Five hundred and sixty (560). That is how many commercial Chapter 11 filings occurred in April 2020, a 26% increase from the same time the year prior.
That is 560 data points proving that creating a value proposition is not a one-time deal, unless you want to be left behind as the market shifts and your business changes to meet those new market needs. Just consider the year 2020 as a microcosm for these shifts. The economy, technology, consumers, and nearly every market in every industry have changed significantly in a few short weeks because of the Covid pandemic.
Some of the companies are large brick-and-mortar retailers like J. Crew, Neiman Marcus, and JCPenney. The market had been trending to online sales for quite some time, yet they got complacent and continued with their legacy brick-and-mortar retail strategy. Coronavirus simply accelerated the consumer transition to e-commerce apparel shopping, leaving these iconic stores behind.
Earlier this year…January to be exact…which feels like a different time and a bygone era. The fundamentals to create or reshape the value proposition still apply. After all, your company culture, your product, and, most of all, your why constitute the raw material for the destiny of your company. But how many of the 560 companies who filed for Chapter 11 in April could have avoided bankruptcy proceedings if they revisited their value proposition and evaluated some of the following questions:
What is your “why”?
Why is it your “why”?
Is there still a need for your product or service? What problem does it solve for customers?
Is there a better way to deliver your product or service for today’s market?
Is your product still unique?
Do customers inherently understand what your product is and how it helps them?
Does your value proposition compel your target audience practically AND emotionally?
Can your product or service transcend a crisis?
The numbers tell the story…have you paid attention to your bottom line?
Ines LeBow is the CEO, Transformation Executive for ETS. She is a known catalyst for business operations, bringing 30+ years of hands-on experience. Ines has a long history of being recruited into senior executive roles to improve the execution of business operations and to drive revenue growth. View the ETS website at www.transformationsolutions.pro.