2. It may be hard to believe,
particularly for those under-30
years of age, but there was a time
in the not-too-distant past, that we
all lived in a world where the daily
reality included:
• Only one phone company and
expensive long-distance calls
• A grand total of three network
choices proffered for TV viewing
• A world in which would-be
photographers had to purchase
a camera, then film, and then
bring that film to a third party–
and wait to get it developed
• And a world in which job seekers
had to manually search through
the “Help Wanted” ads in their
local newspaper
3. In ways almost too numerous to count, the business world of
2015 bares almost no similarity to the one that existed as recently
as 20 years ago. Of course, technology is–and remains–the main
driver for the majority of the changes in the way business is
conducted today; however, technology has also resulted in one
other significant trend within the business world.
4. One of the most significant changes that technology has both
caused–and enabled–has been demand for personalized
products and services. Today, it is virtually impossible for any
member of the ‘millennial generation’ to conceive of a time when it
was the norm for everyone to have the same choices—or in some
cases, no choices at all—in everything from telephones to
televised entertainment.
5. In addition, in the era of
Instagram, Facebook,
Twitter and other forms
of social media, the
ability to interchange
ideas and images with
anyone, anywhere at
anytime is now a given.
And implicit in that fact
is the ability for
consumers to create,
share and enjoy
personalized
communication and
entertainment on a 24/7
basis.
6. However, halfway through
the second decade of the
new millennium, clients (be
they consumers or
businesses) now not only
appreciate–but expect–to
receive products and
services designed to meet
their individual needs. As
I’ve noted in previous
columns, the Internet
means that customers
have a wider array of
choices than ever before,
and easier access to that
plethora of available
choices.
7. Still, even at this late date, some industries are just now
awakening to this new reality. Take, for example, the cable
television industry. It’s estimated that more that $70 billion is
spent annually on TV advertising. That’s an impressive figure.
However, it may also be deceptive.
8. One of the latest
buzzwords within the
business world is
“cord-cutting”, which
references a rapidly
growing consumer
willingness to walk
away from ‘bundled’
programming
packages offered by
the cable TV industry
in favor of, you
guessed it, more
personalized options.
9. For decades, cable
companies—who have near
complete domination of
their assigned regions due
to lack of competition—
have been able to ‘bundle’
dozens of channels, and
sell those packages to their
customers. Other than
opting for satellite
television, consumers were
left with little or no choice:
pay for channels you have
no intention of watching, in
order to get access to those
you will, or walk away from
your favorite program or
network.
10. That was then, this is now—and ‘now’ is the age of the Internet. As a result of new
technology, a rapidly growing number of TV consumers are cutting their proverbial cable
cords—ergo, the phrase ‘cord-cutting’–and seeking alternatives to the expensive cable
option; after all, in any business other than cable television, the notion of customers
paying for goods or services they know they will never use would be—correctly–seen as
patently absurd.
11. And there is good reason
for the cable companies
growing concern over a
diminishing customer
base—as seen in the rapid
growth of the alternative
option to cable TV. Web
video advertising is slated
to grow by an impressive
30 percent this year, and
while it is valued at about
$8 billion dollar (a fraction
of the giant cable market),
unlike cable, all of the
indicating arrows for web-
based advertising point
upward.
12. This new era of personalized consumer demand is,
perhaps correctly, being seen in historical terms as
one of great narcissism. From ‘selfie sticks’ to
Twitter—and for better or worse–the primary focus of
this era seems to be pleasing the face we see in our
mirrors.
13. However, the bottom
line is that businesses
failing to provide the
quality, personalized
goods and services
expected by today’s
demanding
consumers do so at
their peril–and risk
learning first-hand the
economic
consequences of
customer ‘cord-
cutting’.