Few people walk into a hardware store wanting to buy a 1/4 inch drill bit. They are not interested in the hardware or the product. What they really want is to hang a picture on the wall — the outcome. This is the outcome economy — where the emphasis is on the end result or experience a consumer or business is striving for.
What can businesses do to switch from thinking about selling widgets to providing a desired outcome?
This is Seth Marlowe, a Treasury Insights Consultant with Treasury, Merchant & Payment Services with Wells Fargo to talk about winning in the outcome economy and transforming treasury to meet next-generation expectations.
It’s critical to understand what emerging generations expect — otherwise, you could be a swipe away from being replaced.
Taking a minute to understand the Millennial mindset can help you understand and internalize this shift.
First, think of an invention … any invention. Now, think about how that invention revolutionized society when it first burst onto the scene. At whatever time an invention is introduced, it has huge power to disrupt and redefine normal. However, that same invention is perceived as standard to someone in a later generation — and its disruptive impact is now just taken-for-granted legacy. Today’s Millennials have critical mass as the largest generation ever, so their expectations of “standard” may seem outrageous to older generations, but their perception is not unique to them and has played out in every generation before.
The key for businesses is to set a strategy to exceed expectations, because next-generations have little tolerance for clunky, unintuitive, or time-consuming processes, technology, and services. If they encounter any type of friction — they will simply move on to find a seamless and immediate experience elsewhere.
Friction is innate in our organizations, but to stay relevant your processes should be effective — but also seamless and invisible. What friction points can you tackle within treasury?
Meeting expectations in an outcome economy means adopting a Millennial mindset that cares about outcomes, ease, and experiences — more than products, backend processes, and narrow definitions of roles.
It means embracing emerging technologies, and using your existing systems and digital tools in fresh ways. It means thinking like an innovator by finding and eliminating friction points. By seeking ways to simplify complexity. By envisioning what’s possible and challenging the status quo.
Fortunately, you don’t have to figure it out on your own or do it all at once. You can start by reaching across the aisle to enlist the support of IT, operations, or marketing all within your own company — and external resources like your bank.
All these individuals are your allies in the transformation and can help you and your organization stay relevant in the outcome economy.
To learn more, please visit wellsfargo.com/treasuryinsights and listen to our webinar replay on this topic.
Recording length: 3:33