innovation – Beth Johnson Marketing

Tales of misfortunate companies that have met their demise through the rise of predatory rivals are now a dime a dozen. As technology advances, a sheer refusal to innovate has seen much-loved companies and industries struggle to stay afloat. Where did it go wrong?

Netflix didn’t sink Blockbuster. Unfavourable late fees did. This was the scourge of Blockbuster: return a movie, go to rent another, and find out that you owe $20 in late fees. This was how it made most of its revenue. Blockbuster’s business model required a conflict of interest with customers- so customers switched to Netflix as soon as it became available, without remorse.

Uber didn’t kill your local taxi firm– unreliability did. Riders are now able to hail a ride online instantly, with live tracking and accurate time frames. Convenience and time-saving aspects have streamlined ride services with the desires of customers at heart.

Uber App GIF by Product Hunt — Source: Giphy

Airbnb isn’t taking over the hospitality industry– new customer experiences and pricing options are. Customers are demanding authentic lodging experiences- in locals real homes- at affordable prices.

“Airbnb Experiences immerse travellers in local communities, offering one-of-a-kind, handcrafted activities, led by local experts.”
By Airbnb

Source: Youtube

If these examples teach marketers anything, it’s that not being customer-centric or lacking innovation of experience can be fatal. Marketers need to invest and evolve alongside technology as demand-based power rises. In short: optimise your customer experience, before competitors get there first.

Can you think of any other examples where refusal to innovate has been fatal?

The power of social media influencers has capsized the world of digital marketing, with perfectly edited posts of avocado on toast that are almost enough to make it look tasty. But, with brands striving for consumers trust, there is great irony in relying on the same platform that brought Fyre Festival to do so.

As consumers demand authenticity, companies are running into the arms of their familiar companion UGC (user generated content).

UCG is content created by unpaid contributors- from images, videos, hashtags, challenges and so on. UCG is 9.8x more likely to influence a purchase decision than influencer marketing.

Stop me if you think you‘ve heard this one before.

The year is 2014. The sun is shining. Your timeline is filled with videos of people throwing buckets of ice over themselves. #alsicebucketchallenge has taken over. 8 weeks and AUD$115M in donations later, the power of UGC had never been so apparent.

ALS Ice Bucket Challenge
Source: Youtube

UGC is nothing new. So why are we seeing a boom now?

Consumers are growing frustrated with the inability to find honest-to-goodness information online. Glorified bribes in the form of influencer posts are so mass-produced that consumers are shutting o ff from them.

What does this mean for marketers?

In the age of inauthentic marketing, UGC emerges as the light at the end of the tunnel. Providing trustworthy information to help purchase decisions is more aligned with the desires of consumers today and often cheaper than paying rent to an influencer.

Do you see a future where influencer marketing has no influence?

Tag: innovation

When refusal to innovate is fatal