Technology kills business

Technology is killing business

Here’s something you probably already know, but we will remind you anyway…

We often ask our clients what the definition of business is. The most common response is “selling to make a profit.” How wrong they all are.

Making a profit is one key end result but it is the how that really matters. Profits can be short term. Long term sustainable profits is what we are after. You know, having some reliability.

There are many definitions of business but our favourite is ‘business is about forming long term relationships.” Without long term relationships you do not really have a business.

One of our respected business associates once said: ‘ If you compete on price you have a one minute advantage, if you compete on products or technology you have a 3 month advantage but if you compete with a good team of people then you will have a 2 year advantage.”

Both are giving us the same message. Business is about people interacting with people.

Isn't technology meant to help us?

It is supposedly easier to get in touch with more people at any one time, but like any mass approach the quality of the interaction decreases proportionally.

One-to-one marketing is a growing trend and potentially very powerful but is only effective if you understand their individual personal preferences and that means meeting with them or talking to them to develop a better understanding.

Technology therefore is to blame.    Or rather, it is how we are using technology .

So what has all this got to do with the picture at the top?     Simply put, we now prefer to communicate via email these days than talk. The level of communication ‘richness’ is, frankly, low by comparison.

Meaning is lost in email. There is no body language , no inflection and no opportunity to enhance our relationship.    Of course I am being hypocritical as this newsletter is being sent by email (guilty!)

One of the causes is that it is very easy to sit in front of our computers all day long (and many of us physically do) rather than socialise with our business partners or organise meetings.

It is no wonder that few internet-based business actually make a profit . These businesses are easy to replicate and loyalty is low. How can you be loyal to an internet site?    (Yes I hear you about Google and ebay but they are exceptions and early market entrants).

A successful retail owner I know always said to his sales staff on the shop floor “Don’t forget people sell to people, do not rely on the product selling itself.”

Even shop floor sales people can make a large difference to a purchasing decision   No-one will buy from someone who does not show an interest in their personal situation or problem.

Consider the people you trade with…what is your relationship with them like? Do you see them as an ‘account’ or a ‘market segment’? Putting labels on people is not a good way to build relationships.

So don’t let technology be the excuse not to meet with your prospects or customers face-to-face, be pro-active and go take them out for a coffee.

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