Start-ups hacking customer acquisition and retention

 

TRADITIONAL companies can no longer rely on tangible assets, employee count, word of mouth and proprietary distribution to maintain their presence, according to digital communications specialist Ben Beath.

Start-ups are almost certain to disrupt the incumbents, he will tell the Digital Disruption Forum in Sydney on November 26.

Mr Beath said start-ups like Uber and Airbnb are directly attacking incumbent brands and industries by providing great, end-to-end customer experiences. 

Mr Beath, who is head of the digital division at agency Loud&Clear said, “Companies like Sheraton and Hilton have spent 70-plus years growing hotel brands. Their businesses are intensive.

“They require bricks and mortar, staff, lots of training and flawless service regardless of where they are situated. A decade ago, websites like Wotif.com disrupted their economic model.

“Then AirBNB disrupted their service model. Now, apps like HotelTonight are the third phase, disrupting their customer acquisition model.

“Customers are loyal to the HotelTonight App – not the individual hotel chain,” Mr Beath said. “And as we’ve seen, even the original disruptors, like Wotif, are being disrupted by this approach.”

Mr Beath said customers no longer have to stay with brands they don’t love and are moving from ‘owning products’ to ‘accessing experiences’.  

“That’s why Apple bought Beats,” he said. “That's why the Art Series Hotels stand out.

Mr Beath said the  practice of “building a better mousetrap doesn’t necessarily apply when someone invents something that does the same function in a completely different way”.

“The solution? Think disruptively,” Mr Beath said.

“Design a great customer experience.  End to end. Work across departmental boundaries to design and deliver the experiences.  

“If you don't break down those boundaries, another company or start-up will.”

www.loudclear.com.au

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