What business are we really in?

"What business are we really in?", encourages companies to look beyond the immediate products or services they offer and to consider the broader value they provide to their customers. It's about understanding the underlying needs and goals of the customers, rather than just the superficial demand for a specific product or service.

The Shift from Product to Solution-Oriented Thinking

The drill example is a classic illustration used in marketing and business strategy discussions. When customers buy a drill, they don't necessarily want the drill itself; they want the hole it creates. This distinction might seem trivial at first, but it's profound when it comes to understanding customer needs and developing products or services. It suggests that businesses should focus on providing solutions to customer problems rather than just selling products.

Implications for Businesses

1. Customer-Centric Approach: This mindset necessitates a deep understanding of the customer's world. It requires businesses to engage with their customers, understand their challenges, desires, and what they value most.

2. Innovation and Product Development: By focusing on the problem to be solved rather than the product to be sold, companies can open up new avenues for innovation. This can lead to the development of new products, services, or even business models that are more closely aligned with customer needs.

3. Marketing and Communication: This approach also affects how companies communicate with their markets. The emphasis shifts from the features of the product to the benefits and value it provides. Marketing becomes more about storytelling, where the narrative centers on how the product or service improves lives or solves problems.

4. Customer Loyalty and Retention: When customers feel that a company is genuinely interested in solving their problems and improving their lives, they are more likely to develop a strong, loyal relationship with the brand. This can lead to increased customer retention and advocacy.

Application Across Industries

This concept is not limited to retail or consumer goods; it applies across all sectors. For example, a software company might focus on how its product can save time or improve efficiency rather than just its features. A healthcare provider might concentrate on the overall well-being and quality of life it offers to patients, rather than just the medical procedures it performs.

Conclusion

Asking "What business are we really in?" is a powerful way to reframe your perspective on what your company offers. It encourages a shift from a product-centric to a customer-centric approach, focusing on solving problems and fulfilling needs. This not only leads to better products and services but also fosters a deeper connection with customers. It's a strategic shift that can lead to sustainable growth and success in today's competitive business environment.

Tim HJ Rogers

Consult | CoCreate | Deliver

I support people and teams to grow, perform and succeed unlocking potential as a partner Consultant, Coach, Project and Change Manager

Together we can deliver projects and change, and improve the confidence, capacity, drive and desire of the people I work with.

ICF Trained Coach | MBA Management Consultant | PRINCE2 Project Manager, Agile Scrum Master | AMPG Change Practitioner | Mediation Practitioner | BeTheBusiness Mentor | 4 x GB Gold Medalist | First Aid for Mental Health | Certificate in Applied Therapeutic Skills

ABOUT MY BUSINESS

My approach is to blend my expertise [Consultant, Coach, Project and Change Manager] with the strengths of our partners, ensuring that we consistently deliver high-quality, tailored solutions to our clients. My Associate approach not only fosters a dynamic and collaborative environment but also maximizes the value we deliver to our clients and partners alike. There is an optimum combination of factors or qualities which help people and organisations transform. It is a blend of listening, challenging and sharing and comes from expertise, experience, curiosity and a passion to perform. I deliver projects and change, and improve the confidence, capacity, drive and desire of the people I work with.

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