You Don’t Own Your Brand — Your Customer Does

The nice folks over at the Washington D.C. chapter of the American Marketing Association (AMA-DC) asked me to provide my perspective on how “traditional” marketing is changing as a result of social media. It really is incredible where technology has come these days, check out this duplicator for an example of one of your options! Both these methods used together would be excellent for the marketing industry as a whole. But anyway that’s by the by, let’s really get into this topic.

You Don’t Own Your Brand —
Your Customer Does

by Christopher F. Carfi, CEO
of Cerado, Inc. (http://www.cerado.com)

Brand (n.)

1. A trademark or distinctive name identifying a product or a manufacturer.
2. A mark indicating identity or ownership, burned on the hide of an animal
with a hot iron.

(source: The American Heritage Dictionary of the English Language, Fourth
Edition.
http://www.answers.com/topic/brand
)

We marketers like to delude ourselves. We delude ourselves into believing
that if we can distill the meaning of a product or service to its very essence,
that if we can determine the perfect message and imagery, then the market will
internalize those things for which the brand “stands” (and perhaps
look a little less closely at the actual product or service to which the brand
has been applied). That’s what we do. We create “brands”
that will resonate in the market. If you’re looking to get your brand out there a little more with branded items, look into these promotional products design company.

But a “market” is not an undifferentiated mass of consumers[1] with
upturned gullets interested in gobbling up our marketing messages. A
“market” is actually a place. When you hear the word
market, think “bazaar,” not “customer segment.”

Some of the historically great “brands” are learning this the hard
way. Let’s look at Sony, for example. Some estimates state that
Sony is going to lose up to $1 billion dollars on creating and marketing its
new PS3 gaming console in its first year[2]. One BILLION dollars.
With that kind of money, they should be able to ensure that the
“branding” in the market is perfect, right?

Not even close.

Wikipedia defines “social media” as “the online tools and
platforms that people use to share opinions, insights, experiences, and
perspectives with each other. Social media can take many different forms,
including text, images, audio, and video. Popular social mediums include blogs,
message boards, podcasts, wikis and vlogs.”[3]

The ease of access to social media has flattened and democratized the
market/bazaar. Instead of those with the loudest megaphones and billion
dollar marketing budgets running roughshod over customers, we, the customers,
now have the ability to critique, to talk back and to connect with each others
and share stories and opinions. What does this mean for marketing?
It means that the old, top-down hierarchy of searing brands into the consumer
psyche is done. Over. Finished. It means that businesses have to engage with their consumers, building their brands on the ideas of their customers and their experiences. To achieve this there are now social media tools, such as this instagram bot and other automation tools, in order to help these businesses grow through social media and the engagement with their customers.

Let’s look at a tangible example. In the wake of the PS3 launch, an individual only known by the
online handle of “heavyarms117”? posted a video to YouTube entitled “How To Kill
A Brand”[4] (based on the song “How To Save A Life,” by The Fray). Here’??s the first verse:

Step 1, you make your console
cost the most,
You beat your chest and proudly boast,
Despite no good exclusive games
You make a bunch of ridiculous claims,

Then ignore our need to play online
Don’t make it fun like Xbox Live
Use Blue Ray, which I don’t need
Now you’re getting your ass kicked by the Wii

Sony, you went wrong, with your PS3
I’ll just keep playing my 360
Hope this song has helped, you understand
Now you know, How You Killed Your Brand…

Simple. To the
point. And devastating. As of this writing, the video has been
viewed 1,419,639 times, and generated over 12,000 comments. What was the cost to produce it? Minimal. The cost was some basic editing equipment that comes with every laptop
and a few hours of time.

1.4 million connected customers versus a
top-down, billion dollar budget? I’??ll
take the customer in that race every time.

So, if the customer is truly in
control of the brand, what can we as marketers do?

If the customer truly is in control as a result of the advent of social
media, the most important thing to do is to actually engage in transparent,
authentic conversation. Anything less
eventually ends up with a situation similar to the one in which we currently
see Sony and other brands. This means
listening in the blogosphere, and taking the pure, raw customer feedback that
is out there and bringing it back into the organization. It means creating social networks and online
communities where customers can engage with your organization and each other. It means acting not as teflon-covered
representatives of the organization, but instead engaging in natural exchanges
as the human beings that we are.

“But what if the customer is critical, or says bad things about us?” It’??s happening already on the over 70
million blogs online, and between the hundreds of millions of members of
existing online social networks. And
when it does happen, a marketer’s best bet is not to go into “spin”?
mode, but instead to address the issue directly. If there is no issue, or the facts surrounding the conversation
are incorrect, then correct them factually. However, if there actually is an issue, address it, and state
what is going to be done, and by when. For example:

1) Say what happened – State the case,
tell what happened, explain what the situation was. Don’t spin, don’t make excuses. Just state the facts.

2) Say what you’re going
to do about it
â?? Inform customers about the short term fix. How are
you going to put out the fire?

3) Plan for Murphy
– Ok, the immediate crisis is over. What are you going to do to make sure this
doesn’t happen again

4) Report back
Let the customers know what’s going on. Was the short term fix applied? Are the
long-term changes happening?

Following this simple process can avert the firestorms that erupt online
when an organization decides to batten down the hatches and ignore whatâ??s
actually being said about them via social media.

And so, here we are today. We’??ve
created an entire industry based on marketing via top-down methods, based on
the broadcast models of TV and print that have served marketing well for the
past fifty years. But things have
changed, radically and quickly. Customers are turning off the TV and putting down the newspaper and
getting their information about brands not from our billboards and glossy
collateral, but instead from their trusted colleagues online.

Even those colleagues only known online as “?heavyarms117.”?

[1] – “one who consumes”

[2] – http://www.ps3focus.com/archives/167

[3] – http://en.wikipedia.org/wiki/Social_media

[4] – http://www.youtube.com/watch?v=R98qC0fd_1w

JPG Magazine Founders Powazek and Champ Out

Derek Powazek: “If there’s one thing I’ve learned about community-building, it’s this: Do Not Lie. People are too smart and well-connected to believe a lie anymore. So, with that in mind, the story I’m about to tell is absolutely true as I experienced it.

Issue 10 will be the last one that Heather and I will have a hand in. We are no longer working for JPG Magazine or 8020 Publishing.

Why? The reasons are complicated, and the purpose of this post is not to air dirty laundry – it’s just to let the community know why the founders of JPG are no longer there. We owe you that much.”

What Do You Want To Ask Doug Engelbart?

Engelbartmice(NOTE: If you have questions you’d like to ask Doug Engelbart, please leave them in the comments below and I’ll ask them to him next Tuesday.)

Next Tuesday, I’m going to be sitting down for a conversation with Doug Engelbart leading up to his presentation at MIT on May 17th, entitled “The Augmentation of our Collective IQ.” The audio of the conversation will be made available as a podcast. (Immeasurable thanks to Mei Lin Fung for setting this up.)

Doug is a legend of the industry. Just the first paragraph of his Wikipedia entry is filled with a compendium of the contributions he’s made:

“Dr. Douglas C. Engelbart (born January 30, 1925 in Oregon) is an American inventor of Swedish and Norwegian descent. He is best known for inventing the computer mouse (in a joint effort with Bill English); as a pioneer of human-computer interaction whose team developed hypertext, networked computers, and precursors to GUIs; and as a committed and vocal proponent of the development and use of computers and networks to help cope with the world’s increasingly more urgent and complex problems (which Horst W. J. Rittel and others since have called wicked problems).”

Doug’s current research is focused around the idea of “Collective IQ.” A bit more on that front:

“Today, his contributions are more widely recognized, but for decades the technologies he invented and demonstrated were largely ignored or misunderstood. And even now, with PC’s and the World Wide Web as direct descendants of his pioneering work, these technologies have not had nearly the transformative effect that Dr. Engelbart had hoped.

Until recently most of his inventions, as the industry gradually adopted them, were built into stand-alone computers. But from the beginning Dr. Engelbart conceived his techniques with networked computers in mind. His motivating concept, still largely untested today, was that information technologies could serve as the connective tissue between people and information.

The result, he said, would be an exponential increase in what he calls an organization’s “collective I.Q.,” which would in turn supercharge a group’s ability to improve itself over time.

In essence, Dr. Engelbart’s theory separates work into three categories. A-work, as he calls it, is the primary mission of an organization, like building cars or operating a health care system. B-work involves ways of improving A-work, and it is likely to be basically the same among similar organizations, be they auto makers or hospitals.

C-work, in turn, is about improving the improvement process itself. Although an auto maker might be loath to share information about B-work with its competitors, Dr. Engelbart’s hypothesis is that much good could come from their sharing information about C-work — about how to improve the process of recording and responding to consumer complaints, for example, which might enhance processes all the way down the line.

And that exercise might be equally valuable to a software company, a car maker or a bookstore — resulting in what he calls “high-performance organizations” that are much more capable of improving their work processes quickly and effectively.”

What questions would you like to ask Doug about Collective IQ, or anything else?

Social Media Goes From Theory To Practice

Just got this fantastic note from Wayne Thompson, who is the director of research at Technology Evaluation. Wayne was one of the 20+ participants at the San Francisco stop of the Social Media and CRM 2.0 workshop series.

Wayne writes:

“Chris-

Thanks again for having me at the CRM 2.0 workshop. I can’t believe how much I learned in those two days. The presentations were outstanding, and the interactions with you, Paul, and the other attendees greatly stimulated my thinking.

Here is a link to my first podcast http://pmwarstories.com/

Let me know what you think.

Consider me another convert in the Church of CRM 2.0.
Wayne”

(Wayne, thanks for the good words and you’re very welcome! Thank you for spending the time with us. The podcast sounds great. We’re actually featuring it in the Naples session today. Nice job!)

I have to say…it’s highly gratifying to see people like Wayne grabbing a hold of the reins and going from student to trailblazer in such short order. Now go check out his podcast, Project Management War Stories.

Turnabout Is Fair Play

Dave Winer:

“Not only do companies go global easily, their customers do too.

Now we all have much better information, when we need it, to make a decision about who to do business with.

Marketwatch: “Eateries see reviewers at every table.”

Businesses that really think of the customer will be rewarded, and those that fake it, will fail to compete.

If you don’t want your customers to find out that you mistreat customers, then don’t mistreat customers.

Don’t expect them to suffer sliently. That worked in the last century, it doesn’t work in this one.”

Clue Unit #13: Transparency and Communities – May 4, 2007

(click here to listen – MP3)

(click here to subscribe to this feed)

Episode 13, about 30 minutes.

Today’s Topic:  Transparency and
Communities

  •     New Clue Unit Format

  •     Transparency Discussion

  •     Microsoft and Wired Magazine Article

  •     Digg’s Reaction to HD/DVD Code Hubbub

With Jake McKee, Lee LeFever and Christopher Carfi.

Related Links:

Ad
Age Article on Transparency

Wired
Issue
on Transparency

Wired Article on Microsoft:
Operation
Channel 9

Sean
O’Driscoll

Threadless – Community
Innovation
Digg
Kevin
Rose’s Post on HD/DVD Encryption Code Issue

Google
Aids China’s Censorship Efforts

Dallas
Social Media Club Meeting

New Blog:
Not
To, But With

DotSub: Any video in any
language.
Rocketboom’s
Episode on Dotsub

Don’t forget about the
JPG
Magazine Subscription Giveaway
. 

Clue Unit #12: A Grab Bag of Topics – April 30, 2007

(click here to listen – MP3)

(click here to subscribe to this feed)

Episode 12, about 30 minutes.

Today’s show was a grab bag of cool stuff

  • RSS in Plain English Video
  • Upcoming Product: Pleo, Caleb Chung and the Kickstart Event
  • Huffington Post Moderation Issues
  • Visible Technologies, PR and Bloggers
  • Spam from the American Marketing Assn.
  • Big in Japan’s Egorcast
  • JPG Magazine Giveaway

With Jake McKee, Lee LeFever and Christopher Carfi.

Related Links:

Video: RSS in Plain English
Common Craft Show
Social Media and CRM 2.0 Seminar
KickStart Workshops with KickStand
Ben McConnell Church of the Customer
Sony PS3 Video – How They Blew It
Caleb Chung – inventor of Furby and Pleo (interview )
Ugobe makers of the upcoming Pleo (wikipedia) (blog )
Prey by Michael Crichton (Amazon)
Huffington Post
Visible Technology (Lee’s Post)
American Marketing Association
Ben McConnell – How Not to Pitch Bloggers, part 2
Clue Unit – JPG Magazine Giveaway
EgorCastBig in Japan
Webvisions, Portland, Oregon