You may have seen recently that Elon Musk’s Tesla will be joining the S&P 500 by the end of the year. This announcement reminded me of a pivotal Executive Briefing that I had read entitled Creative Destruction Whips Through Corporate America by Innosight, a leading consulting firm focused on global strategy and innovation.
This report came to mind because it reveals that the average lifespan of companies in the large-cap S&P 500 Index is significantly shrinking:
As far back as 1964, the average tenure of firms in the S&P was 33 years. Recently in 2016, that number shortened to just 24 years and it is predicted to shrink to just 12 years by 2027. Furthermore, Innosight’s research goes on to assert that 50% of the current companies traded in the S&P will be supplanted by 2027 if this current churn rate and turnover continue to accelerate.
Evidently, large firms (really, firms of all sizes) need to take action and avoid the corporate hubris trap or they face the risk of severely underperforming, falling behind, and having their brand no longer be relevant.
Where to Aim First if Your Market Share is Declining
No one wants to see their brand lose ground quickly or even get completely swept away by younger, hipper, and hungrier upstart competitors.
To prevent their demise and loss of market share, organizations need to become more in tune with their customers’ needs and more agile to improve the customer experience and enhance service levels.
Investing in a leading-edge CRM platform, that is scalable, flexible, and highly intuitive, is a great place to kick start this transformation and strategic initiative.
How CRM Can Help
Armed with a centralized CRM solution will improve the firm’s knowledge of its clients, prospects, and partners, thereby allowing deeper bonds to be forged. Having such a comprehensive 360-degree understanding of all existing and potential customers plus key strategic stakeholders will empower employees across the enterprise to make quicker, more informed decisions. The result will be a more collaborative environment in which marketing, sales, and service associates communicate more effectively and efficiently. Finding it easier to connect with clients and co-workers, employees will become more united, more engaged, more accountable, and more willing to go the extra mile to provide a unique, differentiated level of service that will lead to more satisfied and loyal customers, which in turn will generate more referrals.
With CRM, the company will spend less time struggling to find info to resolve client issues and complaints and more time segmenting, targeting, and closing higher-margin customers with much higher lifetime values to the firm. Moreover, CRM’s robust pipeline forecasting capabilities will help identify top-selling products/services and trending customer demands/requests. These real-time sales analytics tools will provide the insights and actionable intelligence necessary to not only shorten sales cycles and increase revenue but also enable the firm to make the necessary adjustments to overcome apparent product gaps or upcoming sales downturns.
All in all, CRM will serve as the framework and foundation for your client intelligence. With better organizational coordination and more command of customer info, CRM will become the growth driver of the firm. Plus, it will become much easier to thwart off rising stalwarts, maintain brand relevance, sustain one’s leadership and market share positions, and even avoid extinction.
Are you losing ground to competitors and experiencing a surge in client defections?
Are your sales and service teams handcuffed by lack of client intel, operational bottlenecks, and manual, inefficient processes?
Do you have a brand obscurity problem?
Don’t risk becoming further irrelevant or even extinct…CONTACT US to speak with one of our tenured turnaround specialists or seasoned strategic marketing consultants.