Marketing is in a state of crisis. New consumer behaviors, interactive channels, pressure to improve the ROI of marketing spending, and the challenges of integrating marketing programs require that companies rethink marketing’s role, redefine the marketing organization, and build new processes. Technology is crucial to this transformation. This workbook explains that success requires a technology backbone that:
1) integrates marketing programs across channels and lines of business;
2) optimizes customer contacts;
3) tracks customer data; and
4) measures performance across the marketing mix.
So, what will the future look like(for banks)?
How will banks continue to grow revenues and remain profitable? What will it take to create and maintain advantage in this highly competitive industry? The future will require superior efficiency and operational excellence from all banks, while industry leadership will be attained by those institutions most adept at harnessing product, service and process innovation to anticipate and meet customer needs. Ultimately, banks will have to focus on their core strengths—those activities in which they excel—and partner with best-in-class specialists for everything else: achieving more by doing less.
The IBM Institute for Business Value identified five major industry trends that will impact the retail banking industry:
The world is going to see the burgeoing of BWPEs(Business without paid employees). First, there were large corporates, then came the SMBs and in the future it is going to be BWPEs. So, Small in the new big theory of Seth Godin seems to being a reality quite fast.
Take a look at some interesting stats that US Census released last month:
The image of a typical “mom and pop” business is getting a makeover, according to new data on these burgeoning enterprises released today by the U.S. Census Bureau. Yesterday’s notion of a family-run corner store is giving way to Internet-based auctions, nail salons and even motorcycle dealerships...
The nation added nearly a million businesses with no paid employees between 2003 and 2004 to reach 19.5 million, a growth rate of 4.7 percent over a one-year period. Businesses without a payroll make up more than 70 percent of the nation’s 27 million-plus firms, with annual receipts over $887 billion.
The report has data on 17 million individual proprietorships and on more than 1.3 million corporations and 1.2 million partnerships. Nonemployer firms may be run by one or more individuals, can range from home-based businesses to corner stores or construction contractors and are often part-time ventures with owners operating more than one business.
Among the fastest-growing: building finishing contractors (22.5 percent), Internet service providers (18.7 percent), nail salons (14.7 percent), electronic shopping and mail-order houses -- including Internet-based consumer trade (12.7 percent), lessors of real estate (9.7 percent), formal wear and costume rental stores (8 percent) and motorcycle dealers (7.4 percent). Read more
So, what's the impact on business services?
Therefore, businesses will get more and more local. Hence, businesses will get to know their customers on a one-to-one basis even better than ever before. Customers will start entrusting their businesses to BWPEs who can serve them the best. The BWPEs will inturn become 'micro organizations' collaborating with each other to offer best-of-breed services. The large corporations could turn into a group of insourced BWPEs and hence we might see the death of hierarchies, unwanted meetings & review sessions and even greater accountability from large corporations.
Imagine the corporation like a hospital! It has the operation theatre, the scanning centre, the pharmacy and an entire infrastructure but these are run by doctors who necessarily are not the employees but are paid consultants!
Burger King is letting its customers get their information their way—and more and more, that way appears to be via a mobile phone.
Burger King has become one of the first fast-food chains to establish a mobile website. The site, BK.com, offers mobile access to nutritional information and has a store locator with maps and directions. Burger King plans to expand the site in the future as mobile media evolves.
"It's all about having it your way, information wherever and whenever they want it," said Gillian Smith, global senior director of media and interactive at Burger King. She said 70 percent of U.S. wireless users have devices capable of accessing the mobile Web. In addition, "we want as a restaurant to get consumers as close as possible to the purchase decision," she said. Read more.
With over 100 million mobile subscribers, India definitely is a market for brands to start adopting this idea. It can certainly turn into a brand-on-hand strategy!
Springwise has this excellent post on how you can take customer involvement to a new level:
Aiming to empower independent artists, SellaBand has created a platform that enables fans to sponsor bands, and get a piece the action in return. How it works: fans, dubbed Believers, find an artist they like on SellaBand.com. For USD 10, they can buy a share, or 'Part'. Once the band has sold 5,000 parts, SellaBand arranges a professional recording, including top studios, A&R managers and producers. Believers receive a limited edition cd of the recording.
The interesting twist is that the songs are then made available as free downloads. Income comes from advertising revenues, which are split three ways: artist, believer and SellaBand. The company will also sell cds through regular channels, sharing profits with artists and believers.
Since both believers and artists benefit from getting 5,000 parts sold, both are likely to actively promote the band (and SellaBand) everywhere musicians and music fans are active: on their blogs, on their MySpace pages, in online communities, to their friends, etc. Once the recording has taken place, the same goes for SellaBand's download portal: artists and believers profit from ad revenues created by driving traffic to their download page.
When Nokia Corp. released its camera smartphone last fall, the marketing campaign cut back on news releases and flashy ads. Instead, the company sent sample products to 50 tech-savvy amateur bloggers with a passion for mobile phones.
The tactic paid off, as word spread online about the N-series phone, driving up sales and contributing to a 43 percent profit boost for Nokia last quarter.
Companies are increasingly partnering with hobby bloggers to harness the burgeoning influence of online buzz. Through the digital grapevine, companies reap the marketing rewards of free publicity, higher rankings on search engines and immediate access to conversations with consumers.Read more
But, I certainly think the 'power of continuity' is still missing in this campaign. You can't have a "use and throw" approach in 'socially-engaged marketing' just because you are launching a product. So, if Nokia continued to build this community of passionate users, build 'credible ' brand ambassadors, identify new usage needs, provide a platform for sharing and exchange... it could become the perfect socially-engaged platform for Nokia.
Susan Abbot writes:
"Branding is ... a process of attaching an idea to a product. Decades ago that idea might have been strictly utilitarian: trustworthy, effective, a bargain. Over time, the ideas attached to products have become more elaborate, ambitious and even emotional. This is why, for example, current branding campaigns for beer or fast food often seem to be making some sort of statement about the nature of contemporary manhood. If a product is successfully tied to an idea, branding persuades people -- consciously or not -- to consume the idea by consuming the proudct. Even companies like Apple and Nike, while celebrated for the tangible attributes of their products, work hard to associate themselves with abstract notions of nonconformity or achievement. A potent brand becomes a form of identity in shorthand."
WARC reports that there's no limit, it seems, to the wheezes dreamed-up by the dudes on Google's Mountain View campus when it comes to squeezing an extra buck from the internet.
In partnership with Valpak Direct Marketing Systems - a major US distributor of discount coupons both on paper and online - the web titan is poised to launch a service offering surfers local store discount coupons they can print at home.
Google says it will make a large number of online coupons available at no charge to consumers via its Google Maps service, while AdWords marketers have the opportunity to pay for a coupon-link alongside their ads.
Now, the key question to me is how will they offer this to advertisers while it's free of charge to customers? Well, they can follow several business models :
Also, here's a report from NY Times on the same.
Well, let's wait and watch!
Jeffery Philips writes I think many of us in business never come in contact with an actual buying customer, which is really a shame. Too often we speak of our customers, or in my line of work our "users", and we are somewhat removed from any contact with those individuals or teams. That leads all of us to apply our thinking and our values to those individuals, rather than being able to understand who they are, and what they want.
I was in a meeting not long ago where everyone on the team understood that their primary target audience was women over 35. They decided to name the representational customer Jane, and gave her attributes. The entire discussion was - "Would Jane like this" and "Would Jane use this". I guess that's all well and good - takes you down a step or two in the right direction - but why not bring a couple of "Janes" into the process? Why not take your product or service to "Jane" and ask her to use it?
Some tips that you might want to use which I have found useful: