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Markets are conversations… so what? Part II

Markets are conversations… so what? Part II

Following my last post a few folk asked me to expand on how to enable two-way comms.

To cut a long story short, if you’re a big company with loads of people wanting to talk, the only way to get scale is to empower your staff to talk to customers. Companies who’ve been around for a long time often can’t see a way to make this happen – or it’s already happening in pockets under the radar and they don’t know how to control it. The important point to remember is the same mentality and methods that’ll lead to success on the outside are those you need to apply internally first. The rest will follow.

Begin by asking yourself whether your staff are able to connect with one-another really easily. Can they find and converse with colleagues in different countries, offices, departments, at all levels? Or is communication and messaging top-down and one-way? Top-down one-way communications are distinctly unreliable. One weak link in the chain and the message gets lost; and no feedback means no improvement.

Multi-directional networked communications, on the other hand – enabled via enterprise social networking platforms, forums, wikis or other collaboration tools – equip you with armies of influencers to spread the word on your behalf.

If you fail to empower your internal advocates, you’re making life very hard and expensive for yourself.

What’s more, there are so many brains in big organisations that the knowledge, ideas and answers are always in there somewhere. The challenge is joining them up – making connections and finding ways to bring more transparency – so inspiration, participation and new behaviours spread all the way through, with newfound velocity.

As well as repairing weak, unproductive cultures and removing barriers to forward motion, the key reason it’s vital to harness collective intelligence nowadays is the quickening pace of change in the outside world. Big bureaucratic structures make sense when no radical change is taking place, but it stands to reason that a fast-changing environment calls for greater agility. Likewise, hierarchy becomes inefficient when we need more info, more interaction, quicker decision-making and rapid action.

So help your teams talk to one-another in all directions. That’s it. Those who understand the ‘markets are conversations’ mantra and how to leverage networked communications will be in there somewhere and they’ll spread their understanding like wildfire.

Universal, embedded understanding renders (expensive) control measures (and blind panic) completely unnecessary.


Markets are conversations… so what?

Markets are conversations… so what?

Despite the old ‘markets are conversations’ mantra being so well used nowadays, many organisations (particularly big ones) are still struggling to get to grips with its true meaning and what they should actually do about it.

The long and short of it is that at any given time there will be a bunch of customers out there who want to talk to you and about you. Sometimes they’ll want to complain that the product they bought was the wrong size, wrong colour, broke after a day’s use… sometimes they’ll want to praise you and thank you for such incredible service. Sometimes they just want to know when their package will arrive or when the next software release is due out.

The obvious change in recent years impacting the frequency of conversations is the ease with which anyone can share their thoughts via social channels (today it’s YouTube, Facebook, Twitter, blogs… tomorrow something else). Reducing barriers to conversation has set the advocates free. Now everyone can share what they care about. The downside for those with something to hide is the fact the same tools have set the detractors free too.

Now that people have a platform through which their voice can be amplified, success in enabling advocates and pacifying detractors hinges on two key principles.

1. Your biggest influencers are early adopters, so focus on them relentlessly. The rest of the curve is really good at ignoring you, so don’t waste your resources. Instead listen to and converse with the early adopter crowd and they’ll market to the rest on your behalf, at no extra cost.

2. If your product or service is crap, the detractor conversations will be happening right now whether you like it or not. Priority one is to fix your product/service and priority two is to join in the conversations. Or you can flip this and start talking to the outside world openly about how exactly to fix your product/service (but you better be prepared when the floodgates open). It’s vital to tell the truth. Given it’s out there anyway, you can build trust by ‘fessing up; or destroy it by ignoring the obvious or by pumping out generic PR.

So when we say ‘markets are conversations’, if you interpret that as ‘a bunch of people want to talk to us and we should enable that’, you’ll be on the right track.


The conversations are out there

The conversations are out there

Many companies still hold a deep-seated fear of two-way conversations with their customers. The idea of enabling direction interaction with individuals seems like a massive can of worms. How can we trust our employees to speak on behalf of the company? Aren’t we inviting trouble? Couldn’t it damage our reputation? How can we control the conversations? How can we eradicate the negatives? Do we really need to be taking this risk anyway? Is it worth it?

The answer is yes. It is worth it. In fact you don’t have a choice, unless you want to drift progressively further from your customers. What’s more, the conversations are already happening and there’s nothing you can do about it. 90% of consumers online trust recommendations from people they know and 70% trust opinions of unknown users, so either stick your fingers in your ears shouting ‘la la la’ while your revenues dwindle; or join in and embrace the chatter as an unprecedented opportunity for growth – a platform for gaining revelatory insight and feedback in real time and for amplifying the voice of an army of promoters… your most effective and cost-efficient salesforce.

At the end of the day, it’s basic common sense that any business needs to be where its customers are. In the UK, a 2008 Nielsen survey showed 97% of the UK’s population were shopping online (Japan 97%, Germany 97%, USA 94%, South Korea 99%). As for mobile… well, eBay just did $500m through their mobile app.

Protecting reputation and retaining control isn’t what’s important. What’s important is driving profitability through innovation. Success is achievable by relinquishing control in the confidence that you have the infrastructure, strategy and toolkit in place to listen and respond to the conversation. None of those things are hard to come by [email me if you'd like to discuss: jane@resonanceblog.com].


Social media circa 1900

Social media circa 1900

This article by planning director Richard Madden from Kitcatt Nohr Alexander Shaw brings up an excellent example of social media in action, circa 1900 – that of the Michelin brothers Édouard and André and their quest to build their car and bicycle tyre brand… by recognising that people were more passionate about food than tyres (shock horror).

As Richard says, ‘[The Michelin Guide] was genuinely useful, it invited participation, it was given away free at petrol stations, and readers were invited to provide corrections and suggestions. They were even encouraged to leave the guide in view when visiting restaurants to guarantee good service.’

One of the post comments states another good example: The Tour de France – a bike race started by a newspaper to get people talking and generate content.

Citing great pre-internet social media feats serves as a reminder that our toolkits – currently equipped with Twitter, Facebook, Slideshare, YouTube and rest – are not the point. They’re simply transient vehicles for a timeless human desire to converse about interesting stuff.

Too often our social media strategies – or the token pinch in the mix that proves you’re ‘doing social media’ – starts with a menu of tools first and thoughts on what you could say second. This is sort of missing the point.

Albeit a cliche these days, the point of social media is to have conversations – or more accurately to remove barriers to having conversations. The great thing about the tools is that they enable participation in a two-way exchange, on a micro level. Two-way involves listening; and not just for the sake of it, but to build a network of influential promoters – your most (cost) effective sales team.

The challenge is as it has always been. It’s something the Michelins cracked and it’s very very simple:

Be useful and interesting.


Humanity 2.0 on slideshare homepage

Humanity 2.0 on slideshare homepage

Nice one slideshare!

“Hey ResonanceBlog!

Your presentation Complexity & Humanity 2.0 has been selected amongst the ‘Top Presentations of the Day’ on the SlideShare homepage.

Our editorial team would like to thank you for this awesome presentation, that has been chosen from amongst the thousands that are uploaded to SlideShare everday.

Congratulations! Have a Great Day!

- The SlideShare team

p.s. Why not blog/twitter this and let the world know about the masterpiece you have created?”

slideshare_complexity


Big lumpy clumpy balls of crap

Big lumpy clumpy balls of crap

Leading on from the previous post about the coolness of chaos…
 

Have you ever had to deal with a big lumpy piece of complex old software that was written years ago, then updated countless times, new bits added on, a new guy adding another bit, bolt-ons, sticking plasters and fixes… until it’s a big slow cumbersome piece of crap nobody can change or work with?
 

That’s pretty much industry as it stands – and other big systems for that matter (e.g. government, education). Since the industrial revolution, we’ve built up this massive ball of crap. Now nobody can do a damn thing with it.
 

The most obvious example that’s hurting right now is the whole free thing. We can listen to music for free. We can watch TV shows for free. We can read books for free. This of course screws record companies, publishers, broadcasters… oh yeah, and then there’s the whole fact that we don’t pay a blind bit of notice to advertising. The big massive balls of crap are stuffed because they’re prisoners within their own structures – too slow, too fat, too inflexible. They’re waiting to die, with their fingers in their ears, screaming ‘lah lah lah!’ as nimble network-based businesses spring up under the radar, taking over the world at lightning pace.
 

At the end of the day, all a business traditionally does is ensure people get paid. That’s it, when you think about it. Traditionally the big boys get paid much more than the little boys, but it’s just a bunch of individuals getting paid.
 

Now, think about the overhead in a big-lump-of-crap business. Big shiny offices, management structures, HR departments, blah blah blah. Think about MARKETING BUDGETS… zillions and squillions… to make sure you sell LOADS to make sure you can pay the overheads and pay the individuals (staff, bosses, shareholders etc). So we pay more to make more to sell more to pay more.
 

And it ain’t just the hippies who know sustainability is an issue. We need to stop producing so much crap. Reuse, reduce, recycle and all that jazz. Yet still we need to make people want more so they buy more so we sell more to pay individuals.
 

What if we scrapped all the crap?

What if there were no management structures?

What if there were no multi-million advertising / marketing budgets?

What if there were more or less no overheads?

 

Answer? We wouldn’t need to sell as much, so we wouldn’t MAKE as much. Sweet! It isn’t rocket science.
 

And could we do business without these business-as-usual / this-is-business stuff that costs so much? Hell yeah. It’s already happening. It’s soooo easy to change from ground level, as a bunch of individuals, with no management, a pinch of leadership and a sprinkling of magic dust – in comparison to attempting change from the ‘top’. It’s no surprise that people feel pretty darn good when they’re an individual within a collective, creating profit through good growth, without all the psychologically, environmentally (and every other ‘ally’) damaging self-fulfilling prophecies inherent in business as we know it.
 

I mean, we all know we went a bit crazy over the past few years (decades). We all got a bit carried away. It’s like full on raving in the 80s/90s (or whatever equivalent!). Bloody hell what a blast. Dance your face off – time of your life. But after a few years everybody starts to feel like crap, go nuts and realise it’s no fun any more and life’s better when you feel good. The individuals-formerly-known-as-consumers are just started to ease off the uppers. They’ve been turning your brain cells to mush and it’s much nicer to be wide awake.
 

So what now? Sit back and wait until the chaos period is over and this network-based commerce phase kicks in and emerges as the new status quo?
 

Err… that would be pretty boring.
 

Instead you could join a tribe. Or you could start one. Soon it’ll pay way more than your job (if that’s what you care about)… and really when you get into the swing of the new way you won’t give a toss.
 

Take it a leap beyond ‘markets are conversations’ into the realms of DOING, not planning. ACTION IS THE NEW FORECASTING.


Skipping the curve

Skipping the curve

Most people at some point question what they’re doing… where their life is going… whether they’ve achieved enough or made the correct choices. Whether they should be playing this game or jacking it all in for a beach shack. This post is for all you guys. ;-)

I, for one, sometimes get sick of the sound of my own voice, repeating the stuff of ‘those who get it’ – as if it’s still brand new. As long as there are ‘those who don’t get it’, perhaps we still feel good about ourselves. Or maybe we’re all secretly afraid we’ve wasted our lives on a load of old bollox?

Here are a few typical state-of-play regurgitations:

- Markets are more competitive and we have more choice (long tail etc)

- Broadcast is crumbling as we filter the noise

- Marketers increasingly have to justify their budgets (and silver bullet solutions fail to deliver on promises)

- Markets are conversations

- Word of mouth recommendation is the biggest influence on purchase decisions

- People no longer trust authorities, institutions and advertising

- There has been a power shift from brand to consumer

- 360 degree, relevant, targeted, tailored, personalised blah blah

etc etc

We bang on about social media and word of mouth as if they’re actually marketing disciplines. Word of mouth is not a marketing discipline. Social media is not a marketing channel.

The reality is, they’re just more of the same thing humans – people of the world – have always done… more communicating. Not rocket science. We’ve always done it and we always will – with increasing speed and ease via technology, in our evermore fluid, diverse societies.

Unless we’re all gagged, of course we’ll share things and recommend stuff. It isn’t a phenomenon; and it doesn’t even necessarily have to be ‘harnessed’.

Okay, so there’s a general coming-around to the idea that advertising is dead. Market research is also balancing on a credibility knife-edge. Back in 2005, Simon Clift, CMO and Group VP of Unilever’s Personal Care Division, said, ‘I just don’t believe in predictive research. And we don’t use it.’

No surprise there, when you think about it. We ask people what they think, what they do and what they’ll do in the future – and take their answers as if they’re objective truths. We extract wads from brands knowing full well that’s somewhat counter to common sense, particularly as we’re in the futurist half-arsed scientist’s club and we know better.

Perhaps we need to ‘fess up and admit the truth… i.e. that we don’t have a clue. Our predictions are based precariously on platonicity. We suffer from confirmation bias, historical bias and more or less any bias you can think of that makes us think we will be and were right.

If you consider the kind of industry thinking and activity we had in the past; the kind we have in the present; and the kind we futurists have about the future… how’s about we skip all that – skip the curve – and start making things happen in line with the future beyond our current prevarications.

past_present_future1

Maybe it’s worth considering that marketing is dead (or at least will/could/should be). That business models are people-driven. That nobody wants to have a conversation with a Brand. That there are no Us and Them divides between brands and consumers – we’re all just people. That scalability comes from putting the people of the world in control. That the complex supply chains which leverage the hoarding of knowledge for big bucks are no longer needed nor wanted (we see them falling by the day). That we marketers are no longer needed nor wanted. As individuals, we’ll control our incoming and outgoing communications ourselves; in a punk-capitalist-come-communist society (if you feel the need to name it). The knowledge of the people of the world is out there and it’s spreadable, mashable, monetizable and free. So many of our positions are no longer relevant. What a bloody fantastic opportunity!


Get out of the way

Get out of the way

A few words on the publishing industry, inspired Alan Rusbridger’s [Editor in Chief, Guardian Media] recent comment that “These are the last printing presses we’ll ever buy”; and by an email I just received which included the quote “I would never read a book if I could talk half an hour with the person who wrote it”.


Decline factors…

- Inefficient many‐to‐many supply chain = high levels of wastage

- Risk adverse publishers hamper the emergence of new authors

- Entry to distribution channels is a fundamental barrier to new publishers setting up

- Market data isn’t successfully harnessed to allow better decision making on which titles to produce

- Publishers place more emphasis on fulfilling orders than on understanding customer needs

- ICT adoption is only as fast as the slowest adopter in the supply chain, so uneven skills levels between companies hampers innovation

Given that individuals now have the power to organise without organisations, it’s time to get out of the way and enable readers and authors to interact. We need to strip away copyright hang-ups and enter into the Web 2.0 spirit of sharing and co-creation (it’s going to happen whether those with the sand slipping between their fingers like it or not, so everyone might as well admit it and leverage all things ‘free’ in lucrative new business models instead of clutching at straws while they die a slow death). While we’re at it, how’s about stripping away all the supply chain complexity and providing tools and environments where authors and readers can communicate directly; and gain all the benefits of doing so in a mutual value exchange.

Publishing, music, film… very similar problems, very similar solutions. Armies of fanatics aplenty. Massive opportunities.

Check out The Music Industry Manifesto for a good dose of common sense.


Reading is a means of learning, self‐educating, exploring and broadening horizons. Ultimately, it’s all about DISCOVERY. Think for a sec how we’d advance loads of fundamental human endeavors if we stopped putting up barriers to discovery, for misguided (non)commercial gains.

If discovery is the action, the state required to achieve it is RESONANCE.


Times they are a-changin

Times they are a-changin

It doesn’t matter what industry you’re in… marketing, music, film, publishing, media… we’ve got to face up to the fact that open and transparent services are the future. So hand over control to the people, earn trust, have conversations as opposed to indulging in monologues / broadcasting / messaging and promote enablement, not prevention / hindrance.

Thumbs up:

Gerd Leonardhttp://www.mediafuturist.com/
Radiohead: http://www.radiohead.com

Thumbs down:

Hakan Roswall, IFPI: http://torrentfreak.com/the-pirate-bay-trial-day-10-calls-for-jail-time-090302/
Feargal Sharkey, UK Music:
http://news.bbc.co.uk/1/hi/technology/7722340.stm

Duh!

As Bob Dylan said:

Come gather ’round people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You’ll be drenched to the bone.
If your time to you
Is worth savin’
Then you better start swimmin’
Or you’ll sink like a stone
For the times they are a-changin’


  
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