Clue Unit #22 – An Introduction to Vendor Relationship Management (VRM) – August 1. 2007

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Today’s Topics:

  •     What is VRM?
     
  •     Will businesses get it?
     
  •     What are the mechanics of the system?
     
  •     Microformats?
     
  •     The employee experience
     

Related Links:

VRM
– Vendor Relationship Management

Berkman
Center at Harvard

Internet
Identity Workshops

Attention
Trust

Open ID
Consortium
for Service Innovation

Chris’
X-Drive Experiment

The
Enterprise Immune System

Microformats
and VRM

Get
Satisfaction

Cooptition
Kwik-E-Mart
7-11

Doggone Good Service

On the heels of this year’s Blogher conference, I am spending a week in the Chicago area catching up with customers and family alike.  (I grew up here, way back in the early Pleistocene.) 

Portillosneon
Was driving to the airport yesterday, and on the way pulled into Portillo’s for a good ol’ Chicago style hot dog.  However, upon pulling into the lot, I realized that there was a line of about 10 cars in the drive-thru ahead of us.  Yet, undeterred, I pulled into line.  Yes, we might miss a flight, but there is research to do here!

The first thing I noticed pulling into the line was that they had turned off the automatic squawk-box ordering system, and instead had put three human beings into the line, all with headsets and walkie-talkies.  As we pulled up to the first gentleman, he asked us for our order.  Having not seen the menu yet, I didn’t know the answer, and said so.  He deftly handed me a paper menu, and said, "No problem, just tell the next person."

We pulled up to the next person, a woman, who was about three car lengths up in the queue.  She took our order, radioed it in, and handed us a claim check.  (Number 87, to be precise.)  We then pulled ahead to the third person, who was taking cash, wearing one of those old-style coin belts with which one can clink out coin change with ridiculous efficiency.  She told us our total, took our money, made the change, and sent us rolling up to the window, where our food was already waiting.

Total time in line:  MAYBE four minutes.  Tops.

As we were pulling up to the cashier, I asked her if they always used this seemingly "inefficient" 3-person lineup during rush times.  She said yes.

Even though it appears inefficient at first blush, the process was absolutely flawless and unbelievably fast.  I would wager they do a substantially greater amount of business in their drive-thru than, say, the nearby large fast-food chain, with the standard one- or two-person drive-thru configuration.

Portillo’s website says their motto is: "The best food and the best service!"  I can concur, they are two-for-two.  Pass the mustard.

Related: By, the way, never, never, never order ketchup on a Chicago style hot dog, lest they say "Behold, this creature that walks like a man. It wants ketchup on its hot dog!"

image: city of buena park

Blues at Blogher


Blues at Blogher
Originally uploaded by christophercarfi.

Over the next couple of days, I’ll be doing a little bit of photoblogging as well – great conference, and unbelievable venue here at Navy Pier in Chicago. I just walked outside the conference area to find this blues stage with band doing a screaming cover of Red House.

It’s good to be home. 🙂

By the way, if you want to subscribe to just the photo feed over the next couple of days, I’ll be posting the pics directly to Flickr and the photo feed is here.

A Collaboration Case Study – A Day-By-Day Wiki Growth Journal

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Jenny Ambrozek and team used a collaborative environment (in this case, a wiki) to author an article on "Connected Intelligence."  The wiki can be found here: Learning Through Participation and Connecting Intelligences: Experimenting with a Wiki to Co-create an Article

The project was very interesting in its introspection on what was working, and what wasn’t, as the process evolved.  The page on "Lessons," in particular, provides a great data point into what actually happened.

"June 29, 2007, with deadline looming. co-author Jenny Ambrozek posted
an article update and invitation to participate to the 21st Century
Organization blog 21st Century Blog


June 30 Knowledge Jolt blogger, Jack Vinson, blogged about our article writing experiment Jack Vinson Blog


July 2 Jenny Ambrozek in checking Technorati www.technorati.com for activity around our blog post also noted Jack Vinson’s Policies Can be Changed post and added a comment.


A Facebook www.facebook.com and email exchange followed. The Jack Vinson Wiki Page was created and we captured Jack’s insights about “policies” impacting knowledge sharing and learning in a real laboratory.


It took the wiki+blogs+Technorati+Facebook+email to gather the laboratory example.

Co-Creating Takes Time


It was 14 weeks from wiki creation to article deadline but the bulk of
activity happened in the last month. The authors had competing
commitments and it was only as the deadline approached and focused
their attention that real structural activity began. What we didn’t
realize was that although a collaborative product benefits from
connected intelligence, the production cycle must allow for more review
and reflection by the various participants.


Unknown is how many more people we could have reached, and how much
richer or different, this article would be if we had started outreach
earlier. As the wiki remains open so readers can contribute their
reactions and tell us what we’ve missed.

"

Check out the analysis of the evolution of the wiki here.

photo: tanio

Clue Unit #21: Community as Business – Rapid Fire

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Episode 21, about 30 minutes.

Today’s Topics:

  • Recap of "Community as Business" Focus
  • Craigslist and Small is Beautiful
  • Other Examples of Community as Business
  • MySpace and Marketing
  • iPhone Release as Cultural Event
  • Personal Updates

Related Links:

JPG Magazine
Threadless
Next Week: CRM and VRM, Doc Searls
Small is Beautiful
Craigslist ; Craig Newmark
Cult of the Amateur
Business Lifecycle in Community Context – What Can Community Do?
Fon;  Community Delivered Wi-fi
Moo Cards;  Appended to Existing Community – Flickr
MySpace  as Marketing Vehicle
X-Men Promotion on Myspace
iPhone  as Cultural Event
Categories of iPhone Line-Waiters
Will You Get an iPhone?
Nokia 770
Jake’s New Biz: Ant’s Eye View 
Cerado Gets New Offices
Common Craft – More Videos coming soon
Blogher 2007, Chicago

Why Customers Buy

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Interesting research from my alma mater CMU, on the neurological processes that occur at the moment we’re making a buying decision as customers.

"Their findings, recently published in Neuron,
suggest that there’s a battle in the brain between immediate pleasure
and immediate pain when we’re deciding what to buy. This contradicts
conventional economic theory, which states that people make decisions
based on immediate pleasure versus saving their buying power for some
future pleasure. The subjects in the MRI study weren’t thinking about
what benefits they would gain at some later date if they chose not to
purchase The Family Guy DVD set now. Rather, they were deciding based
on how painful (or not) they thought paying for it would be right now.

Loewenstein says that the findings helped
confirm what he and Prelec first noticed (i.e., that spending money can
be painful) in the early 1990s while collaborating on a paper. At the
time, they had to rely on mathematical models to prove their point. But
MRI technology now allows them to back up that claim with hard
data–real pictures of human brains that show real activity in the
brain’s pain center. Hard data is what Loewenstein hopes will
eventually lead to the acceptance of the field among doubters who still
hold fast to traditional economic theory.

Loewenstein hopes to follow up his research regarding the "pain of paying"
by exploring a growing and looming problem in the United States–why so
many people run up so much credit card debt. Much like he did in the
study with Knutson and Prelec, he wants to see what goes on in the
brain when someone pulls out plastic instead of money when making
purchases. His hypothesis is that credit cards numb the brain’s pain
center (i.e., reduce activity in the insular cortex) because no
currency is exchanged and costs are postponed, thus weakening the
body’s built-in defense mechanism against unnecessary purchases.
He
believes that MRI testing could provide definitive answers."
(empahsis added)

Read more here.

Sprint Fires Over 1,000 Customers

Sprint has fired over 1,000 of their customers.  On June 29, 2007, Sprint sent out letters to a number of customers that stated:

"Our records indicate that over the past year, we have received frequent calls from you regarding your billing or other general account information…Therefore, after careful consideration, the decision has been made to terminate your wireless service agreement effective July 30, 2007."

Here’s a copy of the letter:

Letter

image: MissDiva

I think Sprint’s move is terribly, well…uncreative.  You’ve got a group of over 1,000 very vocal customers.  Is there not a way to turn all that energy to good, mutual, use, where the customers can get their problems solved and can provide the organization with information or ideas that could help the rest of the customer base?  It makes me wonder — were the problems that these customers were having with the service unique in some way that made them difficult to resolve?  Or are the problems endemic within Sprint’s processes, and it’s just this group of customers that were actually following up and attempting to get them resolved, instead of rolling over?

(If you remember, I’ve had my own issues with Sprint over the past couple of years.)

Who else has had issues with Sprint recently?

More on the story here:

A Good Example of Online Community Guidelines

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Our local Half Moon Bay and Coastside community site, Coastsider.com, puts up its community guidelines.  I loved this one in particular:

6. Please use your real name. We don’t require this but we’d like to know who you are. If you sign your name Bill Clinton or Frank Zappa, we’ll in all likelihood delete it, unless we’re certain you’re the former president or the reincarnated Mother of Invention.

Related:  Backfence closes its doors, with commentary from Terry Heaton and Jeff Jarvis. And a spot-on review of a Backfence meeting from last year from Adina Levin.

image: Barry Parr