|
|
4 April 2009 A Blueprint for Social Networking Investments
Web 2.0 and Social Networks have gained perceptible mindshare during Q1 2009, and conversations with clients, fellow speakers at conferences and online conversation are clearly showing the reappearance of a familiar adoption curve. Here I will discuss the Adoption Curve for Web 2.0 and Social Networks and provide rough milestones, so you can use it to gauge your investments in Web 2.0. You can avoid some of the extremes that the majority of the market will experience.
In addition, I will also show how Web 2.0 provides a rare opportunity to develop competitive advantage ahead of the market.
12 February 2009 Please Pardon the Dust and Stray Nails
The Global Human Capital Journal has just migrated from the open source Serendipity CMS to WordPress and into a new hosting space. Unfortunately, we’ve experienced a few broken toes, bruised fingers and tooo much caffeine during the process, but we’re getting there! Read on for a blow-by-blow account on the migration thus far and where we’re going.
Continue reading Wet Paint! Global Human Capital on New Platform
27 January 2009
Twitter and Facebook Top of Mind | #snc2009 | Awaiting Discovery: The Nascent Power of Weak Ties and Small Touches
|
|
What a difference a year makes! The Social Networking Conference debuted several years ago as a forum for social networking sites and vendors, with enterprise clients few and far between. Miami 2009 took place January 22-23, 2009 at the Miami Beach Convention Center, and it was a veritable enterprise 2.0 conference. Many of the presenters hailed from enterprise-focused high technology vendors, but they spoke as social networking practitioners. The good practices they shared reflected the maturation of social networks. Don’t get me wrong, we are still in early days, but it was obvious to see that social networks would be completely mainstream this year. Enterprise-focused vendors provided additional evidence by explaining some of the new social network features in their offerings.
Social Networking Watch’s Mark Brooks gave an overview of key trends, while jetBlue’s Morgan Johnston and IBM’s Adam Christensen drove home the message that companies could be rewarded for trusting their customers in social networks. Ford’s Scott Monty, Sun’s Lou Ordorica and Microsoft’s Marty Collins shared how they were using social networking to evolve their companies by opening up to customers and adopting P2P, two-way communications.Yammer’s David Schwartz and Faceforce’s Clara Shih presented two tech innovators that promised significant disruptive potential. SAP’s Steve Mann, Opera’s Thomas Ford and Dow Jones’ Tom Aley all shared fascinating social networking elements of their portfolios, which were all enterprise-focused. Awareness Networks’ John Bruce was on hand to share good practices and pitfalls. I presented the only industry-focused preso, focused on how social networks were beginning to disrupt the U.S. healthcare industry. I also gave the pre-conference workshop, Successful Social Networking Projects in the Enterprise.
Between my workshop and conference track, I scribbled enough notes to share the high points of many of the tracks, which I’ll summarize before offering Analysis and Conclusions. The reportage follows this convention: the summaries are from my notes of speakers’ remarks, and [when a sentence is bracketed], it is a comment. Click on logos for abstracts of the tracks.
29 December 2008
Conventional Wisdom Scuttled—Disruption Preview—Business in the Batter’s Box
|
|
Barack Obama’s presidential campaign was more than a major social media milestone because it ushered in a new relationship model among leaders and their supporters. Due to social media, an unprecedented number of individuals had a new kind of active, direct role in Obama’s campaign; moreover, I predict that the Obama campaign and imminent administration will change citizens’ and consumers’ expectations of “leader” and “follower” roles in government and business. Amazon.com changed consumers’ expectations about retail in general—information on demand, reviews, unbelievable variety at low prices—and a significant portion of Obama supporters will want to continue their support to “make the change happen.” These supporters will bring their changed expectations of action and collaboration to their vendors. That means your company.
The Obama campaign is very instructive to business leaders because business customers are changing expectations of their leaders, as we’ll discuss in more detail below. As the Global Human Capital Journal is not primarily focused on politics, I am less interested in the fact that Obama was elected than how he was elected. Moreover, I’ll go on record now as predicting that you will experience Obama’s use of social media increasingly in 2009, and I believe that the election will prove to be only the beginning: the Obama Administration will leverage social media in governing. Although Global Human Capital endorsed Obama, I have no inside knowledge of the campaign or its strategies. Obviously, this is a huge subject, so I will use this post primarily as a way to frame an ongoing discussion so that it may prove valuable to business and government executives.
Continue reading Web 2.0 Case Study: Barack Obama’s Use of Social Media
2 August 2008
Enterprise 2.0 and B2C Web 2.0 Show Serious Traction—But Social Sticky Wickets Remain—How to Trust?
|
|
The Social Networking Conference (SNC) was an excellent place to check the pulse of Web 2.0 adoption from customer and provider perspectives. Producer Marc Lesnick explained in his opening remarks that, in the months preceding this conference, corporations had knocked on his door asking to get involved. His Ticonderoga Ventures had held several SNCs over the past few years, and it had been largely the purview of social networking start-ups and their facilitators. This is a very apt indication of the enterprise adoption predicted by my State of Social Networking Forrester coverage and 2007 Review.
SNC SF 2008 took place July 10-11, 2008 at the UC San Francisco’s Mission Bay Conference Center. It was a focused conference that balanced start-ups’ and enterprises’ innovation—with a dash of perspective from Apple co-founder Steve Wozniak and Social Networking Watch’s Mark Brooks. On the enterprise side, GE’s Grewal and GM’s Denison covered the enterprise 2.0 and B2C Web 2.0 perspectives respectively, while the U.S. Air Force’s Adkins presented nascent cross-boundary collaboration in the armed services. Start-ups Twitter, Mowave, Faceforce and many others gave fascinating examples of innovation along several vectors. I beta-released the Social Network Roadmap in my presentation and moderated a panel with Visible Path, Jigsaw and LinkedIn in which we discussed various aspects of how enterprises were using social networks. IBM’s Rawn Shah offered a useful network for “social context” for planning and solutions for social networks.
Notable, too, was Daniel Brusilovsky’s very lucid presentation, “Social Networks: a Teen Perspective. Daniel is the 15 year old founder of Teens in Tech.
I have coverage of all these tracks, which I’ll summarize before Analysis and Conclusions. The reportage follows this convention: the summaries are from my notes of speakers’ remarks, and when a sentence is parenthesized, it is a comment. Click on logos for abstracts of the tracks.
16 June 2008
Knowledge Economy Unfolds via All Things Digital-Social—Wearing Passion and Personality on Your Sleeve
|
|
Discerning Web 2.0 from Web 1.0—Ron May Gets Comeuppance as Happy and Successful
Web 2.0 entrepreneurs, financiers and professional services folk descended on Loyola University Chicago’s Lewis Hall 29 May 2008 for “Tech Conference,” TechCocktail’s first ever day-long educational event. Founders Frank Gruber and Eric Olson served an effervescent yet heady elixir of heart-to-heart war stories, lessons learned and strategies by entrepreneurs, venture capitalists, lawyers, accountants and an executive coach.
Since attending TechCocktail 1 in July 2006, I have promoted the periodic TechCocktail “meetups” to everyone who will listen as the place to learn about and connect with Web 2.0 players and technology in Chicago (elsewhere now, too). Frank and Eric have created one of the most worthwhile groups and communities in the city and were recognized in the ITA’s Citylights this year. Their first conference was both high value and quintessentially Web 2.0: speakers were open about what had worked and what hadn’t. The program was well balanced, organized and entertaining. There were considerable lessons for Web 2.0 entrepreneurs and their providers to take away.
Continue reading Web 2.0 and Social Media Uncorked at TechCocktail Conference 1.0
24 February 2008
“Yes,” Says Team of Healthcare Experts, Employer CEOs and Patient Representative at the Executives’ Club of Chicago, “But You Must Change Your Ways”
|
|
Honestly Assessing Quality—Engaging Consumer Empowerment—Trading in the Ferrari for a Chevy
The Executives’ Club of Chicago convened its healthcare reform summit at the Hilton Chicago on 20 February 2008, drawing on diverse expertise. Ian Morrison, Ph.D., healthcare futurist, gave the keynote and moderated two panels: first, the healthcare expertise panel with Dean Harrison, CEO Northwestern Memorial Healthcare; William Novelli, CEO AARP; Scott P. Serota, CEO BlueCross BlueShield Association; and second, the business executive panel with Andrew M. Appel, Chairman AON Consulting; John A. Edwardson, CEO, CDW; John B. Menzer, Vice Chairman and Administrative Officer, Wal-Mart Stores. Robert L. Parkinson, CEO, Baxter Healthcare gave an insightful point of view on recommended actions to close the event.
There was broad agreement that the U.S. healthcare system was broken, and speakers offered excellent insights and perspectives about how to fix the system. However, what they didn’t say was as interesting as what they did, and I will address two key issues in Analysis and Conclusions: the pervasive lack of trust among all parties and the emerging consumer empowerment trend: what do Web 2.0-enabled consumers have to bring to the party?
Continue reading The U.S. Healthcare System: Can This Patient Be Saved?
1 February 2008
But Cantankerous Subtext Hints at Possible Monkey Wrench—Democratic Race in Spotlight
|
|
The Executives’ Club of Chicago fielded an expert panel to brief Midwest executives on Web 2.0′s current and likely impact on one of the most watched U.S. elections in recent history. Marie Cocco, a renowned political columnist, Peter Greenburger, Director of Google’s Elections & Issue Advocacy Team, and Alan Webber, Senior Analyst of Forrester Research brought to bear diverse perspectives on the question at the event, which took place at The University Club on January 31, 2008.
They produced a logical conclusion, namely that Web 2.0 was a force in the making but that it would probably not be a decisive factor this year. The session was graciously co-hosted by Communications Committee Co-Chairs David Prosperi, Vice President Global Public Relations, AON and David Blake, Publisher of Crain’s Chicago Business.
As usual, I will share my notes of speakers’ remarks before adding my between the lines analysis and conclusions. As an added bonus, I will also share select points of an influential source who, although not in the room, was virtually present through repeated reference.
Net-net: High Volatility and Standard Deviation
Although panelists agreed that statistical analysis clearly showed that social networks and “the Internet” would have a minimal impact of deciding who would win the U.S. presidency this fall, evidence is complex and all over the map. Panelists referenced several instances in which the Internet added dynamism and uncertainty to the mix: key blog posts and videos can emerge from anywhere and can flash across a growing portion of the nation’s consciousness with unprecedented speed. Moreover, the Internet enables people to communicate, mobilize and act with alacrity, and elections are overwhelmingly about communication and decision, so election monkey wrenches cannot be ruled out.
Marie Cocco, Syndicated Columnist, The Washington Post Writers Group
Marie Cocco is the outsider’s insider in Washington. She uses her strength and experience as a reporter to uncover hidden histories that illuminate the present. Her reporting and commentary on cultural and political topics have won prizes from the Associated Press, the Newswomen’s Club of New York, the New York Newspaper Guild, the New York State Publishers’ Association and the New York Press Club. She has been a guest commentator on CNN, the Fox Network, MSNBC, CNBC and C-SPAN as well as national radio shows.
In general, the prospect of “the Internet” having a material impact on the election is minimal because it does not affect how people vote. Traditional media still provides the lion’s share of information to voters, according to a Pew Research Center study that she quoted several times, Internet’s Broader Role in Campaign 2008.
- There are turning points in campaigns, but thus far they have had little to do with the Internet. She referenced Hillary’s gaffe in Philadelphia on the U.S. driver’s license issue as well as the resurrection of John McCain in New Hampshire for his tireless sharing during town meetings. The format was particularly suitable for him, and he generated extensive support. Neither of these had anything to do with the Internet.
- 60% of voters get their campaign information from television (Pew), while only 15% from the Internet—and most of the sites Internet users visit are mainstream media.
- However, it is clear that the Internet can be a potent fundraising weapon—for the same reason that e-commerce is so popular (“it’s easy”)—which is reflected by Ron Paul and Howard Dean efforts. However, it doesn’t move voters.
- It is beginning to show its promise for grassroots organization. Voters and political operatives have extensive email lists. here she referred to Huckabee’s mobilization of voters in Iowa by tapping home schooling, religious and other “special interest” email networks, which enabled him to come out of nowhere to win the primary. Hillary Clinton, before announcing her candidacy, tapped all manner of women’s email lists to leverage gender as an election issue. Barack Obama is using the Internet for fundraising and grassroots organization, and John Kerry’s endorsement will mean leveraging his 3 million name prime email list.
- However, she did admit that the viral video had killed George Allen’s reelection, but she concluded that these things were too isolated to have a defining impact.
- The demographics of the Internet still skew male, educated and wealthy; they do not reflect the electorate. This makes it particularly difficult for the Democrats, whose core constituencies lag in online adoption.
- Hillary Clinton has garnered the lion’s share of negative Internet-produced content, according to Cocco. The liberal blogosphere is dominated by white males.
- Increasingly people are online 24 hours a day. Trust in traditional media is falling, while new offerings of “user-generated content” grow (for one, CNN’s I-Report). What can campaign strategists learn from these developments?
- The Internet is an emerging tool for grassroots organizing, but two-thirds of young Americans do not go to college. Hillary Clinton figured this out, and she focused New Hampshire organization on low-tech devices like flyers in bars and laundromats.
- Social networking doesn’t come close to reflecting the electorate: during the YouTube debates, the Republican debate didn’t address taxes while the Democratic debate didn’t take on healthcare. There will also be privacy issues when people begin to understand that communicating online means loss of privacy. She mentioned high school athletes being kicked off teams when school officials found party pictures of them on Facebook.
Peter D. Greenberger, Director of Google’s Elections & Issue Advocacy Team
Peter joined Google in May 2007 to build and manage a new Elections & Issue Advocacy sales team dedicated to introducing Google solutions to political campaigns, committees, and issue advocacy groups. Previously, he grew the public affairs division of New Media Strategies, a Web 2.0 marketing firm, working with clients such as the Democratic Senatorial Campaign Committee, Discovery Networks, Ford Motor Company, the Granholm for Governor campaign, Merck, Inc., Wachovia, the Washington Redskins, and XM Satellite Radio. Prior to that, Peter spent ten years working on presidential, gubernatorial, U.S. Senate and Congressional campaigns, including a stint as the Clinton White House.
- Peter unsurprisingly saw the Internet’s role in the election as more important than Marie had depicted, citing (Google) research that showed TV and Internet trending toward parity. He postulated that the writers’ strike and the lack of original content was hurting TV.
- Web 2.0 is clearly causing candidates to lose control of their messages because voter/publishers who create content that strikes a chord and gains significant attention can, even if they are trying to help a candidate, do more harm than good. Communication is becoming more chaotic.
- It is very difficult to contain news, and response must be within minutes, not hours. How to engage the community and organize people?
- Google has a “no smear” policy for its advertising. While it is possible to create “negative” ads, they are scrutinized to ensure they are issues-based, not personal. Google does not allow personal attacks.
- The Internet makes it easy for younger people to get involved, but the question is, “When will online begin to persuade offline?
- Mobility will add another wrinkle to politics because devices and the context around the mobile user are somewhat unique (and will require a different approach to communicating). Key groups like Latinos access the Internet via their mobile phones. SMS (texting) is a completely different type of messaging (limit 140 characters).
He briefly reflected on Google’s vision for its role in “the democratic process” and explained tools that were particularly relevant to candidates. Among them:
- Google Trends enables people to track the “popularity” of words and phrases based on Google searches. The example of “Freakonomics” was spiky as a function of mass media acclivity.
- Google News aggregates myriad news sources, giving voters a dashboard to follow their favorite causes. One feature enables anyone named in an article to respond to the topic or issue about which s/he was quoted. This enables candidates to respond to what they may feel is wrong information. This feature is available to everyone (not just candidates).
- The Elections 2008 Gadget enables people to display many types of campaign information as Google maps.
- Google/YouTube’s You Choose is a site whose usage is free to candidates.
Alan Webber, Senior Analyst, Forrester Research
Alan has more than 14 years of experience working with global commercial and government clients on creating positive experiences for customers and citizens. Before joining Forrester, Alan led various strategic planning, performance management, and Web initiative efforts for the US government. He is quoted regularly in numerous business and trade publications, including BusinessWeek, The Washington Post, Government Computer News, Congressional Quarterly, CIO Today, Government Technology, and French CIO Magazine. He began working in political campaigns while a teen.
- Alan prefaced his remarks by saying that politics was “all about marketing” and it was possible to draw many parallels between business and politics. He shared several elements of Forrester’s Framework for early adopters of social technologies and enveloped them in a political context:
- Creators are most involved because they create original content, followed by Critics (contributed reviews, playlists), Collectors (taggers), Joiners (social networks, to be with friends), and
- Spectators (read consumer content, blogs, videos) and Inactives (are aware but are not yet involved).
- Most of the voting electorate is in the Spectator and Inactive categories.
- More detailed treatment of the Forrester’s “Ladder of Participation,” see Your Customers Are Revolting…
- Only 35% of U.S. adults have read a blog, and few of the few that read ever post comments to blog posts.
- 2012 will be the year in which Web 2.0 will make itself felt because youth leads in Web 2.0 activity, and older voters are largely inactive.
- However, we are starting to see incredible UGC (so called “user-generated content”) like the Hillary Clinton 1984 video, which was created by an individual in three hours.
- Candidates are exploring how to mobilize supporters, but they have to realize that they are treading new ground, and there will be significant mistakes. Having quick and well-planned response processes is critical.
- Mobile communications will not be a factor overall because most Americans aren’t using the Internet browsing part of their phones. For more on this, see Impact of Mobility on B2B and B2C. Alan expects mobility to play an increasing role in five to ten years.
- The Internet does not significantly change the influences of Political Action Committees
- Social Networking will play an increasing role in politics. He mentioned a 65 year old grandmother blogging politics (no name, maybe he didn’t want to overwhelm her with attendees’ attention ,^). Nothing is off-limits, everything will be included.
The Internet’s Broader Role in Campaign 2008
Before Marie mentioned it, I had not seen this study, but its relevance to the discussion makes it notable, so I encourage you to look it up.
- Introductory points:
- “The internet is living up to its potential as a major source for news about the presidential campaign. Nearly a quarter of Americans (24%) say they regularly learn something about the campaign from the internet, almost double the percentage from a comparable point in the 2004 campaign (13%).
- “Moreover, the internet has now become a leading source of campaign news for young people and the role of social networking sites such as MySpace and Facebook is a notable part of the story. Fully 42% of those ages 18 to 29 say they regularly learn about the campaign from the internet, the highest percentage for any news source. In January 2004, just 20% of young people said they routinely got campaign news from the internet.
- “The quadrennial survey by the Pew Research Center for the People & the Press and the Pew Internet & American Life Project on campaign news and political communication, conducted Dec. 19-30 among 1,430 adults, shows that the proportion of Americans who rely on traditional news sources for information about the campaign has remained static or declined slightly since the last presidential campaign. Compared with the 2000 campaign, far fewer Americans now say they regularly learn about the campaign from local TV news (down eight points), nightly network news (down 13 points) and daily newspapers (down nine points). Cable news networks are up modestly since 2000, but have shown no growth since the 2004 campaign.
- Television is steadily slipping as the main source for information about everything, including campaigns, even though it still prevails in 2008.
Analysis and Conclusions
- We are in the early stages of adoption, but trends are quite clear: mass media will cede its influence to the Internet in 2012 (I still think that’s too aggressive, 2016 or 2020 are more likely). People tend to be quite conservative when they vote, and many demographics are experimenting with new tools and ways to pursue their political interests.
- General elections are obviously about hits; they are not long tail phenomena. Therefore, the whole niche dynamic that is so key to the influence of social networks may be less relevant to democratic elections.
- Panelists all mentioned the Internet’s ability to enable fast mobilization of people and action. Communication is near simultaneous, specific and distributed pervasively. Generation Y are active users. One of the most predictable venues for an Internet-produced political disruption would be a Barack Obama victory because his campaign is leveraging the Internet and Gen Y far more than any other campaign. An excellent article on the Obama grass roots campaign is Democrats’ Tactics May Change the Game (23 January 2008, The Wall Street Journal).
- But let’s indulge a different logic for a minute. The panelists were focused on whether the Internet would influence a large number of votes, and they all made convincing cases that it would not. However, I believe that is the wrong question to determine the true influence of social networks and the Internet. Some interesting alternative questions:
- How does the Internet influence who runs? This is certainly a year of “non-traditional” candidates. For more on the election’s impact on the U.S. economy, including interesting election insights, see the Economic Outlook for 2008.
- How do social networks affect the agenda that candidates must address to get votes? How does the online “conversation” bleed over and influence more mainstream issues?
- How does the Internet detract from intimacy and make politicians more inhuman? (due to the increased consequences of saying something that “can and will be used against you” on tape, which will cause them to say less and less and voters’ decreased ability to relate to them as people) Increasingly everyone will carry a video camera in their pocket (mobile phone), so everything will be video taped all the time.
- Why is the prospect of Internet-driven change such an attractive prospect (the Pew study attitude, for one)? Why are people losing trust in mainstream media? It serves less and less because it is widely perceived to be less authentic: people’s expectations of authenticity are changing due to the increased (unsanitized) voices of other people. How do candidates balance authenticity with the grave consequences that insure with gaffes that can be magnified so poignantly?
- Were I doing strategy for any of the campaigns, I would be focused on “tipping point” opportunities to use Web 2.0 tactics to sway influential minorities in tight situations. The last elections have been close, so the influence of strategic minorities could well become a deciding factor, especially considering the Internet’s ability to mobilize people quickly. It often comes down to a state.
- Although Peter and Alan agreed in principle to the unlikely prospect of the Internet’s having a “tipping point” impact on the election (such as the Hillary 1984 video coming out just before the election), they both said that such a possibility was very unlikely and difficult to predict. Alan pointed out that the impact of the “Macaca incident” caught on video in George Allen’s campaign was due to the combination of the video and the opponent’s effective (and/or lucky) response as well as to fortunate timing (just enough for the word to propagate to non-Internet users and not too much to be forgotten). It is even likely that George Allen, the incumbent, lost the close election due to the controversy, which was video taped and published on YouTube.
- Mass media, including television, will always have a place in peoples’ viewing habits, but in general, popular culture is shifting from a push to a pull pattern. People are increasingly accustomed to finding and accessing information on demand to support decision making.
- People are losing trust in organizations and established interests, and this trend holds true in politics in spades. People are overwhelmingly likely to trust “someone like me” over an expert or organization representative in many situations. How does that translate in terms of a campaign? By the increased importance of “grass roots” organization.
- The Democratic race best reflects “old vs. new” methods of campaigning. As I write, The Obama campaign is still the challenger, it has less established Democratic support and it is forced to depend on the Internet more: yes, Hillary Clinton is our first female candidate with a serious shot, but at the end of the day, she still represents the reelection of the same wife/husband team, even though the roles would ostensibly change.
- December 2008 follow-up story: Web 2.0 Case Study: Barack Obama’s Use of Social Media
21 October 2007
Web 2.0 World Challenges Brands to Understand Value Propositions—Inner Human Desire Is the Keel
|
|
The Global Human Capital Journal’s coverage of the Forrester Consumer Forum 2007 continues with this session on Playboy Enterprises’ experience with integrating social technologies into its multichannel offerings. Christie Hefner, Chairman and CEO, gave a doubly-valuable presentation because she addressed her company’s journey to online customer engagement and explained how Playboy’s transition was affecting its advertisers. It was obvious that she is a leader who rolls up her sleeves and understands her business.
The Global Human Capital Journal published the overall conference wrap as well as in-depth coverage of several sessions. Access all through the link to the conference logo. Other articles will be published in the days ahead, and we invite you to subscribe to the forum’s RSS feed to be notified as they are published.
Hefner’s advice for senior marketers was to remember that human beings are not fundamentally being changed, even though the way in which they relate and communicate may be changing dramatically. Our humanity, desires and impulses are a constant. Moreover, the value that your company offers to people must be focused on their humanity. The mechanics of how, where and when you deliver the value are crucial “implementation details.” If you are in touch with your customer’s human desires, you can see beyond the product and the technology.
Playboy has been transforming itself since the 1990s, when Hefner decided to embrace Web 1.0, and Playboy became the first major magazine with a Web presence. Changing or broadening your reach via different media requires rethinking what your value is and how you can deliver. Embracing cable in 1982 and online in 1994, Playboy has always had a significant social and community element. Understanding how your customers want to use emerging social technology to connect with your value proposition is what you need to understand.
- She opened with some eye-opening points: if MySpace were a country, it would have the sixth-largest population in the world. Fifteen percent of today’s newlyweds (U.S., I believe) meet online.
- Human impulses remain the same. Technology enables people to act on them differently. The technology may change, but the impulse is constant.
- Marketers and journalists overuse and overgeneralize the concept of “brand.” Hefner defined brand as a set of beliefs and attitude. Some of Playboy’s beliefs and approaches (dare I say “tags”?) are”freedom,” “sexy,” “fun” and “lifestyle.” It is also an adult brand. She likes to see the appearance of new magazines like Maxim because they engage younger readers and encourage them to become magazine subscribers who can “graduate” to Playboy.
- She also emphasized that Playboy has always had a strong social element. Rather than showing professional models, the focus has always been more on “normal” girls, and clubs have always had a social thread. In fact, they arose from fraternities, which organized Playboy-themed events. The company subsequently made a business out of it. She showed how the social element plays out in several media. Two of the magazine’s three most popular features are social: The Playboy Forum and the Playboy Advisor (the most popular is the Playmate Interview).
- In 1982, when Playboy moved to television (cable), management had to reexamine everything and get in touch with what their business really was. They had to reexamine the brand (abstract away from the business and get to the idea). Social networks demand a similar treatment. In 1994, they moved online and pitched the offering primarily to couples, not “lonely guys,” as Hefner wryly put it. Thus far, online was the most transformative for Playboy (because it was interactive). It broke the media template of “one to many.” It introduced “small D democracy” of content.
- In general, social technologies can serve to diminish the authority of large organizations. She gave the example of healthcare, in which people habitually informs him/herself online and connects with other people with similar conditions. It’s no longer just listening to the doctor. This makes markets far more dynamic.
- Many people fear that online social technologies will throw marketers a curve by removing the human element, but Hefner sees the opposite. Referencing Nesbitt’s “High Tech, High Touch” principle, she gave the example of the resurgence of Playboy clubs around the world. People like to connect with other people in the physical space as well as online. The two are complementary.
- Playboy’s view of social technologies is that by understanding your value proposition (and brand), you can have authority (if you resonate with customers). You can marry this with customer participation. For example, online (members) select Cybergirls, some of whom subsequently appear in the magazine. Playboy has contests on campus in which members vote to select the best-dressed.
- Playboy is investing in a space on Second Life, and the value currently lies in understanding how virtual worlds will affect entertainment as a whole. It’s a laboratory. Virtual worlds also project the brand, which is a key strategy for Playboy.
- PlayboyU is a social networking site that recently launched. Members must have “.edu” email addresses, and it enables members to generate content for Playboy Radio and TV. The company really believes in embracing consumer content and integrating it with its content.
- Critical to success is thinking holistically and breaking down silos. She stressed that media companies have well defined silos that (usually) do not serve the customer anymore.
- Playboy is a global brand as were the companies represented in the audience. Marketers ask themselves what they can learn from abroad.
- Mistakes: do not assume that you know what your customer wants. PlayboyU is evolving quickly based on customer interaction. Customers get mobilized when they know you are open to listening. “We foster something of value. We want them to use it,” Hefner commented.
- As far as managing content and offerings, Playboy has always had some free content, which enables prospects to discover the brand. Content does not have to be free. Playboy aggressively prosecutes piracy, but Hefner stressed that “you want people to rip you off some.” If your content is good and relevant, people will use it. You have to keep a perspective.
Some surprising revelations: of Playboy’s $1 billion apparel business, 75% of customers are women. Roughly 40% are from EMEA (Europe Middle East Africa), 40% Asia Pacific and 20% USA.
- Advertisers especially value Playboy’s ability to reach people across media, and Hefner sees their business trending this way even more in the years ahead. The days of people buying the magazine only are admonishing rapidly. Instead, they are moving to a “brand hub,” and they strive to expand the brand’s footprint. They have a global perspective.
- On a humorous note, when asked by an audience member how to convince 50-something management that the media business was changing, Hefner advised to bury them with too-ample evidence that customers were in control. If they still don’t get it, “Shop your resume.”
Analysis and Conclusions
- Picking up on Hefner’s theme of not assuming you know customers’ desires: you no longer have to. Approach everything as being “in beta” because you can listen to your customer and adjust offerings. It is now economically feasible to listen to and interact with customers because digital communications are easier to work with (than analog) and relatively inexpensive.
- If you are in touch with your customers’ human desires, you can see beyond the product and the technology.
- Hefner echoed the mantra at Digital Hollywood: make content available how, when and where the customer wants. The distribution medium (i.e. TV, radio, podcast, print) matters less and less.
20 October 2007
Social Computing at an Inflection Point—Preparing to Be Overwhelmed
|
|
The Global Human Capital Journal’s coverage of the Forrester Consumer Forum 2007 continues with this session on Delta’s experience with customer blogs. Moderator Henry H. Harteveldt did an excellent job setting up the session and letting Laura R. Hunnicutt, Delta’s General Manager of Customer Experience, talk with the audience about some real-world practical problems of moving executives’ legacy thinking to Web 2.0. Having enterprise visionaries and thought leaders added tremendous value to the conference.
The Global Human Capital Journal published the overall conference wrap and will have several other in-depth articles in the days ahead. You can be notified as to their publication by subscribing to the forum’s RSS feed.
This session showed that social computing can have a powerful strategic impact at inflection points in companies’ histories. As everyone knows, Delta is recently out of bankruptcy, and the airline business is difficult on a good day. The company is in a period of high risk-high reward, and Laura gave the audience a heartfelt behind-the-scenes look at the company’s Web 2.0 efforts. Part of the way through the session, she invoked Delta’s social computing guru, Jacob Morris, who added some insights:
- Critical to succeeding with social computing is to have the right leader. Jacob uses a mentoring approach, and he understands both the medium and the company. It’s about moving things along as fast as possible while recognizing the limitations of the existing culture.
- Stop overprotecting the brand! (Reading between the lines, I believe she intended to say that the company doesn’t own its brand outright anyway; it shares it with the community and customers).
- When you launch blogs that feature customer input, prepare to be overwhelmed. You will be. Make time to deal with it. You have to participate and respond to customers. (In my experience, if you fail in this, you’ll be worse off than if you had never launched it). Direct, visible customer communications (via blogs) is a long-term commitment.
- In terms of the number of comments, Delta averages five to twenty comments daily. Employees from delta.com always respond the same day. Of the people who write, it runs the gamut, but Delta loyalists are well represented.
- Opening up and participating in customer conversations can be an excellent driver to foster corporate culture change. It will facilitate transformation. For Delta, it can help us to be more transparent, human and caring. It’s bottom-up.
It wasn’t easy to convince executives to do launch social sites. They pressed for a value proposition. Why do it? To their credit, Delta’s agency kept telling them that they had to do it to show their leadership. It would sync with “the new Delta” branding in place since emerging from bankruptcy this spring. All the same, it took months to convince senior management. Marketing and delta.com were very supportive, and Corporate Communications was lukewarm. Other areas were not very understanding.
- Surprisingly, Legal was supportive (she had been dreading that meeting). The legal guy had had experience with social computing, and he wasn’t afraid.
- At this point, Delta has no “Facebook plans” and one of their agency’s Twitter experiences didn’t add value.
- In general, there is a big generation gap, and it is difficult to communicate the importance to older executives. But you can’t give up; you have to keep educating and showing them the importance of being a part of it. It doesn’t solve everything. You have to assuage fear at the executive level. Motivate executives to blog, so they can being to understand from their own experience.
- In response to a question about what insights have Delta has gained from “the customer conversation,” Laura said that maybe five percent of suggestions are really “out of the box.” 95% reflects what we already hear through other channels. We read everything and take everything very seriously. Thus far, customer comments haven’t had much impact on the improvements in the project pipeline (because they aren’t hearing about many unique issues), but they can help us to reprioritize projects in the pipeline.
- Metrics? Brand development is hard to measure. You have to take a long-term view.
- The resource impact is not huge at this point. Thus far, we have done it with internal resources. We have dedicated one product manager, one moderator and an outside firm to moderate after hours.
- In one humorous exchange during Q&A, someone asked Laura about transparency vs. “translucency” (partial transparency). She said that, with respect to Web 2.0, there was no middle ground.
Analysis and Conclusions
- I admire Delta for having the vision to make social computing a part of its effort to redefine itself. They correctly recognize that they are at an inflection point, and adopting social computing can send a powerful message to customers. If they do it right, they will allow customers to adopt their airline as theirs. That can enable them to add value in a completely new dimension, away from price. Similar stories are easy to find: JetBlue, Southwest. Yes, some of their value is due to economic and organizational advantages, but getting customers to spend an extra portion above the price of the cheapest ticket may be closer than they think if they let customers know that Delta is their airline. I don’t mean more frequently flyer points: transparency , humanity and accountability will be much more differentiating for many people.
From my experience, the information that Delta is getting from customer comments through the blog is not the important thing. It’s the process that is the unique Web 2.0 value-add: customers can write what they want and be heard by Delta and by other customers. They can give part of themselves to the conversation, thereby making Delta their company. Being on a (digital) stage with the company and sharing thoughts with other customers and the company is the magic sauce. When customers write letters, they receive a courteous blah blah letters in response, and maybe a coupon. They don’t feel heard. What can the president say? Customers want emotional satisfaction (be heard and responded to)—and often responses by other customers are more fulfilling than those by the company. Or, being responded to in a public forum can be very gratifying.
- When customers feel that they own a forum, they care about it. If you do it right, you can encourage customers to help each other. When a customer helps another customer, that action is satisfying in itself. Too many executives do not believe that customers will help each other because they can’t see the emotional gratification that customers get from helping others (executives are too focused on economics). Helping and being recognized is a human need, and it’s too often difficult to do at work or within family dynamics, so doing it online can be the highlight of someone’s day.
- Laura’s comment about “bottom up” process and caring hit a chord with me. As I’ve written extensively, in the Industrial Economy, companies increased competitiveness largely through efficiency and economies of scale. In the Knowledge Economy, efficiency is taken for granted and companies differentiate through social networks and innovation. In the Industrial Economy, efficiency-creating silos were revered at first, then tolerated. People were more flexible that company processes, so they had to accept the company’s limitations. For employees, this was difficult because they often had to subjugate their humanity for process. Social technologies will enable companies to become more human because processes are becoming more flexible, and humanity will increasingly be prized as a differentiator.
- The importance of choosing the right leaders for high-risk, high-reward initiatives can’t be overstated. Jacob is an excellent mentor, and Laura also has the right stuff: her obvious commitment and caring for the company and customers were palpable. At one point, she reflected that she felt so lucky to have a job that she loved so much.
- On “being a part of it” (the social computing change), as Laura put it, companies can’t avoid it anyway. The world is changing around them. Executives’ only choice is how and when they want their companies to relate to it.
|
Social Business Resources
|