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Revenue

Watching some of the new ventures getting funded over the last several months, there’s an interesting trend that’s turning user-generated content into real value for companies and their customers.

One example is Driveway Software, which develops applications that insurance companies offer to their customers.  The apps track driving behavior, and enable the insurer to offer discounts based on good driving habits.  In the healthcare sector, companies like AFrame Digital and Lark are creating devices and apps that enable doctors, care-givers, and individuals to track patient health and provide better, more personalized care.  FlixMaster collects information about how we watch interactive on-line videos so that media companies and advertisers can create more engaging content.

While the content in these instances is “user-generated,” all the work is being done within machine-to-machine interfaces. User devices or apps collect information and communicate with data collection and analytics engines to produce both individual and aggregated intelligence. That intelligence enables companies to offer new and unique products and services.

For each company that collects and uses customer-generated data intelligently, there are scores who collect data but never use it.  That’s not only a waste, but also an unjustified risk – keeping customer information without carefully managing it can have legal ramifications and expose the company to liability.

Bottom Line:   There are countless ways to collect data about your customers.  Before you start, decide exactly why you’re collecting it, how you’ll manage it, and what intelligence and action the data will drive.

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The fifth trend that emerged from Churchill Club’s recent Chief Marketing Officer Agenda 2013 event was the expansion and diversification of the marketing role and skillset.  Several new, or newly important, areas of responsibility are driving the need for new skills:

  • Marketing organizations are aligning more closely with sales objectives.  The four speakers from SAP, Intuit, Google, and DreamWorks all mentioned revenue as a key marketing metric.  Nora Denzel, Senior VP, big data, social design and marketing at Intuit, said her company considers its marketers to be “growth officers.”
  • Marketers are often the customer advocates in the company.  At Google, Marketers not only evangelize the company externally, but also “play a big role internally in evangelizing on behalf of the customer,” according to Lorraine Twohill, VP global marketing there.
  • Marketers are also increasingly responsible for customer experience and engagement.  Lorraine Twohill mentioned that one of her organization’s main responsibilities is to “make technology mean something to real people in their daily lives.”   The focus on customer experience also translates into marketing having greater involvement earlier in the product design process.   DreamWorks CMO Anne Globe describes integrating movies with games as a way to engage viewers – a tactic that erases the lines between product development and marketing.  (See previous post: The Product IS the Sales and Marketing.)

These roles obviously extend well beyond marketing’s traditional purview of awareness and lead generation campaigns.  Google’s marketing organization now includes coders, artists, analysts, and gamers.   According to Lorraine Twohill, Google likes to hire marketers who don’t see the old functional limits, but can imagine completely novel ways of engaging customers.  When Nora Denzel was asked about hiring, she echoed the sentiment:  “We want a diversity of skills and backgrounds, and people who can do multiple tracks.”

Bottom Line: Consider what role your marketing team can play to provide the greatest value to your company and customers, and what new types of customer engagement are emerging in your industry.   Then

  • Identify the skills your team will need in its future role.
  • As you outsource leading edge techniques and tactics to 3rd parties, pay attention to which specialists and skillsets they have on the team.
  • Consider hiring people who have an in-depth understanding of your customer, but from a very different perspective and background than the existing team.
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Imagine you have an audience of 350 people. Now imagine you have them captive in a room for several hours. How would you use that time? What if that audience were already your customers?  I am guessing that handing out a catalog of random products and serving water in paper cups would not be the first items on your list.  Unfortunately, they are the ONLY things United Airlines could come up with.

I pick on United because they kept me sitting on a runway for over 4 hours recently, with a cup of water after 3.5 hours being the only concession.  They did actually serve food (liberal interpretation) and show a movie during the 12 hours in the air.  But they could have, among other things,

  • Sold DVDs or downloads of the movies they were showing
  • Sold CDs or downloads of the music they play on various earphone channels
  • Surveyed passengers about travel habits, plans, and airline selection criteria. (Fill out a survey, get extra frequent flier miles.)
  • Gathered data on behalf of a paying third party.
  • Sacrificed one seat in the back to offer in-flight neck or foot massages. I’d pay!
  • Sold neck pillows and other travel-specific items
  • Offered free informational pod-casts (from sponsoring organizations?) or audio books via the audio system (and then sold the audio and ebooks, of course)

These are all revenue-generating for the airline, and valuable to customers. But they weren’t done.  Seems that in a financial crisis, innovation applies only to cost-cutting.   Why not focus on revenue sources in stead?

I see many companies passing up opportunities to add value and generate additional revenue.   In the course of conducting research for one client, we concluded each customer interview with a very simple question: “What will help you get more value from this product?”  Several customers mentioned they wanted our client to offer post-sale services to fine-tune product usage 6 to 12 months after deployment.  This discovery was unexpected, unplanned, and pointed to a completely new revenue and relationship-building opportunity.   To find it, all we did was ask.

To find those hidden, yet in hindsight obvious, revenue opportunities, look in two places:

  • Can you address additional or broader needs for the customers you already serve?
  • Can you meet the same needs you address today, but for new audiences or segments?
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In a tough economy, impact revenue or go home

by Lilia Shirman on March 3, 2009

in Economy

It was great to be speaking to a room full of entrepreneurs last Thursday at the TechCoire panel, Strategies to Drive Revenue in a Recession.   Gopan Madathil masterfully organized the event.  The big takeaways form our panelists (Igor Shoifot of Fotki, Rajat Paharia of Bunchball, and Vadim Rosenberg of CA) for generating revenue in this economy:

  • Listen more carefully than ever to customer requests and use them to create new revenue-generation initiatives
  • Look at the ideas you’ve accumulated but never executed. This might be the time to finally try a few.
  • Don’t walk away from customers who like what you’re offering but don’t have the budget.  Instead get creative about restructuring the deal – change payment terms, deliver in phases, start with smaller volumes, etc.
  • Always be on the lookout to great sales people – those who know how to connect and build rapport with customers.
  • MOST IMPORTANTLY: Revenue generation is the top priority for just about any company right now.  Resuscitate stalled deals and accelerate the close by showing how you can help customer sell more.

Got more ideas for driving revenue while everyone clutches their wallet ?  Comment!

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