Serve the digital consumer with an integrated experience on demand
The average person in the U.S. checks her smart phone 34 times per day.1 More video is uploaded to YouTube in one month than the three major U.S. networks created in 60 years.2 And 61 percent of Americans said it would be easier to live without air travel than the Internet.3
Today, digital disruptions abound, meaning that the connected consumer rarely offers undivided attention. That means media and entertainment companies have to reshape their customer value proposition and redefine their operation model. That means finding new ways of developing, distributing and monetizing their product in order to remain competitive.
In an effort to better understand this consumer and identify how the digital lifestyle effects media consumption, The IBM Institute for Business Value surveyed over 3,800 consumers in six countries: the United States, the United Kingdom, Germany, France, Japan, and China. The research identified the four distinct global digital behavioral profiles:
With 41 percent in this category, these respondents use digital devices and services to simplify day-to-day activities. Efficiency experts send emails rather than letters, use Facebook to communicate with others, access the Internet via mobile phones, and shop online.
Place emphasis on social interaction – they require instant access to friends, regardless of time or place. Fifteen percent of consumers surveyed reported they frequently maintain and update social networking sites, add labels or tags to online photos, and view videos from other users.
Are generally male consumers, who frequently play online games, download movies and music, and watch TV online. This audience represents 9 percent of the global sample.
35 percent of those surveyed take a more advanced approach to media consumption by using mobile devices and smart phone applications to access games, music, and video or to check news, weather and sports, etc.
Changing up the playlist
In response to this pervasive digital disruption, media companies around the world need to accelerate their change programs across several dimensions. One approach is to augment physical products and services with digital content, information, insight and engagement. The customer experience must be enhanced across multiple touch points and integrated across platforms to help increase sales and extend offerings.
Here are three recommendations to help achieve that transformation:
Build direct consumer interactions, where feasible. For example, set up and use company websites to make the most of customer feedback on the entire content experience―from sampling to purchase to ownership or rented access. Learn more about what it means to become a social business.
Access and aggregate any direct consumer information you can, partnering as necessary to find the data you need. Understanding your consumer will help identify the levels of interaction required with both content and fellow audience members to satisfy key consumer constituencies.
Wring out compelling consumer insights down to relevant micro-behavioral segmentation levels. In the future, such consumer insights will drive, for example, story-branching with tailored endings being delivered to individual consumers via different devices. Learn more about how smarter analytics can help.
For today’s digital media company, the operating model is the first level of change. It must be realigned so that customer preferences and requirements inform every activity in the buying and selling value chain―from content creation to promotion, sales, delivery and service. Doing this requires the integration of business activities across the supply chain and a clear understanding of how data related to those activities is managed, tracked and optimized.
Broadband and interconnected devices are spreading exponentially, with global media tablet shipments alone expected to exceed 44.6 million in 2011―a jump of over 160% from 2010's 16.9 million.4 Every day, media and entertainment organizations are taking steps to increase their efficiency, create new digital experiences and engage their customers with a smarter media experience. Those that don’t are likely to be left behind.
1. Oulasvirta, Antti, Tye Rattenbury, Lingyi Ma and Eeva Raita. “Habits make smartphone use more pervasive.” Personal and Ubiquitous Computing (Pers Ubiquit Comput). September 10, 2010. Palmer, Shelly. “Smartphone Users Anonymous.” Shelly Palmer Digital Living. July 29, 2011.
2. YouTube - Statistics. Accessed March 9, 2012.
3. “Most Americans rate the Internet higher than air travel – poll.” Reuters.com. June 2, 2011.
4. IDC, Worldwide and U.S. Consumer 2011 Top 10 Predictions, January 2011, IDC #226734