We are living through an era of big: Big Data, big vision, The Big Idea, the next “big” thing. Big budgets go to big campaigns. But I want to pause a moment to make the case for “small.” It’s really important for business leaders and marketers today to think about “small” – small campaigns, small tests, and most importantly, small pockets of growth.
Growth can be hard to find but the truth is that for many business, growth is all around you. It’s just a matter of finding it. Consider this: Averages lie. By that I mean that companies need to adapt to dig more deeply into their data to uncover the rich pockets of growth that standard broad calculations often overlook.
My colleagues recently recommended developing “market maps” as a way to systematically identify where the pockets of growth actually are. This is literally about plotting out where all those growth opportunities are (read A game of inches). They cite a wonderful example of a European consumer goods company that analyzed consumer behaviors, which revealed the company had no presence in almost two-thirds of the attainable marketplace. This insight helped the company to adjust its strategy and develop new products to profitably address those gaps, moves that the company projected would grow revenues by 8 to 14 percent over three to five years.
This insight is based on developing a really clear understanding of how customers see the category and tradeoffs they make when making purchase decisions. This is about going deep into discussions with people about how they really make choices – what motivates them, what influences them, what they really care about. Data is helpful, but this level of insight is based on much more intimate and personal levels of interaction.
That more granular approach is evident in how companies think about penetrating into new countries, which is the standard approach. The truth is that companies should be looking at breaking into cities, which have different opportunity profiles from the country at large. When you look at the fashion industry, for example, Shanghai is as large a market as Poland and Portugal. And cities like Tianjin and Chongqing are among the top 20 fastest growing cities for women’s apparel.
This “small” approach even applies to how you connect with customers too. Sometimes it’s the small things you do that matter the most – like when the Soho Grand Hotel offers a guest a pet goldfish.
Yes, you need some big systems to make this work but you really have to think small. Here’s a question every business leader should ask him/herself when embarking on a project: How can I make this smaller?