Wednesday, April 2, 2014

Data Changing Strategies


The Forbes.com article focuses on the future of business strategy. This extends the conversation the class had last week; How should businesses react to the changing times? How flexible do businesses need to be? In the future, businesses will “stop mimicking competitors,” “stop fighting customers,” and leave brand power to “bend to customer preference” (Bell).  All three points lead to companies listening to the customers’ wants and needs.

Blockbuster
Everyone loved Blockbuster. It was consistent in every store in every city in every state. Customers knew the name and knew how to go about retrieving videos and games from the store. But once the technological era became “the norm” and audiences were looking toward more convenient sources to get video access, Blockbuster did not change it’s strategy. The company did not adapt to the changing landscape and within a few years filed for bankruptcy. 

Netflix
Netflix is using data pulled from countless resources to customize specifics to each customer. They spearheaded the idea of “using customer data to create tailored, personalized experiences.... Joris Evers, director of global communications at Netflix, has commented, “There are 33 million different versions of Netflix.” The obvious implication here is that every member gets a unique experience, with personalized recommendations, niche genres, and even targeted trailers for new features” (Bell)
Other companies have begun to use data to target audience specifics as well. Among these companies is Facebook. Facebook uses data to provide specific advertisements on a user’s newsfeed. Like a Netflix homepage, no two Facebook newsfeeds are the same (Epsilon). Google, Amazon, and other online shopping sites had taken to the data resource and incorporated research into its strategies. 
The bottom line is that companies and brands need to recognize these changes in technology and adapt their own practices and strategies to survive. "The trends will make 2014 the year we customers begin to be offered intuitive experiences, driven by our own unique behaviors, and tailored to suit our individual needs" (Bell). 
__________________________________________________________________________ 
Bell, Brooks. "How Data Will Drive Business Strategy in 2014." Forbes. Forbes Magazine, 23 Jan. 2014. Web. 02 Apr. 2014. <http://www.forbes.com/sites/techonomy/2014/01/23/how-data-will-drive-business-strategy-in-2014/>.
Epsilon. Epsilon and Facebook Partner to Help Brands Create Stronger Online Connections with Customers and Prospects. Epsilon. N.p., 10 Apr. 2013. Web. 02 Apr. 2014. <http://www.epsilon.com/news-and-events/press-releases/2013/epsilon-and-facebook-partner-help-brands-create-stronger-online->.

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