In 2014, Endeavor Insight worked alongside the Partnership for New York City to publish a report called “The Power of Entrepreneur Networks: How New York City Became the Role Model for Other Urban Tech Hubs.” The study conducted was an in-depth look at the rapid expansion of New York City’s tech sector, and more specifically, as a growing entrepreneurial ecosystem.
The results of the study demonstrated the influx of tech startups to Silicon Alley, and the potential power the urban hub has for creating economic growth. Over the course of a decade, the study proved that New York City’s tech sector grew twice as fast as Silicon Valley, and saw a 240% increase in venture capital funding from 2003 to 2013. In 2013 alone, the tech hub saw more than $3.1 billion in funding invested into the tech community. So, what impact does this rapid expansion of the NY tech sector mean for other startups and trades in the industry?
With an increase of competition in the market, tech entrepreneurs are recognizing the need for having a consistent competitive advantage. It’s no longer enough to have just a good idea. It is imperative that companies are filling a noticeable gap in the market, and pairing this with a long-term growth strategy for future business development.
A large part of the growth strategy should focus on adapting to changes in customer habits, and recognizing shifts in behaviors. One recent example would be the increase of mobile usage. Customers are sourcing brands through online engagement, interacting with forums and reading social media, all from their mobile devices. Customers are making brand affiliations throughout their day right at their fingertips.
This hyper connectivity needs to be reflected in brand messaging and communication strategies in order to make a successful market entry. These changes in habits need to be actively monitored in real-time to help the brand evolve in an organic manner, while keeping up with shifts in trends. There’s nothing worse than making a market entry only to be faced with the grueling question: “Well how is this any different from X?”
A strong public relations team can help their customers see this larger picture. This means reinforcing the need to break through the “noise barrier” – the increase in our daily intake of information, especially from online sources.
To break through, companies must come up with strategies that can accommodate these various changes in customer habits. Positive brand sentiment is built upon predicting these changes, and listening to customer feedback. Loyal and returning customers make brand affiliations based on this responsiveness to customer needs. This hyper-awareness of the customer is what helps to establish trust, and assist companies in breaking through the amount of information being thrown at the customer, long enough to capture their attention.
By Samantha Dickson