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Your Customer Segment is constantly changing: Are you prepared for it?

Your Customer Segment is constantly changing: Are you prepared for it?

Global trends are changing customer behavior at an increasingly high rate, here is what your business needs to do.

Gone are the days of mass marketing campaigns and bulk production aimed at winning over a large pool of so-called ‘average customers’.  For a growing number of consumers today, the products they consume are not just meant to satisfy their needs but also serve as a channel to express their individuality. Numerous submarkets and niches exist in the current market that demand exclusive strategies.  This has forced companies across the world to take another look at their customer segment, understand their needs and create products that cater to their unique needs.

The following trends in the technology and business landscape have influenced  this change:

    •  With the internet introducing new technologies and products to the world every day, it has become increasingly difficult to maintain a strong market share and loyal customers. 
    • The nature and demands of the consumer in every industry are constantly diversifying and shifting.
    •  Social media has emerged as a savior for small businesses that are not capable of investing immensely in marketing activities. A powerful ad on an Instagram page can lead to thousands of followers flooding in with product inquiries and purchases from any part of the world, in a matter of days. 
    • Third-party logistics companies and cheap tech-based solutions are making delivery and customer service easier, helping smaller customer-centric brands perform better than some big established companies. 

Could these trends pull your business down? Probably yes. 

Should you be worried about it now? Absolutely yes.

It is clearly time to re-evaluate customer segments and recalibrate product offerings.

Practical guide to customer segmentation

What is Customer Segmentation?

Customer segmentation refers to dividing markets into groups based on shared characteristics. Most commonly uses customer segmentation models for B2C businesses are: 

Customer Segmentation Models.Most commonly uses characteristics in customer segmentation models for B2C businesses are:Demographic characteristics such as gender, age, income, educational background, etc. Geographical limits can be based on countries, regions, states or cities. Behavioural patterns such as purchase frequency, brand loyalty, engagement, occasion etc. Interests and personality traits of the customer such as lifestyles, skills, interests, beliefs, values etc. Most companies use a combination of these factors to select profitable target customer segments.

Demographic segmentation: It is the most commonly used model of segmentation. Customers are divided into groups based on demographic characters such as gender, age, income, educational background, ethnicity or religion. 

Psychographic segmentation :This model is based on the interests and personality traits of the customer such as lifestyles, skills, beliefs, values, etc. It is becoming more popular among companies and leading companies have invested heavily in data analytics to explore psychographic factors of customer behavior. 

Geographical segmentation: This model uses the physical location of the customers to group them. The geographical limits can be based on countries, regions, states or even cities. It is suitable for small businesses with smaller marketing budgets to better judge their customers. It is also used by multinational companies to tackle cultural differences in different countries.

 Behavioral segmentation: Customers are grouped on the basis of their behavioral patterns such as purchase frequency, brand loyalty, engagement, purchase occasion etc. This model has been extensively used by e-commerce platforms to create customer profiles and group them.

Though these models provide a basis of classification, customer segmentation can be more complex. Most companies employ a combination of these models to select profitable customer segments.

Why segment your customers ?

Better focus on customer

Focusing on delivering value to a particular customer segment can help in designing and delivering products that meet customer’s specific needs. This customer centric approach would result in higher customer satisfaction and product adoption rate.

Increased competitive advantage

It is rather simple. More focused you are on delivering customer- centric products, the more value you create for the customer. The more value you create , the more attractive you are to them. Providing products that cater to specific needs of a customer segment would help accumulate more market share as compared to subpar competitors.

Better utilization of resources

Identifying the most and least profitable customers can save so much money and effort while conducting marketing campaigns. Prioritizing a high value customer segment can help in maintaining brand loyalty by constantly improving products and services. It can ensure higher profits and lower costs.

Handle saturation of the market

While concentrating on a new customer segment you may even discover areas with significant scope of growth. This could be an opportunity for your business to acquire market share in a niche market. In a market that has been saturated , creating a niche and serving customers in that particular segment can be a differentiating factor for any business.

Capture new markets

Companies often target new customer segments by introduction of new products designed for that particular segment. However, it must lead to dilution of brand image. Many companies overcome this by introducing new brands designated for different segments of customers. Examples include Unilever which uses different brands to reach different markets or FedEx which uses different brands to provide different services.

Embrace market changes

Product life cycles are getting shorter. Once popular products are becoming obsolete quicker with faster technological advancement. For companies that are exploring new market possibilities to stay in the game, embracing a new customer segment can be the way to go. An interesting example is PepsiCo. Upon seeing that the market is shifting to healthier options, the multinational snack and beverage giant acquired health friendly brands like Quaker Oats and Tropicana.

Do customer segments remain the same over time ?

No, the nature of customer segments are always changing. For example, the product consumption patterns or product preferences of a middle-class family today is very different from that of the previous decade. With exposure to global trends and increased availability of a wide range of products, the needs and wants of each customer segment is continuously changing. New niches markets may develop that would require highly customized products.

How to identify and target your customer segment?

Different businesses have followed different methods to segment their market, some pretty complicated while others simpler alternatives. Given below are steps involved in identifying and targeting customer segments for SMEs.

Practical steps to identify and target your customer segment..Step 1 : Conduct a detailed market study. Step 2: Choose a suitable segmentation model.Step 3: Gain a clear understanding of customer expectations in the chosen segment.Step 4: Product design, development, launch, and marketing to attract customers within the segment.Step 5: Collect regular feedback and improve product offering

Step 1 : Conduct a detailed market study

A detailed market study is the most essential step to understanding your customers. It gives a clear picture of the market size, key competencies required, existing competitors, risks, and customer behavior. The data for the study can be collected from online resources or through field research. Expertise provided by business consultants and market research experts can also be valuable.

Step 2: Choose a suitable segmentation model.

Based on the insights from the market study, a business needs to split its customers into segments. This could be demographic, behavioral, psychographic, geographical, or a combination of these. The segmentation needs to be clear and practical. A niche market can also be identified in this step.

Step 3: Gain a clear understanding of customer expectations in the chosen segment.

In this step, the business needs to study the customer segment in detail by understanding the market size, recent trends, and expectations of service quality and value delivered. A clear idea of the competitor dynamics and expectations of the customer segment would help in developing an effective strategy and a successful business model.

Step 4: Product design, development, launch, and marketing to attract customers within the segment.

All aspects of the product must be created to meet the specific needs of the consumer. Marketing campaigns must be carried out through appropriate channels to targeted customers.

Step 5: Collect regular feedback and improve product offering

Feedback must be collected regularly to track customer satisfaction and to assess their changing needs. Analyzing sales patterns, customer behavior, and feedback can help in identifying product shortcomings and introducing improvements in the product offering.

Conclusion

Staying relevant in the market and maintaining a competitive advantage can be challenging in a rapidly changing business environment. A customer-centric approach and targeted marketing activities would be essential in differentiating you from your competitors. 

Every business, irrespective of how big or small it is, needs to be in tune with the expectations of the market to survive the implications of today’s rapidly changing business environment. Therefore, a customer-centric approach and targeted marketing strategy need to be developed to exploit the opportunities presented by the market.

With an extensive experience of serving over 100 clients across numerous industries, we continue to help businesses transform into successful ventures.

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How Should A Director Board Operate?

Situation of Directors and Board of Directors

Many small and medium businesses that are registered as a Private Limited Company or Public Limited Company have Directors who are not functioning effectively or productively in Kerala.

Many companies see it as a statutory formality and hence do not take it seriously from a management point of view. Many give directorship positions to shareholders who invested a specific amount in the company, without considering what “value” they can add to the business. These directors may or may not be involved in the management or leading the firm. Some even give directorship to all its shareholders!

So when the very purpose of the Board is neglected or misunderstood, it is obvious that the Board of Directors won’t be adding a good value to the business. 

AASC can play a key role in professionalizing boards of companies

aascglobal.com

The real role of a Director Board

Ideally, the Board of Directors will have a Chairman, the Directors and a Managing Director.

The role of the Directors is to lead the company, not essentially managing it. The management is done by the CEO, and may be under the direct leadership of the Managing Director.

The role of the Board of Directors can be briefly listed as,

  1. Ensuring legal compliance 
  2. Ensuring the company and its management does not do anything that harms the shareholder interest
  3. Planning and monitoring the growth of the company
  4. Ensuring the company is operating as per its vision and mission. Creation of the vision.
  5. Assisting the management in problems that they find it difficult to solve. This requires technical knowledge and expertise from the director’s side.
  6. Designing or Approving Organization Structures, Systems, Policies, etc. Either the board has to do it, or engage consultants to do it, and then approve it
  7. Recruitment of senior employees (who will be recruiting the rest of the team). This includes the creation of the organization hierarchy, job descriptions, remuneration packages, and work culture principles.  Either the board does it, or appoints a consultant to do it, and finalize the selection. 
  8. Approve important financial transactions be it related to investment, buying of assets, or creation of liabilities, that the company management suggests
  9. Approve suggestions of the management with regards to the creation of reserves or payment of dividends
  10. The Board has to engage external agencies and consultants, to audit not just the financial performance of the business, but also do management audits to ensure that management is managing the business well. It will involve doing studies and surveys on employees (for employee satisfaction) and customers (for customer satisfaction). This will empower the Board with data, beyond the information provided by the Management

So as you can see, the role of the directors is not to do daily operations. But to be the guiding and monitoring force. It is part of the process of separating management from ownership.

What is wrong with our Director Boards?

But unfortunately, instead of the above-mentioned roles, most small and medium companies have managers who are given the title of directors, because they are also shareholders of the company.

This means the real function of the leading and direction does not happen. This is not an issue if the company does not have shareholders beyond the directors working as managers. 

But in companies, where there are several shareholders, this system can mean a lack of accountability and be a cause of direction loss. 

How Management Consultants Can Assist the Board of Directors?

 

Sometimes, the board of directors will require the assistance of external consultants (like AASC). Some of these situations can be,

  1. When the board of directors has an important decision to take and needs an external expert to give an opinion on the topic. This expert opinion is very useful to convince the shareholders
  2. When there is a crisis between the Board Members and important decisions are not possible, external consultants can help in resolving the matter 
  3. As part of reviewing the performance of the management in terms of management, employee satisfaction, and customer satisfaction, the board of directors can employ management consultants  to do the review and submit reports on the same  
  4. If it’s a new venture, the Board of Directors can engage business consultants to prepare the detailed strategy plan or detailed project report with feasibility studies and organization structuring

If you have any points, experiences to add, or if you don’t agree to the post, please comment below. 

Explore how AASC can help transform your business. Call now +91-7558-900-800

AASC is a Business Strategy & Management Consulting (aascglobal.com) firm that serves Promoters to study, plan and set up new ventures, and Entrepreneurs to manage and grow their business, in a professional manner. 

To know more about AASC services for new ventures, please visit https://aascglobal.com/consulting-for-new-ventures-and-startups/

To know more about AASC services for businesses, please visit https://aascglobal.com/consulting-for-business-growth-and-expansion/

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Who Should Be In Your Board of Directors?

There is a general tendency among entrepreneurs to include those who invest ‘the most’ as directors. While this might look logical, it has many dangers for both the business and the shareholder himself. 

It has been found that, becoming the Director of a business, is seen as a special attraction to most investors. In fact, it is so popular that entrepreneurs promote it during their capital raising campaigns. But this is not a good method for businesses that have long-term plans and vision.

So what are the reasons why it’s a bad idea to have Directors who are there by virtue of the amount they invested?

  1. Directors are the people to lead the business to achieve its goals and vision. This requires good leadership skills, exposure, and vision. These qualities may not necessarily exist in the person who invests the highest. So having him on the board is not going to help. Instead, there are chances of his interference negatively affecting the business
  2. Directors are the people who should guide the business during bad times. They should have the maturity and capacity to guide the company’s top and middle management, to come out of the storm. On the other hand, a shareholder may not  necessarily possess these skills and knowledge and may not be able to contribute, or his contribution can have a negative impact
  3. Directors are part of the vision. And visions demand focusing on not just profitability or Return on Investment. It might involve investing in long-term assets, or low-income investments, or diversion of company profits to new expansions, or a substantial investment into branding, etc. But an investor need not always share that kind of vision. They are mostly in, to get a good return now, or a faster ROI. Hence, if they are on the board, they won’t be supporting such moves, hindering the progress of the company towards its goals
  4. Inability to take tactical or strategic decisions. As the saying goes, “Empty Kettle Rattles More”, investors who are on the board, whose only qualification is the investment they made, can make brainstorming a major headache as they come with suggestions and objections that are not qualified
  5. Some companies make the mistake of making every single investor a Director. Thereby having a ‘huge’ Director Board.  Most often these board members are not active. What is the use of having such a big board? It’s quite childish and should be avoided
  6. Some companies have NRI investors as Board members. Unless the investor has significant value to add it’s better to avoid such placements. As at times, when all directors have to sign certain legal compliance documents, it becomes a pain

It’s not just for the company, even investors should be careful before becoming a director. 

  1. “Sleeping Directors” or directors who are not really active in the company, and are just Directors for the “prestige” matter, should be careful. If the company does anything illegal, they can also get into trouble
  2. If the company has many directors, most of whom are outside the country, know that the company can have issues in smooth operations. Would an investor want to be in a company that will be having such issues?
  3. A company with several unqualified directors means that the company is not professional, does not have a vision, and is not going to last long or win big. A celebrity director does not qualify as a capable director. 

So ideally, when businesses are looking forward to new investments, they should not offer Directorship as an offer to investors. Instead, Directors should be handpicked from among the shareholders, who can really add value in the Board Meetings. Such capable people can be invited to be shareholders of the company. In fact, it always helps, if such people are made shareholders and directors first so that using their profile they can canvas the rest of the shareholders. 

Investors should opt to become a director, only if they feel safe and that they can offer real value in terms of ideas, management, and leadership to the company. Else it’s better to be safe as a shareholder. 

Investors can also form investment companies, and these investment companies can invest in other companies. In such situations, the Investment company’s representatives (who should be qualified) can also be board members of the companies in which they invest.

Action

So is your company having a strong Board? If not, it’s time to repair it. Because the first cause of business not growing can be a weak Board. “Repairing” the Board will involve reshuffling the Board, drafting new agreements and Corporate Governance, etc. 

It can be a sensitive matter. And has to be handled with care. It is a good idea to engage professional Management Consultants, to ensure no ego issues develop between Directors. And that the new change is in the right direction. At AASC we provide this service. 

If you have any points, experiences to add, or if you don’t agree to the post, please comment below. 

AASC is a Business Strategy & Management Consulting (aascglobal.com) firm that serves Promoters to study, plan and set up new ventures, and Entrepreneurs to manage and grow their business, in a professional manner. 

To know more about AASC services for new ventures, please visit https://aascglobal.com/consulting-for-new-ventures-and-startups/

To know more about AASC services for businesses, please visit https://aascglobal.com/consulting-for-business-growth-and-expansion/

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Location Does Matter

One of the biggest mistakes that promoters make, is falling in love with a business idea and believe that the idea will succeed no matter where it’s based.

Many a time, entrepreneurs start businesses they “think” people want, and get so hyped up about it. So much so that, if they didn’t get the right place, they start anywhere available, believing that customers will come to them. And that might not actually happen. The business fails.

Promoters spend a lot of time, sometimes even years, trying to find that one big idea that will click. A business idea is an opportunity that has potential in a market. But having a ‘Eureka’ moment is not enough to jump-start it as a business. 

For a good business idea to win, it has to satisfy several criteria. In this post, the ‘Location’ is our topic.

What is the point of starting a business where there are no target customers? That is why, when it comes to location, the right market has to be selected. So what is a market? It can be a village, a city, a district, a region or a state, or even a country or several countries. But it needs to have the target customer segment in it.

Once the market is selected, comes the second step. The exact location of serving the clients. This is specifically important where customers or clients have to physically visit the premises. 

The location in the market is crucial. It has to be located where it’s closest to the target customer and is easily accessible and visible to them. That is the reason why shops that are based in the right street but the wrong building fails. Or based in the right building but the wrong floor fails. Or based on the right floor but the wrong area fails. Or based in the right street but wrong visibility fails. It’s a very important matter and it’s a shame when a great business idea fails just because the location was not right.

So why do entrepreneurs make this mistake when it sounds like common sense? Several factors can play here.

One reason is the non-availability of space in the ideal location. In which case, we as Management Consultants would advise not to start now and wait for the right location to come up, or move into another market where the right space is available.

The second reason is the high rental of the properties in the right location. This is a tough reality and one has to be careful here. When faced with such a situation, the entrepreneur has to evaluate how much rent is viable for the business. This might be complicated for most entrepreneurs. In such cases, it’s ideal to engage management consultants or management consulting firms (like AASC) to do a detailed analysis on the financial viability of the location, and check if that rent is viable. Sometimes, a location that has high rent can still be a profitable option.

The third reason can be impatience to do a proper study. Promoters or entrepreneurs can fall in love with an idea, that they simply want to start ASAP. They get hold of the first property and launch the business there. And as the days pass by and they witness lower footfalls, they realize that the location or the building or the floor is not ideal for their customers. Here we as management consultants, always ask our clients to take it easy and do a proper study. In fact, a typical study at AASC takes about 2-3 months to complete. With the market study taking about 30 to 45 days. With such a detailed study, the pros and cons are evaluated before making a final verdict of not just the location but the business itself. 

The fourth reason can be overconfidence. The illusioned belief that the product or service that the entrepreneur intends to provide to the customer is so much in demand, or the price is so attractive or the quality is so high that the customer will seek them, no matter where they are. In most cases, it does not work. And the business goes belly. But in some rare cases, it can work- for some time. This is when the customers really do need it and they take the pain of reaching you despite the trouble or the inconvenience. But the moment a competitor starts the same business in a more ideal location, all the customers will move to him. Why? Customers are not loyal to any shop or brand, they are loyal to those who provide them what they want, when they want, where they want it, and in the way they want it.

Conclusion:

Don’t kill a beautiful business idea by starting it in the wrong place. This is applicable not just to retail outlets, it’s applicable to any business be it manufacturing, hospitality, service, or education. Even online businesses, have to be careful of the locations they choose. And another place to watch out for is the location in Search Engines, as customers use it to search for businesses. If it’s not on the first page, it’s not in a good location online.

It’s always recommended to start a business after a proper study. Do good market research, select the right business model, design the right management plans and systems and assess its financial feasibility. And since entrepreneurs might get emotionally inclined towards their business idea, and because in most cases promoters are not trained to do these works professionally… it’s better to engage professional management consultants like AASC (aascglobal.com)

So location does matter.

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Post Covid Thoughts For Businesses

Posts are in both Malayalam and English versions. Please scroll down

The world is evolving and reshaping itself, as each day passes with the virus still at large. It will affect politics, societies, cultures, nature, environment, consumption, and economics. This blog is about post-Covid thoughts for businesses and entrepreneurs.

ഓരോ ദിവസവും വൈറസിനൊപ്പം കടന്നുപോകുമ്പോൾ ലോകം മാറുകയാണ്. ഇത് രാഷ്ട്രീയം, സമൂഹങ്ങൾ, സംസ്കാരങ്ങൾ, പ്രകൃതി, പരിസ്ഥിതി, ഉപഭോഗം, സാമ്പത്തികശാസ്ത്രം എന്നിവയെ ബാധിക്കും. ഈ ബ്ലോഗ് ബിസിനസുകൾക്കും സംരംഭകർക്കുമായുള്ള പോസ്റ്റ് കോവിഡ് ചിന്തകളെക്കുറിച്ചുള്ളതാണ്.

This micro blog is the evolving thoughts, as it happens. Read on…

How Covid Affects Businesses in Various Stages or Business Life Cycle

Covid Economic Crisis can affect businesses which are in various stages, if they meet the symptoms

കോവിഡ് വിവിധ ഘട്ടങ്ങളിലുള്ള (Stages) ബിസിനസ്സുകളെ എങ്ങനെ ബാധിക്കുന്നു.

പ്രൊഫഷണൽ ബിസിനസ് സ്ട്രാറ്റജി & മാനേജ്മെന്റ് കൺസൾട്ടിംഗ് സ്ഥാപനമായ AASC യുടെ വിശകലനം.

സ്റ്റാർട്ടപ്പ് / പ്രാരംഭ ഘട്ടത്തിലെ ബിസിനസുകൾ:
ലാഭമുണ്ടാക്കാൻ പാടുപെടുന്ന, പണ പ്രശ്‌നങ്ങൾ ഉള്ള ബിസിനസുകൾ ഈ പ്രതിസന്ധി ഘട്ടത്തിൽ അപകടത്തിലാകും, കാരണം വിപണികൾ കൂടുതൽ ദുഷ്‌ക്കരമായേക്കാം.

വളരുന്ന ഘട്ടത്തിലെ ബിസിനസുകൾ: ഈ ബിസിനസുകൾക്ക് കനത്ത കടങ്ങൾ, കനത്ത പലിശ അടയ്ക്കൽ, അല്ലെങ്കിൽ ബിസിനസുകൾ / ഉപഭോക്താക്കളെ സേവിക്കുക എന്നിവ ഉണ്ടെങ്കിൽ, ഈ പ്രതിസന്ധി ഏറ്റവും മോശമായി ബാധിചേക്കാം.

പൂർണ്ണവികാസം പ്രാപിച്ചിട്ടുള്ള (Matured) ബിസിനസുകൾ: പെട്ടെന്നുള്ള തീരുമാനങ്ങളെടുക്കുന്നതിൽ തടസമാവുന്ന തരത്തിലുള്ള മോശം ഓർഗനൈസേഷൻ സംസ്കാരം (Bad Organization Culture) നില നിൽക്കുന്ന mature stageൽ ഉള്ള ബിസിനസുകൾ കോവിഡ് പ്രതിസന്ധിയിൽ അടച്ചുപൂട്ടാനുള്ള ഉയർന്ന സാധ്യതയുണ്ട്.

സാവധാനത്തിൽ ക്ഷയിച്ചു കൊണ്ടിരിക്കുന്ന (Declining) ബിസിനസുകൾ: പുതുമയുടെ (Innovation-ന്റെ) അഭാവവും, മോശം ഓർഗനൈസേഷൻ സംസ്കാരവുമാണ് ബിസിനെസ്സുകളെ തകർച്ചയുടെ (Declining) ഘട്ടത്തിലെത്തിക്കുന്നത്. കാരണം ഇത്തരത്തിലുള്ള ബിസിനെസ്സുകൾക്ക് ട്രെൻഡിനൊപ്പം മാറാൻ സാധിക്കാറില്ല. അത് കൊണ്ട് കോവിഡ് വളരെ മോശമായി ബാധിച്ചേക്കാം.

കൂടുതൽ പോസ്റ്റുകൾക്കായി (സംരംഭകർ, പ്രൊമോട്ടർമാർ, നിക്ഷേപകർ), AASC സംരംഭക ചാനലിൽ ചേരുക https://chat.whatsapp.com/FrOvSQKEXre91hRqe5QSyT AASC- ന്റെ വെബ്‌സൈറ്റിൽ നിങ്ങൾക്ക് പൂർണ്ണ റിപ്പോർട്ട് സൗജന്യമായി വായിക്കാനോ ഡൗൺലോഡ് ചെയ്യാനോ കഴിയും.

 

How Covid induced economic crisis can affect businesses in various stages of their life cycle.
Analysis by professional business strategy and management consulting firm, AASC.

Startup / Early Stage Businesses: Businesses that are struggling to make a profit, having cash issues will be at risk during this crisis, as markets become more difficult.

Growth Stage Businesses: These businesses can get severely affected by the covid crisis, if they have heavy debts, heavy interest payables, or are serving businesses/customers who are in the worst affected categories.

Mature Stage Businesses: Businesses that are in the plateau (or stagnant growth) will be at a high risk of closing down in a covid crisis, due to bad organization culture that prevents quick action.

Decline Stage Businesses: The reason why businesses become in the decline phase is due to lack of innovation and bad organizational culture that prevents it from changing with the trend.

For regular insights for entrepreneurs, promoters and investors, please join AASC Entrepreneurs Channel at ‎ https://chat.whatsapp.com/FrOvSQKEXre91hRqe5QSyT

Covid Patients & Covid Affected Businesses Show Strikingly Similar Symptoms

Extract from AASC report on how Covid impacts Kerala Businesses

കോവിഡ് ബാധിച്ച രോഗികളും ബിസിനസ്സുകളും എങ്ങനെയാണ് സമാന ലക്ഷണങ്ങൾ കാണിക്കുന്നത് എന്നതിനെക്കുറിച്ചുള്ള ഒരു വിശകലനം. പ്രൊഫഷണൽ ബിസിനസ് സ്ട്രാറ്റജിയുടെയും മാനേജ്മെന്റ് കൺസൾട്ടിംഗ് സ്ഥാപനമായ AASC യുടെ വിശകലനം.

കൂടുതൽ പോസ്റ്റുകൾക്കായി (സംരംഭകർ, പ്രൊമോട്ടർമാർ, നിക്ഷേപകർ), AASC സംരംഭക ചാനലിൽ ചേരുക https://chat.whatsapp.com/FrOvSQKEXre91hRqe5QSyT

A thought-inspiring analysis on how Covid patients and businesses affected by Covid show similar symptoms.

Analysis by professional business strategy and management consulting firm, AASC.

What is the “Next Normal”?

നിങ്ങൾ മൂന്ന് കാലഘട്ടങ്ങളിലേക്കാണ് നോക്കുന്നത്.

ആദ്യം, കോവിഡിന് മുമ്പുള്ള ലോകം.

രണ്ടാമതായി, വൈറസ് വ്യാപനത്തിന്റെയും lockdownണിന്റെയും ലോകം.

മൂന്നാമത്, കോവിഡിന് ശേഷമുള്ള ലോകം.

മൂന്ന് ലോകങ്ങളും വ്യത്യസ്തമാണ്. ആദ്യത്തെ കാലയളവ്, നിങ്ങൾ 2019 ഡിസംബർ വരെ ജീവിച്ചിരുന്നു. നിങ്ങളുടെ ജോലികളിലും ബിസിനസ്സുകളിലും വലിയ അപ്രതീക്ഷിത സംഭവങ്ങളൊന്നും ഇല്ലാത്ത ഒരു പരിചിതമായ ലോകം.

രണ്ടാമത്തേത്, ഇപ്പോഴത്തെ കാലഘട്ടമാണ്. ഭയം, ഉത്കണ്ഠ, അനിശ്ചിതത്വം എന്നിവയുടെ കാലഘട്ടം. ഇത് എത്രത്തോളം മുന്നോട്ട് പോകുമെന്നും ജീവിതത്തിലും സമ്പദ്‌വ്യവസ്ഥയിലും ഇത് എത്രമാത്രം ചെലവാകുമെന്നുമുള്ള ഉത്കണ്ഠ.

മൂന്നാമതായി, വൈറസ് പ്രതിസന്ധി അവസാനിക്കുന്നു. നാശനഷ്ടങ്ങൾ നിങ്ങൾ വിലയിരുത്തുന്നു. അപ്പോഴാണ്, പുതിയ സാധ്യതകളും പുതിയ ട്രെൻഡുകളും പുതിയ ഉപഭോക്തൃ മുൻഗണനകളും നിങ്ങൾ മനസ്സിലാക്കുന്നത്. അത് “പുതിയ സാധാരണ” അല്ലെങ്കിൽ “Next Normal” (Mckinsey അതിനെ വിളിക്കുന്നത് പോലെ) യുടെ ജനനമായിരിക്കും.

It’s three time periods we are looking at.

First, the world before Covid. Second, the world during lockdowns and the virus spread. Third, the world when Covid spread is over.

All three worlds are different. The first period, which we lived till December 2019. A familiar predictable world, where we had our jobs and business established and settled.

The second is the period now. Period of fear, concern, and uncertainty. Anxiety about how far this will go and how much it will cost in life and the economy.

Third, the virus crisis dust begins to settle and we are able to assess the damages. That is when, we realize new possibilities, new trends, and new customer preferences. It will be the birth of the “new normal” or as Mckinsey calls it “next to normal”.

Best Time To Plan New Ventures

Customer preferences are shifting. Existing market conditions are changing. People’s lifestyles are changing.

It’s that time of human history when major economic shifts happen.

A time when old monopolies will falter, competitors become weak, new customers segments are born.

This is the opportunity to start something new. For the new market that holds new customers.

Businesses Should Be Empathetic Listeners

സ്റ്റീഫൻ കോവി തന്റെ “7 Habits of Highly Effective People” എന്ന പുസ്തകത്തിൽ ഫലപ്രാപ്തിയുടെ അഞ്ചാമത്തെ സുവർണ്ണ ശീലത്തെക്കുറിച്ച് “ആദ്യം മനസിലാക്കാൻ ശ്രമിക്കുക, തുടർന്ന് മനസ്സിലാക്കുക” എന്ന് പരാമർശിക്കുന്നു.

നിങ്ങൾ കൈകാര്യം ചെയ്യുന്ന ആളുകളുടെ യഥാർത്ഥ വികാരം, യഥാർത്ഥ ഡ്രൈവ്, യഥാർത്ഥ വേദന, യഥാർത്ഥ സന്തോഷം എന്നിവ നിങ്ങൾ മനസിലാക്കേണ്ടതുണ്ടെന്നാണ് ഇതിനർത്ഥം. അതിനുശേഷം മാത്രമേ നിങ്ങൾക്ക് അവ യഥാർഥത്തിൽ മനസ്സിലാക്കാൻ കഴിയൂ.

നിങ്ങൾ അവരെ ശരിക്കും മനസ്സിലാക്കുന്നുവെന്ന് അവർക്ക് തോന്നുമ്പോൾ മാത്രമേ അവർ നിങ്ങളെ മനസിലാക്കാൻ ശ്രമിക്കൂ. “Empathetic Listening (സമാനുഭാവം കേൾക്കൽ)” എന്നതിൽ നിന്നാണ് ഇത് ആരംഭിക്കുന്നത്.

അതുപോലെ, ബിസിനസ്സുകളും ആദ്യം അതിന്റെ ഉപഭോക്താക്കളെ മനസിലാക്കാൻ ശ്രമിക്കണം (അവർ ഇപ്പോൾ വ്യത്യസ്തവും ബുദ്ധിമുട്ടുള്ളതുമായ അവസ്ഥയിലാണ്). അവർക്ക് പുതിയ വേദനയുണ്ട്, അവിടെ അവർക്ക് ആശ്വാസം ആവശ്യമാണ്. അവർക്ക് നേടാൻ പുതിയ മുൻഗണനകളുണ്ട്. ബിസിനസുകൾ യഥാർത്ഥത്തിൽ അവരെ മനസിലാക്കാൻ തുടങ്ങുമ്പോൾ, അവർ ഈ ബിസിനസ്സുകളെ കൂടുതൽ വിലമതിക്കും. ബ്രാൻഡ് ലോയൽറ്റിയുടെ അടിസ്ഥാനം ഇതാണ്.

ബിസിനസ്സ് സഹാനുഭൂതിയുള്ള ശ്രോതാക്കളായിരിക്കുക.

Stephen Covey in his book “7 Habits of Highly Effective People” mentions the 5th golden habit for effectiveness as “Seek First To Understand, Then To Be Understood”.

This means we need to understand the real feeling, real drives, real pain, and real happiness of the people we deal with. It’s only then we can truly understand them.

Only when they feel that we truly understand them, they will take an effort to understand us. This begins with “Empathetic Listening”.

Likewise, Businesses too should first seek to understand their customers (who are now in a different and difficult situation). They have new pains that need relief. They have new priorities to achieve.

When businesses truly begin to understand them, they will appreciate these businesses more. This is the foundation of brand loyalty.

Businesses be empathetic listeners.

Resolve To Plan & Act

Winning during Covid is all about determination and strong resolve

സംരംഭകർക്ക് ചെയ്യാൻ കഴിയുന്ന ഏറ്റവും വലിയ തെറ്റ് “ആസൂത്രണം ചെയ്യരുത്”, “പദ്ധതികളിൽ പ്രവർത്തിക്കരുത്” എന്നതാണ്. കോവിഡ് പ്രതിസന്ധി പക്ഷാഘാതത്തിനുള്ള സമയമല്ല.

സജീവമായ ആസൂത്രണത്തിനും സജീവമായ പ്രവർത്തനത്തിനുമുള്ള സമയമാണിത്. പുതിയ കാര്യങ്ങൾ പഠിക്കാനുള്ള സമയമാണിത്. പുതിയ ശീലങ്ങൾ സ്വീകരിക്കുന്നതിനുള്ള സമയം. കംഫർട്ട് സോണുകളിൽ നിന്ന് മാറാനുള്ള സമയം.

Mckinsey പറയുന്നതുപോലെ, Convid19 കോം‌പാക്റ്റ് ചെയ്യുന്നതിനുള്ള ആദ്യപടി “Resolve” എന്നതാണ്.

The biggest mistake entrepreneurs can make is “not to plan” and “not to act on plans”. Covid crisis is not the time for paralysis.

It is the time for proactive planning and proactive action. It is the time for learning new things. Time for adopting new habits. Time to move out of comfort zones.

As McKinsey says, the first step to compact Convid19 is “Resolve”.

Risk Is Real. The Opportunities Are Real

AASC, Covid, Kerala, Management Consulting
Social Distancing Brings Unique Opportunities

Don’t fall for unfounded positive motivations that say everything will be fine. It won’t be until we take the right steps.

There are great opportunities out there, for every industry, for every market. That has always been so. But we need to discover it and be brave to act on it.

It needs the right evaluation, right decisions, and right action. Not blind guesses and hyper-motivations.

About AASC

AASC office at Hilite Business Park in Calicut
AASC office at Hilite Business Park at Calicut

AASC or Ameen Ahsan Strategy Consulting is founded by Ameen Ahsan. Ameen Ahsan did his master’s from Exeter University (UK), and was trained in the art and science of management consulting by American & European consultants during his professional consulting career at Abu Dhabi.

Today, AASC is one of the leading business strategy and management consulting firms in Kerala. Providing services to projects, engagements, and business across South India and Gulf countries.

AASC helps new projects and ventures by providing services such as,

Business plans, feasibility studies, market study, project reports
Business Plans (Feasibility, Strategy & Management Plan) from AASC
  • Market Feasibility Study
  • Vision & Milestone Planning
  • Business Model Development
  • Operation Management Plans
    • Branding & Marketing Plan
    • Human Resource (HR) Plan
    • Operation Plan
    • Industry-Specific Plans
  • Investor Management Plans
  • Risk Analysis
  • Financial Feasibility Study
  • Investor Presentation Services & Tools Development
  • Turnkey Implementation Support
  • Post Implementation Business Performance Monitoring

To know more, please call +91-7558-900-800, email info@aascglobal.com or visit https://aascglobal.com/consulting-for-new-ventures-and-startups/

AASC helps existing businesses by providing management consulting services such as,

Management consulting, business consulting, consultant,
AASC provides professionalisation, growth, expansion, franchise consultation to businesses
  • Consulting for Professionalising Operation
  • Consulting for Growth & Expansion
  • Consulting for Growth by Franchising

Kerala’s Professional Management Consulting Firm

Business consultants in Calicut, providing services to businesses across Kerala

AASC serves the entire Kerala and GCC markets from its office in HiLite Business Park, Calicut.

Business Consultants in Cochin

AASC provides business strategy and management consulting services to businesses across Kerala, including the Cochin area. To know more please call +91-7558-900-800 or email info@aascglobal.com

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The Different Generations in Market & Why They Buy

It is a wrong strategy to sell everything to everybody. Our products and services have to be customized to the needs of specific customer segments. Each customer segment has different needs, different pains, different jobs that need to be done, and different aspirations.

They are NOT SAME, hence what they need is NOT SAME.

So what happens when you sell the same to all customer segments? They will buy from you as long as they don’t have an option. And switch to a competitor the moment the competitor arrives with customized service or products. That’s the story of “successful” businesses having sudden death.

A study by McKinsey found some interesting insights about what drives consumption among each generation. And it’s worth knowing.

Consumption is viewed differently by each generation. For example, Generation Baby Boomers (born between 1940-59, those aged now at 60 to 79) viewed consumption as an expression of ideology (influenced by the global political turmoil of those times).

Generation X (born between 1960-79, aged now between 40 to 59), views consumption as a symbol of status.

While Generation Y or more popularly known as Millennials (born between 1980-94, now aged between 25 to 39), views consumption as an experience.

The youngest generation, Gen Z (born after 1995, that is aged below 25), views consumption as a search for truth. Their search for authenticity generates greater freedom of expression and greater openness to understanding different kinds of people and views.

So What Does It Mean To Your Business?

As an entrepreneur, you need to know who your customer should be. Which generation they belong to. And what prompts them to like your business and why they will buy from you.

Avoid targeting everybody. It doesn’t work long-term.

Now you know why they buy. Customize your business accordingly. The drive ahead is profitable but never easy.

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Transforming Outdated Schools

“We Have To Teach Our Kids Something Unique…” Jack Ma, Former Executive Chairman of Alibaba Group

This quote is the trigger for today’s post.

As the world progresses by leaps into work getting done more cheaper, faster, and efficient- human jobs are at stake. It’s a reality. It’s time for humans, societies, cultures, and organizations to evolve to survive.

It begins with what we teach our kids. Our schooling system is so outdated, one wonders who prepares its syllabuses.

School management and parents have to move from the comfort zone of standardized learning to the new age of individualized learning.

So how do we teach our kids, what machines can’t do? We teach them to be “more human”. But what does that mean?

We teach them values, so that they never create or use machines, Ai and robotics to destroy peace, instead use them to create a sustainable peaceful world.

We teach them independent thinking so that they become creative in innovations, discoveries and become masters of the very technology that can otherwise be used to enslave them. Present schooling does not promote independent thinking- it’s only what’s in the textbooks.

We teach them cooperation and teamwork so that they love and believe in each other. Help and support each other. Remove the present mark-based mindset, where one has to beat down the other to get to the next level or is measured in comparison to others. Where a lion is compared to a dolphin, while their skills are different.

We teach them leadership and the ability to take responsibility. Characters that are fast disappearing in the pleasure-seeking, me-me, materialistic generation. Students should be not just taught but trained, to take up responsibility, be accountable, be able to motivate others, take the lead, walk the talk. Be men and women of their words.

We teach them to care for others. That care is what is going to help the world and inhabitants, be at peace with each other.

We teach them the knowledge that is needed for life rather than in-depth science, physics, maths, and geography that is not needed for the vast majority who might not seek those streams. Instead, teach them young, topics such as basic finance & investment management(everyone needs it in life to manage personal finances, personal investments), economics (everyone needs to know how the economy functions), basic law (everybody is bound by it), political science (that’s what governs them). These are more important topics as they affect everyone. Only those seeking careers in biology, physics, mathematics, geography, and other conventional topics need to go in-depth to them. For these special clubs in schools can be formed. So interested students can go much deeper than their peers, based on their capacity. For the rest who are not seeking such careers, they don’t need to be tortured to study them.

We teach them how to be healthy and avoid lifestyle diseases. It is funny that we don’t teach our kids what to eat and what not to. It shortens their life. That’s not in the syllabus. We should have in curriculum topics such as food habits, what to eat and what not to, sleeping habits, exercising, natural herbs, organic home farming, natural therapies, first aid procedures. This not only makes them capable of making and eating right, doing right exercises, curing themselves with natural herbs (avoiding side effect medication), and being capable of rescuing life’s in danger; but also have a profound effect on the businesses around them. Junk foods providers will disappear, harmful nightlife businesses will disappear, the illegal drugs/ prostitution industry will disappear, the healthcare industry will be more ethical and responsible. These changes will not be driven not by law, but by enlightened people.

We teach them the value of family and relationships. It’s a topic that should not get restricted to a chapter. It should be a subject that will be studied from kindergarten to post-graduation. Because relationships are the foundation of human civilization. We should teach kids how to understand their parents, grandparents, siblings, relatives, and neighbors & how to behave with them in various situations. Kids today, do not really know it. We should teach how husband and wife should understand each other and behave with each other (it’s not something that can be achieved with a few hours of pre-marriage counseling). This reduces divorces, broken homes, domestic violence, wrong relationships, etc.

We should teach how parents understand and behave with their children. This opens up strong bonding. This prevents kids from drugs, depressions, suicidal tendencies. All these need to be learned when they are in their schools and colleges.

We should teach them about all religions in-depth. This helps understand every religion better and have a deep-rooted understanding that ultimately all religions are about peaceful co-existence and it’s evil people who divide people on religions.

We should teach them empathy and sympathy. It goes a long way.

Visualize a world where this is what people learn and do. Feel the peace and happiness. This is what we need to teach. The present syllabus has failed to create a good world. We witnessed all the world wars, civil wars, unethical corporations, corruption, exploitation- all by people who spend most of their childhood learning stuff that never was useful in their real life and decisions they took.

In these schools, it will be less of books and theory. More of exploration, activity, and doing. And the traditional marking and grading system? It will be in the dustbin- where it rightly belongs.

This should be the vision and strategy for schools, educational institutions, education boards/organizations, and education ministries.

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Government Departments Need To Transform Customer Journey

“when government agencies offer a better customer experience, they deliver measurable impact across multiple priorities. Public-sector leaders should pick their spots and be bold.”- McKinsey Research

This is a thought-provoking statement from one of McKinsey’s articles, and my today’s post is on the same.

As businesses become more customer-centric, they start to see more sales and profits. So what will happen, if the Government departments and agencies become customer-centric? Let’s explore.

“Customer Journey” is the complete series of interactions and events through which a customer goes when dealing with a business while buying a service or product. The pleasure or displeasure at any interaction point determines the overall satisfaction of the customer. The businesses that offer the most pleasurable experience wins the market.

Usually, Government departments do not think from the customer point of view. Here “Customers” being the people living in the country who have to deal with various Govt agencies. Govt departments think from their own convenience point of view. They either have to get something from the public or give something to the public. And they structure their system and policies in such a way, it’s easy for them to do it- even if that is not convenient for the public.

This approach makes dealing with Government agencies a pain for the public (customers). Quite often, the customer’s time, effort, inconvenience is ignored. The impact of such dissatisfaction by customers results in lack of trust in Government agencies, disrespect for Govt officials, protests, lawbreaking, corruption, etc.

Changing this situation is an opportunity for smart politicians who are in power to score and win public confidence, and keep winning elections. A satisfied public will trust its leaders and Govt agencies.

So how can Government Departments, create that customer experience and win their trust and confidence?

[1] Change in Attitude: Govt employees should be aware of their responsibility more than about their authority. Their responsibility is to solve the customer’s pain, not complicate it. This shift in thought can be a major transformation. Shifting the employee culture is not easy. Hence encouragement and punitive measures have to be implemented. Customer feedbacks have to be taken by electronic means and its results should result in awarding the good employees and punitive action against the bad ones.

[2] Respect the customers. Many a time, the public (the customers) get bad treatment from Government officials. This has to change. The Government departments and their staff should realize that they are to serve and not be served. Even simple measures like avoiding waiting periods, smiling, kind words, explanations in layman terms, comfortable seating areas, etc, go a long way.

[3] Bring Clarity. Many a time there is no clear idea as to what a customer needs to do to get approval or a certificate etc. Resulting in days spend moving from one department to another. Each department should have its own website with videos explaining the common queries of the customers, and the complete procedure to be followed. This should be mobile-friendly as well. Apart from these, inquiry counters (not reception counters for diverting customers) at each agency where those with queries can get a token and ask their questions directly. If a situation is complicated, they should take initiative to get back with the answers within a specific time. This can even be a paid service.

[4] Reduce Human Interactions: Human interactions are time-consuming and depending on the individual employee. All that can be automated, should be. Online applications, online approvals, and online certifications go a long way in creating a good experience.

[5] Avoid Complication: Avoid all unwanted paper works, attestations, signatures, approvals, documents, and proofs. Govt departments should learn to trust their people and earn back that trust. Make things simple and peaceful.

[6] Healthy Competition Among Departments and Their Branches: Awards and benefits should be given to departments that get rated highest for customer satisfaction.

[7] Outsource: Customer satisfaction at the passport office increased dramatically when its customer service was outsourced. Similarly, such outsourcing of routine and non-sensitive matters can provide a better experience to the public

[8] Mobile Apps: Introduction of mobile apps to rate each Govt department and its officers from the comfort of one’s mobile, and having the ratings available to the public and the politicians will help the Govt employees be rewarded or action was taken against. The app can also be useful to know if an officer is available at his desk, and book appointments.

What do you think will happens when our Govt Departments shifts from being employee-centric to customer-centric? What impact will it create?

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Real Estate: A “Barcelona” Model for Kerala Real Estate?

World Economic Forum recently published an article about how Barcelona (a Spanish City) has solved the problem of air pollution (which killed approximately 667 people every year), by daring to test a new city plan.

The model they used is not only successful. But it made the city more enjoyable, stress-free, safe, and relaxing.

The best part, we can also do it in our State, District, or City.

This article explores how our real estate developers and Govt officials in City Planning can do to make our cities “more healthy and enjoyable”. It’s an opportunity we should not miss.

So what did Barcelona do?

It created “Superblocks” within its city. Superblocks are small clusters of inner-city streets, measuring approximately 400×400 meters which form mini neighborhoods. These neighborhoods are closed to vehicles and ground-level parking. Meaning no pollution for vehicle emissions, vehicle noise, risk of passing vehicles, heat from vehicles, etc. Barcelona is planning 503 such blocks!

As a result, it became open spaces for people to walk, sit and interact with other people. They became spaces for culture, leisure, and community.

The traffic is routed around the superblocks, not through them. Creating all the positive differences.

So what can our Developers do in Kerala?

Instead of focusing on small buildings and single units, focus on building township blocks like the Barcelona Model.

This requires land in a square or rectangular shape to be more effective. And small land patches are not enough. If acquiring land is the problem, try creating a company and including nearby landowners as partners (and give them a profitable opportunity). Use the land to master plan and build such blocks.

This is a strategy that can be used even in cities. In most cities, there are clusters of old small buildings that are of no real value to their owners as rents are low or volume is less. Such building owners can be taken into confidence, create a single company and build a cluster there.

The open area created can be a park or an open space with plenty of trees and greenery. Such properties will attract significant “footfalls” and be good retail, entertainment, office, and residence destination. Resulting in a better return on investment.

Developers can attract customers to buy these properties by showcasing how tenants will be interested to do business, work, and live in such blocks.

If more blocks come up nearby, it gives a cozy feeling to that locality, resulting in tourist flows. Which means more business, more profits, and more value to properties.

A similar scheme is planned in Seattle (US).

If the Superblocks are built at one-floor height or start from the first floor onwards. Then the whole ground floor can be used for parking, with the capacity to house hundreds or thousands of cars. Resolving to park also results in lowering the traffic jams in cities. Lack of parking is a perennial headache to Government. This can be a great solution for it.

If Superblocks are developed next to each other, and the community life starts at the first floor (with the ground floor for parking and roads), then bridges from one Superblock to another helps in people avoiding crossing roads and cycling becomes practical. Reducing accidents and injuries and deaths thereby.

So Builders, Developers, and Government- how about building Superblocks as Kerala’s Future Model? If Yes, should Govt stop all simple constructions and motivate people to join together to form such clusters?

Share your ideas, views, and comments. Thanks.