Business Abandonment Cycle RIS LLC


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Business Abandonment Cycle RIS LLC

  1. 1. Exploring the Business Abandonment Cycle<br />Dr. CharmayneCullom<br />and<br />Richard S. Cullom<br />9/24/2011<br />Ridgetop Information Solutions LLC<br />1<br />
  2. 2. Business Research<br />9/24/2011<br />Ridgetop Information Solutions LLC<br />2<br />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?<br />
  3. 3. Cultural Influences<br />9/24/2011<br />Ridgetop Information Solutions LLC<br />3<br />The following cultural shifts influence Business Cycles:<br /><ul><li>Consumerism
  4. 4. Green Movement
  5. 5. Social Selling
  6. 6. Social Branding
  7. 7. Customer Communities
  8. 8. Hyper-Accelerated Business Cycle
  9. 9. Multiple Economic Downturns</li></li></ul><li>Cultural Hypothesis<br />9/24/2011<br />Ridgetop Information Solutions LLC<br />4<br />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.<br />The new curve is more dramatic and the associated action/response process plays out in multiple traditional and social mediums.<br />
  10. 10. Business Abandonment Cycle<br />C<br />H<br />A<br />S<br />M<br />Mass<br />Migration<br />Rhino<br />Birds<br />Angry<br />Herds<br />Trailing<br />One Offs<br />9/24/2011<br />Ridgetop Information Solutions LLC<br />5<br />
  11. 11. Rhino Birds<br /><ul><li>Original Pioneers
  12. 12. Influencers who </li></ul> Live Out Loud<br /><ul><li>First to Believe
  13. 13. First to Complain and Warn Company of issues and problems
  14. 14. Believe they made the Company – personal ownership in success
  15. 15. Willing to take the Company down on loss of trust</li></ul>9/24/2011<br />Ridgetop Information Solutions LLC<br />6<br />
  16. 16. Researching Rhino Birds<br />Initial symbiotic relationship with company<br />Receives early offers<br />“beta” testers<br />Starts buzz about company/products<br />Heavy reliance on leading edge communications of social network of the day<br />Provides product improvements guidance as part of relationship<br />9/24/2011<br />Ridgetop Information Solutions LLC<br />7<br />
  17. 17. Angry Herd<br /><ul><li>Original Early Adopters
  18. 18. Silent Early Majority
  19. 19. Won’t complain publicly
  20. 20. Looking to Rhino birds as Influencers and warning of changes both favorable and unfavorable to the herd
  21. 21. Unknowingly building numbers</li></ul>9/24/2011<br />Ridgetop Information Solutions LLC<br />8<br />
  22. 22. Researching the Angry Herd<br />Movement gains momentum with group collective strength<br />Never a leader but a quick study to follow<br />Proud to be a quick decision maker once the route is established by Rhino Birds<br />Learns of much of the information from following social networking communication <br />9/24/2011<br />Ridgetop Information Solutions LLC<br />9<br />
  23. 23. Crossing the Chasm<br /><ul><li>The tipping point for the organization
  24. 24. Reliable media picks up story and runs with it.
  25. 25. The reliable media outlets drive the continued momentum of the herd migration
  26. 26. The reliable media validates the claims of the Rhino Birds
  27. 27. The Angry Herd becomes vocal as part of the growing movement</li></ul>C<br />H<br />A<br />S<br />M<br />9/24/2011<br />Ridgetop Information Solutions LLC<br />10<br />
  28. 28. Researching The Chasm<br />There is a relationship between the rhino birds and reliable media outlets.<br />The tipping point is unique (time, place, organization, industry, culture).<br />The tipping point is hard to predict.<br />9/24/2011<br />Ridgetop Information Solutions LLC<br />11<br />
  29. 29. Mass Migration<br /><ul><li>Driven by the media
  30. 30. Followers who make the herd bigger
  31. 31. The herd is not as angry, but on the move, carried by the momentum of the growing perception reinforced by the herd
  32. 32. Momentum and perception are almost impossible to stop, only turn</li></ul>9/24/2011<br />Ridgetop Information Solutions LLC<br />12<br />
  33. 33. Researching Mass Migrations<br />The joiner doesn’t want to be left out of movement.<br />Sees that the herd is moving and joins so not alone.<br />Obtains much of the information about the movement from reliable media sources as opposed to social networking.<br />9/24/2011<br />Ridgetop Information Solutions LLC<br />13<br />
  34. 34. Trailing One Offs<br /><ul><li>Last to move
  35. 35. Holding out in case the perception changes
  36. 36. Collection of die hards and people who just didn’t notice
  37. 37. Often referred to as “laggards” in the adoption cycle.</li></ul>9/24/2011<br />Ridgetop Information Solutions LLC<br />14<br />
  38. 38. Researching Trailing One Offs<br />Determines from reliable media and word of mouth that now is the time.<br />Joins the group reluctantly as really does not like change but now miserable enough to make the move.<br />Last to join and last to leave!<br />9/24/2011<br />Ridgetop Information Solutions LLC<br />15<br />
  39. 39. Business Abandonment Cycle<br />match to the Adoption Cycle<br />The Early Majority<br />upslope of the adoption curve<br />The top of<br />the adoption<br />curve<br />The Early Adopter<br />slope (before crossing the chasm)<br />The downslope<br />of the Late Majority of the adoption curve<br />C<br />H<br />A<br />S<br />M<br />9/24/2011<br />Ridgetop Information Solutions LLC<br />16<br />
  40. 40. Opportunity<br />to stop herd<br />momentum<br />Opportunity<br />to save the<br />company<br />Opportunity<br />to stop early<br />migration<br />Opportunity<br />to turn the<br />herd<br />C<br />H<br />A<br />S<br />M<br />Save by<br />Engaging<br />Community<br />Save by<br />Communicating<br />the Vision<br />Survival Mode<br />Discounting<br />Prepare for Sale<br />Branding and Direct<br />Competition (back to the basics)<br />Manage Media <br />Perception &<br />Abandonment<br />Momentum<br />9/24/2011<br />Ridgetop Information Solutions LLC<br />17<br />
  41. 41. 9/24/2011<br />Ridgetop Information Solutions LLC<br />18<br />Early Lessons<br />1. Organizations must LISTEN <br />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.<br />Sensing the approaching build up of the Angry Herd, the organization must address the issues with respect in order to retain the position.<br />
  42. 42. 9/24/2011<br />Ridgetop Information Solutions LLC<br />19<br />Early Lessons<br />2. Organizations must SERVE<br />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.<br />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.<br />
  43. 43. 9/24/2011<br />Ridgetop Information Solutions LLC<br />20<br />Early Lessons<br />3. Organizations must RESPECT<br />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.<br />Allowing people to be individual participants in the herd is one of the keys to maintaining the integrity of the organization’s brand.<br />
  44. 44. For more information on the Business Abandonment Cycle<br />Dr. CharmayneCullom<br /><br />Richard S. Cullom<br /><br />9/24/2011<br />Ridgetop Information Solutions LLC<br />21<br />