I am Dissatisfied. I want my money back!
While companies like Amazon (AMZN) and Netflix (NFLX) are winning over web consumers, the majority of us are lagging behind. A recent e-commerce report from Foresee Results on the American Customer Satisfaction Index (ASCI) indicated that in 2010, overall e-commerce satisfaction sank to its lowest point since 2004. What does this all mean?
According to the report, e-commerce satisfaction was down 2.6 percent compared to last year. In large part, companies show decent profits but have large declines in satisfaction. The online retailer, Amazon, is dominating given their variety, selection of merchandise, and price. According to the report, Netflix’s shift in business strategy (to streaming movies) is paying off. Their strong satisfaction scores illustrate that they adapt well to new opportunities without letting their customer service suffer.
Although not a complete indicator, this report shows that a drop in e-tail scores were led by smaller retailers, who are unable to keep up with larger companies like AMZN and NFLX. This report also revealed the future of mobile—the report indicated that online brokerage services came in higher (than retail or travel) at 81 percent. Why you might ask? The results suggested that online brokerage users were extremely satisfied with the mobile interfaces of popular services because these portals addressed the users’ needs for real-time stock prices.
All of the above point to one obvious conclusion: companies must improve their products; make them usable and relevant for consumers. Wait, this kind of makes sense, but what does this have to do with online video?
Last week, Apple and Google announced their respective models for publishing video content to the web. Although it’s too early to respond to this announcement , fair to say that both Apple and Google are the front-runners (e.g. like Amazon and Netflix in retail) for publishing/monetizing content. If my assumption turns out to be true, the challenges that smaller companies face in keeping up with revenues and maintaining happy customers will be steep.
The variables that make up a successful video monetization strategy are still unknown for the entire spectrum of content owners. There may not be a clear-cut answer or approach, but I am a strong believer in the following:
• Companies must be able to differentiate their product, or be able to
offer a product that is standard but easily customizable
• User experience for the end-user is critical
• Customer Service is just as important
Content owners and publishers must understand that before implementing a rock-solid monetization strategy that they must produce high quality content. At some point, however, companies will need to be aware of where they stand in order to remain competitive within their respective industries.
Author: Audric Kim, Product Manager
According to the report, e-commerce satisfaction was down 2.6 percent compared to last year. In large part, companies show decent profits but have large declines in satisfaction. The online retailer, Amazon, is dominating given their variety, selection of merchandise, and price. According to the report, Netflix’s shift in business strategy (to streaming movies) is paying off. Their strong satisfaction scores illustrate that they adapt well to new opportunities without letting their customer service suffer.
Although not a complete indicator, this report shows that a drop in e-tail scores were led by smaller retailers, who are unable to keep up with larger companies like AMZN and NFLX. This report also revealed the future of mobile—the report indicated that online brokerage services came in higher (than retail or travel) at 81 percent. Why you might ask? The results suggested that online brokerage users were extremely satisfied with the mobile interfaces of popular services because these portals addressed the users’ needs for real-time stock prices.
All of the above point to one obvious conclusion: companies must improve their products; make them usable and relevant for consumers. Wait, this kind of makes sense, but what does this have to do with online video?
Last week, Apple and Google announced their respective models for publishing video content to the web. Although it’s too early to respond to this announcement , fair to say that both Apple and Google are the front-runners (e.g. like Amazon and Netflix in retail) for publishing/monetizing content. If my assumption turns out to be true, the challenges that smaller companies face in keeping up with revenues and maintaining happy customers will be steep.
The variables that make up a successful video monetization strategy are still unknown for the entire spectrum of content owners. There may not be a clear-cut answer or approach, but I am a strong believer in the following:
• Companies must be able to differentiate their product, or be able to
offer a product that is standard but easily customizable
• User experience for the end-user is critical
• Customer Service is just as important
Content owners and publishers must understand that before implementing a rock-solid monetization strategy that they must produce high quality content. At some point, however, companies will need to be aware of where they stand in order to remain competitive within their respective industries.
Author: Audric Kim, Product Manager
posted by Origin Digital at
12:04 PM
1 Comments
