Times are changing for marketing and product managers. Several years ago advertising budgets were completely focused on TV and print media. Today the fragmentation of channels and the emergence of new, Internet-based media is causing a realignment of funds, or at least a questioning of the effectiveness of previous strategies. New media allows potential customers to be addressed earlier and in a more targeted and effective way, leading to significantly higher sales.
Interactive applications that uniquely serve new and existing target groups using innovative technologies have only recently emerged. Nevertheless, based on known examples, several similarities are apparent:
The actual sale is not the central point of the interaction. Instead, the potential buyer is introduced to the product via attractive content and the opportunity to interact with people who have similar interests. Sites such as “Ford Autoshow” apply a range of typical Web 2.0 features to reach this goal: video, user feedback, forum discussions, etc.
It’s all about creating communities: users get reasons to come back and the solution is present continuously. In many cases the provider’s branding loses importance in order not to distract the user from the primary function of the application. Nike’s jogging site is a good example. Via this website, users can monitor their running progress, identify and exchange routes, communicate with other runners, download music, etc. The implicit goal of Nike to sell more jogging shoes and accessories takes a back seat.
User feedback and information about the market is collected constantly via these new applications. Swisscom Mobile Labs, for example, publishes new products which are still in beta phase — before they are sold officially — to learn if the products are of interest to customers. Based on Swisscom’s experience, clients providing feedback usually are more loyal, with a greater likelihood of future sales. Sites such as Swisscom Mobile Labs specifically rely on social networking in order to continuously extend the community.
The user is offered innovative technologies, something he/she never got via traditional approaches. ShopVogueTV is a good example of how these technologies are introduced. ShopVogueTV is a complementary offer to traditional print magazines that provides multimedia content like videos of fashion shows or interactive product presentations, and offers a connection to shopping sites without being an e-commerce site itself. This example is particularly interesting because the additional channel has a highly positive impact on the traditional advertisement business of Vogue.
While the above examples of “direct consumer engagement” applications do not provide a formula for how to build these innovative solutions, they do indicate what to pay attention to. It’s worthwhile to find examples in your own industry, and the possibilities are nearly unlimited. Why shouldn’t insurance companies, for example, use their collective knowledge about automobiles to support clients in buying and operating a car? Or why shouldn’t health insurance companies provide tips on disease prevention? Even government institutions could support companies in their choice of business locations and practices. The list of use cases can go on forever.
In a September 2007 Optaros Point of View, “New media reaches customers in an easier and more economical way” the authors documented approaches and lessons learned to help companies implemented these “Direct Customer Engagement” solutions. They also explain useful and proven technologies to implement such solutions. When well- implemented and managed, the effectiveness of Direct Customer Engagement solutions can easily exceed traditional alternatives such as the 30-second commercial on TV.
