Pages

Tuesday, May 29, 2012

The War Between Digital and Physical ~ Who will win?



The option to receive media digitally, rather than just physical material, in some aspects, has altered the public’s consumption habits considerably. Strangely enough, with regards to books, the advent of eBooks and reader devices such as the Nook, Kindle and apps such as Audible, has pushed me, personally, more toward the old-fashioned physical book. Although many use computers when writing for business and school, as well as receive bills, and personal correspondence digitally or via the Internet, I find that I shy away from that sort of behavior with regards to reading. I prefer to sit town with a physical book and turn pages, take notes on paper, fold down the corners of paperbacks to mark my page, and cut out pictures, articles and perfume samples from my favorite magazines.  In contrast, when it comes to current events, like many consumers ages 18-35, if it didn’t come to me directly through my RSS feed , Facebook, or CNN.com, I doubt I would ever take the time to sit down and read a newspaper.

With regards to music and movies, as Brandon Hoover discusses in his blog: Digital downloads vs physical media: How will developing countries keep up?,  “The rise of internet capable TVs, mobile internet access, media centers (Apple TV, etc), and services like Netflix have allowed us to watch what we want, when we want, and often where we want .” Music streaming online via sites like Pandora and Spotify has allowed listeners to be exposed to a variety of music that they would never have heard should they be forced to take a chance on a CD, cassette tape or record who’s album art caught their eye in a music store. In the past I bought less and relied on the radio to reveal the newest trends in music.  Now individuals are more active participants in their acquisition of music, enjoying the fact that they can select individual tracks after hearing a sample of them via iTunes or getting a taste of the artist via Pandora. Consumers in their 20’s now seek out more and purchase more music than in the past especially since whatever they purchase can travel with them on a phone, laptop, or iPad.  The same can be said of movie consumption. The easy accessibility of films using Netflix, for example, has made it less of a hassle to see a movie. Since it is streaming there is no thought as to where to store that DVD case at the conclusion of viewing or where to see a film if you missed it in the theater.

Our world is moving at such a pace that consumers now rely on the instant access to all of their favorite media, however they still enjoy dome of the physical aspects as well. For business’ sake, moving to a predominately digital distribution will afford companies the most profit without the upfront costs of printing/manufacturing material. This hybrid of Print of Demand or aggregators give the consumer the option of both physical and digital without all of the commitment. It is my opinion that at least within the United States, Netflix and Blockbuster will move to digital distribution only, but that bookstores will still exist because of the social (library-like) nature of their locations. They market themselves as a comfortable place to hang out and learn rather as just a place to get information. Bookstores will have fewer physical locations but I don’t believe that they will move to digital distribution exclusively.  Physical media is not in danger of becoming extinct until more of the world has access to the technology  (speed, devices, accessibility) available to us here. 

Sunday, May 13, 2012

Customer Retention & Brand Loyalty – Why should they play with you? Why should they STAY with you?


              So you have this great idea. You’ve gotten funding, you filled out all the necessary paperwork and you are officially a business. You even have a few people who want to buy what you are selling! Great! Now what?

               Some business owners are so focused on growing their customer base that they forget to do all they can to keep the ones they have. Customer loyalty is one of the key ways to keep your business thriving. Yes, you want to add to the pot incrementally, but first you need to decide how quickly you would like to grow, and how to retain the people you’ve got. Here are 3 ways to cement customer loyalty and help your business to grow at a rate that you can actually keep up with.



From the moment a person steps foot into your establishment or calls you number, she should feel like she is part of something. Your brand is who you are, the message you deliver to the world, the “ word you want to own in the mind of your customer”. Don’t mess it up hoping that a new exciting product or service vaguely related to your original company goals will grab new people. Ultimately it may turn off your current customers and confuse new ones as to who you are. There is no need to follow trends. Set the trend. If you do see something out there that you would like to incorporate into your company, make sure it truly speaks to who you are. If not, there are ways to acknowledge a trend without allowing it to take over. Remember you should be in the job of creating experiences, not “Hey, lets see how many people we can catch by distracting them with shiny things!”


Social media is a great way to keep your customers involved in your development. People love to support companies who they feel listens to them. Send out surveys via email, get customer opinions via Facebook, have contests for the best picture of a customer using your product or service via Instagram -to keep customers fully committed to your brand. Use Twitter as way to keep customers updated on new products or services- offer a prize to the first 20 people to retweet.  Give them a reason to keep coming back for more.

Fenix Social Media is a great resource for musicians and other entertainment companies to keep their fans feeling “like one of the family”. Of course you may not have the time or resources to keep someone on staff full time to handle it on your own, but they can maintain customer involvement on your behalf at a rate you can handle. ‘[Their] ultimate goal [is] building loyal, committed and engaged communities”


A reward doesn’t have to be a discount. “What?”  Yep. Try something different like “gamification” instead. Rewards are positive responses to a particular action. In games you usually receive points or status levels, or physical prizes. The feeling associated with having “earned” these rewards keeps people coming back for more, and guess what? Most of the time, it doesn’t cost you much nor does it devalue your product or service by lowering the price. When you discount you tell your customer “ I’ve been marking up prices, just to make a profit” or “ This product wasn’t worth that much anyway, ha-ha joke’s on you!” which just confuses and frustrates the consumer.




                    If you are diligent with these tips, your customer base will remain strong. Because of your consistency, your loyal customers will see you as the ONLY option when looking for a particular product or service and the next time someone asks their friend or coworker “ You know, I am thinking about taking a dance class that’s fun, and effective. You told me you danced as a form of fitness. Where do you go?” The name of your dance school will fall effortlessly from their lips.