This is the 3rd principle in my upcoming book.
Before you decide to adopt a roadmap of actions for your firm, the key question to answer is “Where am I playing today and where should I be”. I consciously decided to stay away from defining named segments for companies because they are often misleading. For example the article on Booz.com (now Strategy&) at http://www.strategy-business.com/article/00241 outlines 4 types of companies in order to explain the 4 digital marketing models. According to me, that analysis is OK for the very short term – when you are thinking about what to do in the next 2-3 months – but it sort of misses the mark for the long term.
My model instead depicts a continuum. A company can and does operate at both ends of the spectrum. The important point is to move from physical connections with the consumer to the emotional, in a way that’s right for your firm. And at a strategy level, the capabilities that you need must be aligned as per that strategy.
The model changes the perspective because it refers to the top down strategy first. And there’s really no other choice today. Successful firms must connect with consumers at both physical and emotional levels to be relevant. When experiences drive transactions, and also vice versa, then you’ll know you’ve succeeded.
