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Ridgetop Information Solutions LLC 1
Exploring the Business Abandonment Cycle
Dr. Charmayne Cullom
and
Richard S. Cullom
9/24/2011
Ridgetop Information Solutions LLC 2
Business Research
9/24/2011
Given that there is a well-documented business adoption cycle, where customers help businesses develop and grow, is there a complementary business abandonment cycle that describes the process where customers leave an organization at a pace and a volume that causes the business to wither and die?
Ridgetop Information Solutions LLC 3
Cultural Influences
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The following cultural shifts influence Business Cycles:
Consumerism Green Movement Social Selling Social Branding Customer Communities Hyper-Accelerated Business Cycle Multiple Economic Downturns
Ridgetop Information Solutions LLC 4
Cultural Hypothesis
9/24/2011
While the Business Abandonment Cycle has been in place for many years, the rise of social consumerism now triggers customer actions at more visible, hyper-accelerated rates.
The new curve is more dramatic and the associated action/response process plays out in multiple traditional and social mediums.
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RhinoBirds
AngryHerds
MassMigration
TrailingOne Offs
Business Abandonment Cycle
CHASM
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• Original Pioneers
• Influencers who Live Out Loud
• First to Believe
• First to Complain and Warn Company of issues and problems
• Believe they made the Company – personal ownership in success
• Willing to take the Company down on loss of trust
Rhino Birds
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Researching Rhino Birds
• Initial symbiotic relationship with company• Receives early offers• “beta” testers• Starts buzz about company/products• Heavy reliance on leading edge
communications of social network of the day• Provides product improvements guidance
as part of relationship
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Angry Herd
• Original Early Adopters
• Silent Early Majority
• Won’t complain publicly
• Looking to Rhino birds as Influencers and warning of changes both favorable and unfavorable to the herd
• Unknowingly building numbers
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Researching the Angry Herd
• Movement gains momentum with group collective strength
• Never a leader but a quick study to follow• Proud to be a quick decision maker once
the route is established by Rhino Birds• Learns of much of the information from
following social networking communication
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Crossing the Chasm
CHASM
• The tipping point for the organization
• Reliable media picks up story and runs with it.
• The reliable media outlets drive the continued momentum of the herd migration
• The reliable media validates the claims of the Rhino Birds
• The Angry Herd becomes vocal as part of the growing movement
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Researching The Chasm
• There is a relationship between the rhino birds and reliable media outlets.
• The tipping point is unique (time, place, organization, industry, culture).
• The tipping point is hard to predict.
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Mass Migration
• Driven by the media
• Followers who make the herd bigger
• The herd is not as angry, but on the move, carried by the momentum of the growing perception reinforced by the herd
• Momentum and perception are almost impossible to stop, only turn
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Ridgetop Information Solutions LLC 13
Researching Mass Migrations
• The joiner doesn’t want to be left out of movement.
• Sees that the herd is moving and joins so not alone.
• Obtains much of the information about the movement from reliable media sources as opposed to social networking.
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Trailing One Offs
• Last to move
• Holding out in case the perception changes
• Collection of die hards and people who just didn’t notice
• Often referred to as “laggards” in the adoption cycle.
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Researching Trailing One Offs
• Determines from reliable media and word of mouth that now is the time.
• Joins the group reluctantly as really does not like change but now miserable enough to make the move.
• Last to join and last to leave!
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The top ofthe adoptioncurve
CHASM
The Early Majorityupslope of the adoption curve
The Early Adopterslope (before crossing the chasm)
The downslopeof the Late Majority of the adoption curve
Business Abandonment Cyclematch to the Adoption Cycle
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Save byEngagingCommunity
Save byCommunicatingthe Vision
Manage Media Perception &AbandonmentMomentum
Opportunityto stop earlymigration
CHASM
Branding and DirectCompetition (back to the basics)
Survival ModeDiscountingPrepare for Sale
Opportunityto stop herdmomentum
Opportunityto save thecompany
Opportunityto turn theherd
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Ridgetop Information Solutions LLC 189/24/2011
1. Organizations must LISTEN
Just like the Rhino , the organization must listen for the warning from the Rhino birds and respect the communication. Without a true dialog, the organization is doomed.
Sensing the approaching build up of the Angry Herd, the organization must address the issues with respect in order to retain the position.
Early Lessons
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2. Organizations must SERVE
Social consumerism has forever changed the relationship between organizations and customers. Businesses that fail to recognize the new reality that the herd rules will simply find the herd gone one day.
Staying in tune with the herd is key. If the herd is moving, move with the herd, in service of the herd. Great organizations lead by anticipating needs.
Early Lessons
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3. Organizations must RESPECT
The social consumerism herd is made up of individuals. Each individual decides to participate in the herd’s activities. Organizations that lose sight of the individual nature of the members of the herd will never truly communicate with the herd.
Allowing people to be individual participants in the herd is one of the keys to maintaining the integrity of the organization’s brand.
Early Lessons
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For more information on the
Business Abandonment Cycle
Dr. Charmayne Cullom
Richard S. Cullom
9/24/2011