Two separate things When we worked on our extensive project on Brand Purpose (1), we reached the conclusion that there is often a large amount of...
The Sharing Economy is developing fast and is having game-changing effects on a number of industries.
In part, this effect is driven by the different values of new generations (or “Millennials”) vs older generations. Status no longer comes with ownership and per se is less important than in the past anyway.
At the same time there is an emerging Switching Economy, particularly in the service industries, whereby consumers tend to change providers more easily and more often than in the past (partly because in many countries services that were state run have now been privatized and competition is fierce.)
However the Switching Economy has so far been looked at in terms of customer service. That’s too simplistic and we should start considering it in a broader light…
People – in particular the new digital generations – increasingly switch mobile phone providers, electricity companies, banks, insurance as a way of saving money (or getting more for the same money) by riding the continuous promotional waves. They’re not necessarily dissatisfied with the service
In fact the Sharing Economy and the Switching Economy are two sides of the same coin…
- They reflect the new decision power of individuals who don’t accept anymore to be “owned” by any brand.
- The single action of switching is a ‘free act’ that demonstrates to oneself that (s)he is the one who decides.
Sharing and Switching should be brought together into a single mindset shift that all providers and suppliers need to get their heads around pretty fast before they wake up one morning and find that all their cattle has gone off to graze elsewhere and aren’t regretting it.