I swear I've been here before. Not here, as in here at CES, where I spent the week checking my product assumptions against the actual offerings arrayed on the showfloor. But here, as in at a crucial moment in time when a single industry rushes to push a massively expensive, relatively unnecessary technology on unsuspecting consumers. That's the case with Ultra HD at CES 2013. Formerly known as 4k TV (because of the rough number of horizontal pixels employed in the technology) and now already truncated to UHD by company reps on the floor and in the hallways, Ultra HD is supposed to be the next thing every consumer will want.
It ain't gonna happen. The reasons evoke a ready comparison to 3DTV. And indeed, I have been here before, back at CES 2010 where I wrote a piece called 3DTV at CES: Poking Holes in the Hype. That year, some industry thinkers had conducted a survey and concluded that as many as 5 million consumers were ready to jump into 3D with both feet while opening their big, fat wallets. So I wrote the obligatory post that said, pointedly, no.
The comparison between 3D and Ultra HD is obvious. They were both too expensive at introduction (Ultra HD much more so than even 3D); they both suffered from a dearth of content availability; they both required a complete retooling of the equipment used by video production teams and film studios; and they both landed at a time when consumers were pretty happy with the awesomely large, cheap TV screens they already had.
I'll be first to agree that "disruption" is an overused word. I hear it all the time -- companies pitching me their new business idea describe how they're going to disrupt this or disrupt that. And here at CES 2013, I see and hear the word disruption everywhere I turn. Sometimes these companies really mean disruption. But often, they just mean that they're going to use technology to compete aggressively. Instead of simply saying "compete," they invoke the moral authority of Clayton Christensen and say they intend to "disrupt" the rest of the competitive field.
My concern with the overuse of the word disruption is not just that it waters down the power of the ideas behind disruption. It's that a muddy understanding of disruption will stop us from comprehending just how powerful digital disruption will be. Because the addition of digital to the word disruption does not merely enhance it, it accelerates it, making digital disruption orders of magnitude more powerful, a case I made in late 2011 and a case that has only strengthened since.
Last week I started my trip to Boston on a packed flight in a middle seat. If you travel as often as I do and have been stuck in the middle, you know how unpleasant it can be.
So, you can imagine my surprise when Delta turned my stuck-in-the-middle experience to a remarkable one of customer delight.
Delta exceeded my expectations by delivering on the promise of what Forrester calls a TRUE brand — trusted, remarkable, unmistakable and essential. In our 21st Century Brand Marketing Playbook, we discuss how these four traits will strengthen the brand pillars that support consumers' new expectations of brands. And how brands that can forge an emotional connection with their customers will enjoy a sustainable competitive advantage. By delivering a remarkable brand experience, Delta strengthened its brand promise, created a strong emotional connection with me, and more.
Here’s how Delta changed my unpleasant travel experience to a remarkable one:
I was sitting in a middle seat on a flight from Atlanta to Boston on Monday afternoon
First thing Tuesday morning, I received the email below from Delta apologizing that my travel experience was not as comfortable as they would have liked.
And, they didn’t stop there. They deposited 500 miles into my SkyMiles account for the inconvenience.
Ever since the mighty three joined the Miami Heat, the great Shaquille O’Neil has been relentless in his criticism of head coach Erik Spoelstra, Chris Bosch, and the Miami Heat’s ability to play with the “big boys.” Even an NBA championship didn’t seem to make a difference. This weekend, Heat fans across South Florida were rewarded with Shaq finally admitting he was wrong. In Sunday’s Ft. Lauderdale Sun Sentinel, Shaq was quoted as saying “I was wrong. I didn’t want to admit it, but I was wrong. The game has changed.” Finally, Shaq was acknowledging that there were more ways to approach winning in the NBA than having “bigs” in the paint. He understood that the Heat organization had changed the paradigm of the game by playing small and nimble to reach the finals last year and to win it all in 2012 . . . with more to come in the future as this new paradigm quickly becomes an NBA reality.
Being such a huge Heat fan, I loved reading this over the weekend. But what does this have to do with B2B marketing?
While I’m not usually a political or news junkie, in looking at the activity of the past few weeks, it’s been quite a few weeks! It ranged from the saga of David Petraeus to the absurdity of a famed Nascar driver intentionally crashing a competitor (resulting in fist fights between the crews), brands' use of Twitter during Hurricane Sandy (the good and the not so good), and finally the culmination of BP pleading guilty to 14 criminal charges and paying a record $4.5 billion in fines and penalties resulting from the 2010 oil rig explosion in the Gulf of Mexico. Each of these stories highlights how important it is to have a strategy in place to protect your brand in times of crisis. While every one of these examples is interesting, in this post, I’ll concentrate on the insights we can gain from the Petreaus and BP incidents to manage brands effectively through a crisis.
No matter what your politics, from coast to coast, the country is breathing a sigh of relief that the 2012 election season is finally behind us. Already, quite a bit has been written about what marketers can learn from the election. So, in this post, I won’t be talking about the huge dollars spent on advertising, how social, digital, and mobile communication continued to be important touchpoints, the impact of grassroots marketing, or how important effectively communicating the candidate’s message or brand affected the outcome. No need for another political pundit in the mix!
While all of these areas have something to teach B2B marketers, what I found the most fascinating is how the use of data, the right data, served as the foundation for Obama’s successful re-election. Starting on election night, the analysts on the best-known news shows were already talking about how calm and confident the Obama team members were. And, why were they confident? According to Obama’s team, it had the data to back up its march to a second term. The team members believed that data and how they used it was one of the biggest advantages they had over the Romney campaign. Think about that for a minute. Obama, traditionally seen as the image and message guy, ran his re-election campaign based on using the right data effectively. And, it worked.
I’m not sure exactly what I expected my first month to be like, but I will tell you that I’ve quickly learned that as CMOs, we all share strikingly common concerns that will form the basis of my research at Forrester. When asking what keeps you up at night, the CMOs I’ve met with so far from a variety of industries confirm my practitioner experience. We are all trying to effectively understand and respond to the significant marketplace and customer changes happening as we enter the always-connected and empowered age of the customer.
With this in mind, over the next year, I will be exploring the following areas that have consistently emerged from my discussions with you:
Aligning marketing strategy to the newly empowered customers with an emphasis on understanding the buyer's journey.
Helping CMOs understand how to think about technology, make sense of the ever-expanding technology options, and then partner with their CIO to create a robust and flexible technology infrastructure for marketing.
Understanding the evolving role of the CMO and defining marketing organizational design and associated skill sets required for the future.
This week Wal-Mart announced that it would put significant weight behind the new Boxee TV box, a $99 set-top box that competes with the market-leading Apple TV and the runner-up Roku boxes. Wal-Mart also sells the Apple TV and Roku devices, so it might not seem like a big deal, but it is. Because Wal-Mart is going to promote Boxee TV with in-store displays and outbound marketing support. Why? Because in addition to the regular apps like Hulu, Netflix, and the rest, Boxee gives Wal-Mart customers three things they can't get from Apple or Roku:
Regular TV shows from local broadcasters. Boxee's new box has a digital tuner that lets you tune to digital signals from ABC, CBS, CW, Fox, NBC, PBS, and Univision through either an over-the-air antenna or via ClearQAM.
Unlimited DVR. Not only will Boxee let you watch these channels, it is offering unlimited cloud DVR for $9.99 a month (in only the top eight markets for now) to record any shows from those networks, without managing a hard drive or paying extra if you want to store hours and hours of video.
Multidevice viewing. This is the real coup for Boxee. Because its DVR is in the cloud, it can send your recorded content to any device you log in to -- whether it's in your home or in your hands while traveling for business.
It's now a year later and a lot has happened. Digital Disruption will soon be available as a hardback book (also as an eBook, natch). You can pre-order a copy now at Forr.com/DDbook. To complete the book I had to get far outside of my comfort zone -- I work with media companies and consumer product companies primarily, but to prove that digital disruption is a fundamental change in the way we all do business, I had to interview people in the pharmaceutical industry, the military camouflage industry, and I even recently spoke to the CIO of a cement manufacturer! And to my pleasant surprise, they were every bit as digitally disruptive as their counterparts in the consumer-facing enterprises that we think of when we imagine digital disruption.
One of the main reasons every company can be and eventually must be a digital disruptor is the rise of digital platforms. These platforms are founded on a set of devices, wrapped together with software experiences that identify each customer individually, and are open to app contributions from thousands of partners. The platform owners that matter today are Amazon, Apple, Facebook, Google, and Microsoft.
Demonstrating the revenue return on marketing investment is the No. 1 issue for B2B marketing executives. In Forrester’s Q4 2011 B2B Marketing Organizations And Investments Survey, when we asked marketing execs to identify the most important metrics for their marketing organization, 56% identified a revenue-related metric — compared with 44% for customer satisfaction and 40% for brand awareness. So, it’s no wonder that marketing automation solution vendors vociferously tout the ability of their solutions to track the revenue performance of marketing campaigns and programs.
But, looking at marketing automation solutions solely through the value lens of revenue performance management masks a more fundamental benefit. Marketing automation can transform a company’s marketing operations. These solutions deliver scalability, root out excess cost, improve marketing execution, and provide the basis for continuous incremental process improvement.
Still many marketing execs hold back on investing in marketing automation. They fear the concurrent assimilation of new tactics, processes, and automation will unduly stress their marketing organization. But the transformation is necessary, and the stress unavoidable. Marketing execs need to proactively address the “people part” of their lead-to-revenue transformation.