The Age of Engagement: getting intimate with customers

Published by Carl Lens May 6th, 2008 in brand engagement

Microsoft thinks engagement is more important than clicks and I can’t agree more. Although Microsoft is not very clear on what they mean by engagement they share they acknowledge that the age of advertising as we know it is over and we are moving steadily into the age of engagement.

Why is this relevant to a blog about Crowdsourcing? (We’ve even made it a category). I believe Crowdsourcing is a means for engagement and is fueled by the same trends. To lean on my MscBA for explaining this a bit: Treacy and Wiersema (1993) modified Michael Porters generic strategies into three “value disciplines: Cost Leadership, Product Leadership, and Customer Intimacy. Cost leadership is harder than ever due to globalization. Moreover product leadership is more expensive than ever: R&D cost are increasing (ROI decreasing).

What is left is Customer Intimacy: focussing on user groups to meet their needs better. This strategy is very much technology-driven. On the one hand companies have the ability to produce taylor-made products (think Lego and Ponoko). On the other hand customers are more able than ever to create their own designs with software and let companies know what they want with social software. Crowdsourcing is all about these two groups joining forces in an intimate relationship.

The following presentation by David Armano is an inspiring presentation about this topic from another angle.