Communities are still so young - many people still confused.

May 12th, 2008 francois Posted in advertising, communities | No Comments »

One interesting observation from the ongoing “2008 Tribalization of Business Study” is that while the state of communities has progressed by leaps and bounds since the last community 2.0 conference, the market is still very young with many people confused about what to do and what to expect.

One way of gauging this is by looking at what people found to be unexpected as part of their community efforts:

  • Reach of Word of Mouth for free
  • Knowledge about customers
  • That our market really will tell us what they want — if we just ask
  • Greater visibility
  • Lots of active users
  • Ideas generated by communities
  • How happy customers are with the outreach

It is sort of funny that most people will setup communities to get to know more about their users, get ideas from the outside inside the company faster and increase word of mouth, just to name a few, and then get surprised when this actually happens.

Another unexpected consequence, this one potentially dangerous is “Advertising Revenue.” If the purpose of your community was not advertising, and so far no companies in the study have indicated that as a goal, then discovering advertising revenue as a by-product may potentially lead to spamming your community and eventual failure.




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Is Apple doing the right thing?

May 6th, 2008 francois Posted in marketing | 4 Comments »

In conducting a brown-bag marketing innovation brainstorming session with a company’s marketing team last week, an interesting question came up - is Apple doing good for its customers?

The answer of course is that they are doing well - their financial results and their emerging business in corporate environments are a testimony to that. But are they really doing what’s best in the company’s long term interest?

Think about it - people trust the Apple products. But do they trust the company? With the battery fiascos, the iPhone warranty story and some other things that they have done, they are eroding the trust that people have in the company - and that could hurt them in the long run.

Sure, the PC industry and the consumer electronics space is littered with companies that nobody trusts, but if someone were to emerge who can produce great products and engender trust as a company within its user base, that company will take marketshare and profits out of the market faster than you will be able to write about it.

Remember - it happened in other industries…

What do you think?




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links for 2008-05-06

May 6th, 2008 delicious Posted in Interesting Links | No Comments »




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Train commute in Japan…

May 3rd, 2008 francois Posted in Interesting Links, video of the day | No Comments »

Looks more painful than a NY train trip during rush hour :)

(click here if you do not see the attachment in your reader)




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Why wrong measurements can be bad for your community’s health…

May 1st, 2008 francois Posted in Interesting Links, Strategy, best practices, communities, social media, social networking | 1 Comment »

successsmIn my update on the 2008 Tribalization of Business study on business communities that we are doing with Deloitte and The Society for New Communications Research last week - I pointed out how some companies are totally misaligning their measurements of community effectiveness with their goals.

As you will see from the slides, many companies measure effectiveness by looking at page views and time spent on the site. Yet not one company listed ad revenue as a goal for the community - which is what page views and time spent on the site would be good for. Let’s assume that your goal is to have a support community - one in which people can help one another or get help from some your employees. If you could deliver the support in a way that never required people to come to your site, you would still achieve your goals. In fact, if you build your community so that people do not have to come to it, chances are that you will have more people participating in it. There are only so many destinations that a person will visit on a regular basis, and chances that your business community becomes one of them are fairly slim.

Another interesting wrong-headed metric-related finding from the study is that a majority of respondents found that “getting people to engage” was one of the biggest obstacles to making a community work. Now if you have a small community, chances are that you could get a fairly high engagement rate. The larger your community becomes, however, the more its profile will resemble that of large public communities - 1% of hardcore contributors, 10% of active users and 80-90% of lurkers. Now does that mean that the lurkers do not get value from your community? In the case of the customer support community, lurkers who do not contribute could still find the help they need and feel better about you than if they had not found it and also save you the cost of a call into the call center. So measuring community effectiveness by measuring engagement is just not a representative metric of community success.

Now the real issue with all this is that if you have a community development team who is being measured by those wrong-headed metrics, they will invariably develop bad behaviors in order to maximize these metrics. They could in fact develop community features that will stand in the way of success for your communities, or close down communities that are in fact doing really well.

If you missed it, there is a dynamic conversation on managing communities going on right now…Chris Brogan kicked it off and Nancy White wrote some interesting musings and also kept track of many of the other interesting links.




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Advertising - is it really working?

April 30th, 2008 francois Posted in Interesting Links, advertising, buying behaviour | 1 Comment »

Starting with the premise that advertising is always designed to increase consumer awareness and to persuade users that the brand is superior, a new research study by a team of researchers from by Stanford University tested the impact of advertising on both awareness and perceived quality. What they found is that “advertising has consistently a significant positive effect on brand awareness but no significant effect on perceived quality.”

An interesting side finding from the study is that share-of-voice does not impact brand awareness - in fact, if you outperform your competitors with advertisement it will have a slightly negative impact on your brand awareness.

The research paper also mentions empirical studies that show that advertising lowers price sensitivity - again confirming that pricing may be controlled more by the supply side rather than the demand side.

All that being said, the study confirms that advertising has little effect on sales.

(via Strategy+Business)




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links for 2008-04-25

April 25th, 2008 delicious Posted in Interesting Links | No Comments »




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2008 Tribalization of Business Study - preliminary results

April 24th, 2008 francois Posted in business model innovation, communities | No Comments »

Here is the presentation with the preliminary results of the 2008 Tribalization of Business Study (produced by Deloitte, Beeline Labs, and the Society for New Communications Research (SNCR)), which I presented at the SNCR New Communications Forum yesterday. The findings are very preliminary as the study is still in progress.

If you are interested in more information about the study, or in participating in the study, please email me at francois [at] beelinelabs [dot] com.




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One more time…can marketing be a conversation?

April 23rd, 2008 francois Posted in marketing, word of mouth | 11 Comments »

Joseph Jaffe delivered the Society for New Communications Research keynote speech last night. During his presentation he was making the case that marketing can be conversational.

As I have written before, I do not believe that marketing can be conversations. First off, and as David Weinberger suggested in an interview I did with him last year, I do not trust marketers to carry conversations without screwing it up for the rest of us.

I also do not think that all aspects of marketing can be or should be conversational. Think about new product innovation as an example. Sure, you will benefit from getting ideas and feedback from your user base and especially you prospecting base, but at some point the marketing product manager needs to act as a benevolent dictator and make decisions on what goes into the next generation product - and that may include features that did not pass the user popularity filter, or features that may not even come from the user base at all. The same is true for pricing - where coming to a price based on user feedback may in fact mean leaving a ton of money on the table.

Markets are conversations - marketing is not…




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links for 2008-04-23

April 23rd, 2008 delicious Posted in Interesting Links | No Comments »




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