Marketers Should Cut Ad Budgets To Thrive In The Age Of The Customer
At least once a week I get a client inquiry wondering what is "the next big thing in interactive marketing," seeking to identify what will out-tweet Twitter or out Goog Google. Well, in his new report, Competitive Strategy In The Age Of The Customer, my colleague Josh Bernoff articulates what is next for all businesses: A disruptive shift, where the power of customers means that firms must focus on the customer now more than any other strategic imperative. In fact, the only source of competitive advantage is the one that can survive technology-fueled disruption — an obsession with understanding, delighting, connecting with, and serving customers. In this age, companies that thrive, like Best Buy, IBM, and Amazon, are those that tilt their budgets toward customer knowledge and relationships.
See Josh's post Welcome To The Age Of The Customer: Invest Accordingly for detail on how the Age of the Customer disrupts established competitive strategy.
The zinger in this report for interactive marketers is to: Prioritize word of mouth over mouthing off. Cut your ad budget by at least 10%, and spend the money on connections that have a multiplier effect like social, devices, and content. Ads are far more effective when customers are primed to believe them.
This means that interactive marketing of the future is really focused on interactivity — not just on pushing out marketing messages through digital channels. Three ways to get started creating more interactive marketing relationships:
- Use mobile to create product experiences not just great products. See Julie Ask's report and blog post on this idea and the future of mobile marketing.
- Be generous with content.
- Invest in creating customer-obsesssed service.