Social Engagement

Larry Weber, at Syndicate. Weber (as quoted by Doc):

“The stronger the dialog, the stronger the brand; the weaker the dialog, the weaker the brand. Also The best (future) writers for the New York Times… are writing blogs. Not quite verbatim, but you get the point. More… It’s pandemonium and it always will be… We’ll be talking about no nightly news. Because there’ll be no sponsors. To marketers, about “enterprise-generated media”, which he says Microsoft and Sun do very well: Why do you need marketing collateral when you’ve got blogs? Why do you need interviews when you’ve got podcasts. Hey, throw a party in your digital space. Opinions shape marketing now. Marketing doesn’t shape opinions. This guy is on the cluetrain, huge time. His bet: On the superbowl this year, 18 ads will be about getting you to a digital destination. Last year there were 12. Stop focusing on clicks and start focusing on time of engagement. He’s knocking the “transaction interface.” Click! Buy! Some things you want to keep there, but… If your sites don’t have a social interface, you’re going to lose the leadership position in what you do. Something that wants to look, teach, and learn from you. And it’s going to be hard because in this marketing world, people are used to looking through one-way media. Success measure: Share of conversation. Whoa: Whenever a business category gets messed up, we get a C title. Now marketing is so messed up, we’ve got CMOs. Perspective: How many of you had that evolution poster at school? I think we’re still at the slimy animal stage.” (emphasis added)

(via Doc)

Business Podcasting Article In The Baltimore Sun

The key line: “In what amounts to a nationwide social experiment, corporate America is testing whether this cheap and quirky medium proves useful in the battle to reach the public, communicate meaningfully with employees and keep costs down.”

link: Corporations go off a-podcasting

(Disclosure: I’m quoted in the article. Also, a huge guffaw out to Social Customer reader Dave Ritter who has the best line in the article, which was pulled from the comments here.)

The “First Mile”

The following line in Charlene Li’s post on the Yahoo! acquisition of del.icio.us stood out for me. Charlene:

“The acquisition by Yahoo! is significant for much the same reason why it bought other social computing darlings, Flickr and Konfabulator – Yahoo! is laying the groundwork for its users to add, personalize, and contribute their content and votes to the Web.”

Follow my reasoning here, and I’d love your thoughts.

  • One: With telcos, a significant strategic advantage goes to the provider who controls the “last mile” – the access to the consumer’s home (“consumer” used thoughtfully here). In traditional media distribution, the “last mile” is a strategic bottleneck, and whichever entity controls it has disproportionate control over its competitors (and customers, as well). In times when “content” only flows one way, downhill, those bottlenecks are critical.
  • Two: There are a variety of ways to try to control the last mile. For example, Google’s trying to do it via setting up wireless networks. Others try to control the physical lines themselves, the access to those lines, and so forth.

HOWEVER…with user-created content (be it in the form of blogs, photos, tags, what have you), it’s now a two-way content flow. It’s not just one way “down the pipes,” but also from those myriad “endpoints” back into the pipes.

  • Three: Perhaps, therefore, it’s not just the “last mile” that matters, but also the “first mile” as well. That is, whomever controls the access to the means of user production of content will have symmetric power to those who control the “last mile” of the distribution mechanism.

Telcos are fighting over the last mile. Google wants to set up the GoogleNet and control the last mile.

The question: Is Yahoo! doing a strategic end-around, and trying to gobble up the significant “first mile” technologies? What would be the strategic advantages?

  • Whomever controls the first mile gets “first look” at any new content
  • Whomever controls the first mile can optimize the indexing of new information as it is created
  • Whomever controls the first mile doesn’t need to “crawl” those sites anymore…the first mile provider gets perfect visibility into the nuggets of user-created gold as they are created…

Hmmm…

Best Buy Apologizes For Strongarming Some Xbox Customers

Apparently, some customers looking for the best buy on the new Xbox 360 instead were met with less-than-stellar sales tactics at some Best Buy stores, with sales personnel “requiring” customers to purchase unwanted accessories as part of a bundle in order to get the base Xbox unit. Gamedaily reports:

“Console bundles for new hardware launches certainly aren’t unusual-many retailers (especially online) have been selling the Xbox 360 in bundle form only-but this practice is one that doesn’t sit well with many consumers and was not supposed to have been adopted by popular retail chain Best Buy. Perhaps these gamers left with a sour taste in their mouths by the selling tactics of these console retailers will be drawn towards the world of PC gaming instead where such antics are nonexistent. Sites like GameGator (check it out here – https://gamegator.net) help PC gamers get great deals on the latest releases, so they’re well worth checking out if you’re looking to make the switch from consoles – or even if you just want an additional device to game on.

Despite this, certain Best Buy stores in the U.S. apparently ignored the standalone $299 (core) and $399 (premium) SKUs and either forced consumers to buy Xbox 360 bundles or strongly suggested that they do so.”

For example, back on November 23rd, the Northwest Indiana Times reported:

“Glancing down the line Tuesday morning at the Valparaiso store, there was a sea of heads covered with knit caps or hoodies. The crowd consisted mostly of guys in their late teens to early 20s, sprinkled lightly with motivated soccer moms and young women.

It wasn’t just the weather that was unpredictable. At 8:15 a.m., after many nighttime hours spent shivering in line, a Best Buy employee announced that the unit would not be sold alone for the $399 advertised in the sales flier. Instead, those in line were told they would have seconds to decide whether to buy a higher-priced bundle, adding a game and other accessories.”

In the wake of this, did some looking around and just tripped across the following memo, penned by Brian Dunn, Best Buy’s President of Retail for North America (via Mike Antonucci at the Merc):

“TO: Open Letter to Customers

FROM: Brian Dunn, President – Retail, North America

RE: Launch of Xbox 360

CC: Best Buy Store, District and Territory Employees; All Officers and Directors

DATE: December 6, 2005

I’m writing to apologize.

While all of us at Best Buy were thrilled to be part of the recent launch of Microsoft’s Xbox 360 video game system – one of the most anticipated events in the history of electronic gaming – the launch did not go as we had hoped. We sold out of Xbox 360s nationwide in less than two hours, and most of our stores did an outstanding job of serving our gaming customers. I’d like to thank the majority of our employees, who provided a terrific experience for customers at the launch date. However, our promotional activities in certain cases failed to follow company guidelines. As a result, some of our valued gaming customers had an experience in our stores that was inconsistent with what you’ve come to expect from us, as a leader in the consumer electronics industry.

Specifically, customers in some Best Buy stores were told that they were required to buy additional Xbox accessories or services if they wanted one of the sought-after Xbox 360 consoles, even though we advertised the Xbox 360 console alone. I want to be very clear that Best Buy does not condone pressuring customers to purchase items they may not want or that may not fit their lifestyle. In fact, these behaviors are in direct conflict with our desire to serve customers’ needs better than anyone else, and our values of honesty and integrity.

We are currently investigating all leads about promotional practices that may have violated the company’s guidelines, and we will take disciplinary actions as appropriate. We also have reminded all of our stores about our policies with respect to launches of hot products. Meanwhile, on behalf of Best Buy, I’d like to offer a sincere apology to any customers who felt pressured to buy items they did not want.

Customers who are unhappy with Xbox 360-related purchases made in November 2005 may return unwanted items for a full refund at any Best Buy store. In addition, if your Xbox 360 purchasing experience did not meet your expectations for any reason, please email us at [email protected] . (Employees with information pertinent to our investigation are encouraged to call our Ethics Hot Line instead.)

Last, I would like to invite you back to our stores, particularly later this month, when Best Buy will receive more shipments of Xbox 360s. While supplies continue to be very limited, we are truly excited about this new gaming platform, and we’d like to deliver the best of that experience to you. We promise an in-store experience that is focused on your needs and the needs of everyone on your holiday gift list.

Brian Dunn”

(UPDATE: The letter has since been posted here, with a miniscule link to a PDF buried next to the garish page navigation photograph .)

So, from both the communications and customer interaction points-of-view, a well-handled episode for Best Buy. Although a few individuals tried to take advantage of customers, Best Buy corporate is doing the right thing in not only investigating (and, presumably, disciplining) the responsible parties, but also taking an aggressive tack to make whole the customers who were affected by the issue. Of course, it would have been better if this never had happened in the first place, but still an “B+” response based on relative timeliness and assumption of responsibility for the issue. (Would have been an “A” if they had done this in an even more timely manner and made the letter to customers more visible on their web site.)