Howard Tullman, visionary and CEO of renowned startup hub in Chicago, “1871” shares his perspective on where the business world is heading to Tom, Tony and the tastytrade audience. Today they talk about specializing before scaling and Tullman gives examples of who is doing it right. There may also be some references to Octamom and multi-flavored tic-tacs.
Creating Loyal Customers is the Key to Revenue Growth
Tullman says Starbucks is ‘killing it’ with their loyalty programs, and that Starbucks cardmembers spend three times more than non-members, and believes this is because they’ve worked to develop a captive population and will surpass McDonald’s annual revenue sooner than later.
Specializing is Most Important
Tullman recently wrote an article on Inc.com called 'Never Try to Boil the Ocean' which stresses the point of learning to specialize. Since brands can’t be all things to all people, it’s important to have an expertise that makes a company valuable and a product people will pay for. Once a company has their specialization in a good place, they are ready to scale.
Is Everything Going to be Monetized?
Tullman says everybody has some sort of skill, and the way the economy is structured now has created an ability for people to sell whatever skill they have...whether it’s chores, work, advice. He says companies who give time back to consumers and make doing business very convenient will be more successful.
Sosnoff, on the other hand, totally disagrees. He says people want to be intellectually challenged and uses the tastytrade customer base as an example.
Watch the segment below!
What do you think? Do you think people value the convenience of hiring a service or that they want to do things themselves? Leave a comment below.