CMO

Transmedia, OnDemand and the power of listening to audiences

By Nathaniel Hansen, CEO, The Socializers

If more Marketing Managers at Fortune 500 companies/major media companies truly understood the potential of future media delivery channels like GoogleTV PAIRED WITH “content-informing-intelligence”, there would be a mass re-organization of dinosaur-age ad/marketing agencies whose teams have yet to even train in social monitoring/intelligence tools AND have none of the talent-identification capabilities that a CAA or William Morris has. Those same Marketing Managers would then turn to social business agencies for the following process:

(a) pre-product dev intelligence gathering/listening,
(b) demographic-savvy content/product design RELATED TO what is discovered/analyzed from conversations in the social fabric of the internet,
(c) Relationship Architecting with related Social Strategy to identify ideal Key Influencers (and their content), thus paving the way for seamless and swift introduction of said content into the fabric of communities hungry for it,
(d) on-going listening that creates a virtuous cycle of this process.

The future leaders of transmedia will use the process above as just one of their approaches in expanding possibility for those who interact with media, advertisers, media/content producers AND communications entities. Transmedia and the associated processes that will bring this fabulous new way of interactive relationship to programming IS the future of CONTENT IDENTIFICATION AND PRODUCTION.

Colin Donald of FUTURESCAPE.TV says it best in the following comment on an article entitled Struggling for control: The humble channel-zapper is evolving in ways that will shape television’s futurein a recent edition of The Economist magazine:

“Internet-connected TVs lead to massively increased choice and require next-generation EPGs to help viewers navigate the wealth of content.

One solution backed by many in the industry, like Rovi, is to develop social EPGs that let friends recommend TV shows and videos to each other, via social networks or via systems which use data from social networks.
However, the implications are even more radical than your article suggests.

When Futurescape.TV recently researched this nascent social TV sector, we concluded that Facebook and Twitter are already battling for key roles in the TV industry as Internet-connected televisions transform TV into a social medium.

The two social networks have an actual or potential commercial role across the entire TV value chain.

For instance:
Global pay-TV, estimated at $250bn in 2014, needs social recommendation and discovery services because these encourage viewers to subscribe to more expensive packages and buy more video-on-demand – Facebook and Twitter are both major providers of social data.

Facebook in particular has a highly developed social graph of people’s relationship with entertainment content, from the ubiquitous Like button, integrated into many broadcasters’ Web sites. Both it and Twitter own considerable, detailed data about people’s behaviour, such as discussing TV shows and sharing links to videos.

As your article described, set-top box middleware and EPG providers similarly need social network data for recommendation and discovery – the European EPG market alone will be worth $555m by 2014.

TV manufacturers’ strategy to provide video-on-demand direct to viewers also requires social recommendation, while their connected TV apps enable viewers to interact with Facebook and Twitter on home TV sets. Facebook aims to tap the $180bn worldwide TV ad market, competing with broadcasters for brand advertising – Google TV and similar Web-on-TV systems will put Facebook and Twitter targeted ads on TV screens.

Facebook and Twitter buzz affects TV ratings, while broadcasters that use the social networks for viewer engagement are effectively sharing their audiences with them.

The social networks know in real time how people react to TV programming – this is an essential supplement to Nielsen-type viewing data.

Integrating social networks with EPGs is only one manifestation of a profound and permanent change in the television industry, a change through which Facebook and Twitter are positioning themselves as major industry players.”

The teams working on Oprah’s new cable channel and on eBook sales strategy at Bertelsmann’s Random House are contending with issues related to the new possibilities in transmedia and how to make content delivery platforms lucrative for their shareholders WHILE giving users the most flexibility in interacting with their portfolios of content. Those media publishers who acknowledge the value in being customer-centric vs. product-centric in their offering AND develop platforms that allow maximum interactivity WILL win!

To quote Ali Valdez, a senior Microsoft sales leader, “Their customers will be their marketers. Their customers’ social network friends will be their new customers. Full transparency, good and bad, will drive innovation and competitive pricing. The consumer will win. Those brands that enable consumer victory will share in the bounty.”

TO SUM UP: Combining research from tools like Recorded Future, the world’s first temporal analytics engine (a video intro to Recorded Future here), and Radian6, a leading social media/network monitoring solution, media companies now have the opportunity to LISTEN to audiences that have OPTED OUT of traditional marketing channels and are OPTING INTO new, socially chosen/recommended channels. They then are able to match valuable information from conversations within the social fabric of the internet WITH market trends and probable future events to create product/service/content offerings with previously un-paralleled precision. Existing portfolios of content may be re-purposed into countless monetizable and USER-GENERATED interactive communities.

Understanding the future requires observation and listening and it is a Chief Customer Officer who will teach this to marketing staff, brand managers and community managers.

Why Brand Managers will report to the Chief Customer Officer

Definition: A Chief Customer Officer builds relationships with customers, cultivates those relationships and grows social equity. He/she promotes a customer-centric culture in a company and removes obstacles within the company to customer satisfaction. Customer managers identify customers’ product needs, while brand managers supply products that fit those needs. In a P2P environment, such a reorganization is critical to success.

A further definition: an executive that provides the comprehensive and authoritative view of the customer and creates corporate and customer strategy at the highest levels of the company to maximize customer acquisition, retention, and profitability.

There are now more than 300 Chief Customer Officers in the world and perhaps hundreds more serving the same role but without the formal title. The role is evolving rapidly, and more CCOs are being appointed every month.

The CCO role is evolving into more of a “Chief Customer Strategy Officer,” focused primarily upon driving profitable customer strategy at all levels of the company with the express goal of acquiring, retaining, and serving the right customers for greater profits. It is no longer a “nice to have” designation; for many companies it is business critical and primary source of competitive advantage. In a telling about-face, many people have stopped complaining that a CCO is unnecessary because a company has a CMO. Instead, they are advocating an extreme position in which the CMO should be replaced with a CCO.(Source: chiefcustomerofficer.com)

In the world of the past (and present for many still), the product manager would use one-way mass marketing to push products to people. In the world of the future (and growing as a present-day reality), customer managers engage individual people or narrow segments in two way communications, building long-term relationships by promoting whichever of the company’s products a customer would value most at any given time. This is more similar to a B2B paradigm.

A customer manager is the ultimate expression of marketing (find out what the customer wants and fulfill the need) while the product (or brand) manager is more aligned with the traditional sellling mind-set (have product, find customer). Look for more movement in this area in the coming year at the enterprise level, even as companies of all sizes begin acknowledging the need for Community Managers (who are ideally aligned with their values). A major “IT” position in social business is Community Manager AND Chief Customer Officer.

(“To compete, companies must shift from pushing individual products to building long-term customer relationships.

The marketing department must be reinvented as a “customer department” that replaces the CMO with a chief customer officer, makes product and brand managers subservient to customer managers, and oversees customer-focused functions including R&D, customer service, market research, and CRM.

These changes shift the firm’s focus from product profitability to customer profitability, as measured by metrics such as customer lifetime value and customer equity. This organizational transformation will uproot entrenched interests and so must be driven from the top.” ~ Roland T. Rust, Christine Moorman and Gaurav Bhalla in Harvard Business Review, January-February 2010)

(“The key to business success, particularly in a down economy, is anticipating customer needs and continuously deepening customer relationships,” says Jeb Dasteel, CCO Council’s CCO of the Year 2009. “We’ve gotten really good at listening to customers, prioritizing feedback, and driving customer strategy at all levels.”)

(The average small/medium-biz CRM customer is 200 to 1000 employees. These are the organizations that Queener speaks of – the ones that need to understand and engage the social customer so badly.

“I don’t know if it’s a question of small vs large organizations,” he said. “Small [businesses] need to be scrappier; they don’t have the manpower.”

“When you have organizations of 200 to 1000 employees – the CIOs come from the business,” Queener said. “It’s all about moving fast-fast-fast.” ~ Brett Queener, SVP, Products, Salesforce)