It was more than two decades ago when my friend Eric introduced me to fascinating technology that allowed him to make a video call to his family in another state from his computer. It was something he called Skype, and that company name eventually became a verb for many of us. Sure, the early calls looked a bit like Max Headroom pimping New Coke, but we all felt a bit like the Jetsons with this newfound know-how.
For the next decade, Skype was amazing. Today, it is no more. Yes, last month, Skype’s once-dominant video messaging service went dark. How could a business with more than 300 million users, $860 million in revenues and an operating profit of $264 million fail?
Jason Kocina is the president of digital marketing for Media Relations Agency. He says, “If it can happen to Skype, it can happen to any business that stops innovating or becomes invisible.”
Yes, a company that once seemed invincible became invisible. Competition from companies like Zoom and Slack bit into their market share, so much so that by 2020, Skype’s user base dropped to 23 million. That’s still a big number but one that pales in comparison to its peak years.
“Skype’s story underscores why being discoverable and relevant at all times is absolutely critical. When customers’ needs change, they look for solutions,” Kocina says. “If your brand isn’t there to be found, they’ll buy from someone else. A brand that isn’t routinely seen or heard from can quickly become forgotten.”
Kocina says the answer for most all businesses to avoid a Skype-type failure is simple: stay visible. He says companies should be everywhere their customers look and go beyond SEO (search engine optimization). He also says businesses need a multi-channel presence with positive press in the news, owned content on their websites and social media and direct communication with customers via email. Maybe not surprisingly, he states that consistency is the key and to follow a structured approach, too.
“It’s not enough to do one or two of these sporadically. Presenting a unified message everywhere will encourage people to recognize and trust you, making your brand familiar and credible.”
Of course, marketing mishaps aren’t all that doomed Skype. Mismanagement by the large corporations that bought Skype chipped away at the company’s relevance as well. First, eBay purchased Skype in 2005 for $3.1 billion and then sold the majority of its stake in 2009 to a private investment group for $1.2 billion less than it paid. Then, in 2011, Microsoft bought the company for $8.56 billion.
And soon, much like Max Headroom and New Coke, the Skype name will mostly be forgotten. Where is George Jetson when we need him?
Have a memorable Monday, and thanks for reading.
Shane Goodman
President and Publisher
Big Green Umbrella Media
shane@dmcityview.com
515-953-4822, ext. 305
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