This just popped into my inbox, and thought it worth sharing. Reminds me of a workshop I did last year about changing the relationship of member organisations to its members from one based on transactions, to one based on conversations & relationships. Anyhow, easier said than done I’m sure…
If companies are to effectively monetize the digital relationship with consumers, they must get three things right.
Engage consumers through relevance and dialogue. Companies need to improve their ability to engage and influence consumers through relevant and timely experiences based on their interests—engendering loyalty and profitable behaviors. This means adopting a truly digital mindset. The age of push marketing is behind us. What counts now are dialogue, engagement and relevance.
Use technology to deliver a customized digital experience with a more predictable cost structure. Companies must adopt more flexible and scalable technology platforms capable of creating a tailored experience for consumers over both online and mobile channels, and they must do it with a more predictable cost structure over time.
Establish revenue models based on the success of relationship building. The ability to engage consumers with relevant and customized experiences becomes, then, the basis for monetization. Instead of focusing on inputs such as numbers of banner ads or page views, companies—especially media and entertainment companies—will be able to focus on relationship-based outcomes: a known quantity of consumers whose interests are well understood. Digital channels that can deliver consumers with established interests can charge handsomely for that capability.
In short, engagement, relevance and customization lead to longer-term relationships. And those relationships are the key to digital monetization.