We are living in an era where there has never been so much content available. The Web and mobile devices have made it possible to deliver content just about anywhere. New retailers and media companies have many content options available for people, whether they are business users or consumers.
Let’s talk about a few media areas:
- Information publishing (Dow Jones, Bloomberg, Thomson Reuters)
- Educational publishing
- Entertainment (TV, video, and film)
- News outlets and magazines
Traditionally we have sold media products to consumers through retailers and sold professional products in business-to-business channels through a sales team. We haven’t known much about the individual product user and have used a lot of mass-market advertising to reach buyers. But this model is changing rapidly.
How are things changing?
- People used to have to come to publishers for curation and delivery of information. Now published information is abundant in free, register-to-read, and subscription models.
- Educational materials used to be only available at schools and a few small resellers. Now materials are available through schools, libraries, online sites, and low-cost consumer apps.
- In entertainment, we are in the middle of “peak TV,” with multiple online services and an escalating number of major movie releases, while audiences are consolidating market share to just a few titles. Consider that 25% of total box office sales went to just five films in 2016, according to Doug Cruetz of Cowen and Company in the report “Another Memo to Hollywood. Prediction? Pain.” This is up from 19% in 2012 and a rough average of 16% from 2001 to 2014. Consumers are going out to the biggest movies and staying home to watch streaming services.
- News has been thoroughly disaggregated by online news sites replacing traditional news bureaus, but local news is still surviving and thriving via websites and some apps.
- Magazines with high-value audiences have made the transition to apps.
What is different today is that most customers use the Internet to research, buy, and consume. We can use many methods to observe and understand our customers and prospects when they interact with us. Web and mobile channels really do offer us a new opportunity to understand customers.
How well do you know your customers?
To really know the customer, a media company needs to:
- Identify and remember the customer
- Market to the customer based on their likes and past behavior
- Provide instant product information everywhere
- Make tailored offers during the online and mobile experience
- Process the customer order instantly and offer service as good as or better than other popular sites
No matter what type of media company you have, today customers can find enough similar products that they can be happy without you. A media company has to proactively market to and manage the customer experience. A media company needs to treat customers as individuals and create a trusted relationship.
Media companies have to bring their products to customers before the competition does. If they rely on mass media advertising, they put themselves in a race with competitors to see who can outspend each other. Media companies need to manage the customer experience to survive and thrive.
Read more about how companies are transforming the customer experience.
Learn how to embrace digital disruption to drive your business forward and engage more profitably with customers in “Technology and the CMO in the Digital Era.”
Learn more about available Omni-Channel Commerce Solutions for Media and Entertainment.
See how the digital era is affecting the overall business environment in the SAP eBook “The Digital Economy: Reinventing the Business World.”
Discover the driving forces behind digital transformation in the SAP eBook “Digital Disruption: How Digital Technology is Transforming Our World.“Comments