CRM - December 2007 - (Page 29)

By Jessica Tsai Now that consumers can create content of their own, marketers no longer control the message. If you can’t lead the conversation, you’d better learn how to be part of it. Companies can no longer sweep dirt under the carpet and hope no one notices. Like it or not, consumers are going to find out—and they’re going to talk. Marketers used to be able to control what consumers knew about their companies, but the Web 2.0 era has opened up a new realm of product experts. Consequently, consumers have turned to one another for the truth—or at least, a version of the truth they perceive to be less biased. Online user-generated content (UGC)—feedback on company sites, postings on forum/message boards, and blogs—has evolved into one of the most potent sources of information. As a result, marketers have had to leverage consumer insight as a core component of their marketing strategies. Nita Rollins, director of thought leadership at Resource Interactive, an Ohio-based technology marketing and communications company, has a stern warning for marketers: “You can only be in denial of this avalanche of content for so long.” I LISTEN TO ME A recent Edelman Trust Barometer study revealed that “a person like me” is the most trusted source in Europe and the Americas; in Asia, only “physicians” ranked higher. In the United States alone, 51 percent of surveyed adults ranked “a person like me” as their most trusted source. A separate Forrester Research study also found that consumers prefer listening to each other (see graph on page 30)—another sign of the trend toward a world of insular customers. “When someone doesn’t have an incentive to share word of mouth about a product, when it’s unbiased, and [when] that person has firsthand experience, it’s authentic, credible, and relevant,” says Sam Decker, chief marketing officer of Bazaarvoice, an Austin, Texas–based provider of social commerce applications. In a way, Decker adds, online UGC serves as a reliable alternative to an in-store experience. Still, conflicting findings show that not everyone is buying into UGC. Emily Riley, an analyst at JupiterResearch, wrote a report classifying 24 percent of the online adult community as “influential brand advocates”—individuals characterized by higher-than-average online activity and a tendency to research before purchasing. For all online users, and to a greater degree among influential brand advocates, UGC ranked behind only company Web sites and professional reviews—and above advertisements. Understandably, customers would expect companies to be the most self-knowledgeable, and yet corporate-produced marketing material is often treated with skepticism. to the People CUSTOMER RELATIONSHIP MANAGEMENT | DECEMBER 2007 www.destinationCRM.com 29 http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - December 2007

CRM - December 2007 Contents Front Office Reality Check Customer Centricity SAP’s Midmarket Design A Shift in SAP’s Growth Strategy: Buy Big to Get Bigger The Buyer Is Your Owner Prime Time for Streaming TV The Word on the Floor Market Focus: Energy/Utilities: Speaking Truth to Power (Companies) The Pulse Required Reading It’s All Coming 2.0gether Power to the People Speak Up! Document Management That's a Breeze Customers Gain Traction With Off-Road Vehicles Getting Connected With Surveys Mobile Data Gets Better Reception Secret of My Success Re:Tooling The Tipping Point Pint of View

CRM - December 2007

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