One of the great sessions at last month’s CMO summit, which was organized by Corante and the Center on Global Brand Leadership, was moderated by Johh Hagel. While the session has been summarized in a variety of places, John now summarized his points on his own blog. At the risk of being somewhat repetitive I will summarize/paraphrase the post here as it has a ton of great insight…
So where does John think marketing is going?
For starters, he thinks that the current shift in the economics of business will force major changes in marketing. With attention being the new scarcity and customer acquisition and retention costs being on the rise – business will have to start focusing on economies of scope instead of economies of scale. In customer relationships it will come down to getting the largest share of wallet of any single customer rather than a fix share of wallet across a large number of customers. This whole trend is reinforced by the fact that the cost of interaction and the ability for customers to find information about vendors and products is steadily declining as well.
According to John, this all leads to the need for fundamental changes in the areas of marketing strategy, branding and performance metrics.
In the area of marketing strategy, we need to move from the 3I’s (intercept, Inhibit, isolate) to the 3A’s (attract, assist, and affiliate). Another way of looking at it is that we have to move from a “one to one” marketing to a “many to one” marketing mindset.
From a brand promise point of view – we need to move from a “buy this product because I am great” mindset to one closer to “buy this product because I know you and you can trust that I will configure it properly for you.”
As for the new metrics, try these on for a change: average life time value of the customer (customer service execs – are you listening!), 80/20 segmentation of customers based on profitability, ROA (return on attention), ROI (return on information).
And so what are vendors doing?
As John says, they are…well…acting like vendors!
In response to attention being the new scarcity – they are bombarding us with intrusive ads on animals, in urinals, in the sky, and with other desperate moves to “grab” our attention. John has it right when he says “Rather than just focusing on how to get attention, vendors might also want to consider how they can help their customers receive attention that is important to them and not just from the vendor, but from others that matter to the customers.”
And as is typical with any new wave of tools, they are also jumping on the new social media technology bandwagon – deploying blogs, communities, wikis and other network-enabled marketing tools without really asking themselves how this will help the customer, or how “it will increase return of information for customers.”
John finishes his article with some recommended actions for CMO’s to take: affiliate with partners to create more useful solutions for your best customers, change organizational roles so execs are in charge of the total customer experience, and adopt performance metrics that measure and reward the increase of the lifetime value of the customer.
As usual – a post chock-full of great insights for marketers.