Transactions, Conversations, and Relationships

Great weekend at BloggerCon.  In addition to meeting some outstanding folks throughout the sessions, a huge highlight was the after-conference dinner on Saturday night.  Had great conversations with Doc Searls, Jerry Michalski, Elisa Camahort, and Richard Mendel-Black at the Fish Market in Palo Alto.

The "a-ha" moment was a story that Doc told over dinner, relating a plane flight he recently had during which he ended up sitting next to a Nigerian gentleman named Sayo Ajiboye.  Apparently after hearing about some of the writing he had done, Ajiboye turned to Doc and said something to the effect of "you get it, much more than most people."

He then proceeded to explain what he meant.

The cultural difference, he said, boiled down to the following.  In the West, a vast majority of business is concentrated on one and only one thing…the transaction

For his culture, business relies on the transaction, yes, but also two other things:  the conversation and the relationship.  These three pieces work together, almost as a stack; the transaction is the lowest level and leads to the conversation, which results in a relationship.  When two individuals are interacting, all three of those levels are in play.

It sounds simple, until the impact really becomes clear with the following:

"In this model, the conversation is used to develop not just the relationship, but also the transaction.  Everything about the transaction, including the price, must be mutually discovered."

Think about that for a second. 

"Everything about the transaction, including the price, must be mutually discovered." 

The visual that pops to mind here is an archeological dig, where the transaction itself is an artifact that needs to be carefully uncovered and collaboratively dusted by the participants before its form can be seen by either of them.

With this model, the seller and buyer may mutually discover that the price should be lower, because of the circumstances and their effect on the relationship.  With this model, the buyer and seller may mutually discover that the price should be higher, because it will make things better for both of them down the road.

Without all three parts, something is missing.

Update:

Second ‘graph above updated with Sayo Ajiboye’s name. Original version stated “a gentleman.”

Heading To Bloggercon This Weekend

I’m heading to Bloggercon this weekend.  Feel free to drop me a note or post a comment if you’ll be anywhere near Stanford this weekend and want to connect in person.

The thing that has me excited about this conference is that it is an unconference.  From the site:

BloggerCon is an unusual conference. We don’t have speakers, panels or an audience. We do have discussions and sessions, and each session has a discussion leader.

The discussion leader

Think of the discussion leader as a reporter who is creating a story with quotes from the people in the room. So, instead of having a panel with an audience we just have people. We feel this more accurately reflects what’s going on. It’s not uncommon for the audience at a conference to have more expertise than the people who are speaking.

The discussion leader is also the editor, so if he or she feels that a point has been made they must move on to the next point quickly. No droning, no filibusters, no repeating an idea over and over.

The discussion leader can also call on people, so stay awake, you might be the next person to speak!

And, on the process:

At the beginning of each session, the leader talks between five and fifteen minutes to introduce the idea and some of the people in the room. Then she’ll point to someone else. She may ask a couple of questions to get them going, then she’ll point to someone else, then someone else, then make a comment, ask a question, etc. Each person talks for two to three minutes. Long enough to make a point.

This is the third time this conference has been run, so it looks like the idea and format are going to stick.  And it looks like yet another manifestation of the emerging idea that the current model of one-way, company-to-customer monolgoue may have a challenger.

Social Networking Systems and Wikis Engage The Social Customer

Tony Perkins, creator of Red Herring magazine, has forgone the "one-way" communication of the print world and is debating with his readers online in real time. He makes a lot of typos while doing so.

Microsoft customers are spending their own time and money making unsanctioned and unsolicited videos featuring Microsoft brands and sending them to Redmond. The funny thing is, Redmond doesn’t mind.

Customers are starting to get their say. They are doing so in public forums. Their comments are unfiltered. And, more surprisingly, so are the responses of the individuals representing the companies. No PR flaks. No spin. No highly-sanitized, focus-group-approved, completely meaningless Dilbert-speak.

In other words, real people interacting with real people.

Weblogs (or blogs) were the first salvo in this new era of the "social customer." Blogs enabled a one-to-one dialog between an individual representing an organization and a constituency of readers, as well as interactions between the readers themselves.

Blogs are one of three emerging technologies that have the potential to break down the walls between companies and their customers, enabling the creation of communities and resulting in significant benefits to all involved. The other two are wikis and social networking systems.

By listening to the social customer, companies have the opportunity to create the tightest relationships between vendor and customer we have seen since the days of the corner store.

The ultimate connection?

Perkins has always been able to spot a trend. He founded the Churchill Club, a well-recognized forum for technology and business thought leadership. He founded Red Herring, one of the premier publications the presaged the rise (and fall) of the dot-com era. Now, he’s created AlwaysOn, an "open source media" property that utterly blurs the line between "publisher" and "reader," providing integrated social networking capabilities that enable readers to connect directly with each other–as well as the individuals who publish articles on the site. (Disclosure: I am a regular contributor.)

To date, most enterprise social networking systems have had limited success in bridging the gap to customers. Vendors such as LinkedIn, Spoke Software and Visible Path have created enterprise social networking systems that enable users to navigate their personal networks to find a contact within a target prospective customer. Unfortunately, these systems are very "one-way" in nature, benefiting the salesperson without necessarily providing any benefits to the individuals who are being contacted. As a result, some individuals have equated receiving inquiries from one of these networks as yet another new type of unsolicited commercial email, or spam.

In contrast, the enterprise social networking capabilities within AlwaysOn are very different. They enable customers (in this case, readers) to participate directly in the creation of the product. Because of the social networking features of AlwaysOn, Perkins says, "we can see all our readers and private-message them and ask them to join our personal network, which has brought me closer to literally hundreds of readers I would have never known otherwise." Readers can and do send messages directly to the authors of postings as well as each other, adding their affirmation or challenges to the site’s content in real time.

This linkage with customers increases the value of Perkins’ product, as customers add their opinions, insights, and contributions. Each time a reader comments on a story, all the other readers, as well as the site’s editors, can immediately view the feedback.

Additionally, because readers can "rate" a particular posting, the site’s editors have real-time insight into the current topics, preferences and trends that are of interest to their readers. As a result, readers and authors alike are able to find others in the community whose opinions they share, as well as those whose opinions they may regularly challenge.

"I think it’s cool that people can dialog about the content they read and see who the other viewers are," Perkins said. "This is the whole mission of AO, to push the ‘open source media’ model, which I think even mainstream media will have to incorporate some day, or no longer be viewed as credible."

Higher education is another industry that is beginning to embrace social networking as a mechanism to better connect with and among its customers. Alumni associations at such institutions as Stanford University, the University of Michigan and the University of Southern California have all implemented social networking systems to connect members.

The Stanford Alumni web site, for example, states that the system gives "Stanford alumni the ability to connect with friends and friends-of-friends based on shared interests, common acquaintances, professions, location, etc." The belief is that by creating networks of connected alumni, not only will the participants in the networks benefit, but also the universities will, by way of increased alumni donations to their alma mater.

Funny name; serious business

If you’ve ever wanted to tell Bill Gates, his minions and the rest of the world what you really think of Microsoft, your chance is on the Channel9 developer site, set up by five Microsoft employees "who want a new level of communication between Microsoft and developers." According to the site, the five employees created it because "we believe that we will all benefit from a little dialog these days." They said that they wanted to "move beyond the newsgroup, the blog and the press release to talk with each other, human to human."

The wiki portion of Channel9 is fertile, dynamic ground. Unlike traditional web pages that are read-only, pages in a wiki are editable by anyone who visits them. Think of a wiki as a web-based whiteboard, where every visitor to the site has been given a marker…and an eraser.

The wiki derives its moniker from the Hawaiian word for "quick."


SIDEBAR:  THE NINE GUY
In October 2004, Microsoft’s Channel9 site was parodied by Chris Pirillo, a member of the community, who created an "unsolicited autobiography" video of the Channel9 mascot (a foam creation with an inexplicable hands-free headset). The video showed an uncensored day in the life of "the Nine Guy," complete with a chipmunk-like voiceover. When Pirillo posted the video, he received, not the cease-and-desist order he was expecting, but a note from a Microsoft executive, praising him for his creativity and participation in the community.


The Channel9 wiki contained only eight pages when it was launched in March 2004, with placeholders for discussions on three upcoming products ("Longhorn," "Whidbey" and "Yukon"). However, in its first six months of existence, collaboration between developers who visited the site and the employees who moderate it has generated more than 300 pages of content. These pages are wide-ranging, with everything from product feedback on existing Microsoft products to a page for customers who are dissatisfied with the Microsoft browser. Other than restricting content from users that contains hate speech, the site is allowed to grow on its own–even when it is critical of its host.

Ross Mayfield, CEO of SocialText, thinks wikis are important. He should. His company provides wiki-based collaboration software for customers such as Disney and Kodak. So far, most of SocialText’s customers are using wikis for various types of internal collaboration, some of which is in areas that directly affect the customer experience.

One SocialText customer, Stata Labs, is using wikis as collaboration mechanism to span its geographically-dispersed customer service organizations in the United States and India. According to Mayfield, Stata Labs reduced its call center costs 10 percent by using wikis to connect the first-level support team in India with the second-line support team located in the United States. A sizeable portion of the savings comes from using the wiki as a key piece of institutional memory, greatly reducing the incidents of support technicians re-asking the same question multiple times.

A law firm that is a customer of Mayfield’s "has 400 workspaces, one for each of their clients, where they securely share billable hour info, files and work transparently," Mayfield said. This reduces the time and effort the law firm needs to communicate with its customers, shortening the time it takes to resolve issues.

Put another way, the wiki may be starting to live up to its strange name.


( Social Networking Systems and Wikis Engage The Social Customer originally appeared in CRMGuru.)

The Most Important Thing You’ll Do This Year

Heinlein said it best:

“If you are part of a society that votes, then do so. There may be no candidates and no measures you want to vote for … but there are certain to be ones you want to vote against. By this rule you will rarely go wrong.

If this is too blind for your taste, consult some well-meaning fool (there is always one around) and ask his advice. Then vote the other way. This enables you to be a good citizen (if such is your wish) without spending the enormous amount of time on it that truly intelligent exercise of franchise requires.”

For those of us in the States, tomorrow is a referendum. Based on what happens tomorrow (or over the next couple of weeks…or months….in the courts), we’re going to accelerate in one of two very different directions. Have a say in it.

Can Customers Turn The Tables Via Videotape?

Seth Godin has a great post today, musing that accountability and instances of “correct behavior” would go up if service providers (and politicians) knew they were on tape.

Excerpt:

I’ve been counting more and more mail from enraged customers (thanks, but I have enough!). These are people who feel outrage when they are deliberately mistreated by someone who should know better…I wonder what happens once it’s on tape?

All as a way of asking you to bring your videocamera with you when you go to vote on Tuesday (regardless of which side you’re on). The biggest impact of the Net on this election, it seems to me, is that so many things are “on tape.” So many people are now embedded in the process that the process has changed forever.

Another good example of this trend.

(Hat tip: Jeff Jarvis)

The Social Customer Manifesto

If Cluetrain was the shot heard round the world, then this is certainly its echo.

It is clear that customers across all industries are getting really tired of being spun, misled, and lied to. Individuals like Jon Stewart are taking very public approaches to complaining about horrible service when they see it. Eliot Spitzer appears to be single-handedly taking down the insurance industry for shafting its customers (and it looks like he has his eye on the music industry next).

Customers simply aren’t taking it anymore. And if an organization is not opening up to them, and not interacting with them, and not meeting their needs, those customers are going to make sure the organization knows about it. Maybe not today, but soon…and that’s if the organization is lucky. More likely, those same customers will just go away and never come back.

On this front, there are a few trends that we’ve identified from the customer’s point of view. They are listed below. And this is known to be an incomplete list.

We need to build it out together with stories, comments, criticisms, debate and insights. There are no spectators anymore.

Participate.


THE SOCIAL CUSTOMER MANIFESTO

  • I want to have a say.
  • I don’t want to do business with idiots.

  • I want to know when something is wrong, and what you’re going to do to fix it.

  • I want to help shape things that I’ll find useful.

  • I want to connect with others who are working on similar problems.

  • I don’t want to be called by another salesperson. Ever. (Unless they have something useful. Then I want it yesterday.)

  • I want to buy things on my schedule, not yours. I don’t care if it’s the end of your quarter.

  • I want to know your selling process.

  • I want to tell you when you’re screwing up. Conversely, I’m happy to tell you the things that you are doing well. I may even tell you what your competitors are doing.

  • I want to do business with companies that act in a transparent and ethical manner.

  • I want to know what’s next. We’re in partnership…where should we go?

Interview: How The T-ShirtKing Embraces The Social Customer

Continuing the conversation we started a few posts back, the full set of comments from Bill Broadbent, President of T-ShirtKing, on how his company is interacting with the social customer. Thanks again, Bill!


Christopher Carfi, Cerado: Why did T-ShirtKing decide to embrace blogs?

Bill Broadbent, T-ShirtKing: Two or three years ago our newsletter was a major marketing tool going out to over 400,000 opt-in subscribers. Since then the numbers have significantly dropped and the profitability of running a weekly newsletter dwindled. We all know why that is.

Blogs were a new way to reach our customers. It didn’t replace the newsletter but it is a strong complement.

CC: Is there an example (or two) of an instance where T-ShirtKing feels it has gotten closer to its customers as a result of the blog initiative?

BB: Many customers liked the simple fact that we began the blog to reduce spam. A lot of people opted out of our newsletter, which was a bit unnerving, but they have become faithful blog fans.

CC: What have been the challenges / downsides to TShirtKing as a result of blogging?

BB: Once it’s set up, not many. It’s easy and fun.

CC: Are there any other things that you would suggest to other organizations that are considering blogging as a part of their business?

BB: It has huge potential and many applications that are just beginning to be implemented. A great example is companies that use blogs to keep customers up to date on new products or services. The blog becomes much more than a company billboard, it opens up discussions and allows for critics and suggestions. I have no doubt in my mind that ten to twenty years from now most companies will be using blogs as a standard business tool.

Jon Stewart: The Customer Who’s Not Gonna Take It Anymore

Jon Stewart is my hero this week.

If you haven’t yet seen video of Stewart’s from-the-heart-rant on CrossFire, it’s worth the time.

Great discussions initiated by Dave Winer and Chris Pirillo on this. Continuing the discussion here.

Winer:

Wasn’t he a customer saying he wasn’t satisfied with the service?

Should journalists listen to their customers? (I don’t mean advertisers, I mean the people who read, listen to, or watch their reports.)

Should they try to give them what they want?

If not, why not?

Would journalism get better?

Some journalists say they give the customers what they want, but I wonder about that.

If they were, wouldn’t they have to listen to customers?

As a customer myself, I heartily say YES to this.

The downside is…the theatre seems to be what many customers want. Is it the escapism that is the draw for the watered-down current state of journalistic affairs? The consistency? The lack of conflict?

As a part of what I hope is a sizable demographic, I’m going to line up with Stewart. Journalists, stop the charade. Stop worrying about “losing access” by asking the tough questions.

Start doing your job.

Make Way For The Social Customer

A new article up on CRMGuru: Blogs: Make Way for the Social Customer

Excerpt:

Bill Broadbent, a 20-year industry veteran, entrepreneur and successful CEO has a weekly electronic newsletter that boasts 400,000 opt-in members. And someday soon, he may stop publishing it.

Companies like Broadbent’s–not high-tech companies, mind you, but companies that sell things like T-shirts, kitchen gadgets and yogurt–are moving away from “traditional” media and marketing channels and using online weblogs or “blogs” in order to connect with their customers in unprecedented ways.

What’s going on here?

Welcome to the free-wheeling world of online communities, where the lines between companies and customers are blurred and feedback from the market can be instantaneous, unfiltered and–sometimes–sharp-edged.

What follows is an overview of how blogs, which, like other emerging social technologies such as enterprise social networking systems and wikis, are being used today to interact with customers in completely new ways.

read more…

Interview: How One Manufacturer Uses Blogs To Interact With The Social Customer

I was fortunate to trade emails last week with a number of individuals who understand what it means to engage with the social customer. Whether through blogs, social networking systems, or wikis, these companies understand what it means to give customers real transparency into the organization, and to interact with them not as “assets,” not as something with a “lifetime value,” but as people. Over the next couple of weeks I’ll have the opportunity to share the results of these interviews, as well as some more thoughts and context on this trend.

What follows are comments made by Scott Benish, Brand Manager for Clip-n-Seal. Thanks for your time, Scott!

These guys get it.


Christopher Carfi, Cerado: Why did Clip-n-Seal decide to embrace blogs?

Scott Benish, Clip-n-Seal: For us, it was a no-brainer. We’re bloggers by nature, and we were blogging even before Clip-n-Seal. So when we brought Clip-n-Seal to market it just make sense to blog about it and tell our friends (many of whom have their own blogs) about it.

At the same time, being involved with blogs, we realized the power and potential of tapping in to blogs as a way of spreading the word about our product. So we embraced blogs because we were bloggers, but we also knew it made good business sense to embrace this community and utilize this burgeoning communication channel.

CC: Is there an example (or two) of an instance where Clip-n-Seal feels it has gotten closer to its customers as a result of the blog initiative?

SB: There are probably more than that. Our entire marketing so far has been based on blogs and we’ve had tremendous success in that space.

Last April we emailed an Industrial Design blog about our product because we thought they might find it interesting. They wrote a post about us and within a week 3 other relatively large and prominent blogs had posted about us or linked to us. There was a huge spike in site visits and orders.

Of course it’s not necessarily that easy. We had a product that was of interest to these audiences and we approached them in a low key, honest way. So it fit really well. It’s not as simple as just emailing a bunch of blogs and sitting back and waiting for the traffic. Blogging is a very personal medium and it requires a personal approach. People coming from mass media who want to hop on the blog train will almost certainly fail to see this and fall flat on their faces.

Another specific example is a blog contest we did:
http://www.blogstakes.com/news/22265311/
http://www.blogstakes.com/blogstakes.asp

In addition to all the brand building and orders that came from that, one of the winners wrote us a glowing letter telling us about how much she loved the product, loved the prize we sent and was planning on telling all her friends about it. Those kinds of fans that champion the product to their friends are worth their weight in gold.

CC: What have been the challenges / downsides to Clip-n-Seal as a result of blogging?

SB: None that I can think of. Not for us anyway.

I guess one challenge is keeping in front of people. You have some blogs post about you, and you get a bunch of traffic, but then 6 months later most people have sort of forgot about you. So how do you get back on the radar, catch some new blog readers, remind people you exist, etc. It’s the same thing as any sort of marketing, but it’s a bit harder. With traditional advertising, you just run more ads. With blogs, you can’t email your friend and say “Hey, orders are down, post about my product again”. Well, I guess you could, but that’d be lame. So you just need to keep things fresh, introduce new promos, products or contests. Which is not a bad thing at all, just a challenge.

CC: Are there any other things that you would suggest to other organizations that are considering blogging as a part of their business?

SB:Well, there are a lot of things. More than can be reasonably covered here. Like most things, it’s way more complex than it seems from the outside.

The biggest thing is probably that it’s unlike any other medium and you really have to know your audience and tread lightly. It’s a fickle, critical audience and if you are clearly there just to make a quick buck or shill some lame product people will see that and they will tell the world. If you make a lame TV ad, no one hears the groans – but if you make a misstep in the blogosphere you’ll get called on it and could end up doing more harm than good.