With the widespread availability of the Internet and broadband service, consumers readily adopt new options for accessing, viewing, and experiencing media in all its various forms. This year’s CQ study showed technology companies topping the charts in the media category, while traditional media companies were largely rated in the negative.
Manila Austin, PhD
VP, Research at C Space
…they prefer technology companies to traditional media.
I’m old enough to remember when there were only four “real” TV channels. Even ten years ago, Netflix wasn’t streaming, and we still looked to “cable” for media entertainment. Traditional television broadcasting companies had control over their markets; similar to those companies today that have established infrastructures in place, thwarting would-be competitors.
But recent technological innovation has changed all that, of course. With the widespread availability of the Internet and broadband service, consumers readily adopt new options for accessing, viewing, and experiencing media in all its various forms. In fact, this year’s study showed technology companies topping the charts in the media category. Google, Netflix, and Amazon were the three highest rated media companies in 2016 (with CQ scores of 4.58, 4.10, and 3.98 respectively).
In contrast, traditional media companies were largely rated in the negative, with their average CQ dropping a dramatic 9.11 year-over-year. And the major broadcasting companies do appear to be struggling to find growth (the industry saw an $18 billion shortfall in revenue in 2015, and the value of the Dow Jones Media Index fell from $811 billion to $640 billion between August 2015 and February 2016).
The technology sector, however, shows the opposite trend. The soaring popularity of technology companies rated within and as part of the media category represents a larger shift that is as dramatic as it is telling. And we have every reason to expect that this rate of change and extra-category disruption within all industries will increase. On average, companies’ lifespan on the S&P 500 is now only 15 years (a 50-year reduction over the last century); and experts predict that, within five years, the majority of companies in that index will be ones we have never even heard of yet.
It’s not so far fetched to imagine that, in another five years, every industry will see technology companies – ones with the creativity and operational agility to meet new consumer demands – outperforming their traditional counterparts. And I’m not talking about inventing new functionality for the sake of having something different to offer; more bells and whistles. To be relevant, companies must use technology to stay in step with what matters most to consumers; delivering new functionality and creating new options that show consumers they are understood, respected, and valued.
Getting customers, keeping them, growing them – keeps us all in business. But today’s customers have more means, power, and control to circumvent traditional business offerings to get what they want, when, and how they want it.
As industries become commoditized and as companies within those industries struggle to differentiate their offering from competitors’, the subtle, emotional, and intangible brand behaviors CQ defines become ever more important. Ultimately, whether or not a company intuitively “gets” its customers may be the most important differentiator in a fractured, crowded marketplace. Developing this kind of intuition is the ultimate path to winning customers’ share of heart.
The above is an excerpt from our Customer Quotient™ (CQ) research.
You may be interested in:
C Space Hires Head of Tech
Global customer agency C Space has appointed Alan Zall as chief technology officer, sitting on the business’ executive leadership team. Zall was previously vice-president of North America cloud delivery at Cloud Technology Partners, which is part of Hewlett Packard. In his new role, which he started on 27th September, Zall will focus on developing in-house scalable tools to create better relationships between customers and clients.
Big Brothers Big Sisters Forges New Path with Corporate Partner
What began as a corporate contribution to help Big Brothers Big Sisters of Eastern Massachusetts retain volunteer mentors during the coronavirus pandemic has blossomed into a fuller partnership that is projected to save the organization $700,000 over five years, the organization recently announced.
De-risking new launches for biotech: the customer advantage
With the capital required to develop breakthrough biotech innovations, it goes without saying that when it comes time to bring these offerings to market, the stakes are high. And they are even higher among smaller biotech players, who take on an even greater amount of risk. So what does it take to create a successful product launch in biotech today? C Space Health Managing Director Corey Schwartz spoke to executives from across the biotech space to understand the barriers to successful launches, and what (customer) strategies led to their success.