Discovering the ‘Engagement Economy’

Marketo's Bill Binch discusses the importance of the 'engagement economy.'

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Marketing has been disrupted by the increased need for personalisation, interconnectivity and digital transformation and organisations must embrace this if they want to truly connect with their customers.

Bill Binch, Managing Director of the ANZ region for Marketo, spoke about such ideas in his speech at CMO Disrupt, Melbourne 2017.

Personalisation is repeatedly shown as the best way to effectively reach your consumers, and Binch says that “there’s increasing pressure inside of organisations to transform their marketing to be much more personal.”

With this increasing pressure comes a need for marketers to differentiate their message from their competitors, while at the same time becoming increasingly targeted towards individuality.

The power of a normal purchase isn’t enough anymore, and this is driving what Marketo describes as the engagement economy.

The 'engagement economy' is now upon us.
The ‘engagement economy’ is now upon us.

Binch states that “buyers aren’t seeking transactions – they’re demanding meaningful experiences that connect them emotionally wherever they are.”

The engagement economy was defined in detail by Steve Lucas, CEO of Marketo, in a blog post in January.

In it, Lucas said it ‘embodies the fundamental shift in relationships between buyers and sellers, but extends across entire organisations to include customers, prospects, employees, and partners.’

In his presentation, Binch presented three case studies of companies who had disrupted the traditional operating space of various different industries.

Netflix, Uber and Airbnb were raised as examples of innovative organisations who had embraced personalisation to dominate their respective fields.

Blockbuster “didn’t adapt fast enough” according to Binch, and Netflix gladly stepped in to provide on-demand television series and movies that consumers can access from the convenience of their own home.

Uber, likewise, spotted a gap in the market and took advantage.

Netflix, Uber and AirBnB were presented as companies embracing innovation and causing disruption.
Netflix, Uber and Airbnb were presented as companies embracing innovation and causing disruption.

As a result, Binch says he now “completely bypasses the rental car desk at airports” in favour of getting around in an Uber instead.

Binch’s advice to the marketers in the room was simple – “learn how to communicate with and target the right person.

“Brands need to listen to their consumers, learn what their digital fingerprint looks like and engage with them in the right way.”

He also talked about ‘Marketing Nation’, Marketo’s “community of marketers” that meet regularly around the world to share ideas, network with their peers and hear from a range of exciting speakers.

Binch explained the idea behind the name ‘Marketing Nation’ by stating that “the name Marketo Nation is very product centric and about your brand, while Marketing Nation is consumer centric.

“We wanted to build a group, a membership, a team who wants to come together to improve themselves.”