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There is no one exactly like you Raymond James financial advisors understand that The interests you have, the people you care about, and the causes you support make you an individual with your own set of goals By listening to you and understanding your history of giving and plans for the future, your advisor can help guide you through financial planning in a personal way It goes on like that for a bit, but you get the idea This is a really good representation of the expectation (I m an individual), the problem (businesses have to personalize how they treat a customer), and the first step in the solution ( By listening to you ) But it also points out the dilemma that companies trying to connect to customers have How do you humanize a company when a customer is looking for a highly personalized, unique experience with that company and what they individually require for a company like me is exactly that different with each individual
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Why a New Business Model Is Necessary
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This calls for a new business model that is aimed at customer participation in the commercial life of the company We talked up a few reasons why this is necessary in 1, but before we get into the meat of the model, I want you to hear the take of Anthony Lye, the SVP of Oracle CRM (and also a member of online chapter, Social CRM Leaders Speak from Out There, Social CRM elite) I asked him why he thought a new business model is called for Here s what he said: I think what s happened is a reduction or elimination of the middle class Markets have had to move to either end Vendors need to offer more consumer mass offering generic products or high end consumables Macy s, Sears, Ford all midmarket brands had to reply with low cost, low end brand offerings or high end Ford, for example, has been disintermediated by Toyota on the one end and BMW and Mercedes on the other The world has become richer all told and the middle is no longer satisfactory to many People s requirements have fallen below or gone above the line What can I get at a low cost at the easiest place [Author s note: A utilitarian purchase] Or if I have to spend at a premium, I m going to research it and try to understand the company at a really detailed level
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Some companies, like Amazon, have a business model that optimizes the two-minute relationship in fact, they invented it Boeing is the master of the 10-year relationship They have optimized their model around build-to-order in small numbers like 10s and 100s But there is risk inherent in any new business model For example, Amazon runs the risk of being superseded by social sites that allow buyer participation Amazon is retail with a touch of social The next generation is social with a touch of retail Whether or not this resonates with you, Anthony s key premise that a new business model is required because of economic and social changes is dead on, so pay attention!
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We know from 4 that consumer thinking and new expectations on how one works are all part of the new framework for corporate operations Good start, if I do say so myself and I do But I m going to tell you a story about the PC and video game industry, which is the prototype of the new business model Based on that story, I m going to extract the characteristics so that you can see what kind of business model has been so successful and, hopefully, how it applies to you Then we re going to take a look at what to expect from it advocates or at least loyal customers and the current ways to measure that
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