Panera has completed some wonderful issues over the previous couple of years… however are they sufficient to ship a knockout blow to their competitors? Only Panera is aware of for certain however I’m hopeful they’re going to ship an enormous knockout punch as a substitute of miss an enormous alternative.
Based on an article in the Wall Street Journal, “What Panera Had to Change to Make Its Menu ‘Clean'” the CEO, Ron Shaich, describes how they’ve utterly modified most of their meals elements to be a lot more healthy and with out chemical substances… kudos to him and Panera. This is a superb begin and one thing each firm must be doing right this moment and into the future. By doing this, Panera is certainly taking the lead and leaping out in entrance of many others.
But there’s an inherent drawback with this technique… have you ever acknowledged it but?
With all the good work Panera and Ron Shaich have completed to vary the elements of their meals, it is nonetheless simply meals… a commodity. You can get a lot of nice meals in all places right this moment and it as a result of it’s so available, it has turn into a commodity. And as nice as their efforts are, there’s nothing maintaining any of their rivals from doing the identical factor… or much more. That’s the drawback with the “commodity game”, there’s at all times somebody ready in the wings to “one-up” you and supply one thing just a bit bit higher than what you supply. It is a loser’s sport.
Unfortunately, that is what most organizations miss right this moment when they’re occupied with how you can differentiate themselves from their competitors. They concentrate on their services and regularly attempt to enhance them increasingly more to be higher than their competitors. They are regularly including new options, new variations, and new variations. This is taking part in immediately into the hand of commoditization. Anyone can enhance their product to fulfill or beat your services at any time. This “leap frog” sport of 1 being forward of the different after which another person leaping previous them is the definition of being a commodity. And taking part in on this sport shouldn’t be solely irritating however very costly over time.
While having an superior services or products is a superb factor, it has virtually turn into the norm right this moment for nearly any services or products. There are simply too many rivals and too many corporations seeking to bounce in and seize the lead. It merely is not sufficient right this moment to set you aside and differentiate your organization… a minimum of not for very lengthy. It takes extra to be the true differentiated chief right this moment as a result of somebody is at all times ready in the wings to “one up” no matter you supply.
Think about so many “disruptors” that entered the market in the previous couple of years that had been by no means on the radar display screen of a specific trade and now they’ve a commanding place. Companies like Uber, Tesla, Airbnb, and plenty of others. They did not exist however they noticed a possibility and they also created a extra environment friendly mannequin and entered these industries. Where did they arrive from? No one was even watching them and so they confirmed up and took billions out of those industries. Don’t suppose it could occur to your trade… suppose once more… no trade is immune when commodities are concerned.
This is the scenario Panera is sitting in proper now. They are sitting on prime of the commodity market with the greatest elements (right this moment) in the market… they lead the commodity area of meals of their section. Congrats to them for attending to this enviable spot! But is it sufficient?
I imagine they’re effectively positioned to ship the “Knockout Punch” in the event that they acknowledge and seize the alternative… however will they acknowledge it or miss it?
Here’s the Knockout Punch… including an extremely exceptional CUSTOMER EXPERIENCE to their current management place with their merchandise!!
That’s it… that is the killer blow they may ship to their competitors. If they added a WOW, blow your thoughts buyer expertise to their shops to enhance their current nice merchandise with nice elements, who may contact them… nobody. This would put an enormous hole between them and any competitor of their area… and for a very long time. This is what would take them out of the “commodity game” and put them into the “Customer Obsession” sport.
If they invested in designing a buyer expertise that was so a lot better than their rivals they’d dominate their trade… interval!
Why? Because even when somebody got here in and provided comparable nice merchandise their clients are impossible to defect to the competitors in the event that they completely love the approach they’re being handled. It is confirmed that clients are unlikely to depart if they’re getting an unbelievable expertise. In truth, they’re additionally keen to pay extra for this expertise as effectively.
So in the case of Panera, they’re sitting on an unbelievable alternative… capitalizing on their nice work with their elements and merchandise by providing an superior buyer expertise to enhance their management in the commodity area. Giving their clients and expertise they rave about and meals constituted of higher elements is the “one-two knockout punch” they should actually set them aside from their rivals.
Will they acknowledge this chance or miss it? Only the CEO, Ron Shaich is aware of the reply to this query. If he is not considering this fashion, I hope he reads my weblog publish and adjustments his thoughts. I actually get pleasure from Panera and have spent many hours of their shops. I’m cheering for them… I would like them to win. I would like them to grab the alternative sitting in entrance of them and create one thing that can actually dominate of their trade. I need to see this success story unfold…
I hope you can be watching Panera over the coming months and years to see in the event that they acknowledge the alternative and might benefit from it. It needs to be an fascinating story to look at and see the way it unfolds. Maybe I ought to drop a remark card to Ron…
But this publish is not nearly Panera… IT’S ABOUT YOU! Panera is a superb instance of an organization that could be identical to yours. You could also be main in the commodity area of merchandise… kudos to you. But are you main in the Customer Obsession area and delivering a Customer Experience that eclipses your competitors? Most corporations aren’t… in truth a few of the analysis exhibits lower than 15% of the corporations are doing this right this moment… that could be a large inexperienced discipline accessible.
So the query is what are you doing as the chief of your organization to grab this kind of alternative and actually differentiate your organization and put large distance between you and your rivals? What is in your Vision and Strategy that may assist you to benefit from this chance? Where is Customer Obsession in your checklist of priorities to your firm in the coming 12 months? These are the questions I’d problem each chief to consider and focus on with their management group. The alternative is there for many corporations in most industries… the gauntlet is on the floor.
If you need to know extra or focus on what Customer Obsession is absolutely all about, make investments a while and a cup of espresso and I shall be completely satisfied to share extra about what this seems to be like for organizations. It may simply open your eyes to the greatest alternative your organization has ever seen. What do it’s a must to lose… staying as the commodity chief or changing into the unquestioned chief in your trade. I hope you select the latter… it is a great place to dwell.