DIGITIAL MEDIA: EMPOWERING CUSTOMERS AND FACILITATING

MANAGERS FOR THE FUTURE

Digital media is the media of the present and definitely the future. It is something that has

changed the course of the way we live owing to its incredible innovation capabilities, which at

times dont even seem pragmatic but eventually turn out to be! Digital media, in generic terms

can be defined as the media that can be understood by anyone, even by machines! An

organizations ability to communicate with its potential customers has changed drastically from

old school dial up connections in the early and mid-90s to the broadband and fiber world of

today. In the mid-90s, a communications campaign would have included newspaper ads, radio

spots or talk show appearances. Modern digital campaigns might still use some or all of these

media but there is one other important medium available to all these days- digital media. Digital

media has increased the reach of individuals as well as organizations. Today, there are roughly

one billion active Facebook users, 343 million Google+ users, 200 million LinkedIn users and

500 million Twitter users.

According to Aaron Reitkopf, North American CEO of digital agency Profero, Theres never

been a better time to be in advertising, and theres never been a worse time. But digital media

has revolutionized the art of marketing and advertising. The face of digital media is the digital

media marketing. When we take a look at the way Narendra Modi made an impact with the help

of digital media, we can actually judge the kind of impact of using the right things at the right

time in the right manner.

But why has digital media created a kind of an impact that was never seen before and why is the

number of users on the rise? Firstly, there is a lot more to offer for not only customers but also

organizations. From the customers point of view, there is a lot more choice because of digital

media. Google gives you a million search results in an instant when you just asked one! This

makes the customers mind go farther and makes him explore. It actually empowers the

customers! Theres so much available to customers that it is getting really tough for

organizations to make an impact on them. It is important for them to cross the Zero moment of

truth. This term means that customers form an opinion in the first few clicks when they search

online for a brand or a product. Digital media is all about connecting the customers to

organizations perfectly.

The AIDA model depicts as to how the customer is actually connected to the brand. Customers

tend to form an image about a brand and then try to substantiate as to what they thought was

right. Organizations need to build the image of the product by making customers aware and

interested. Only then, customers long to buy the product and finally buy the product. Digital

media has simplified the process completely. In several cases customers do not even see the

product, but are still so loyal to it like the Intel Processor. Digital media is beneficial from

organizations point of view because they are noticed by the customers. There is a lot more

choice available even to organizations to reach their customers. Instead of choosing among a TV

or a print advertisement, they can now create media that is a combination of audio, visual, text

and interactive media. This mixed media can appeal to a larger audience with different mindsets.

Some success stories of digital media include FORDs Fiesta Movement. Videos related to the

Fiesta campaign generated 6.5 million views on YouTube, and Ford received 50,000 requests for

information about the vehicle, primarily from non-Ford drivers. When we take a look at the way

BJP and of course, Narendra Modi came to the limelight with none other than digital media, we

can actually judge the kind of impact of using the right things at the right time in the right

manner. Another instance is when Levi Strauss used social media to offer location-specific

deals. In one instance, direct interactions with just 400 consumers led 1,600 people to turn up at

the companys stores an example of social medias word-of-mouth effect.

Secondly, the cost of advertizing reduces drastically because of the virtual medium which is

used. One is free to create anything he/ she out of imagination without depleting natural

resources. The digital media is the one that actually generates resources rather than using other

resources. Many sectors actually bank only on data these days while others are beginning to

improvise themselves with the humongous amount of data available. Reports suggest that the

USA healthcare system alone generated about 150 exabytes of data till about 2011 and is

expected to touch Zettabyte and Yottabyte ranges in the future. This is where the concept of

Bigdata comes in. This kind of data can help in clinical decision support, diseases surveillance,

and population health management. Moreover, a large amount of skill is required to handle

BigData. Hence, employment generation is the immediate effect of BigData generation. The

healthcare industry is an example in which BigData can actually transform the way things work.

It is more of a disruptive change. Digital media and in turn, BigData has led to a large amount of

predictive intelligence. Things have changed rapidly as Stan Rapp from MRM Partners

Worldwide rightly says in the 21st century, the database is the marketplace.

Thirdly, digital media is all about the right usage at the right time, especially for managers. It

facilitates managers for the future! One of the most important aspects for managers is to target

the correct segment. This would depend on the needs of the customers & hence it is important to

understand the needs of customers. However, there are several instances where the need is

created. Thats where the predictive intelligence helps in understanding customer mentality. This

facilitates managers to take better and more objective decisions. Mckinsey proposed a model

which describes the steps any organization and its managers must follow to bring themselves in

the hall of fame!

Even without engaging consumers directly, companies can glean insights from an effective

monitoring program that informs everything from product design to marketing and provides

advance warning of potentially negative publicity. Its also critical to communicate such

feedback within the business quickly: whoever is charged with brand monitoring must ensure

that information reaches relevant functions, such as communications, design, marketing, public

relations, or risk. Social media can be used most proactively to lead consumers toward long-term

behavioral changes. In the early stages of the consumer decision journey, this may involve

boosting brand awareness by driving Web traffic to content about existing products and services.

Another important factor for managers is customer relationship building and customer loyalty.

For instance, M&M uses social media to address complaints to ensure customer loyalty. An

individuals opinion can make a huge impact because of digital media. Sometimes customer

opinions can go viral and even expose a company completely. A classic case is the United

Breaks Guitars when a catchy tune with about 13 million YouTube views, created by a guitarist,

Dave, whose beloved $3,500 guitar was broken by Uniteds luggage handlers. Even after eight

months of persistent correspondence without receiving compensation from the company, Dave

Carroll released a YouTube video to air his grievances to the world. The videos popularity was

so high that it led to social media fervor and bad press galore. This was not really negative

publicity but just one complaint from a customer! The story is now a case study in customer

service. It even propelled Dave to write a book, United Breaks Guitars: The power of one voice

in the age of social media.

Hindustan Unilever recently set up a digital media lab in Mumbai to train its managers. Apart

from this several managers have been to global headquarters of Facebook and Google among

others for training purposes and digital certification. The amount of money that has been pumped

into digital ads has increased by approximately 40% in 2012-13. HUL also has partnerships with

digital media giants like Sonys Arcade Creative, Samsung, EA sports etc.

Although digital media seems to be the best in every sphere, there is a dark side to it too and this

is enough to keep cyber criminals busy. The flip side of using digital media is that the

manipulation of data is easier than print media or other forms of mass media. There are several

issues like that of the copyright violation, phishing, piracy etc. In fact, the US author Tom Wolf

went on to say that It's almost impossible to make a name for yourself on the internet unless you

do something scandalous!

Thus, digital media has extended the disruptive impact of the digital era across a wide variety of

functions. We are now in a generation where hours have become seconds and supercomputers

can fit into ones palm. The scope of creativity in technology of the human brain is unlimited.

But one must always remember that digital media is more about sociology and psychology than

technology!

References:

1. http://voicemags.com/INVESTORS.html 2. http://www.smartinsights.com/traffic-building-strategy/offer-and-message-

development/aida-model/

3. http://www.mcbeestrategic.com/social-media-in-2013-the-influence-and-impact-of-the-individual-on-digital-communications/

By:

Rajat Ramesh

Saikat Roy

PGP 2014-16

IIM Tiruchirappalli