The economy is evolving and changing. The ubiquitous proliferation of technology and social networks in all aspects of our global village is having a clear impact on the world’s economy. Money is changing hands in new ways. Some of which are proving entirely different to track and measure than before. The new economy has many characteristics which distinguish it from its old version: innovative, explorative, but one trait seems to be defying it, collaborative. A light in the end of the tunnel may be shinning for those of us who dream of a reality of an economy focused on long-term goals instead of the old relentless push for endless growth without an explicit objective.

“Growth at all cost” is still in some part presented as the twisted solution to all problems, when in reality it is the exact cause of many of them. It undoubtedly leads to ecological destruction and inequality in allocation of increment in income. Even worse than that, it lacks any moral principles and its only purpose is “More”.

The old economic model was centralised. Brands which succeeded were the once which build channel distributions and strive to grow outward exponentially.

The manner of doing business was in large part based on the so-called net mentality. Companies would cast as wide a net as possible and make it reach as far as possible with the hope that they would catch as much metaphorical fish as possible. And that undoubtedly worked. But it worked at a time when the channels for outreach to potential clients were much more limited compared to 2018’s reality. Also, the consumer’s choices in business offering services and products are far greater today. Another difference is the extreme targeting of very specific niches which has never existed before. There are TV channels dedicated specifically to children, golfers, foodies, fishermen and many more.

Compared to back in the day when there were a handful of channels on TV on which to run ads. What about YouTube? It is comprised of literally millions of channels which could be used to advertise any imaginable business.

There is a clear distinction between new and old economy. But what are the actual main characteristic, meaning, and importance of the “new economy”? Mainstream media has left a lot to be desired in providing an extensive answer to this question.

We could with confidence call the new economy a “collaboration economy”. The philosophy of the new economy can be, albeit admittedly rather simplistically, summed up in the equation “1+1=3”.

It is all about connections and partnerships. Less emphasis is placed on competition and more of cooperation. It is about learning that coexisting is not detrimental to business, on the contrary, it can be beneficial.

At the core of every successful collaboration, you will find shared goals and values but also skills which complement and supplement each other. The new economic model is open to using this to its full advantage.

The new economy is also distinctly decentralised with different people or networks of people handling different parts of a unit. Companies no longer feel obliged to run their own department for each aspect of their business. They can co-curate with another company which offers a specific service. Thus a network of specific services comes together as a living puzzle.

Today’s winning companies all share a common focus on building communities, culture, and platforms.

Why? Because it multiplies networks, gives valuable insights and brings down research and development time.

What stands out most about this new economy is perhaps the fact that big corporations have a realistic opportunity of becoming the catalyst for change. The new economy is strongly characterized by an increased emphasis on delivering better quality and having an impact on consumers. Those businesses which are thriving in the new economic environment are the once who understand that the client wants goods and services which raise their overall quality of life. Consumers are informed, connected and inquisitive, with a tendency to begin putting their core values above creature comfort. They want to know how their purchase will optimise and improve them long-term. That is part of the reason why some giant companies are utilizing corporate social responsibility as a marketing tool.

For example, Procter & Gamble launched the first shampoo bottle manufactured out of partially recycled plastic waste collected from beaches around the world. The average consumer today cares about climate change and feels let down by the government when it comes to taking action against it. The new economy looks accommodating to a mutually beneficial symbiosis between corporations and consumers, big sales resulting in more environmentally friendly decisions being made in the manufacturing industry. The end goal of Procter and Gamble’s Head Shoulders Beach Plastics Bottle project is to reduce new plastic used for shampoo bottles by 1/4 by the end of 2018.

Other juggernauts to launch products from recycled materials include Addidas, Nike, Patagonia, G-star Raw Jeans and many more. Corona beer has promised to protect 100 islands from pollution by the year 2020. Of course, we are nowhere near home and dry yet, but at least there is a promising trend emerging.

This model of doing collaborative business could create the desired profitable circular and sustainable economy for future generations.

Another pillar for cooperation between businesses is the assertion of blockchain technology. The future of information is decentralised. The new economy is favoring blockchain technology for its agility of use and safety mechanism against malicious alteration of information.

How does the “new economy” mentality compare to the old one?

It used to be that employees were more than happy to have a stable job and it was not uncommon to spend your entire professional life with one employer. Hopping from company to company was frowned upon. Working hours were clearly outlined as was the distinction between work life and personal life and people left their job at their desk, rarely bringing it home with them.

The new encourages the opposite professional behavior in many ways. Employees are more than happy to change things up by switching companies when a better opportunity presents itself. The work day is enhanced with a ping pong game in the break room or pizza-lunch-brainstorming. Working hours get moved all over the place around in the span of a 168 hours work week, do it on a Sunday morning if you have to as long as it gets done.

In the old economy it helped if you knew the right people but in the new economy, it would be impossible to succeed if you don’t know them.

Building a social media presence opens up a world of opportunities to strengthen
your brand and drive conversions. Unfortunately when performed badly, you can
potentially alienate your customers and find yourself slipping down a slide into a
pool of despair and irrelevance.
Thankfully it isn’t as hard as you may initially think to become a social media
virtuoso. The devices and apps we use to access our preferred social channels may
feel like they’re constantly being updated, but luckily, human evolution works at a
slower pace. There are many truths that can be applied to all demographics and
social channels to actively increase brand appeal to your prospective customers.

Know Your Audience

You currently have access to a wider range of analytics and data than ever before.
Use it to build a clear picture of your customer base. Clearly, define the common
traits amongst them, and then tailor your channels accordingly. Use your company
name to engage in things of interest to them in the physical world. Help a charity
close to their hearts, create content of interest and share their posts when they do
something amazing.

Humanise Your Presence

To fully utilize social media you have to take into account the motives of the people
you’re engaging. The vast majority of your audience is not there to shop or see
adverts. They are there to engage with friends, colleagues, and family. For them, it’s a
social and personal space. Invading this personal time with something of little to no
value will not be looked upon favorably.
The aim is not to sell to your audience, but to simply be an accepted and enjoyable
part of their digital universe. The conversions will naturally follow. How do you
achieve this? Simple. Humanise your presence in a way that’s relevant to your target
audience.

Use a personable tone of voice. Don’t be afraid to show human traits. Some of the
most successful online accounts are built on a shared sense of humor. Show
empathy and be sincere when it’s appropriate. This is the biggest change to the
marketing dynamic when using social media. It’s a two-way street.

Key Points:

• Display the human attributes that best reflect your business and appeal to
  your target demographic.
• Become a friend in their digital universe. Instead of performing a hard sell,
  share cool content they will be interested in. Have an opinion on industry
  news, and ask for theirs. Tell a joke occasionally.
• Join in the conversations happening in the places your potential customers
  will be.
• Find the human angle for your product or brand, then create content around
  it. Evoke an emotional response.
• Take the bad with the good. Praise is always great, but criticism and
  complaints provide a golden opportunity to not only listen but to showcase
  desirable qualities. Don’t be afraid to apologize, empathize or show you care.
  Every complaint is an opportunity to change a perception of your business.

Once you have a persona, use it. Don’t just post updates about your company. You
sound like the needy person at a party who only ever talks about themselves. Listen
as much as you speak. If people mention you, comment on your posts or even
complain, reply to them in an open and honest way. This builds transparency and
authenticity. Care about your customer’s experience.
The way a company behaves on its social channels quickly becomes a huge defining
factor in how the company and the brand are viewed. Aim to build lasting and
honest relationships, not to become just a commercial break between programs
where everybody leaves the room to do something else.
If you need assistance with your social media presence get in touch today. We
always love to hear from existing and potential clients, and we’re always happy to
help.