While customers own their brand experiences, that very ownership is continually changing the Buyer-Seller dynamic which, in turn, is forcing companies to change how they operate. Companies are increasingly stepping up to the challenge; it’s time that technology vendor follow suit. This post discusses what two vendors, Clarabridge and Interactive Intelligence, are doing.
Rather than chase scale and advertising, The Financial Times has built its digital business around a successful subscription model.
Jean-Marie Grange's insight:
I don't believe in #subscription model!
I am convinced that the next business model of any digital service will be #pay-per-use .
If I subscribe to the financial post for 9$/week and at the end of the month, I have read 2 or 3 articles... I feel ripped off! No matter if it is because the website is not good, the news are not interesting, or... I just don't have time. But if I pay 10¢ per article I read, I don't take any risk signing in. If, at the end of the month, I have read 3 articles, I'll have a bill of 30¢, but if I've read 100 articles, I'll be happy to pay 10$, because I know I've been using the service.
You're going to ask me why the Financial Times should struggle to deliver content good enough to make me read 100 articles and get 10$ a month when they can get subscriptions at 9$/week... simply because the FT would be better off with 20 million users reading 10 articles per month on average (=20M$/month) than having 443 000 subscribers (=16M$/month).
By the way, this applies to the video game market, music industry...
Big Blue is spending big to build up its marketing consulting business.International Business Machines Corp. will announce on Thursday that it is investing $100 million into a recently formed division IBM Interactive Experience.