What is Industry Standard?

I often get people coming up to me and telling me that they would like to do something “VERY” different than what is currently being offered in the market. I am very supportive towards this idea, but of course at the end of the day I give them some warm advice by first asking them a simple question, “Do you know the industry standard?”

If they do, and they are still confident about their idea, then yes - Please, do go ahead.

If they don’t, then I suggest that they really look into it, to educate themselves first before making any decisions and jumping straight into it.

So, what is ‘Industry Standard’?

For me there are 4 main measures:-

1. Market implicit promises;

2. Market explicit promises;

3. Word of Mouth from others; and

4. Personal past experiences.

Think about the last restaurant you visited. What enticed you to enter that restaurant? Were you attracted by their advertising? Did your friends tell you about that restaurant? Had you visited a similar kind of restaurant previously? Did you compare their menu items and prices to other restaurants?

Whenever us as humans experience something positive / happy / enjoyable, we remember it.

Here’s an example. Imagine it was your first time purchasing something online, and you used Amazon, specifically next-day delivery offered on “Amazon Prime”. This would then give you the impression that every online shop would offer the same, and be just as efficient – the website would be easy to navigate, many product variations, speedy customer service, etc.. However, you will soon come to realise that not all online stores operate that way. In fact there are many websites that are not designed properly, buttons don’t work, payments can’t be processed, and where delivery even takes a few months!

Wouldn’t this make you feel upset? Why do you think you would feel this way?

It’s because based on personal experiences (i.e your first online purchase on Amazon), you had an “expectation” that all online stores would follow suit. I believe is about value vs expectation.

Amazon have use a lot of implicit and explicit to given the consumers a lot of different “value”, so they become the market standard.

Please see below.

What feeling did you get from this amazing video?

Another example – Once you use an iPhone, you would think that all phones would and should have the same functions – face and voice recognition, instant syncing with your MacBook / iPad / Apple Watch. BUT, this is not the case! Not all phones are the same. Again, because of our personal experience with an iPhone we believe, and now have created a benchmark in our minds, that this is the normal ‘standard’ that every phone should have (at present day) .

Now, this is exactly the same when it comes to the restaurant business. Take Wagamama for instance. They have standardised what casual dining is throughout the UK. The way they designed their menu, serve customers, price their products, created an efficient system to remember customer orders (writing on placemats) and how everyone sits together sharing tables..

This all comes down to the many years and money spent in their implicit and explicit marketing to the public. In their different marketing campaigns you can always tell their intention is to create a space where everyone can come together – all ages / races / genders, to enjoy themselves, have new experiences – eating with chopsticks, and savouring unique flavours, which have been freshly cooked, with the freshest ingredients.

So, heads up, if you open a Ramen / Japanese restaurant in the UK, people will automatically (whether consciously or subconsciously) compare you with Wagamama.

As you may have heard me mention before, there are only a few ways you can win. And in this context – ‘Better’ or ‘Only’.

Either you do ‘BETTER’ than the current Industry Standard, OR you are the ‘ONLY’ one providing that product / service in the Industry.

Wing Chang