Strictly Marketing Magazine March/April 2016 3 | Page 15

Future Marketing: Become Big Social Mobile The Keystone of Data-Driven Marketing H as social fundamentally changed business? It’s a question still central to how companies effectively compete in this new social economy. While I firmly believe “no it has not,” social has fundamentally changed marketing itself, the corporate-consumer relationship, and the method by which companies are valued. So if business hasn’t changed—it is still about creating profit—but marketing has, what is the new intersection between the two? This is the keystone which must be in place if you are to become truly big social mobile, connecting with today’s social consumers and dominating your market. It seems a good place to start this column. The Big Change The change to marketing is actually more profound than most marketers understand—certainly few outside of marketing understand it at all. Traditional marketing is almost exclusively focused on creating the most concise message, combined with the most memorable images, video or sounds, delivered to the most people. Its effectiveness was measured in impressions. Think of Super Bowl commercials created by Sterling Cooper. The hope is that at their moment of need, consumers would remember the message. A memorable message is critical because consumers are choosing among competitors—the more memorable the message the greater its potential to influence them. This is the process of traditional marketing, and despite what some experts say, it is actually more effective now than ever—videos going viral shows how the digital equivalent to advertisements (digital content) can now reach an even larger audience for significantly less cost. But this effective process is no longer generating as many customers because at the moment of choice the consumer now has access to information; they can now make an informed decision. This is what social consumers do: they use information not provided by the company to make a buying decision about that company’s products or services, such as third-party reviews, social recommendations, competitive information, or just educational information. The result is that companies are putting resources into an effective process—they are applying this traditional marketing approach to digital mediums—to reach more people than ever before but they aren’t generating tangible results—new customers, higher conversion rates, more revenue, higher CLV. The measure of effectiveness has become antiquated. Remember, this is capitalism. Perceived value first influences consumer choice more than true value. As we move from a capital driven market to one that is socially-powered (where buyers are informed) perception has less influence—the true value your company provides to buyers will influence what happens more than your message. This is a behavioral change for consumers. Most companies haven’t adapted to it because executives still define effective marketing as marketing that is memorable, certainly more value-driven than before, but being memorable still gets their blood pumping. Strictly Marketing Magazine March/April 2016 15