ROT (Return on Time)

To paraphrase the Rolling Stones, "Time, is NOT on my side". With multiple e-mail accounts, Facebook updates, Tweets, Texting, cell calls, and, oh by the way, the demands of the Real World, we don't have enough time. Same is true at work. I recently calculated I was spending over 5 hours a day just on e-mail (I'm fixing that one). So with time becoming an increasingly rare commodity, it is as important to look at ROT when evaluating an investment as it is to look at ROI. Exploring that new product or partnership, revising that presentation one more time, having a meeting to discuss an issue - are they worth it? You need to look at the time spent on something through the same lens as spending hard dollars. Because the opportunity cost of your time might be even more valuable than an out of pocket investment. Are you getting the time to just sit back and think about how to move your business forward? Are you meeting with a vendor who just might be the next Google or Facebook and would offer you to get you in on the ground floor? Is there an agency who might have a game changing idea for you business? You'll only know if you meet with them, and you'll only have time to meet with them if you spend less time on low ROT activities.

Go to where the people are

Retailing hasn't always been as simple as setting up a store, either physical or virtual, stocking up with merchandise that people wanted at a price they were willing to pay, and then marketing to let customers know you were open for business. Centuries ago, merchants had to go where the people were. They'd stock carts with goods that weren't readily available and then go from town to town selling them, pricing them at whatever price they thought the customer was willing or could afford to pay. They'd go to town squares, churches, synagogues, barn raisings - wherever people gathered - so they could sell what they had brought into town. They'd get to know their customers, building relationships over the years. They'd be welcomed as an honorary member of the village (unless someone felt cheated, in which case they'd be run out of town). It was social, relationship based commerce, and it continued with Avon, Tupperware, Pampered Chef, and other door to door and house party retailers.

In the modern age, the rise of mass merchandisers changed mobile commerce to destination commerce. People started going to retailers, searching out what they want to buy rather than waiting for it to show up at their door. Retailers knew that if they marketed, they would come (or they could send them a catalog so they could shop at home), and having a relationship with your customer was secondary to having a range of products at appropriate prices. The Internet started the same way. Sites were built, banner ads were purchased, people came and shopped. Like catalogs, they used e-mail and affiliate programs to reach customers in their virtual homes or at sites they were surfing, always bringing them back to their site store.

Now that the the Social Web has transcended teens to include baby boomers, it is time to consider going back to bringing the store to where the people are and building community based relationships. Stores need to be within social networking sites, offering products relevant to customers while they interacting with them in their virtual villages. You need to be welcomed in, allowing people to discuss what you are offering, both positive and negative, and even allowing people to haggle if they want. But by engaging with them in their "town square", you have an opportunity to bring back the connection the shop cart owner had with his customers. It is the era of "social commerce". How will your business adapt?

The future of content

Leveraging content assets across new, revenue generating distribution channels is a critical challenge for media and entertainment companies as the nature of media consumption shifts. The days of consumers enjoying TV, music, video, film, radio, and print content in the forms created by media companies, at the times programmers or editors wanted to deliver the content, and at the price the company choose to charge for it have faded rapidly over the last 10 years. It started with print media, as newspaper circulation eroded, replaced by real time Internet news sites and ultimately customized, on demand or streamed news feeds. It was followed by the record industry, which ignored customer demand for downloadable, individual songs and as a result saw a rapid decline in CD sales. Radio listenership has declined, with the rise in pod casts, ipods, and streaming music. Finally, over the last two years, it has expanded to video content, which is quickly shifting to the web and mobile and gaming platforms.

What this means for media companies is that they need to rethink their content and how to distribute it. Customers want their media on demand or streamed to them, to their computer and, perhaps more importantly, their mobile device. They want it on their schedule, not the media companies. They want it in time frames that work for them - 2 minutes, 5 minutes, 30 seconds. And they start with the assumption that if there is advertising (and sometimes even if there isn't), it should be free. For publishers facing significantly lower online CPM's, which are under pressure by ever expanding inventory, the math of purely ad supported online content doesn't currently work except for niche and technology oriented content. For publishers to succeed, they need to revalue their content by considering charging for it. Paid circulation magazines and newspapers generally commended higher rates than free publications because they illustrated customer loyalty and engagement while helping to defer costs. As content migrates online, smart publishers will figure out how to successfully parse their content and get readers to pay for at least some of it, creating a second revenue stream.