Can You Pivot?
When faced with changing market conditions, aggressive competitors or superior competitors, what do you do? Do you continue in the same direction or can you pivot? Change your strategy, maybe even your core product offering?
In a recent post, Seth Godin makes a compelling argument for why Kindle needs to pivot, changing from a premium product model to a low cost leader in the face of overwhelming competition from iPad. He says:
The only way to get authors and publishers to embrace this device is to sell 20,000,000 of them. You either become the best and only platform for consuming books worth buying or you fail. And the only way to create that footprint in the face of an iPad is to make it so cheap to buy and use it’s irresistible.
Small business owners often get stuck, married to a concept because it was where they started, but time and time again we see successful businesses pivoting. For example from a presentation by Kristian Andersen, I learned:
- Flickr started out as a game
- YouTube was a dating site
- Paypal was going to beam money to Palm Pilots
What about you? Are you stuck? Has the market moved away from you, like the shift from ice blocks to refrigerators. or is there simply better competition?
At roundpeg, I started out with the idea of training managers to build successful teams to implement effective strategies. There was no market, so I pivoted, and took my planning tools to small business owners. If I hadn’t pivoted, I would be stuck at a desk job somewhere. I am glad I can pivot!
Seth Godin The Master of the Obvious
I am Seth Godin fan. I like his no nonsense approach. He writes what he thinks, sometimes takes a bit of heat for his opinions, and others, simply states the obvious, or restates is so it hits home. For example: his column from 2006 -Ten Secrets of the Marketing Process is quick read, and nothing really new. I just like the way he says it:
My favorite of the top ten:
4. Irrational, strongly held beliefs of close advisers should be ignored. It doesn’t matter if they don’t like your logo.
I wish every one of my clients would read this over and over and over again. You spouse, best friend or neighbor may be a wonderful person, it doesn’t mean they know anything about your market or your business. If you wouldn’t ask this person about making investments for your business, don’t ask them about your marketing!
6. Focusing obsessively on one niche, one feature and one market is almost always a better idea than trying to satisfy everyone.
I absolutely agree: Niche, Niche, Niche – the smaller the market you select, the bigger the impression you can make!
Click here for the rest of Seth’s top ten list
No Second Class Customers!
In a recent blog post Seth Godin describes the delimena of providing preferential treatment to loyal customers without alienating prospects. He makes a good case for improving your overall customer experience, and I agree. As a business owner, whether you are a restaurant owner or a printer, your challenge is to make everyone feel valued.
Seth Godin is Changing How I Feel About eMail Marketing
Seth Godin says “Real permission is different from presumed or legalistic permission. Just because you somehow get my email address doesn’t mean you have permission.”
As an serious eMail marketer, with numerous clients who do the same, I don’t want him to be right, but I know he is. People are tired of reciveing emails they didn’t ask for, unsolicited sales pitches and requests for their attention.
The challenge? We have to be better marketers to earn their permission!
Also read Jim Cota’s notes on the subject! http://www.rarebirdinc.com/blog/2008/02/if-you-read-nothing-else-today-read.html
