What Farmers Can Teach Our Entrepreneurs ?

REAP WHAT YOU SOW , is a universal truth. 

If your organisation has systems , processes, targets , thinking and culture of MAKING MONEY at ANY cost. Your people are out there in the market will mis sell, over commit , indulge in unethical business practices, do all kinds of accounting jugglery , evade tax , do environmental harm, breaks laws. In the process your organisation will become anti social organisation though doing so called legal business.  You will attract and recruit people with similar culture and mindset. 

Fruits on the tree are the result of its seed, root, water , fertilizers & environmental support it consumes.

If you want Apple you need to sow seeds of Apple. This is the first and foremost requirements. Business culture percolates from the top is seed for the business. You cant expect your people to be honest when top management is indulging in all sorts of wrong doings. 

After the first step of sowing the seed, you need to nurture the tree with regular water, fertilizer and allow sun rays in right quality to get the best fruit. Even organic and inorganic fertilizers can impact the outcome. Likewise business processes, training and soft skills of the people, IT systems, leadership everything matters and impact the customer experience your company is offering to your customers. 

When you need to offer Kashmiri Apple roped with organic fertilizers , you need that kind of environment and nurturing.  You will not get the same Apple if you grow it in different environment and offers inorganic fertilizers like cosmetic culture. 

Therefore if you wish to attain SUSTAINABLE competitive advantage of offering delightful customer experience (CX), it starts with seed i.e. culture.  Only system, processes and training wont last much. Look at all companies known in CX space and you will  realise how their culture is and why they are leading in CX space.  Be it Virgin, Starbucks, Zappos or Apple. 

You can create delight factor for sometime or for some products/services or for some processes  but it wont be sustainable if it is not through culture change. Seed has to be right for delightful products or else delightful products are by chance and not by choice. 

Problem is top management expect best of the fruits - business performance but they turn blind eye on what it takes.  

Indian firms can lose 18 to 20% of the business due to lack of clear customer experience strategy.

The above report indicates possibility of loss of business internationally by Indian firms. However within India due to poor or not so delightful customer experience how much business local firms can lose to competing firms is yet not known. 

Bottom line is clear , if you want better bottom line , focus on CX and if you want better CX focus on seed i.e. culture at the top. 

People who come to you for PRICE will leave u for PRICE

Yes. Obvious & TRUE.

Price is the ONLY differentiation your company ofter to the customers?  Think Twice about your business strategy. Today cut throat competition forces many businesses to merely compete on price. However this strategy may get u immediate business but will not take you long way in business. 

Thin margin to get business is riskier than  more margin but less business. Mere volume is without adequate profitability is company on steroids. High on workout and low on proteins. As with high workout muscles break down in our body & without adequate protein it cant be built , similarly with high turnover without adequate margin , business breaks down. Yes unsustainable activities without capability to invest for future sustainable activities like research and innovation or talent attraction and retention.

Secondly most critical are the differential factors that will decide the business volume other than price. What value you can design within your product. We buy branded products by paying premium. What differentiation brand offers ?? Comfort and confidence that product is of reasonable quality, customer service would be good if not outstanding, complaint would be handled professionally and with care, reasonable exchange policy and service centers.   

Therefore when Price  has become a major deciding factor, offering a WOW !!!! factors in your product and service design is very critical to become & remain competitive. Compete on WOW factors, there is not many players there.  Brands like Apple , Virgin , Starbucks, Amazon   { In India unfortunately service excellence and WOW factors are missing from product and service design ( pl share brands which matches best in the world brands in customer experience & service excellence ) } rare yet or hence sustainable. Customer will stay with these brands irrespective of price of their offerings. 

Next time when you get the deal merely on the basis of price, its an ALARM, think inward and check your business strategy and product and service design.  It requires IMMEDIATE attention { & action too} .