It’s a tough world out there. The stock market is going through wild gyrations and now even politicians are seeing that this New Economy has a lot to do with the Old Economy we left way back in the 20th Century---certain principles still matter.

When we study why tech companies fail and why they are doing poorly, there are certain traits and certain reasons. Here are some key reasons why they fail and what you can do to avoid those traps for your company and your personal life.

• It ain’t about the technology. As great as it seems, the technology is not the main thing. The main thing is figuring out how to make life better and easier for people. All businesses are in business to create customers that are satisfied, loyal and “giddy with glee.” This has been true throughout the centuries. Just because we have “really cool” fast Internet connections doesn’t mean that we have what it takes to make people loyal to you and your business. The technology alone will be dull and dry whether it is with an old telegraph or the fastest Internet connection out there.
• It is about the people. I’ve yet to see a computer buy something. It always takes a person. Those old principles of the great sales teachers still apply. Listen to people. Hear their needs. Respond in a human way. The fastest e-mail and most elaborate CRM (Customer Relationship Management) system doesn’t hold a candle to genuine, human care. Companies fail for one reason: They didn’t provide enough benefit to enough people. There are lots of details concerning falling sales, lack of funding, tough competition, etc. etc. However, the basic reason any company will fail is because it failed to provide enough value to enough customers. Think about the core value proposition you are delivering. Have you re-examined what you’re offering lately? What is it you’re doing and offering that the market can’t get elsewhere at a better price?
• The technology didn’t work. You’d think that a technology company would have the technology working. Yet, how many times have we gone to websites that are continually crashing? How often do orders fail to come through and deliver as promised. Now is the time to gear up for the coming Holiday Seaons when more consumers than ever will do their shopping on the Net. Whatever your technology is from horse and buggy to the latest Internet website, the technology has to provide what customers need.
• Reliance on only the technology. Sending out customized, personalized e-mail messages, even with opt-in marketing, is not enough. The Internet has moved to a new level. Now that most of the American business community has embraced e-mail we are inundated with messages. We need more than just e-mail messages (even carefully crafted, neat and personalized messages) to make an impact on and stay at the top of mind of customers. Personal calls and visits remain important in the age of lightning-fast communications. When was the last time you called some of your top customers? When did you last see them face to face (and no, a video conference doesn’t count!). We need multiple touch points to get through to the customer and retain them. Yes, send e-mail and have a great website but you still need those personal handwritten letters (remember those things?), phone calls and personal visits. This is what makes a successful business.
• Be realistic about what works and what doesn’t. We have to experiment. Try new things to see if they are going to work but don’t become married to the technologies. An example would be the push technology of a few years ago. Many thought it would be great to “push” news that a person has requested through e-mail for a daily, customized newspaper. However, we found that people like to read about lots of different stuff. It also clogged up computers forcing too much that is irrelevant onto Internet users. In addition to that, many found that they still wanted to read about a variety of topics from time to time. We have to try new technologies and then see what works. If it doesn’t work, quickly be able to change course and embrace other areas. This means a devotion to constantly doing market research in some form and always testing.
• Care. An old saying in the sales training industry goes, “People don’t care how much you know until they know how much you care for them.” You can send out all the e-mail messages targeted to an opt-in mailing list but unless people think you really care for them and their unique, particular needs, they don’t care about the message you are communicating. How do we find out what they really want? Ask. See them in person. Extend calls and various ways to letting them know that they are cared for and wanted. You’ll never go wrong by going out of your way to help others and address their specific needs and concerns. To translate that old saying into today’s terms, “People don’t care how nifty and cool your website or e-mail message is until they know you care for them beyond just another set of eyeballs on your website.”
• Arrogance and Attitude. Recently I had a terrible experience with a well-known computer company. I had purchased one of their high-end products for video editing, which this company is known for doing well. The company offered only very little in support and only for 90 days. This is in contrast to many in the industry who offer 3 years of support 24/7. Then when I called the company numerous times for advice and help I was met with arrogance and an attitude that was condescending because I didn’t know answers to their system. We’re all learning and have areas that we don’t know. The basic human concerns and care issues are still vital. Someone who knows a particular skill-set well is particularly vulnerable to this disease. We have to always look at life from the perspective of the ones who don’t know our product or have that skill set.

We are in a New Economy but the principles of caring for others, focusing on people and staying in touch from the Old Economy still apply. The more tech companies and other companies embrace this the less failures we’ll have regardless of market conditions.

Terry Brock is an internationally recognized professional speaker, consultant and author in the fields of business productivity, technology and marketing. He is a syndicated columnist for Business Journals across America and can be reached at 407-363-0505 or by e-mail at terry@terrybrock.com.