Calling Aereo a “direct assault” on the broadcast industry's business model, a coalition of TV companies indicated in court papers that Aereo's continued existence could mean the end of free over-the-air television.
In my reading of the Constitution, I see neither a right to free TV nor protections for an existing business model (snark over).
About a year ago, I wrote a gentle but firm breakup letter from CMOs to the marketing funnel. They have a more attractive love interest who is in the relationship for the long haul; the perfect partner for the age of the customer. For many, calling it quits with the marketing funnel has been messy and difficult, leaving a lot of marketers desperate to move on, but pulled back to the familiar, comfortable arms of linear, campaign-driven, transaction-oriented marketing.
Like your best friend who was willing to be patient and forgiving as you repeatedly returned to your ex, it’s time I throw down the gauntlet: Commit to the customer life cycle or be left behind by your peers who get that the terms of engagement have changed. Loyalty, context, and relevance are the new black as customers outrun campaigns, have heightened expectations for brand interactions, and use mobile technology at remarkable scale. This is not the customer Elias St. Elmo Lewis was dealing with. Fundamentally different customer behavior demands new tools.
In the age of the customer, companies must be customer-obsessed, putting knowledge of and engagement with customers ahead of all other strategic and budget priorities. The customer life cycle is the framework that puts the customer at the heart of all activities, allowing the customers’ unique context and set of interactions define what their brand experience is.
About a year ago, I wrote a gentle but firm breakup letter from CMOs to the marketing funnel. They have a more attractive love interest who is in the relationship for the long haul; the perfect partner for the age of the customer. For many, calling it quits with the marketing funnel has been messy and difficult, leaving a lot of marketers desperate to move on, but pulled back to the familiar comfortable arms of linear, campaign-driven, transaction-oriented marketing.
Many companies tie rewards to a rise in either Net Promoter Scores (NPS) or customer satisfaction scores. Unfortunately, that's exactly the kind of mistake that leads employees and partners to game the system. Porsche discovered that its stellar NPS was the result of dealers offering freebies to customers in exchange for higher scores. Similarly, when it noticed that satisfaction scores and comments didn't match, music retailer Guitar Center had to retool its rewards and recognition system to prevent store associates from massaging customer survey results.
My report describes the process for ensuring your rewards and recognition reinforce customer-centricity, rather than tempting employees to game the system. To avoid common pitfalls, companies must:
Customer analytics takes center stage in the age of the customer for firms trying to understand and predict customer behavior. From descriptive to predictive methods, customer insights (CI) professionals can apply a wide array of analytics methods to behavioral customer data. CI professionals have a lot to consider when deciding on the right portfolio of methods to drive customer understanding – what dependencies exist between analytics methods, what investment levels are required, where to get help and what business value do these methods drive.
To make it easier, we identified 15 key customer analytics methods that help firms win, serve and retain their customers. In our latest report, “TechRadar™: Customer Analytics Methods, Q1 2014” (subscription required), we evaluate each of these methods in detail taking into consideration their current adoption as well future potential. These methods, ranging from behavioral customer segmentation, lifetime value analysis, next-best offer analysis to recommendation analysis, allow firms to analyze customer data and use the analytical insight to drive acquisition, retention, cross-sell/upsell, loyalty, personalization and contextual marketing.
Our analysis shows that:
Methods that drive contextual insights are in early stages. Emerging methods such as sentiment analysis, location analysis, and device usage analysis are in early stages of development, but they have the potential to provide valuable context around behavior and other customer analytics methods.
In our research, we’ve talked about some of the trends that mark early-stage eCommerce markets. This year I’ve been to a few events to talk about how different eCommerce markets are evolving – today we see that:
Retailers’ ownership of logistics networks is now widespread. The model of online retailers owning and operating logistics networks in emerging markets is well established. While there used to be a handful of examples to point to, it’s becoming increasingly common for a number of the top eCommerce players to operate their own logistics networks - Amazon in India is just one recent headline-maker in this area. Indeed, in the BRIC countries today, only Brazil does not currently see many of the leading online retailers operating their own networks.
Instead of launching their new flagship device at a separate event like last year, Samsung decided to leverage Mobile World Congress to cast a shadow on some other devices’ announcements. Expectations have been high in the past two weeks about what Samsung could announce. And while the atmosphere was not as crazy and irrational as for an Apple announcement, you could still feel today in Barcelona that expectations have been raised for the new smartphone sales leader.
As I pointed out in my post two weeks ago on what to expect at MWC, the Barcelona trade show is strongly biased on hardware specs. No exception to the rule here. The Samsung Galaxy S5 looks very promising on that front: faster, thinner, better battery and camera, etc. What’s more differentiating here is the positioning of the S5 as a fitness phone. It comes with a growing range of smart wearables, such as the Gear Fit – a fitness wristband with a curved screen – with a nice design. This is a way for Samsung to better engage users, especially when used in conjunction with new services like the enhanced S Health 3.0. It offers more tools to help people stay fit and well – providing a comprehensive personal fitness tracker to help users monitor and manage their behavior, along with additional tools including a pedometer, diet and exercise records, and a new, built-in heart rate monitor. Galaxy S5 users can further customize their experience with an enriched third-party app ecosystem and the ability to pair with next-generation Gear products for real-time fitness coaching.
Together with Nokia X announcement this morning and Samsung Galaxy S5 later today, one of the most expected events of Day 1 at Mobile World Congress was Mark Zuckerberg’s keynote. He did not announce anything new and mostly shared his vision of the Internet.org coalition. Facebook wants to connect up to 3 billion people in the next five years.
Facebook already has numerous agreements with telecom operators worldwide – especially in emerging countries where the social media giant can be used to generate acquisitions of new customers. On the contrary, operators are a key distribution platform to help Facebook acquire its next billion customers.
This morning at MWC, WhatsApp’s CEO announced that the messaging app will enable voice within its app starting from Q2 2014. Services like WhatsApp are already cannibalizing SMS among smartphone owners as highlighted here by colleague Dan Bieler. What if WhatsApp does the same thing, further cannibalizing operators’ core voice revenues? This will for sure force operators to reinvent their business models and to embrace agile innovation and partnerships with OTT players. For example, Reliance in India and Mobily in Saudi Arabia have existing partnerships with WhatsApp.
However, Facebook’s CEO first keynote at MWC goes beyond the love-hate relationship with telcos.
I often ask marketing leaders how they organize their resources for social, and the responses are rarely the same. I hear everything from: "We have one person in PR who does social part-time" to "We have hundreds of full time social marketing managers across the globe." Despite this disparity, I find that marketers often share the same level of frustration when they try to advance their social marketing initiatives. Whether they have one social marketing manager or hundreds of social marketing managers, marketers claim that their existing resources are stretched.
Quantity does not equate to quality
Marketers tell us that a lack of dedicated employees is a big pain point. And if you dig a bit deeper, you will find that this is a daunting obstacle that prevents many organizations from scaling and optimizing their social marketing efforts. Marketers often feel that the only way to scale and optimize is to hire more social marketing managers. Yes, more dedicated headcount helps, but it is not the panacea. In order to be truly organized for social marketing success, you need a new perspective.
One evening in early January, I was stuck at home, suffering through the second in what would become the string of bad winter storms that we’ve all been experiencing. I hadn’t been to the grocery store for the week, and dinnertime was sneaking up on me. I was contemplating the soup that had been in the cabinet for at least 18 months when I received this email from a local restaurant delivery service:
They were delivering! Dinner (plus leftovers) and avoiding the risk of botulism? I was sold.
Clearly this made an impression on me — I mean seriously, I saved a screenshot of an email — and thinking about it now, I know why. It’s because it spoke to me as both a customer and a marketer. This wasn’t part of a planned campaign. The company anticipated and fulfilled an immediate need I was experiencing with the kind of contextual responsiveness we’ve come to expect almost exclusively from social media programs. Delivery Now used the tools and insights already at their disposal to solve a customer problem. Opportunistic? Sure. But it got me what I needed in that moment, so why should I be bothered that they benefit, too?