CRM - December 2007 - (Page 32)

USER-GENERATED CONTENT most insightful and useful get naturally shifted to the top of the pile. “Useful” content, in fact, doesn’t necessarily contain glowing praise. “We’re always surprised by how much negative reviews help drive sales,” says John Squire, vice president of product strategy for Coremetrics, a California-based provider of digital-marketing optimization. “If all you saw were five stars all the time, would you really trust that site?” he asks. Negative reviews often specifically reflect the personal interests of the buyer, Squire says: A computer shopper looking for long battery life, for example, will most likely disregard a negative reviewer who was criticizing the weight of the laptop. As a consumer, Squire admits that he enjoys “the banter back and forth as to why somebody else doesn’t like the product. [It] gives me a better perception on whether I should buy it or not.” But a negative review isn’t always a subjective one-off—sometimes it can open the floodgates. Shortly after Jeff Jarvis, founder of Entertainment Weekly magazine, blogged about his poor experience with Dell, hundreds of consumers hopped on the bandwagon, fervently expressing similar experiences. Jarvis had ignited what was apparently a popular sentiment, sending the computer manufacturer’s reputation on a downward spiral. Any company in Dell’s position could have stuck its corporate head in the sand and regarded the comments as insignificant. Rollins and others strongly advise the opposite approach. There are no secrets in the world of Web 2.0 and the more companies try to hide, the more customers are going to enjoy talking, says David Weinberger, a fellow of Harvard Law School’s Berkman Center for Internet & Society. Companies are better off facing up to their inadequacies and taking immediate responsibility for their faults—which is precisely what Dell did. The computer maker set up a “Dell Community” page on its Web site, for customers to openly post questions and comments via forums and blogs, some of which were powered by Salesforce.com. By tapping into this “idea sharing,” Dell took measures to improve areas such as product development, public relations, sales, and customer service—and continues to do so, according to a presentation at this year’s Shop.org conference by Sean McDonald, Dell’s director of global online community. The shift has been reflected in improved press and higher earnings. Instead of reacting to customers, a company should proactively seek out their views. When asked whether or not they would write a review if companies asked them directly, 21 percent of American adults polled by Resource said yes. According to Rollins, this figure presents significant potential for advertisers to pursue consumer insight and to provide the tools to facilitate it. For example, editors of InsideFlyer Magazine created FlyerTalk.com, an online community that welcomes frequent fliers to share their experiences and provide advice to others. “I was having trouble answering the many letters (yes, actually physical letters) and faxes from readers asking for advice for their [frequent-flier] miles and points. FlyerTalk was a concept that allowed me to utilize the knowledge of my readers,” wrote Randy Peterson, InsideFlyer’s editor and publisher. Travelers share topics ranging from “Rio Gallegos—where to stay?” to “How offensive do you find the smell of Vicks VapoRub?” providing airline and travel companies a wealth of information to leverage as another touch point into the concerns and interests of their customers. Endless UGC becomes a burdensome chore for most companies, one that requires both time and resources to www.destinationCRM.com THE FACE OF THE BRAND Adopting or redeploying consumer insight for marketing objectives is a practice that “will only increase in volume, intensity, and influence over the next several years,” says Nita Rollins, of Resource Interactive. But be careful when reaching out to an end-user who volunteers to speak out about your brand. As consumers find their respective niches online and contribute content, marketers can finally target the right audience. With millions of unique online identities, though, companies have to figure out which users match their products. Some users can’t be bought. Marsha Collier, author of eBay for Dummies, refuses to be paid by the company because she wants to retain the freedom to criticize. She lectures at annual eBay University training events (paid by a seminar company) and has sold a million copies of her book. “Products, I can choose to align with,” she says. “The core [eBay, Amazon] is where I do business and I have to be blunt [and] honest.” Birdie Jaworski committed herself to a brand when she started the blog “Beauty Dish: True Underground Adventures of an Avon Lady.” Jaworski, now an ex–Avon Lady, detailed her experiences in an attempt to help others become better at selling Avon products; in the meantime, she was a strong advocate for the brand. She developed a solid fan base, and many readers contributed comments. Jaworski claims to have helped sign up (and increase sales for) at least six new Avon Ladies. Avon, however, failed to capitalize before she left the company. Had the company done so, it could have adopted the voice of the people for its own purposes—at very little cost, Rollins says. Of course, a strong following may not make content the right fit for your brand. Video blogger William Sledd, for example, opens each installment with a word many women find derogatory. Despite his knowledge about fashion, not every company would benefit from his style, at least not without some tweaks and changes. “He has to be groomed to some extent,” Rollins says. “You can’t just let him loose.” In other words, marketers can’t expect to completely turn the ship over to the crew. http://Salesforce.com http://Shop.org 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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