Is customer-centric business the future?

In the last 12 years, the credo of my business life was “Customer First!”. It surprises and disappoints me when I experience poor customer service. Or when I hear from unhappy friends, colleagues or relatives telling me stories about how companies treat the centre of their business: customers.

Last week, when I was thinking about how to leverage this to a higher level, I came across a modern business strategy vision by Ranjay Gulati, Harvard Business School professor and author of the book “Reorganize for Resilience: Putting Customers at the Center of Your Business“. In the following video Gulati tells us how to deliver what customers really want.

Reorienting vs. Reorganizing
Ranjay Gulati sees the fundamental changes appropriate for some movement in company processes. Customers have more information, more choices on products while companies are facing global competition. So, businesses have to think about their business (not only marketing or sales efforts!) and how it operates.

Redefining vs. Reinventing
The analysis of the customer base might show that the website is designed for male while the majority of the users might be female. So, we need to ask questions like “Who are my customers?”, “How do my customers shop?”, or “What do they really want?”.

Gulati explains with the latest success of Best Buy how women and men shop. At that point, he also hints to the upsale opportunity of recommendations.

Success for businesses, he believes, comes from “Inside-Out-Perspective”. Companies don’t have to produce everything themselves but need to make the client happy like Apple with the iPhone. 90% of the inputs are not made by Apple. The same occurs to the apps in the Apple store where Apple basically just orchestrates the customers wishes.

“Make this identity shift. I am not here to sell what I produce – I am here to solve a set of customer problems (…) and actually acting on that!”

How to get to a customer-centric business…
1. Shifting mindset: the intention to solve customer problems.
2. Sense of curiosity and humility: the wish to understand your customers.
3. Make a creative leap: the will to understand their needs.
4. Align the elements in the organization: the motivation to live the customer-centric business.

Spot On!
Interested to get your view on this modern business strategy. Let us know what you think about customer-centric business. Or do you think the social web will be leading us towards this business process anyway?

Google's new product list – or the freebie wishlist?

gs-competitionIsn’t it wonderful sometimes. I mean, going on the plane… and going offline. I love it… And this small post is the result of it: obviously online…

The web is seen as the “freebie” media. And although I am seen as the “paid-content-advocat” and should not have done that… I have taken the issue of a magazine called ShortList… as it was a freebie. And all of a sudden, you read a magazine you would never have come across in your life. Yes, just as it is a freebie…

And with these freebies, you often get complete new insights and funny outlooks on the future of companies.

This happened to me last week, at London Heathrow airport. Waiting at the gate, I passed by a newsstand with freebies and found a magazine called ShortList

In this magazine I found a very cool 10 bullets shortlist : “Where Google can go next”. It shares visions how Google could make us happy with new products and services. This shortlist seemed sometimes more realistic than a “vision impossible”. It created some freebie visions for Google which they might offer in the future.

I have decided to take my 5 favorites to share my comments (Best partner”) on those with you…

Google X-Ray
From the comfort of your desk you can check out the internal workings of people as they walk the world’s street.
Best partner: Earth TV – Possible doctors game: who finds the first broken rib in a city video…

Google Girlfriend
Worried your other half is having an affair? Simply track down and follow her every move with this handy satellite surveillance application.
Best partner: Twitter – Possible boy-friends game: how long it takes till somebody makes her aware of it…

Google dining
Why go to the expense and trouble of eating out? Simply order a takeaway then virtually take your seat at one of the world’s finest restaurants.
Best partner: toptable – Possible friends game: how long does it take to get thrown out of the restaurant? (Negative: You have to clear up yourself…!)

Google eyes
Having one set of peepers is limiting, but this lets you explore new angles by looking through other people’s eyes.
Best partner: Glassdoor – Compare what your competitor is about to launch, says about your company and if your employees earn to much.

Google Atoms
Being able to see trees, cars and people on the other side of the planet not enough for you? Zoom right in and study their atomic structure.
Best partner: Chemistry – There must be some more detailed way to dive into the chemistry of human’s ‘counter-gender’, right?

Spot On!
So, now that Google gets competition with Facebook (the social network just bought Friendfeed) I was wondering if this shortlist can be expanded with your help – Join in! Let’s be creative for Google and see if there might be something new that we want from them to develop.

Or has Google invented enough online freebies?

Is Twitter a sales tool?

twitter-dollarIn a lot of talks and meetings with clients I am asked if Twitter is a sales tool. Now, what would you say? The university professor might answer with a Solomonic answer: “Well, it depends how you see it…”. Being a member of the Twitterati it is one of these questions where you have to hold on to your horses in order not to be too excited. The best answer is probably: “Yes, it is… and No, it is not!”…

The why for “Yes, it is”…
Looking at the latest development in the “Twittersphere” it can be said that the micro-blogging service can be used as a push tool for sales promotions meant to generate an upside in revenue. The best examples are accounts from companies like Dell (selling re-furbished IT for 3 mio. USD), Threadless (selling shirts – no numbers released yet) or Zappos (selling shoes – no numbers released yet).

Although we don’t know see any revenue figures of Threadless or Zappos, seeing the follower numbers alone offers the option to sell through the indirect way to this new “distribution list” by keeping up the conversation with new thoughts and ideas gathering engagement – or direct via ‘extraordinary’ offers. Just take a look at my sales statistic or metric, I summarized on the Dell Outlet account and you can evaluate your sales options.

Especially, the aviation industry has used the power of pushing their offers through this new media channel – thus uplifting their revenue figures. Some airlines like JetBlue (called “JetBlueCheeps“) and United Airlines (“twares”) offer cheap seats Twitter sales promotion programs (also for unsold tickets). The companies push their announcements via Twitter and the user -hopefully- listens to their Tweets and needs exactly the route offered.

In Germany Lufthansa has also started with sales promotions via Twitter – and obviously after this test the worldwide Twitter offering is “coming soon”.

The PRO view…
Yes, Twitter is a sales tool as there is no limit in terms of target-group, industry sector, the costs of the product or the product and service itself. Use it as a sales tool if you think your customers or your desired target-group is open-minded, loves last-minute offers or is ready to be engaged via social media.

The why for “No, it is.”
Nevertheless, the way how companies use Twitter to address their target-group with their sales promotions appears like some kind of old “watering can” marketing principle. Is this really time-to-market sales? Can this be called “targeting” which is the modern form of receiving sales promotions? One thing is for sure: Forecasting on such sales push activities is nearly impossible… the proof is in the test. But: once started, there is no way out. Sales promotions on Twitter are relying on the “hope” factor by offering an additional sales channel called “SomeTwitterAccountByOurCompany”.

And sales strategies go against the means of social media anyway. Sales philosophy is “We know what you want and here is your customized offer!” – social media is “We listen, learn and share what our customers want to buy from us!”.

From the airline examples we can learn that the offer is not just positive extra media promotion. It is limited in its sales power in a way that consumers need to be flexible and last-minute offer driven. Sounds a bit like the ebay way of selling…

So, Twitter sales promotions are relying on the “hope” factor by offering an additional sales channel called Twitter account. Some follow as they are just listening to the company or product development, some as they learn from the tweets and some as they want to share common knowledge. Not all followerrs really want to buy something. You are in good company when your company does not want to aggressively buy followers in order to go down the good old spam route.

The CON view…
No, Twitter is not a sales tool but more a customer service tool with the positive side-effect that you can sell indirect by giving good service, helping your customers and solving their problems in real-time. Don’t use it when you think your customers are bound to traditional cliches, rarely take the advantage of accepting fast shopping opportunities and don’t know what social media can do for them.

Spot On!
Generally speaking… – From a followers point of view (in this case meaning customers), there is a positive argument about Twitter sales promotions: Interested customers will follow (=read) the sales push tweet – uninterested won’t, they will ignore it. And customers don’t even have to delete the message like a spam mail. It is dying with the followers timelife stream…

Advice
The Critical question to ask are… Do we have a long-time social media strategy or do we just want to “drive” a short-time sales push? What have we done in the past to push our sales revenues? What worked out well? I am sure, if you ask yourself these questions, some more questions on your web strategy in terms of sales achievements will follow…

Am I right…?

Real-time is the future and real-time starts with Twitter?

It was about time to relaunch the Twitter front page and some days ago, Mashable already mentioned this next step. From the old front page it was nearly impossible to understand what this platform is all about, the new one shows what this platform could be in the future…

Twitter becomes more like a mixture of user-generated CNN, Facebook and Google in taking the best of bread from all platforms. It is a real time information exchange news service in a social networking coat.

new-twitter1
Now, their new front page focuses on their biggest benefit for every single user in the world: their real-time search engine. In placing this in the main center of attraction and attention, Twitter leaves a lot of open space for thoughts and speculations about their future strategy in expanding their business (and business value).

The new real-time strategy is supported by the three tag lines…
– Popular topics right now (main tags real-time search)
– Popular topics today (last 24 hours)
– Popular topics this week (last 7 days)

Will they finally follow the Google business? At least some kind of similar bottom up strategy can be seen in this approach. A road that Google started off some years ago…

old-twitterCompared to the old front page (see right), the main benefit of Twitter becomes more clear now for new users and makes the USP of the platform obvious right from the start.

If we are just talking about search and the business benefit of “being and knowing first-to-market”, this will be a clear winner for Twitter compared to Google where search results for certain topics can be some years old.

Real-time is the future (of news business) and real-time starts with Twitter?

Personal Branding – how to build your career 3.0

Personal branding is the way to stand out of the crowd and being noticed in some special way in the business world which makes you unique. It is your value proposition for the future of your career. In a session at the webinale09 I held a speech about ‘Career 3.0 – split between personal branding and productivity’ and gave some projections on the relevance of social media activities and how these affect your career development.

Today, we want to learn from Dwight Cribb, founder of his successful recruitment agency, what professional recruiters think about personal branding and what is the relevance for personal branding. You can follow his offline and online thoughts via his Twitter account.

Q: What is the first thing you do when somebody is being suggested as a perfect candidate?
Dwight Cribb Of course I will first probe what the relationship between the candidate and the person suggesting him is. Supposing that the recommendation is made during a phone conversation, I will in parallel check the candidate’s profile on Xing. If that does not provide the information I require I will probe deeper with people search engines.

Q: Let’s imagine somebody is not doing anything for personal branding. This person is not blogging, micro-blogging or social networking. Does this have a positive or negative impact on your perception of that person?
Dwight Cribb This largely depends on the type of position I am recruiting for, both in terms of seniority and discipline. I would normally expect someone in a directly client facing role or someone who communicates directly on behalf of a division or company to have at least some presence on the web. It is, however, true that not being on a social networking site is today more of statement than being on one. A few years ago one could be forgiven for thinking of people who had not yet discovered Xing, LinkedIn and facebook as being somewhat backward or conservative. As it is today largely impossible to not have noticed these networks flourish, we must assume that those not on them have shunned them on purpose. This may be a good strategy if one relies on others to communicate with clients and the public, especially as a senior manager. A C-Level executive will through his utterances on social networks have a severe impact on the brand communication, it thus needs to be 100% in line with the other communication, if not it will cause at best confusion and at worst it will undermine the credibility of the brand.

As for blogging, I think that is a very personal decision and I would never think badly of anyone who did not blog. I may, however, think badly of someone who blogs badly or in a manner inappropriate to his or her position. So overall it would not reflect badly if I found out nothing about a person online, it would just peak my interest and make me more curious to receive other information in the form of a CV or a recommendation from a third party.

Q: Will personal branding and the individual online reputation replace the traditional CV some day?
Dwight Cribb I doubt whether it will replace the CV, it is more likely that it will continue to augment the CV. Online reputation is a fantasy product. We each spin our profiles in a manner which we feel supports the image we want to convey. It is self marketing. A CV is more strongly based in chronological fact and provides a picture which comes closer to the reality than the pictures which get drawn in communities.

Q: If everybody has a strong personal brand, don’t companies fear these people could get chased by some competitor and recruiters? Or that employees just work for their own career purpose?
Dwight Cribb Most successful employees work for the own career advancement. But in the long term they will only achieve this by delivering results to their employers, because people are very good at spotting meaningless self marketing and will not fall for it for long. Good employees have always had a strong personal brand (also called reputation). It has been true in all areas and across the ages, if you do something well you will be admired by your peers and your reputation will spread. This means that others will try and employ your services, sometimes via a recruiter.

Q: What is your advice on how companies have to handle personal branding of the employees in the future?
Dwight Cribb Let people define themselves what they are comfortable with. Give them a clear guideline what company resources and what company information they can use to build their reputation and to what extent they must make clear what is their opinion what the company’s.

Q: What do you think of the personal web managers vision?
Dwight Cribb There are instances where this makes perfect sense, but I belive they are far and few between. This is a role which has precedence in the offline world, many high-profile business people, politicians and celebrities employ someone with this brief. Whether they do their job online, offline or in both really does not make much difference. We have come to expect that the picture we get presented of these people has been scripted and planned in detail. We even often admire the way in which they craftily manipulate their image. But I think we would be less inclined to condone or accept this level of abstraction in communication in our closer environment of colleagues, family and friends. A facebook status update from a friend loses relevance if I know that it was posted his or her personal web consultant, who was busy making them be liked by their friends and acquaintances.

Q: Give us 3 tips how to create a personal brand, please.
Dwight Cribb Be yourself, be honest, laugh at times.

Thank you for your time and your advice, Mr. Cribb.

10 general questions on web monetization 2.0

Brainstorming… ! This is a project which needs your help in order to start saving the future of the web in all its facets…

A post for you, me and all of us platform owners, web maniacs, companies, advertisers, affiliates, social medians and web workers to do some brainstorming and share some thoughts on the future of monetization.

In a lot of discussions, talks and chats with partners, clients and friends, we came across these questions. It is time to find some answers…

Please, tackle this project with me and give as much feedback as possible. We all want to participate in the future of the web. So, let’s do some work…

10 Questions on web monetization 2.0

What if…
1. … all companies respect that platform owners (social networks, media publications, portals, etc.) start their web activities in order to monetize their business like they do?
2. … web platform owners never had started using the measurement argumentation versus the former print world?
3. … companies accept that web platform owners start their business model to earn money – not just to be a service provider?
4. … web platform owners never had started the price competition in order to ‘drag away’ clients from each other – resulting in cpm values of cent amounts?
5. … companies had not overrated the measurement options and tried to buy ROI value (leads, orders & revenue) only – than simply the ‘best price’?
6. … web platform owners never had started cpx payment, let’s call this ‘performance payment’, but were using the old advertising model: ‘pay for play’?
7. … companies suddenly stop advertising the ‘pay for play’ way and just strive for performance payment?
8. … web platform owners need to go for ‘free-mium’ or premium service payment for users, as they cannot afford to run their business any longer without the support of the ad industry from the last 5 years?
9. … companies could finance, sponsor or take over the costs for those ‘free-mium’ or premium service payment for certain target groups?
10. … finally, we users all understand that without web platforms owners generating any revenue, the internet is nothing more than a shell without pearls?

Pick a question, share your views and posts and give us some answers.

Looking forward to your comments…

Dell: social media business or the just good marketers?

Dell is the social media super-hero these days and one of the most named examples of social media intelligence. At least, if we believe in a lot of blog posts…

Last week, Dell reported in a blog post that their Twitter account @DellOutlet earned more than $2 million US dollars in revenue. Money that can be attributed directly to their Twitter activity. This does not surprise us, having heard that Dell broke the $1 million US dollar barrier some months ago.

Nevertheless, let’s think a minute about the ‘social aspect’ of this Twitter account. The funny thing about it is that Dell is just using old marketing techniques to generate revenue via Twitter.

Or is the use of coupon codes a marketing innovation of the web 2.0 era?

These couopons come flying into my mailbox at home every day – quicker than I have time to throw them in a bin.

“Dell Outlet sells refurbished Dell products at great prices, but inventories fluctuate, making it difficult to know when products are available or on sale. Dell Outlet uses Twitter as a way to message out coupons, clearance events and new arrival information to those looking for Dell technology at a discounted price.” (quote from Dell blog)

Reading this statement, the question is what is the social media strategy? Isn’t this just good old marketing tactics? This Dell Twitter account @DellOutlet is not acting in any way like social media has been teaching companies lately.

“Listen, learn and engage” (Brian Solis) is the value proposition of social media. The customers are coming to you as they have heard about the quality and value of your product, service or business. Then, they buy and do some good word-of-mouth activity via Twitter, Facebook, blogs, rating sites etc. for your business. This is resulting in community building – not a sales channel like the Dell example.

Dell is talking, pushing and selling. It is the good old communication and marketing practice we all know from some years ago.

Why is Dell so successful? It is a matter of simple marketing technics. It follows the old sales intelligence… From more than 650.000 followers, 10% will be real followers (as you just follow when you are in the evaluation process mode before a purchase decision) = 60.500 followers. And if you are lucky company 5% will buy your product in the end = 3.025 users. This tells us about an interesting average revenue of 661,15 US dollar per Twitter client.

Ah, I love sales statistics… though admittedly, these might be taken from the easiest perspective of ROI measurement.

Spot On!
But is this Dell activity really ‘social’? It is the email marketing system – tables turned upside down. Opt-In or follower? Subscribe or unsubscribe is the question… Email promotion or social media promotion? Email spam or social media spam? What comes next in the marketers arena? And, the account is just following Dell accounts… is the client/follower really interesting for them?

Not saying this is not a very clever approach reaching out for clients… well-done, Dell.

Your views much appreciated…

Report says, social networks not used for purchase decisions

Social networks ‘rule’ our days. Nevertheless, their monetization outlooks may be hit by some news, I came across yesterday. A recent study by Knowledge Networks reveals that only 5% of users enter social networks for guidance on purchase decisions in any of nine product/service categories.

Everybody is talking about ways for companies to promote their services, products and brands. It seems that companies cannot exist anymore if they don’t integrate social media tools (Twitter, Facebook, MySpace, etc.) into their web strategy. And seeing the results of the study this seems to make sense. It shows that 83% of all internet users between 13-45 use social networks (47% regularly).

However, only 5% of the respondents say they are influenced in their purchasing decisions and seek guidance from social networks. Also, only 16% are more likely to purchase products from companies that advertise on social networking sites.

“Our findings show that marketers need to be prudent and people-centric in how they approach social media,” said David Tice, vice president and group account director, Knowledge Networks. “Social media users do not have a strong association between these sites and purchase decisions; they see them as being more about personal connection – so finding ways to embrace that powerful function is key. The fact that they are using social media more now than a year ago is a strong indicator that the influence of these sites and features is here to stay.”

Spot On!
The private aspect and the main intention of “staying connected” with friends and family is still the most important feature of social media. When people log in social networks it seems as if they switch to an atmosphere of privacy – and they don’t want intensive ads to interfere with peer interaction. Although the majority of users believe that ads on social networking sites are a “fair price to pay” in return to use the services for free.

People on social networks need to understand that operating a social network costs money and is not altruism business – and social networks operator should make this clear to their target group. Maybe the social networks should give people the option to either pay for access or accept ads, right from the registration process (or group together like the Social Globe). This might be a way to stop the ‘cost free web’ atmosphere…

PS.
Companies, to my experience, know that it makes definitely sense engaging in social networks. Nevertheless, there is still not enough knowledge and expertise on why, how and in which way to use social networks. Finding the right web strategy and the appropriate approach on how many and which social network activity makes sense, becomes the biggest challenge for them in the future. Rethinking their marketing, PR and sales processes is a must have to make way for an integration of social media into their company strategy. And Dell has proven that social networks are used for purchase decisions…

Why Apple could buy Twitter

This is just some thoughts creeping up my neck…

Based on …
… the development of technology convergence of markets for a full-fledged digital value chain …
… an imaginary 5-year marketing and media reach spending projection …
… knowing that iphone user love Twitter and offer a great target group …

And then the thoughts are going on to …

Nokia A footwear, tyres and shoe company that suddenly builds mobile phones…
Verisign An IT security company that buys a mobile service provider company called Jamba that is selling downloads like ringtones, screensavers and music…
Apple An IT hardware company that moves to a full-fledged digital value chain company doing transaction, communication and information/entertainment via itunes, a search engine and the most powerful real-time news stream…

… resulting in an amazing infra-structure model supported by a popular hand-held. Times and markets are changing…

Concluding in thoughts: OMG, what happens if Twitter can be used only on iphones for free…?

No, no, no… let’s stop these thoughts!

Internet keine Konkurrenz für klassischen Journalismus

Eine aktuelle Studie des Instituts für Kommunikationswissenschaft der Universität Münster besagt, daß das Internet für den Journalismus mehr als Ergänzung denn als Mitbewerb oder Konkurrenz gesehen werden muss. Im Rahmen der Studie wurden 183 Internetredaktionen aus Deutschland interviewt, womit sich 44% aller ermittelten Redaktionen an der Erhebung beteiligt haben (nach vorheriger inhaltsanalytischer Auswertung von rund 1.200 Internetangebote).

Schon lange stellen sich die klassischen Medienhäuser die Frage, inwieweit Weblogs, Twitter und soziale Netzwerke die traditionelle Medienwelt beeinflußt. Früher konnten Redaktionen von Presse, Rundfunk und Fernsehen exklusiv die ‘Medienmache’ ihre Expertise nennen. Inzwischen wird der Medienmarkt durch Firmen oder Privatpersonen zusätzlich mit verschiedensten Plattformen bedient. Inwieweit das Internet den Journalismus verändert, wurde in einem zweijährigen Forschungsprojekt am Institut für Kommunikationswissenschaft der Universität Münster untersucht.

Laut Studie lässt sich das Ergebnis auf die folgende Formel bringen: „Ergänzung statt Konkurrenz”. Noch dominieren die Online-Angebote der traditionellen Massenmedien. Weblogs und Nutzerplattformen stellen insgesamt 5% der als journalistisch identifizierten Internetangebote – eine noch niedrige Zahl. Dennoch ist die erweiterte “Partizipation” und die “Technisierung” (Automatisierung der Nachrichtenauswahl durch Google News und andere Suchmaschinen) inzwischen deutlich sichtbar und beeinflußt den modernen Journalismus. Der beruflich ausgeübte Journalismus werde deshalb aber nicht verdrängt, ziehen die Studienverantwortlichen den Schluss.

„Weblogs und Redaktionen beobachten sich gegenseitig, sie übernehmen Themen und kommentieren einander”, beschreibt Prof. Dr. Christoph Neuberger, der Leiter des Forschungsprojekts, die Beziehung.

Zur Recherche nutzen rund drei Viertel der Internetredaktionen Weblogs und 99% die Enzyklopädie Wikipedia vorwiegend als Nachschlagewerk (83%). Ihre Zuverlässigkeit schätzen sie als hoch ein.

Spot On!
Der traditionelle Journalismus ist dennoch in einer schwierigen Transitionsphase. Auf der einen Seite müssen Medienhäuser sich im Internet engagieren, andererseits fehlen zukunftsträchtige monetarisierende Geschäftsmodelle. Die heutige Aussage von Fried von Bismarck überrascht nicht, kostenpflichtige Inhalte als Businessmodell zu evaluieren – trotz hoher Reichweiten und der Vorbildfunktion von Spiegel Online.
Allerdings muß man auch die Kehrseite der Medialle sehen: Der Nutzer ist aufgrund seines Einflusses wichtig für den Input und somit die Qualität des zukünftigen investigativen journalistischen Outputs. Muß der User Zahlen, ist fraglich, ob der User generierte Input weiterhin so zahlreich bleibt, oder schwindet. Denn: Wenn die von der Deutschen Forschungsgemeinschaft finanzierte Studie zeigt, daß viele Redaktionen mit den Möglichkeiten der Web 2.0 Nutzerbeteiligung experimentieren, ist das ein klares Zeichen der Wichtigkeit, des Einflusses und Zukunftsträchtigkeit der modernen und sozialen Medien für den Journalismus. Hierbei profitieren Redaktionen laut eigener Aussagen von Kommentaren (20% lassen diese bereits zu) sowie von eigenen Weblogs, Videologs oder Podcasts (55% setzen diese ein).