Posted on : 31-01-2012 | By : Frank Eliason | In : Business, Marketing, Social Media
Tags: Social Media
The world is changing around us and in many ways I love how connected we are becoming. At the same time with the good there is always some bad. Their has been much discussion regarding recent legislation to protect copyright infringement and illegal downloads. I am not a supporter of the legislation and I personally believe it is a slippery slope for the government to advocate such actions. At the same time I do believe we should have an open dialogue regarding the issue.
Before I get into that, let me say I think other actions are creating a world about me, instead of the connected world that many of us envision. It starts with the manner businesses operated for years which to Consumers seemed to feel like they did not care. Policy and pricing decisions seemed to be part of back room deals to maximize profits at the Customers expense. Of course these can prove to be short term financial gains but could hurt long term. The record industry as an example limited ways to purchase music, so to get around that Consumers created new ways. Finally the record industry woke up and new alternatives have arrived but they will most likely not be at the same profit margins that were enjoyed for years. I wonder what would have been different if their pricing efforts were considered more fair? We have seen this same impact in movies and television. Of course the industry is only tepidly moving forward and for every few steps forward a few steps are taken back. As an example Starz is discontinuing its deal to distribute content via Netflix. Speculation is they fear its current deal with Netflix is hurting subscribers via cable. From the rumors I heard they wanted Netflix to have some sort of tiered pricing to combat that. For years the movie industry has controlled releases carefully to encourage people to go to high priced theaters, then buy DVD’s instead of renting, etc. In my view the trouble they have with illegal downloads comes down to this control and not creating an @YourService environment. It was all about them, so now their Consumers is saying, no it is about me.
Now we are in a social media world and businesses all over want to be a part of the conversations. They want their Customers to make it about the brand. Toward this effort businesses galore have offered discounts or free product to ‘like’ them or follow their every move. This may spur conversation for their brand, but at what cost? Is this type of marketing going to change Consumer behavior? We have all heard stories of small businesses trying to take advantage of the social world by buying Groupon deals only to find the business inundated with Customers only buying the item on the deal and the business losing a lot of money with little or no repeat business from the group. I think the key for businesses is to have a culture that aligns the experience with their Customer. Building an @YourService environment Customers will want to discuss your brand and build on the relationship you have with them. Trust is key, and very few businesses have it. Do you think the movie or recording industry had it?
I view a lot of work to be artistic, whether it is a book, movie, song, or even a more traditional business product. I want to see artists get their dues. It is hard work. I have been privileged over the years to be provided many books. What these artists do not realize is that I often also bought a copy. I own many duplicates! But I am proud of their work and I want them to have success. At the same time, I trust them so I am more likely to do that. You see I do not see it as a world about me, but rather a world built on trust and relationships. This is the @YourService world I envision.