign off on initial costs and then when things progress to the stage of making prototypes and trial production- the bosses suddenly wake up. “I never realized that there are such big costs involved,down the line…” is a common refrain.
No junior or middle manager would like to admit that they have a problem when faced with a new B2B solution that has the potential to vastly improve efficiency or reduce cost. Such an admission involves potentially admitting that the manager is not doing her job. The risks seem just too much with a new supplier, legacy systems and the fear of the unknown. A classic case of marketers trying to promote value as buyers try to reduce risk. And we are not just referring to purchasing and supply management folk- but the potential users of the new product that the marketers is trying to convince in the buying center.
Nine out of ten bottles of scotch whiskey is exported out of Scotland at the rate of 36 bottles a second!. The industry supports 35,000 jobs in Scotland and has intricate distributor relationships across the world that provide employment to many thousands more, worldwide.Through vigorous lobbying over a century, the industry has ensured that noContinue reading “If Scotland secedes from the UK what will happen to exporting scotch?”
At a recent conference an entrepreneur at the $25 million sales level mentioned that all the bigger organizations preferred to deal with $100 million level firms for purposes of supply chain rationalization. Quite understandable, but this does affect employment in US small businesses. Let's see how: Supply (procurement) managers buy goods and services that mustContinue reading “Supply Chain rationalization means fewer jobs in small businesses”
Paypal is testing mobile app payments for McDonald's in 30 restaurants in France. If it works, then there might be a roll-out to over 30,000 McDonald's worldwide. The number 30,000 sounded really small so here is a reality check. How many Starbucks are there in the world? Under 17,000 worldwide ,or just over half theContinue reading “Paypal mobile payments for McDonald’s France can open up vast Indian retail opportunities”
As outsourcing becomes an important issue in the US Presidential elections- it's interesting to look at the perishability risk of services and how the provider or vendor takes over managing that risk. But first about perishability in services. Services have been differentiated from goods in terms of service characteristics that include intangibility,perishability,inseparability and variability. TheContinue reading “Outsourcing transfers the perishability risk to the provider”
7-Habits author Steven Covey passed away yesterday and it was just the previous week when a friend and visiting Indian CEO mentioned that Steven Covey’s 7 Habits is a great inspiration for him. And this was before the news of Covey’s passing so it led to this post about why Steven Covey’s ideas resonate across countries and cultures.