I've discussed this with some industry experts about this and have received mixed reviews. Some are pretty excited about it, whereas some feel that advertising revenues will be the only 'green' companies will see. I feel the potential is there, we need to work on a system which can lead to the monetization of these huge databases.
CRM (Customer Relationship Management) is a big word these days. Though i feel lot of companies are missing the bus on this. I've done a lot of (continue to do so) segmentation/profiling in my jobs, but i just feel that there is still that extra step which needs to be taken to deliver that 'near perfect' customer experience. I think the best way to go about is 'What does customer service mean to me?' Is it someone speaking to me politely? Are my concerns being addressed? Is my ego being massaged?
Well the answer could lie in a mixture of all these parameters. I think its very important to know your client. Build your rapport, make it easy for everyone involved. Never Commit, i repeat never commit anything, which u cannot or never intended to do in the first place. Its a big no no.
Getting back to the Database monetization, I feel we're looking at the next monster: I think you need to be pro-active. It'll be a big challenge, no doubt. Lets look at a simple blogging example: you would only return to one where your comments are being replied/answered to. WE ALL NEED ATTENTION!! Another intricate issue here is probably the most important one: Retention. How loyal are we? We tend to shift loyalties very fast these days, to make that quick buck. You might need to develop a business model which caters to this particular issue. So stickiness is pretty easy to build nowadays. Its how to make them stick, that really matters. I feel that are three main factors which makes everyone 'stick':
1. Like minded community (peer pressure) - maybe the biggest factor.
2. Interaction levels (mentioned above)- for example you may upload pictures in a zillion places, but the places where you get comments on your photos, you want to post it there right?
3. Value- this could have a lot of individual connotations to it: it could be free stuff for some; interaction for others. This is what will make people stick on.
Well you must be thinking 'we can make do with ad revenues'. Actually the grass is not that green. Ad revenues through social networking sites are not that slick as they may seem to be. I haven't clicked on any add link(s) posted on facebook, linkedin, etc. Have you? Infact i was having a chat with one of my friend's about this same retention issue. She told me that she had recently done a usability study on ad placements and realized that click through's on social apps is the lowest. So how can you make money from the LOWEST ad click throughs.
I would really appreciate if you could share your thoughts on this post.
