I recently read an article discussing the Return On Investment (ROI) for new payment systems in the banking industry. One statement particularly struck me: “the real driver may not be the ROI but just keeping up with customer and regulatory needs.” This highlights a common pitfall: if your ROI is primarily driven by reactive measures like regulatory compliance or fear of falling behind (“loss aversion“), rather than proactive customer value creation, your business’s long-term sustainability is at risk.

True, lasting ROI doesn’t come from merely “keeping up” or from fuzzy “feel-good” stories. It emerges when businesses invest in genuinely solving customer problems and enhancing their experience, often leading to new revenue, improved loyalty, and a stronger market position.

The Innovator’s Dilemma: When “Keeping Up” Isn’t Enough

When established players, like the big banks discussed in that article, view new capabilities (like “instant payments”) primarily through a lens of cost reduction or regulatory necessity, they often build expensive, complex solutions with high transaction costs passed on to customers. This is precisely the scenario Clayton Christensen described in “The Innovator’s Dilemma.” It creates an opening for nimble, focused competitors to offer similar or “good enough” value in a new way, at a fraction of the cost, capturing market share from incumbents who are slow to adapt or too focused on protecting existing (but threatened) revenue streams.

We’ve seen this pattern in many industries. Core products become commodities with little differentiation. Everyone claims “best service,” but if everyone is the best, then nobody truly stands out. Markets stuck in this cycle, with high delivery costs and an ROI focus solely on “keeping up,” are ripe for disruption; not just from new products, but new business models, cost structures, and, most importantly, new forms of customer value. As a fractional CIO, I help Small and Medium-Sized Businesses (SMBs) avoid this trap by ensuring their technology investments are squarely aimed at creating demonstrable customer value.

Six Strategies for SMBs to Create Lasting Customer Value (and Real ROI)

The best defense against commoditization and disruption is a relentless focus on delivering what your customers truly value. This isn’t always easy, but it’s where sustainable profits and growth lie. Here are six strategies to help your SMB get there, often enabled by smart technology:

1. Truly Take On Your Customer’s Problem: Go beyond providing quality products/services. Use empathy, ethnographic research, and design thinking to uncover your customers’ unmet, even unarticulated, needs. Walk in their shoes. What “job” are they really trying to get done, and how can you make that easier, better, or faster? Technology like CRM analytics and user research tools can provide deep insights here.
2. Make Your Customer’s Life Radically Easier: Convenience is king. Continuously ask: How can we reduce friction in every interaction? Amazon’s 1-Click ordering and Prime services are legendary examples. Your goal isn’t just to be easier to deal with than your competition, but easier than the customer doing nothing or using a workaround. Streamlined online processes, self-service portals, and intuitive digital interfaces, guided by your IT strategy, are key.
3. Provide Access to Value, Not Just Ownership: The “sharing” or “access” economy has shown that many customers prefer paying for fractional use of a capability when they need it, rather than bearing the full cost of ownership (e.g., Uber, Spotify, SaaS software). Could your SMB offer its value in a more accessible, “rental” or subscription model? Cloud platforms and modern SaaS solutions often enable these flexible delivery models.
4. Embed Knowledge, Don’t Just Deliver Service: Especially in service or consulting businesses, go beyond just delivering an output. Engage your customer in the process, empower them with understanding, and leave them more capable than when you started. This differentiates your offering and builds deeper partnerships. Technology like client portals, knowledge bases, and e-learning modules can support this.
5. Don’t Forget to Be Human (Even in a Digital World): As automation and digital interactions increase, genuine human connection can become a powerful differentiator where it adds real value. Look for opportunities to build trust, demonstrate your company’s character, and create valued long-term relationships. While technology (like personalized communication tools) can support this, it also means knowing when a human touch, not a bot, is what’s needed.
6. Be Exceptionally Responsive: In an era of instant gratification, speed and consistency matter immensely. How can you fulfill customer needs faster or more reliably? Can you communicate your commitment to responsiveness through guarantees? (Think Domino’s old “30 minutes or it’s free”). Efficient internal systems, real-time communication tools, and agile development practices for quick service improvements are crucial technology enablers here.

What’s Next

The most robust and sustainable ROI comes from creating new revenue, innovating profit models, and delivering undeniable business value by focusing intensely on what your customers need and value. These strategies, often powered by well-aligned technology, can help your SMB achieve that.

Is your SMB struggling to define its core customer value proposition or to translate that into a truly compelling customer experience, supported by the right technology? If you’re ready to build new value, ensure your IT investments deliver real ROI, and future-proof your business, let’s connect with Succeed Sooner Consulting.