You can be on Entrepreneur’s cover!

The Tech Surge That's Putting Consumers in the Forefront Why the shift from producers to customers is changing everything.

By John Sculley

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

When I was at Pepsi-Cola in the early part of my career, producers were in control. In the late 1970s, this was the era of mass marketing when national network television could reach virtually every American household. Dominant companies could protect their brand franchises with heavy levels of advertising because customers were influenced by what product producers told them.

Right now, a surge of incredible new technologies are expanding at an exponential rate and driving a change. Thanks to big data, cloud computing and an explosion of miniature sensors as well as mobile devices, customers are becoming smarter and smarter.

Related: A New Challenge to Disruption Theory (and a Better Idea for Dealing With New Technology)

Consumers are sharing opinions, reviewing products and making referrals on a huge scale. Now customers trust other customers more than they trust producers. While this is only the beginning of the big-data marketing era, the power shift to the customer is irreversible and the implications for traditional corporations are daunting. But the opportunities for entrepreneurs to disrupt and build companies have never been better.

As these powerful technologies grow, they are dramatically driving down costs. With 40 billion miniaturized, wireless sensors projected to arrive by the early 2020s, machine-to-machine communications will be possible, with human intervention not required. This will allow for new end-to-end business processes, along with smart robots, that will significantly reduce costs. For the innovators who embrace technology, disruptive pricing opportunities will be created as never before. But traditional corporations with a high overhead structure that are unwilling to adapt will be put at a high risk.

The other huge opportunity for entrepreneurs is to create an incredible customer experience. I like to call this a showstopping customer experience, one that's so good that the clients become a company's promoters. They use every means of communication from voice, the Internet, text and social-media platforms to tell others. Think about a customer's experience at the Apple's Genius Bar or the concierge service at the Four Seasons Hotel, for example.

What's really exciting and offering the biggest opportunity for entrepreneurs is to combine a spectacular customer experience with a disruptive price. This has happened before and transformed huge industries. When Sam Walton created Wal-Mart, he focused on a low-price strategy, based upon outsourcing, highly automated warehouses and nonunion labor that his competitors could not match. He also added friendly greeters to the front of his stores to welcome shoppers and make them feel special.

Related: Disrupting the Disruption Myth

Now Wal-Mart and other retailers are in the cross hairs of Amazon and may themselves face disruption. Jeff Bezos has created fulfillment centers using cutting-edge technology, including robotics, to reduce costs to unthinkable levels. He has combined this brilliantly to create a customer experience driven by big-data analytics running on powerful cloud-computing systems in an attempt to predict the products and services each individual customer wants.

And Amazon is building supply centers all around the country with the aim of eventually providing same-day service. The company is even diving into fresh food. Amazon wants to be the supplier of everything. In the end, Amazon's power is all about customer satisfaction: giving customers an exceptional experience with convenient ordering, a huge assortment of products, delivered quickly to their homes and at a disruptively low price.

Another sector that I believe is ripe for disruption is the shaving industry. For the big companies, technology has allowed for a very high-quality shave, especially with five-blade razors. But these market leaders have priced their products so high that customers are unhappy. And due to these high prices, many retailers lock up their razor aisles to prevent pilfering, making the shopping experience inconvenient. Consumers put up with these issues, however, because they want a great shave.

I am an investor in a new online company, 800razors.com. Unlike several other online major companies that source cheap imported razors, the company sells quality razors made in America similar to those of the big brands for about half the price and with free shipping. Customers have become active promoters. Time will tell if the company has the right ingredients for disruption.

Creating a stellar customer experience requires companies to put consumers at the center of everything. Combine that with disruptive pricing and this opens up the opportunity for entrepreneurs to build huge, disruptive businesses.

Related: Why the Future of Retail Will Blow Your Mind

John Sculley

Entrepreneur, Former CEO of Pepsi-Cola and Apple

John Sculley is an entrepreneur and the former CEO of Pepsi-Cola and Apple. He is an expert in disruptive marketing strategies. An active investor and mentor, he is the author of Moonshot! Game Changing Strategies to Build a Billion Dollar Business and the creator of a new online video series How to Build a Successful Business.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Branding

94% of Customers Say a Bad Review Made Them Avoid Buying From a Brand. Try These 4 Techniques to Protect Your Brand Reputation.

Maintaining a good reputation is key for any business today. With so many people's lives and shopping happening online, what is said about a company on the internet can greatly influence its success.

Resumes & Interviewing

Build a Better Resume with This $35 Subscription

AI Resume Builder promises to help you apply to jobs twice as fast.

Leadership

You Won't Have a Strong Leadership Presence Until You Master These 5 Attributes

If you are a poor leader internally, you will be a poor leader externally.

Business News

Samsung Makes 6 Day Workweeks Mandatory for Executives as the Company Enters 'Emergency Mode'

Samsung said its performance "fell short of expectations" last year. Now executives are required to work weekends.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

I Tried Airchat, the Hottest New Social Media App in Silicon Valley — Here's How It Works

Airchat is still invite-only and prioritizes voices with no option to upload photos or write text, making it feel more human than Facebook or Reddit.