Dr. Pero Mićić

What are your real opportunities in the crisis?

Crisis opportunity no. 03: Focus your business model on an eternal need

The crisis stirs up everything, calls everything into question. Therefore, especially now in the crisis, it is possible to rethink and rebuild your business from scratch. So that you can make it safe, crisis robust and more successful. So that you can reflect on your future business and give your team a motivating perspective. Put the only constant in the business world at the centre of your business model: the emotional effects, the eternal need, for which customers only pay.

No, this is not about sales tricks, as in “Don’t sell the product, sell the benefit”. No. This is existential, about identity, about the basic business model. It’s about how disruption works.

What do your customers really pay you for? What eternal need do you have to address?

Surely you will have heard that customers do not buy a drill, but the hole. And this is wrong. They buy a more beautiful apartment because of the picture on the wall and the emotion they expect from it. Like pride or joy. That will never change. But how we bring pictures into our homes will always change. They will be displays and projections.

Your customers and your customers’ customers never buy the products, services and solutions. They only ever buy emotional effects. In a rough breakdown, these are security&safety, profit, progress, appreciation, connection to people, convenience, joy.

What eternal need do you have to address?

That sounds theoretical to you? I don’t know what is more practical than a factor that has destroyed hundreds of thousands of businesses and created just as many!

You don’t buy a streaming music subscription, you buy the emotion that the music creates. That hasn’t changed since the record, the MC and the CD. They don’t buy a tunneling machine, they don’t buy the hole and tunnel in the ground, but they buy the encounter with other people and they buy the availability of goods. That will never change. But how you solve it will always change.

They don’t buy the car, but they buy – on a simple level – transportation from A to B. But on a higher level they buy meeting other people and they buy prestige and joy. That will never change. But in the future we will not need our own car for these effects, but perhaps virtual reality and rented robo-taxis.

Why is this principle of effects so crucial?

If you are looking for something in this complex and fast economic world that is really constant, something you can rely on in the long term: Then it is the emotional effects that people want to create for themselves and buy from companies. Once again: That has always been and will always be the only constant in business. This applies to ALL industries. Your products, services and solutions will pass away, but the desired effect will remain forever!

What happens in a disruption?

A competitor offers the same effect to customers, but delivers it in a completely different way, which is better, easier, more convenient or simply cheaper. Amazon instead of shops in the pedestrian zone. Robotaxi instead of owned cars. Super simple electric drive instead of complex combustion engine. Whatsapp instead of texting. Paypal instead of a bank account, streaming as rental of music instead of MP3 downloads. Look around, you will find thousands of examples.

But the thinking of most companies is focused on products and services. Even “solutions” are nothing more than combinations of products and services. Many companies even name themselves after technologies and processes. XY mechanical engineering or ABC motors. This makes such companies and perhaps even you blind to both threats for disruption and opportunities. This works well until an aggressive competitor focuses on the actual emotional impact and you no longer stand a chance.

Your task:

Develop answers to the following questions with your team:

What emotional effects do the end customers of our products, services and solutions pay for? Yes, even if you manufacture machines or cylinder head gaskets, customers pay for emotional effects at the very end of the value chain. Without emotions, nothing has any value for people.

How would a newly founded start-up team financed by Alphabet/Google deliver exactly these effects? They would rethink the customer experience with Design Thinking, and they would go the maximum digital way!

How would Tesla, Apple, Amazon and of course Alphabet deliver the effects?

Which of the business models we discovered can we do ourselves and when?

What do you think about this? What are your questions?

Have a bright future!

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Further crisis opportunities

Crisis opportunity no. 01: Lead! Accept your role as leader and “hero” in the crisis

Crisis opportunity no. 02: Create a credibly positive “future we” for your team

Crisis opportunity no. 04: Make social value the core of your mission

Crisis opportunity no. 05: Intelligentize your business model now

Crisis opportunity no. 06: Virtualize your company

Crisis opportunity no. 07: Make your capability portfolio future-robust

Crisis opportunity no. 08: Use an opportunity radar