Marketing will never be the same: knowledge is power, and the internet has given the consumer greater control over purchasing decisions. How do we respond?

• Author: Vaglio, Nick
• Position: MARKETING edge

Charles Darwin once said, "It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change."

And change is happening rapidly in today's marketplace. Many progressive companies and banks are capitalizing on this change, while others fall to the wayside. Many banks are failing to attract the 18-24-year-old age group. These are the people who don't consider themselves as part of the masses. They want banks to communicate directly with them. They want their banking experiences to match their other lifestyle experiences. And when that doesn't happen, they wonder what is wrong with us, and why aren't we keeping up with their lifestyle?

Great marketing companies have excelled in delivering upon the four pillars of marketing excellence, including customer experience, as critical levers to drive organic growth (see chart).

As the global economy shifts from market-driven to consumer-driven, the balance of power has shifted to the consumer. The power of the Internet has put the consumer squarely in control of purchasing decisions.

Consumers are no longer content simply to buy our products. They want to be collaborators with companies in the creation of the value they want from their lifestyles.

In the old economy, the value exchange occurred on the receiving end. Companies created products and then distributed them to consumers for payment. And the business model was to study consumers and predict their demand.

And now the value opportunity is not only at the receiving end. There's a more fundamental value opportunity at the front end where consumers will pay to get access to a more customized experience that fits their preferences.

[ILLUSTRATION OMITTED]

Many banks use life-stage analysis to segment their retail customers. They use this analysis to make assumptions regarding lifestyle preferences and product offerings. But today's consumer is telling us that we don't know them anymore. Consumers are saying that we are out of touch with how to market to them.

Today's consumer uses technology to participate. They use it to communicate with other people and navigate through content and information. Technology has...