Is it just me or have you also noticed that majority of the mobile apps and services being pushed out are either focused on providing entertainment or providing routine weather, stocks, news, interest rate, etc. information. The former category is being pushed by young, upcoming start-ups and entrepreneurs while the latter category is being pushed by established players (who already own the content). While all of these apps do have some utility, the true, game-changing opportunity will be the ones where companies start to connect their customer with services, partners, tools, suppliers, people, etc. that will increase the utility/value of the product and decrease its TCO (Total Cost of Ownership).
What I am trying to draw your attention to is the “Connected Customer” phenomenon. Social media and smart phones are changing the way we consume information. Apps are helping people connect, collaborate, and create things in ways that were not possible even a year ago. However, large consumer and industrial goods retailers have been very slow with regard to catching up and internalizing the potential offered by these channels and the underlying technology platforms. The analogy that comes to mind is that of the dot-com revolution, when the large organizations struggled to comprehend the web innovation. The current social-mobile revolution is no different in that regard, as it is making companies scratch their brain on how to use its potential and how not to get left behind. Typical marketing teams tend to believe that they have all of the CRM initiatives in place to keep the customer connected and informed on their brand of products. But just pushing routine content, promotions, newsletters, surveys, or campaigns at your target audience, without having understood the complete context in which your product is consumed by the customer, amounts to sheer ignorance and waste of precious company dollars.
If you look at the demographics, the average smart device owner is 20-30 something in age, in the top 35 percentile of their peer group in terms of earnings, and has travelled internationally at least once. Although this is a macro-level data, the conclusion I can draw from it is that this audience definitely cares about how and where they spend their precious time when it comes to professional as well as personal activities. Majority of this audience is striving to find ways of improving their productivity, potential, quality of life, awareness, relationships, and earnings. That was the precise reason why I’m guessing they bought the smart device in the first place. Now if you are going to peddle to them these one-hit, 5-minute, use-and-throw wonders, you are wasting a huge opportunity and risk alienating/boring the customer away from your brand. Let me give you a couple of examples of these low-utility apps – the Coke app that wants you to spin the bottle, the Audi app that wants you to race the car, the Budweiser app that wants you to pretend that you are pouring beer – you get the idea. Once again, neat apps but when it comes to utility, slim to none.
The companies that I just mentioned above are hi-tech, sophisticated, global brands. They are leaders in their category. They can do better than pushing simplistic, adolescent apps. They, and others, ought to start thinking about the complete picture, anything and everything that comes to play and stands to influence how their brand gets consumed over its useful life. You need to place the customer in the center, understand the ecosystem, build the context diagram, and finally connect your customer across all the touchpoints. Use the app or service to enable such a model. This will require some amount of imagination but once you do this, you will start to make a genuine, positive difference in your customer’s life. So what’s in it for me you ask? Increased product utility and life will result in increased loyalty, buzz, recall, differentiation, and value of your brand, for which you can charge a small premium.
A connected customer is a more productive customer. Improved productivity leads to an improvement in the customer’s professional and personal potential. This further leads to an improvement in their personal bottom line. And if you’ve played a hand in improving your customer’s bottom line, I am pretty sure they will help improve yours!