Rajesh Jain

Wake-Up Calls

Imagine every CEO receiving a memo like this:

Dear CEO,

Your profits are declining, and here’s why: your marketing spend is out of control. It’s the single biggest profit killer in your company. Half of your digital budget is wasted on low-value acquisition and reacquisition of existing customers – AdWaste. Meanwhile, you’re dedicating only a fraction of your resources to the most crucial task: delighting and retaining your existing customers, turning them into repeat buyers, and encouraging them to bring their family and friends.

Your marketing strategy needs a new direction – a Nayi Disha. Done right, this shift can not only boost your profits but also lay the groundwork for exponential, sustainable growth – a profipoly.

If your CMO isn’t already thinking along these lines, it’s time to either change their mindset or change the person. Otherwise, you’ll remain trapped in a vicious cycle where your marketing spend grows faster than your topline and profits.

What will you do?

A Well-Wisher.

Also imagine every CMO simultaneously receiving a memo like this:

Dear CMO,

You’ve become the roadblock to your company’s profit growth. Your digital spending is out of control. While you may achieve short-term gains, you know this approach isn’t sustainable. So, why continue down this path? Is it because you’re confident that when questioned, you can simply leap to another CMO position that’s waiting?

But there’s another option – if you’re interested. Stay where you are and address the issue (the one you and your predecessors have created). You have the opportunity to become a change champion – a profit creator rather than a profit killer. By transforming yourself into the ‘Chief Profits Officer’ of your company, you can position yourself as a strong candidate for the next CEO role.

What path will you choose? A new job for yourself, or a Nayi Disha for your marketing and company?

A Well-Wisher.

**

The first steps toward change occur when key players recognise there’s a problem. It’s only when the CEO and CMO jointly acknowledge that the current approach is unsustainable and a new direction is needed that real opportunities emerge. It’s easy to maintain the status quo: CEOs can attempt to cut costs in other areas, and CMOs can keep hitting their weekly targets with adtech spending. These are Pyrrhic victories, keeping the wheels turning but not driving true progress. The blame is often shifted to external factors – macroeconomic uncertainty, market slowdowns, reduced customer spending. And so, the cycle continues.

But once the CEO and CMO wake up to the reality, change can begin. This is where a magical new world awaits. Breakthrough technologies and innovative ideas are already within reach. From Agentic AI to Channels 2.0, from AI Twins to AMP and Epps, from Co-Marketer to ActionAds, from Large Customer Models to Kaizen Services – a Nayi Disha for marketing can truly come to life.

New Direction

In 2017, I launched Nayi Disha (‘new direction’) with a vision for a free and prosperous India. The message was clear: “The primary reason for the failure to produce wealth in India is incompetent governance, myopic leadership, and bad policies. It is time we – all of us – took up the challenge and changed India’s direction with a new model of governance and politics.” Alongside this, I published a manifesto that analysed why India remains impoverished and what was needed to make prosperity a reality for all Indians.

The ‘Nayi Disha’ need came into sharp focus when a CMO at an eCommerce company confided to me recently, “Do you know how much we spend on Google and Meta each month? 100 crore ($12 million). And our spend on martech? Just 5% of that. The same goes for every one of my competitors. It’s an arms race, and we’re all losing. How do I break this cycle without jeopardising business growth?” This conversation underscored the dilemma marketers face: the relentless chase for growth at any cost versus the imperative of maintaining profitability. In the frenzy to acquire new customers, the retention of existing ones often becomes an afterthought. As I’ve written, marketers have essentially become collection agents for BigAdTech — companies like Google, Meta, and their counterparts.

Reflecting on this and similar discussions, it became clear that a new direction for marketing is necessary. Excessive funds are being poured into acquiring and reacquiring customers, while retention is neglected. This imbalance is detrimental to brand profits and customer experience. Despite writing about these issues for the past few years, I’ve observed little change in industry practices or spending ratios.

Marketing needs a Nayi Disha moment – a movement towards a fundamental shift in priorities. Brands must pivot from acquisition to retention, from “one and done” to multi-monetisation, from focusing on new customers to nurturing existing ones, from profit killers to profit creators, from high Customer Acquisition Costs (CAC) to high Lifetime Value (LTV), from AdWaste to brand profits, from being profitless to building a profipoly (profits monopoly).

Consider the potential impact: by 2025, half of the projected $700 billion annual digital advertising spend will be wasted. That’s $350 billion – and climbing – every year that brands could reallocate to customer retention, boosting profits, and sparking innovation. This shift could transfer trillions of dollars in value from BigTech to brands – a seismic change in the business landscape. While no single company or individual can drive this change alone, raising awareness of alternatives and sharing success stories can help make this new future a reality.

In the Nayi Disha manifesto, I wrote: “People create wealth when they have the freedom to produce what they are capable of and trade in free markets. But Indian government policies coerce people and deny them economic freedom, thus ensuring poverty. Only those nations which enjoyed the benefits of free trade, and in which individual rights were protected by law became wealthy. If Indians have to become prosperous, India must become free. For India to become free, Indians must demand freedom from government control. This is Nayi Disha’s objective… In the past 70 years, India’s rulers have become rich, but not its people. It is time to change that.”

A similar narrative applies to businesses, both large and small. Over the past decade, BigTech has grown wealthy, but brands have not. For businesses to thrive, they must break free from the obsession with new customer acquisition and turn their attention to existing customers. They need to reimagine customer engagement, re-engineer retention strategies, and reset their vision toward becoming a profipoly. What every business needs now is a Nayi Disha for marketing. Fortunately, the tools to make this shift are within reach.

Summary and Additions

ChatGPT

The essay explores the concept of Mu, a digital micro-incentive designed to enhance user engagement within emails. By earning Mu through various actions like opening emails, providing feedback, and participating in interactive content, users can accumulate rewards that can be redeemed for unique, high-value experiences. The essay highlights the importance of a well-balanced earn-burn cycle in driving the success of loyalty programs and positions Mu as a cross-brand currency that offers personalized and exclusive benefits. By integrating Mu into the email ecosystem, the essay envisions a future where emails are transformed from simple communication tools into dynamic platforms for learning, entertainment, and community engagement, all powered by Mu. The success of Mu is compared to airline loyalty programs, emphasizing the need for strategic partnerships, monetization strategies, and the creation of a robust, engaging ecosystem to make Mu as valuable and profitable.

Additional Angles to Consider

• Monetization and Revenue Models: Explore how Mu could be monetized further, perhaps by selling Mu to brands or allowing users to purchase additional Mu. Discuss how this could create a new revenue stream for Netcore or other email service providers.
• Gamification and Social Interaction: Consider adding more details about how Mu could be used to foster social interactions, such as leaderboards, competitions, or collaborative challenges. This could enhance community engagement and add a competitive edge to earning and redeeming Mu.
• Corporate and B2B Applications: Discuss potential B2B applications, such as how companies could use Mu for employee rewards, corporate training programs, or as part of client loyalty strategies.
• Security and Trust: Address how Mu would be safeguarded against misuse or fraud, and how transparency and trust would be maintained in the system, ensuring users feel secure in accumulating and redeeming Mu.
• Future Innovations: Speculate on potential future developments, such as integrating Mu with emerging technologies like blockchain, AI, or virtual reality, to further enhance its value and utility in the digital ecosystem.

Claude

Mu represents a revolutionary approach to email engagement, leveraging micro-incentives to transform the email experience. This essay explores the concept of Mu, its implementation within the Email Envelope, and its potential to create a powerful earn-burn flywheel akin to successful airline loyalty programs. By offering rewards for various email interactions, Mu gamifies the email experience, encouraging users to engage more deeply with their inboxes. The essay discusses the unique position of Email Service Providers (ESPs) in implementing Mu across multiple brands, creating a more compelling rewards ecosystem. It also outlines various ways users can earn and redeem Mu, from accessing exclusive content to participating in prediction markets. The concept adheres to two key constraints: no monetary cost for redemption and offering unique, ‘money can’t buy’ experiences. The essay concludes by exploring how Mu could evolve to match the success of airline loyalty programs, potentially transforming email marketing economics and user engagement. Through hypothetical scenarios, it illustrates how Mu could become an integral part of users’ daily digital interactions, reshaping the email landscape.

Additional Angles to Consider

• Regulatory considerations: Explore potential legal and compliance issues that might arise as Mu becomes more valuable and widely used.
• Integration with blockchain or cryptocurrency: Discuss how Mu could potentially leverage blockchain technology for transparency and security.
• Privacy implications: Delve deeper into the data collection aspects of Mu and how user privacy can be protected.
• Competition and market adoption: Discuss potential challenges in getting other ESPs and brands to adopt a Mu-like system.
• Long-term sustainability: Explore how the Mu ecosystem can remain engaging and valuable over time without becoming oversaturated.

Stories

Claude: A Day in the Life of Arun: The Mu-Powered Future (with some edits)

Arun woke up to the gentle chime of his smart device showing the header of he email he had just received. As he rubbed the sleep from his eyes, he noticed the glowing Mu symbol on his bedside display: “μ.5100.50 | Rise and shine! Open your morning briefing email for a 50 Mu bonus!” He tapped, earning his bonus Mu.

As he prepared for work, Arun scrolled through his inbox. Each email subject line was prefixed with a Mu value – the points he’d earn for engaging. He opened a few, answering quick surveys and providing feedback, steadily increasing his Mu balance.

During his commute, Arun received an email from his favorite coffee shop. The subject line read: “μ.5434 | Your usual latte is ready!” He opened the email, redeeming 500 Mu to claim his discount voucher for the coffee, which was ready for pickup when he arrived at the shop.

At work, Arun used his lunch break to check his personal emails. He noticed an email from an electronics brand: “μ.4934 | Exclusive early access: New smartphone launch!” Excited, he spent 1,000 Mu to unlock the early access pass, allowing him to pre-order the latest model before it was available to the general public.

In the afternoon, Arun received an email about a virtual workshop: “μ.3934 | Boost your productivity with AI tools!” He spent 500 Mu to attend the workshop, which was delivered seamlessly through an interactive Epp in his email.

After work, Arun opened an email from his gym: “μ.3434 | Track your fitness journey!” He connected his fitness tracker, earning Mu for each step and workout. The email’s Epps Footer showed his progress towards unlocking a free personal training session.

In the evening, Arun decided to relax with some entertainment. He opened an email from a streaming service: “μ.3500 | Unlock exclusive content!” He spent 300 Mu to access a new episode of his favourite show a day before its official release.

Before bed, Arun checked his daily Mu summary email. He had earned and spent 5,000 Mu throughout the day. The email’s Epps Footer displayed his progress towards reaching Platinum status in the Mu loyalty program, along with personalised suggestions for how to earn and spend Mu the next day.

As he drifted off to sleep, Arun reflected on how seamlessly Mu had integrated into his daily life. From his morning coffee to evening entertainment, Mu had transformed his email interactions into a rewarding, personalised experience. He looked forward to what tomorrow’s emails would bring, knowing each one was an opportunity to engage, learn, and earn in the Mu ecosystem.

ChatGPT: A Day in the Life of Arun: The Mu-Centric Future (with light edits)

It is 2027. For Arun, a 32-year-old digital marketing strategist living in Mumbai, his daily routine had become intertwined with a currency that didn’t exist in the physical world—Mu. This micro-incentive, once just a novel idea in the early days of email marketing, had evolved into a central aspect of daily life, seamlessly integrated into every digital interaction.

Morning Routine: Earning Mu

Arun’s day began as his smart alarm clock gently woke him up at 6:30 AM. As he reached for his phone, his inbox was already buzzing with a fresh batch of emails. But these weren’t just ordinary messages—they were personalized experiences, tailored just for him and powered by Mu.

The first email was from his favorite news provider, offering him a choice of daily briefings. By selecting the “Global Economy” section and reading through the article, Arun earned 5 Mu. Next, he opened an email from a tech brand he followed closely. The subject line caught his eye: “Unlock Your Mu Bonus by Sharing Your Feedback.” Arun quickly filled out a short survey about a product he had recently purchased, earning another 10 Mu for his time.

As he scrolled further, he noticed an email from a health app he subscribed to. It contained a personalized workout plan for the day. By opening the email and syncing his workout data, he earned 8 Mu, an incentive for maintaining his fitness streak.

Midday Break: Redeeming Mu

By midday, Arun had earned a decent amount of Mu from various interactions. During his lunch break, he decided to redeem some of it. He opened an email from his favorite online learning platform, which he had been using to pick up new skills. The email offered an exclusive masterclass on artificial intelligence, redeemable only through Mu. With a few taps, Arun exchanged 50 Mu for access to the course, which would otherwise have cost him a significant amount in real currency.

Feeling the need for a short mental break, he noticed another email in his inbox from a digital entertainment service. It invited him to play a quick puzzle game that was only accessible through Mu. Arun loved these mini-challenges—they were a fun way to unwind while still earning. He spent 10 Mu to unlock the game and, after solving it, was rewarded with 15 Mu, a small profit but satisfying nonetheless.

Afternoon: Collaborative Earning

Later in the day, as Arun worked on a project, he received an email from a colleague. It was an invitation to participate in a cross-departmental challenge at work. The challenge was simple: contribute creative ideas for an upcoming campaign, and the best ideas would earn the team Mu that could be collectively redeemed for a group reward, such as a team-building event or professional development resources. Arun quickly drafted a few innovative concepts and sent them off, adding another 20 Mu to his personal balance when his ideas were accepted.

Evening: Community Engagement

As the evening approached, Arun checked his inbox one last time. A special email caught his attention—it was from a charity organization he supported. The email invited him to donate some of his Mu to help fund a clean water project in a rural area. Moved by the cause, Arun decided to contribute 30 Mu. In return, he received a personalized thank-you video from the community, creating a deep emotional connection that no monetary donation could match.

Night: Preparing for Tomorrow

Before heading to bed, Arun reviewed his Mu balance and transactions in his Mu Wallet, a feature integrated into his email client. The summary showed a balanced day of earning and spending Mu, reflecting how central this digital currency had become to his daily routine.

As he set his phone aside, Arun felt a sense of satisfaction. Mu had become more than just a reward system; it was a currency of engagement, learning, and community. It had transformed emails from a mere communication tool into a rich ecosystem of opportunities that touched every aspect of his life. From morning briefings to evening reflections, Mu was there, shaping his decisions, enhancing his experiences, and connecting him to the world in ways he had never imagined.

And with that thought, Arun drifted off to sleep, eager to see what new opportunities tomorrow’s emails would bring.

Ultimate Idea

Airline loyalty programs have been among most successful – and incredibly profitable. So, I decided to push the thinking: what would it take to make Mu as valuable and money-making  as an airline loyalty program?

I started by asking ChatGPT to explain the success of airline loyalty programs.

1. High Perceived Value: Airline loyalty programs offer rewards that are highly desirable, such as free flights, upgrades to first or business class, and access to exclusive airport lounges. These rewards have a high perceived value to consumers, making the accumulation of points particularly attractive.
2. Frequent Engagement Opportunities: Frequent flyers have numerous opportunities to earn points not only through flights but also through a wide network of partners, including hotels, car rental companies, and credit cards. This constant engagement keeps the loyalty loop active and continuously motivates customers to earn more points.
3. High Switching Costs: Once a traveler starts accumulating points with a particular airline, they are incentivized to continue flying with that airline to maximize the benefits of their points. This creates high switching costs, reducing the likelihood that customers will choose competing airlines.
4. Partnerships and Alliances: Airlines have expanded their loyalty programs by forming partnerships with other airlines, hotels, credit card companies, and retail brands. These partnerships increase the ways in which customers can earn and redeem points, adding value to the program and increasing its attractiveness.
5. Tiered Membership Structures: Many airline loyalty programs use tiered membership structures (e.g., Silver, Gold, Platinum), where higher tiers offer more valuable benefits. This encourages frequent travelers to remain loyal and continue accumulating points to reach higher status levels, which often include perks like priority boarding and bonus points.
6. Revenue Generation from Selling Miles: Airlines profit not just from increased customer loyalty but also by selling miles to partners, especially credit card companies. These partners use the miles as rewards in their own programs, creating an additional revenue stream for airlines.
7. Data-Driven Personalization: The extensive data collected through loyalty programs allows airlines to personalize offers, promotions, and communications, enhancing the customer experience and increasing the relevance of marketing efforts. This personalization leads to higher customer satisfaction and loyalty.
8. Emotional Connection and Brand Loyalty: Over time, customers develop a strong emotional connection to their preferred airline, especially when they associate the brand with positive experiences, exclusive treatment, and the achievement of status levels. This emotional loyalty further reinforces the program’s success.

I then asked Claude what would it take to make Mu as good as airline loyalty programs.

The idea of making Mu as valuable and profitable as airline loyalty programs is an ambitious and exciting goal. To achieve this, we need to understand what makes airline loyalty programs so successful and adapt those principles to the email and digital engagement space. Here’s an expanded exploration of how Mu could be elevated to that level:

1. Creating Scarcity and Aspirational Value
   • Introduce tiered status levels (like Silver, Gold, Platinum) based on Mu accumulation and engagement.
   • Offer exclusive, high-value rewards that are only accessible to top-tier members, creating aspirational goals.
   • Implement expiration dates for Mu to encourage regular engagement and spending.
2. Partnerships and Ecosystem Building
   • Forge partnerships with a wide range of brands across various industries, similar to airline alliances.
   • Allow Mu to be earned and spent across this network, increasing its utility and perceived value.
   • Create a marketplace where partners can bid to offer rewards, driving competition and value.
3. Monetization Strategies
   • Sell Mu directly to brands for distribution to their customers, creating a new revenue stream.
   • Offer brands the opportunity to “buy back” Mu at a discount, similar to how airlines sell miles to credit card companies.
   • Implement a dynamic pricing model for Mu redemption, optimizing value and demand.
4. Exclusive Experiences and Access
   • Create “Mu Moments” – exclusive, limited-time experiences or offers only available to Mu holders.
   • Provide early or exclusive access to new products, services, or content from partner brands.
   • Offer “experiential” rewards that money can’t easily buy, like virtual meet-and-greets with industry leaders or celebrities.
5. Financial Services Integration
   • Partner with financial institutions to offer Mu-earning credit cards or banking services.
   • Allow users to invest their Mu in a portfolio of partner brands, with potential for growth or dividends.
6. Gamification and Engagement Loops
   • Implement challenges and missions that reward users with bonus Mu or exclusive perks.
   • Create a social component where users can gift, trade, or compete with Mu.
7. Data Monetization
   • Leverage the rich data from Mu interactions to offer valuable insights to partner brands.
   • Create a platform where brands can target specific user segments with personalized offers.
8. Subscription Model
   • Offer a premium subscription that provides enhanced Mu earning rates and exclusive benefits.
9. Mu as a Currency
   • Position Mu as a digital currency for microtransactions within the email ecosystem.
   • Allow users to use Mu for in-email purchases or to access premium content.
10. Loyalty Program Management Services
    • Offer Mu program management as a service to other companies, leveraging Netcore’s expertise.
11. NFT and Digital Collectibles
    • Create limited edition digital collectibles or NFTs purchasable with Mu, adding a collectible aspect to the program.
12. Predictive Engagement
    • Use AI to predict user behavior and offer personalized Mu earning opportunities or redemption suggestions.
13. Corporate Mu Programs
    • Develop B2B Mu programs where companies can reward employees or clients with Mu.
14. Mu Futures Market
    • Create a marketplace where users can speculate on the future value of Mu, driving engagement and perceived value.
15. Charitable Giving Platform
    • Allow users to donate Mu to causes, with matching contributions from partner brands.

To make Mu as valuable and profitable as airline loyalty programs, it’s crucial to create a robust ecosystem where Mu is not just a reward, but a valuable currency in its own right. This requires building strong partnerships, creating unique and exclusive experiences, and continuously innovating to keep users engaged. The key is to make Mu indispensable in users’ digital lives, much like how airline miles have become a crucial consideration in many people’s travel planning and spending decisions.

By implementing these strategies, Mu could potentially transform from a simple email engagement tool into a powerful, multi-faceted digital loyalty and engagement ecosystem, rivaling the profitability and influence of the most successful airline loyalty programs.