Today, sellers live in a virtual glass houses – they are stripped naked by social media, vulnerable to the attitudes, positive and negative, of the “new experts.”
In 2010, customers discovered that loyalty is no longer in their best interest. Why did this profound transformation occur at this moment in time?
The answer is a single word: change.
The velocity of today’s change is almost unfathomable.
The changes in our world are no longer easy to predict.
All businesses are or will be affected, most quite severely, by these rapid and seemingly unpredictable changes.
Here are a few vivid examples of this irreversible change:
Books for Amazon’s e-reader outnumber sales for hardcover books: “The shift is astonishing when you consider that we’ve been selling hardcover books for 15 years and Kindle books for 33 months,” said Amazon.com CEO, Jeff Bezos. (IHT, July 21, 2010 and July 30, 2010)
Procter & Gamble decides to sell directly to consumers on the internet: “I don’t feel the need to have every sale go through a retailer,” commented P&G CEO Robert McDonald. McDonald and former CEO AG Lafley agree that P&G must always be where the consumer wants to shop. (FT, May 20, 2010)
In less than four months last year, Apple sold more than 3 million iPads, generating revenue of $2.1 billion: “iPad is off to a terrific start. We have some amazing new products coming out this year,” said Steve Jobs, Apple CEO, regarding the firm’s net income growth of 78% in Q2. (NYT, July 22, 2010)