Business Abandonment Cycle RIS LLC

Ridgetop Information Solutions LLC 1

Exploring the Business Abandonment Cycle

Dr. Charmayne Cullom

and

Richard S. Cullom

9/24/2011


Business Research

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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?


Cultural Influences

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The following cultural shifts influence Business Cycles:

Consumerism Green Movement Social Selling Social Branding Customer Communities Hyper-Accelerated Business Cycle Multiple Economic Downturns


Cultural Hypothesis

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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.

The new curve is more dramatic and the associated action/response process plays out in multiple traditional and social mediums.


RhinoBirds

AngryHerds

MassMigration

TrailingOne Offs

Business Abandonment Cycle

CHASM

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• Original Pioneers

• Influencers who Live Out Loud

• First to Believe

• First to Complain and Warn Company of issues and problems

• Believe they made the Company – personal ownership in success

• Willing to take the Company down on loss of trust

Rhino Birds

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Researching Rhino Birds

• Initial symbiotic relationship with company• Receives early offers• “beta” testers• Starts buzz about company/products• Heavy reliance on leading edge

communications of social network of the day• Provides product improvements guidance

as part of relationship

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Angry Herd

• Original Early Adopters

• Silent Early Majority

• Won’t complain publicly

• Looking to Rhino birds as Influencers and warning of changes both favorable and unfavorable to the herd

• Unknowingly building numbers

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Researching the Angry Herd

• Movement gains momentum with group collective strength

• Never a leader but a quick study to follow• Proud to be a quick decision maker once

the route is established by Rhino Birds• Learns of much of the information from

following social networking communication

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Crossing the Chasm

CHASM

• The tipping point for the organization

• Reliable media picks up story and runs with it.

• The reliable media outlets drive the continued momentum of the herd migration

• The reliable media validates the claims of the Rhino Birds

• The Angry Herd becomes vocal as part of the growing movement

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Researching The Chasm

• There is a relationship between the rhino birds and reliable media outlets.

• The tipping point is unique (time, place, organization, industry, culture).

• The tipping point is hard to predict.

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Mass Migration

• Driven by the media

• Followers who make the herd bigger

• The herd is not as angry, but on the move, carried by the momentum of the growing perception reinforced by the herd

• Momentum and perception are almost impossible to stop, only turn

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Researching Mass Migrations

• The joiner doesn’t want to be left out of movement.

• Sees that the herd is moving and joins so not alone.

• Obtains much of the information about the movement from reliable media sources as opposed to social networking.

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Trailing One Offs

• Last to move

• Holding out in case the perception changes

• Collection of die hards and people who just didn’t notice

• Often referred to as “laggards” in the adoption cycle.

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Researching Trailing One Offs

• Determines from reliable media and word of mouth that now is the time.

• Joins the group reluctantly as really does not like change but now miserable enough to make the move.

• Last to join and last to leave!

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The top ofthe adoptioncurve

CHASM

The Early Majorityupslope of the adoption curve

The Early Adopterslope (before crossing the chasm)

The downslopeof the Late Majority of the adoption curve

Business Abandonment Cyclematch to the Adoption Cycle

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Save byEngagingCommunity

Save byCommunicatingthe Vision

Manage Media Perception &AbandonmentMomentum

Opportunityto stop earlymigration

CHASM

Branding and DirectCompetition (back to the basics)

Survival ModeDiscountingPrepare for Sale

Opportunityto stop herdmomentum

Opportunityto save thecompany

Opportunityto turn theherd

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Ridgetop Information Solutions LLC 189/24/2011

1. Organizations must LISTEN

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.

Sensing the approaching build up of the Angry Herd, the organization must address the issues with respect in order to retain the position.

Early Lessons


2. Organizations must SERVE

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.

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.

Early Lessons


3. Organizations must RESPECT

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.

Allowing people to be individual participants in the herd is one of the keys to maintaining the integrity of the organization’s brand.

Early Lessons


For more information on the

Business Abandonment Cycle

Dr. Charmayne Cullom

[email protected]

Richard S. Cullom

[email protected]

9/24/2011

Business Abandonment Cycle RIS LLC

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