The document discusses five gaps between companies and their customers as behaviors and expectations change. Customers are more knowledgeable and complete much of their purchase journey online before engaging companies directly. The competition can come from outside traditional categories. Companies often misunderstand what customers are truly paying for with a product or service. To adapt, companies need to change their tools to match how customers now shop, understand the "job" a customer wants done, and rethink what constitutes their product offering.

2. FIVE CUSTOMER GAPS:
CHANGES IN BEHAVIOR, DRIVERS, CATEGORIES AND PRODUCTS
THE KNOWLEDGEABLE
CUSTOMER PEOPLE AND
COMPANIES HAVE
CHANGED HOW THEY SHOP
- AND OUR TOOLS NEED TO
CHANGE WITH THEM
NEW HABITS AND BEHAVIORS
CHANGE THE IMPORTANCE OF
ESTABLISHED MECHANISMS
THE PRODUCT IS
INFRASTRUCTURE- WHAT JOB IS
THE CUSTOMER HIRING US TO
DO - AND HOW COULD WE
DELIVER ON THIS JOB?
THE COMPETITION ISN’T
NECESSARILY THOSE WHO
LOOK AND FEEL IDENTICAL TO
YOU - THE MOST LETHAL
COMPETITION COMES FROM
THE OUTSIDE
WHAT YOU THINK IS THE PRODUCT
ISN’T NECESSARILY WHAT
CUSTOMERS ARE PAYING FOR.

3. NEW HABITS AND BEHAVIORS
CHANGE THE IMPORTANCE OF
ESTABLISHED MECHANISMS
EVEN IF THE EMOTIONAL DRIVERS FOR
BUYING A CAR ARE SIMILAR TODAY AS IT WAS
IN THE 1980’S, THE LOYALTY TOWARDS CAR
BRANDS HAVE FALLEN FROM 60% TO 20% IN
THE PERIOD.
- THE REASON IS THE INTERNET. HOW PEOPLE
ARE BUYING CARS ARE DIFFERENT, NOT WHY

4. NEW HABITS AND BEHAVIORS
CHANGE THE IMPORTANCE OF
ESTABLISHED MECHANISMS
THE BARRIERES TO BECOMING A CUSTOMER ARE DIFFERENT, AND SO THE MEANS BY WHICH CUSTOMERS ARE INFLUENCED ARE DIFFERENT.
TECHNOLOGY RESPONDS TO PEOPLES HABITS AND BEHAVIORS AND BECOMES MORE INFLUENTIAL.

5. THE KNOWLEDGEABLE
CUSTOMER PEOPLE AND
COMPANIES HAVE
CHANGED HOW THEY SHOP
- AND OUR TOOLS NEED TO
CHANGE WITH THEM
CUSTOMERS ARE MORE KNOWLEDGEABLE. READING UP ON COMPANIES AND
THEIR COMPETITORS PRODUCTS ONLINE BEFORE EVEN APPROACHING THEM.
THEY ARE REQUESTING MORE INFORMATION AND CONTENT ABOUT THE
PRODUCTS AND JOBS THEY ARE DOING - THE PHASE OF ACTIVE EVALUATION
BECOMES THE BEST PLACE TO BE FOR BRANDS WHO WANT TO POSITION
THEMSELVES AND MAKE THEMSELVES VISIBLE.
THIS REQUIRES OTHER MARKETING TOOLS THAN TRADITIONAL DISPLAY AND
STORYTELLING, AND IT CHANGES PEOPLES PROPENSITY TO BE AFFECTED BY
TRADITIONAL EMOTIONAL ADVERTISING

6. ACTIVE EVALUATION
INFORMATION GATHERING, SHOPPING
LOYALTY LOOP
POST PURCHASE EXPERIENCE
After purchasing a product or service the
consumer builds expectations based on
experience to inform the next decision journey
The consumer considers an initial set of brands,
based on brand perceptions and exposure to
recent touch points
Consumers add or subtract brands as they
evaluate what they want
Ultimately, the consumer selects a
brand at the moment of purchase
MOMENT OF
PURCHASE
INITIAL
CONSIDERATION
SET
1.
2.
3.
4.
THE NEW SIRLOIN OF MARKETING
2009
THE KNOWLEDGEABLE
CUSTOMER PEOPLE AND
COMPANIES HAVE
CHANGED HOW THEY SHOP
- AND OUR TOOLS NEED TO
CHANGE WITH THEM
TRADITIONALLY BRANDS ARE PRESENT IN THE GREEN DOTS. THESE ARE VERY EXPENSIVE PLACES TO BE. IN THE NEW AREAS (GREY BACKGROUND)
COMPANIES CAN ACHIEVE GREAT THINGS BUT THIS REQUIRES A NEW TYPE OF MARKETING PRODUCT AND NEW FORMATS.

7. THE KNOWLEDGEABLE
CUSTOMER PEOPLE AND
COMPANIES HAVE
CHANGED HOW THEY SHOP
- AND OUR TOOLS NEED TO
CHANGE WITH THEM
IN B2B CUSTOMERS HAVE ALREADY COMPLETED 60% OF THEIR CUSTOMER JOURNEY BEFORE TALKING TO SOME COMPANIES. SALES BECOMES LESS ABOUT
PRESENTING PRODUCT INFORMATION AND MORE ABOUT HELPING CUSTOMERS CREATIVELY IMPROVE THEIR BUSINESS POTENTIAL WITH THE PRODUCTS.

8. THE PRODUCT IS
INFRASTRUCTURE- WHAT JOB IS
THE CUSTOMER HIRING US TO
DO - AND HOW COULD WE
DELIVER ON THIS JOB?
CUSTOMERS DON’T BUY PRODUCTS, THEY HAVE A JOB TO DO
AND HIRE YOUR PRODUCT TO HELP THEM WITH THIS JOB.
UNDERSTANDING AND DESIGNING YOUR OFFERING AS A PART
OF CUSTOMERS CONTEXT / JOB CREATES THE OPPORTUNITY
TO BECOME MORE MEANINGFUL AND PRESENT IN THEIR LIVES
- OUTSMARTING THE COMPETITION.

9. THE PRODUCT IS
INFRASTRUCTURE- WHAT JOB IS
THE CUSTOMER HIRING US TO
DO - AND HOW COULD WE
DELIVER ON THIS JOB?
YARA PRODUCES THE BEST FERTILIZER IN THE WORLD. BUT FARMES DON’T BUY FERTILIZER - THEY DO WHATEVER THEY CAN TO GET THE BEST CROPS POSSIBLE.
TO DO THIS FARMERS DON’T ONLY NEED FERTILIZER, THEY ALSO NEED TO KNOW WHEN, WHERE AND HOW MUCH TO FERTILIZE WITH WHAT. OFFERING
ANSWERS TO THIS THROUGH SENSORS AND TECHNOLOGIES ON FARMING EQUIPMENT AND OUT IN THE FIELDS CAN CREATE A DAILY RELATIONSHIP WITH
FARMERS, OFFERING FAR MORE THAN JUST BAGS OF FERTILIZER ON A TRUCK ONCE A MONTH.

10. JOBS-TO-BE-DONE
THE PRODUCT IS
INFRASTRUCTURE- WHAT JOB IS
THE CUSTOMER HIRING US TO
DO - AND HOW COULD WE
DELIVER ON THIS JOB?

11. THE COMPETITION AREN’T
NECESSARILY THOSE WHO
LOOK AND FEEL IDENTICAL TO
YOU - THE MOST LETHAL
COMPETITION COMES FROM
THE OUTSIDE
IF YOU ASKED A CONVENIENCE STORE IN OSLO IN
2012 WHAT THE BIGGEST THREAT WOULD BE IN 2013
THEY WOULD POINT TO THE OTHER SIDE OF THE
STREET AND SAY - ‘IF A COMPETING CONVENIENCE
STORE OPENS OVER THERE’.
THE WORST THING THAT DID HAPPEN WAS THE
MOBILEPHONE TICKET ORDERING APPLICATION FOR
THE PUBLIC TRANSPORT COMPANY.
THE PROBLEM BEING THAT THE STORES ALL KNEW
ABOUT THE APP, BUT NOBODY DID ANYTHING
BECAUSE THE THREAT DIDN'T LOOK IDENTICAL TO
THEMSELVES.

12. THE COMPETITION ISN’T
NECESSARILY THOSE WHO
LOOK AND FEEL IDENTICAL TO
YOU - THE MOST LETHAL
COMPETITION COMES FROM
THE OUTSIDE
THE MAP SHOWS HOW PATENTS IN USA ARE CONNECTED CROSS-INDUSTRIES (COLORS ILLUSTRATE
INDUSTRIES AND LINES BETWEEN THEM PATENS). THERE ARE NO INDUSTRIES ANYMORE.

13. “THESE PEOPLE AREN’T
EVEN TRYING TO DISRUPT
YOUR BUSINESS MODEL.
YOU ARE JUST
COLLATERAL DAMAGE.”
- EDDIE JOON -
THE COMPETITION ISN’T
NECESSARILY THOSE WHO
LOOK AND FEEL IDENTICAL TO
YOU - THE MOST LETHAL
COMPETITION COMES FROM
THE OUTSIDE
THE TICKET APPLICATION FROM THE TRANSPORTATION COMPANY WASN’T EVEN TRYING TO DISRUPT THE
CONVENIENCE STORES, THE STORES WERE JUST COLLATERAL DAMAGE. ACCENTURE SUGGEST THAT THE BEST
CUSTOMER EXPERIENCE OR CUSTOMER SERVICE WINS - CUSTOMERS DON’T CARE ANYMORE WHO OFFERS THEM.

14. WHAT YOU THINK IS THE PRODUCT
ISN’T NECESSARILY WHAT
CUSTOMERS ARE PAYING FOR.
NOBODY WANTS, NEEDS OR HAS A RELATIONSHIP
WITH THEIR VISA-CARD NUMBER - SO GETFINAL JUST
REMOVES THEM, (OR GIVES YOU A MILLION).
THE POINT IS THAT THE THINGS/INFRASTRUCTURE
COMPANIES THINK ARE IMPORTANT TO CUSTOMERS
MIGHT BE COMPLETELY IRRELEVANT TO THEM.

15. WHAT YOU THINK IS THE PRODUCT
ISN’T NECESSARILY WHAT
CUSTOMERS ARE PAYING FOR.
VIDEO LINK: http://youtu.be/8ZtG5DX5FR0

16. WHAT YOU THINK IS THE PRODUCT
ISN’T NECESSARILY WHAT
CUSTOMERS ARE PAYING FOR.
AIRBNB ARE MORE INTERESTED IN TRAVEL EXPERIENCES THAN ROOMS, PRICE OR LOCATION (THE TRADITIONAL DELIVERABLES OF THE HOTEL INDUSTRY).
AND SO THEY ARE SEEING THE CUSTOMERS THROUGH A LARGER LENS AND CREATING SERVICES FOR THEM THAT ARE MEANINGFUL TO THEM. AIRBNB ARE IN
A MEANINGFUL SPACE TO TRAVELLERS, WHILE TRADITIONAL HOTELS ARE SELLING INFRASTRUCTURE.

17. WHAT YOU THINK IS THE PRODUCT
ISN’T NECESSARILY WHAT
CUSTOMERS ARE PAYING FOR.
BANKS DIDN’T UNDERSTAND THAT BOTH STARBUCKS AND TESCO WANTED TO BUY SEAMLESSNESS (NOT BANKING
INFRASTRUCTURE). IBM DIDN’T UNDERSTAND THAT YAHOO WANTED TO BUY SPEED (NOT SERVER SOFTWARE).

18. CHANGES IN BEHAVIOR, DRIVERS, CATEGORIES AND PRODUCTS
THE KNOWLEDGEABLE
CUSTOMER PEOPLE AND
COMPANIES HAVE
CHANGED HOW THEY SHOP
- AND OUR TOOLS NEED TO
CHANGE WITH THEM
NEW HABITS AND BEHAVIORS
CHANGE THE IMPORTANCE OF
ESTABLISHED MECHANISMS
THE PRODUCT IS
INFRASTRUCTURE- WHAT JOB IS
THE CUSTOMER HIRING US TO
DO - AND HOW COULD WE
DELIVER ON THIS JOB?
THE COMPETITION ISN’T
NECESSARILY THOSE WHO
LOOK AND FEEL IDENTICAL TO
YOU - THE MOST LETHAL
COMPETITION COMES FROM
THE OUTSIDE
WHAT YOU THINK IS THE PRODUCT
ISN’T NECESSARILY WHAT
CUSTOMERS ARE PAYING FOR.
FIVE CUSTOMER GAPS:

20. COMPANIES ROUTINELY INVEST IN TECHNOLOGY, AND TOO
OFTEN FEEL THEY GET ROUTINE RESULTS. TECHNOLOGY’S
PROMISE IS NOT SIMPLY TO AUTOMATE PROCESSES, BUT TO
OPEN ROUTES TO NEW WAYS OF DOING BUSINESS.
78% of respondents, achieving digital transformation will become critical to their organizations within the next two years.
However, 63% said the pace of technology change in their organization is too slow.
The most frequently cited obstacle to digital transformation was “lack of urgency.”
MIT Sloan Management Review
http://sloanreview.mit.edu/projects/embracing-digital-technology/
COMPANIES INVEST LARGE AMOUNTS IN TECHNOLOGY JUST TO COPY WHAT THEY ALREADY HAVE - INSTEAD OF IMPROVING, BUILDING OR
RETHINKING COMPLETELY WHAT THEY ARE DOING. TECHNOLOGY OFFERS NEW WAYS OF CREATING CUSTOMERS - IF YOU LET IT.