We live in the "instant service" era, ushered in by constantly changing on-demand technologies. Businesses, across verticals, that are technologically nimble and harness the power of "instant" are among the success stories. Uber, Instacart (instant groceries) and Drizly (instant alcohol) are examples of companies that swooped in with instant service models, and now it’s a consumer expectation. CEOs and startups that aren’t figuring out a way to incorporate "instant" into business strategies -- whether it’s the core of the model, or a design principle for building out product features or communication with customers -- won’t remain competitive. Investors are keener than ever to it, and the money doesn’t lie -- instant service is what comes to mind when perusing the largest startup funding rounds of the last two years.
But, entrepreneurs and startups need to differentiate between the hype and real business opportunities in the tech landscape to establish lasting power. It takes a combination of flexibility, on-demand service, convenience and transparency to catch fire with an audience after instant gratification -- and to catch the eye of investors.
Under-Served Industries That Lag in Technology
Take taxis: an industry that’s withstood the test of time and stayed true to its traditions. In 2007, it made waves when New York became the first major city to require that cabs have televisions; and it took until 2009 and 2012 for cities like Boston and Minneapolis (respectively) to make credit card payment a requirement. These efforts were mere blips in terms of a real technology break-through, and the industry was prime for a shake-up. In 2009, a transportation company was founded that develops, markets and operates under a mobile app…Uber stormed in and annihilated taxis.
All this by elevating the level of service to instant through technology -- something that, in itself, is a lucrative business model.
Established Companies: Evolve or Die Trying to Catch Up
The airline industry has struggled to achieve loyalty -- travel brands are known for relying on rewards and free gifts to keep customers coming back. But forward-thinking airlines are understanding the kinds of instant service that resonate most with travelers’ needs to take loyalty deeper than just the surface.
KLM, a carrier airline of the Netherlands, realized the high-demand for customer service -- and for instant service -- and combined both into a lucrative social media model. Its extensive presence in the social world has not only become well-known, but has become centric to several services offered. KLM updates its Twitter page every five minutes with an expected wait time for a response. The company staffs 100 people to answer questions via Facebook, Twitter or LinkedIn, 24/7 and in over a dozen different languages. It’s instant service, and it’s also marketing for ROI -- helping sell millions of dollars’ worth of flights and keep the airline competitive.
Established companies have found much success in building supporting services around "instant", just as KLM infused it in customer service.
Business lines centered on instant service are starting to make a significant impact on loyalty. Since self-service in the banking industry has picked up pace, customers are increasingly relying on these capabilities as a key differentiator for making bank provider decisions. A survey from SNL Financial recently found that more than half (54 percent) of respondents have switched accounts based on which bank had the better app. Accessibility and flexibility -- such as cashing checks outside of bank hours -- are the services consumers demand.
Some industries as a whole are behind when it comes to technology. In real estate, instant service is tough to come by -- property managers often run their businesses under traditional models that affect consumers with instant expectations. Modern property managers are adopting services and technology that are pushing the industry to adapt, such as offering online and mobile rent payment.
Today, startups and established companies alike are faced with an "innovate or die" mentality. It’s imperative to leverage technology to solve customer problems in the most instant and elegant ways -- and deliver on tomorrow’s value, not yesterday’s problems. The expectation of instant service requires adding value and also holding yourself, as the company, accountable.
Startups that’ll capture investor dollars and success will continue to understand the evolving requirements of instant service and how to push the boundaries in their respective industries. They’ll continue elevating the level of service to create real business opportunities through technology.
Photo credit: endermasali / Shutterstock
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