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Why Brand Communities Don’t Exist

October 21st, 2009 francois Posted in Hyper Social Enterprise, branding, communities, social innovation, social media, social networking, web 2.0 78 Comments »

brandingsmThere is a lot of research on Brand Communities, defined by Muniz and O’Guinn as “a specialized, non-geographically bound community, based on a structured set of social relationships among admirers of a brand.” (Muniz and O’Guinn 2001).

But do brand communities really exist?

Brand communities imply that the brand is at the center of the community. So in the Harley community it would mean that the Harley bike is at the center, in the Jeep community the Jeep Wrangler or the Cherokee, in the Mini Cooper community the Mini, and in the Fiskateer community, the Fiskars tools.

Is this really what is happening? I don’t think so.

For communities to work, the members need to be at the center of the community, and so the motivations have to be different from the pure hedonistic pleasure of owning a brand/product. The Fiskateers may be the people who come up with most of the new Fiskars products ideas. And they may be their staunchest defenders when the brand comes under attack. But the reason they form a tight-knit community, one that some members say changed their lives, is because they share a passion for scrap-booking. The reason that Harley owners get together is because they share a riding lifestyle passion. Jeep owners, probably because they have a shared aspiration for being adventurous by “off-roading” their cars. Mini owners? Not sure, but according to ethnographic research even people who no longer own a Mini Cooper stay with the community, so it cannot be that the car is at the center of the community.

So why Jeep and not Ford, why Fiskars, why Mini, why Harley ? Because in all those cases the companies have provided environments in which those member communities can operate and thrive. Jeep marketers are providing training camps, and are organizing the barbecues around which members can share their passion. Fiskars provided an online environment for their members to thrive and connected those with offline events as well. But in all cases they are enablers of a shared passion that exists within a tribe or community.

The result of that is what I described in a recent blog post – people use the Jeep, the mini, the Fiskars scissors, or the Harley as symbols to associate with others who share that passion. In some cases they take that a step further and create rituals around those brands, which make the brands more sticky. But at the end of the day, these are not brand communities, they are passionate rider communities, scrapbooker community, adventure seeker communities.

What do you think? Do you buy that, or do you think I am missing something?



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Socialize what you do – don’t try commercializing the social

May 27th, 2009 francois Posted in Interesting Links, Strategy, customer service, marketing, social innovation, social media, social networking 5 Comments »

Everybody will agree that the social has reentered business and commerce as we know it.

In fact, in the beginning, all business was social. If someone sold you a bad chicken, you would badmouth the business and others would shun it until the merchant cleaned up his act. Then the business infrastructure scaled and we ended up with large multi-national companies. People were still social, but the impact of them being social was no longer affecting business – we became at their merci and the social all but disappeared from business. That is when businesses started to develop real bad habits – treating their employees as commodities and waging war with their customers. With social media, a massive platform of participation, the social infrastructure scaled to the point where the social made a difference once again. And because humans are hardwired to be the only Hyper-Social species without all being siblings – the social made a comeback in business with a vengeance.

So what do you do with that? Smart business people, like many of the ones I interviewed as part of the CMO 2.0 Conversation, will tell you that the only thing you can do is to allow your business processes to become social. Barry Judge, the CMO from Best Buy who I interviewed said: “So to the extent that we can basically be human with what we know, and share it as freely as we possibly can, I think we’ll go a long way towards gaining a higher or stronger level of trust with the consumers.” In talking with Luis Suarez recently, he told me that IBM went as far as letting its complete knowledge management process go social. Pfizer’s Sr. VP of Strategy and Innovation, Kristin Peck, was recently quoted in an interview about their innovation process as saying: “when we thought about innovation,we asked ourselves “how do we make it more social?”"

It looks so obvious, right? Yet what do many companies do? Looking at how to commercialize the social that is happening between their customers and prospects. Buying ads on social networks, trying to develop buzz networks, and paying people for recommendations and word of mouth.

That unfortunately will not work much longer. Let’s just hope that those who try to commercialize the social do not muddy the waters with decreased levels of trust among customers and prospects for the rest of us.



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The importance of reciprocity in ultrasocial societies

October 21st, 2008 francois Posted in Collaboration, adoption of innovation, book pointers, communities, self-organization, social innovation, social networking 5 Comments »

In reading the book The Happiness Hypothesis by Jonathan Heidt I came across an important element that makes ultrasocial societies work – reciprocity.

Heidt defines ultrasociality as: living in large cooperative societies in which hundreds of thousand of individuals reap the benefits of an extensive division of labor. Only four instances of ultrasociality are in existence – among hymenoptera (ants, bees and wasps), termites, naked mole rats, and humans. In all species but humans the force that makes that possible is the genetics of kin altruism. In an ants nest or a bee nest, everybody is brother and sister, and since you have as much genes in common with your siblings as you have with your children, the evolutionary drive to leave surviving copies of your genes makes those ultrasocial communities work – shared genes equals shared interest.

In societies that are not structured like bee or ant colonies, the shared set of genes that you have with others drops off rather dramatically – while you share 50% of the genes with your children and siblings, you only share 1/8 the genes with your cousins, and 1/32 with second cousins. In a strictly Darwinian calculation, you would only spend as much energy to save 4 of your cousins as you would for 1 child or brother. That is why kin altruism explains only how groups of a few dozen, or perhaps a hundred, animals can work together. The rest would be competitors in the Darwinian sense.

So what happened to human societies? How did we get fictitious families, like the Mafia, where there is no real kinship, even though they talk about the Godfather and being part of the “family”, to work as ultrasocial societies? It’s the old fashioned “you scratch my back and I’ll scratch yours” phenomenon – which is in fact a mindless and automatic reciprocity reflex. if someone receives a favor, that person will be driven to repay that favor – not because it the proper thing to do – but because it is a built-in ethological reflex. It’s tit-for-tat, hardwired in our brains, that opens the possibility of forming cooperative relationships with strangers. Now mind you that tit-for-tat can only explain the existence of social groups up to a few hundreds. What allows larger social groups is its co-existence with vengeance, gratitude and gossip as tools that reduce the payoff to cheaters by the cost of making enemies.

Those very primitive hardwired human behaviors confirm a lot about what makes online communities work as well – the importance of reputation, the importance of self-organized posses to police communities, the importance of helping one another as a currency, and the failure of communities where reciprocity is not an integral component of the community.



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Dare I say something?

November 14th, 2006 francois Posted in Strategy, human resources, social innovation No Comments »

big yawnsm.jpgAre you afraid of speaking up at work? That is the topic of ongoing research reported in the Harvard Business School Working Knowledge. Quoting from their research paper (abstract here) Amy Edmondson from Harvard Business School and James Detert from Penn State, the two researchers, made some interesting observations in this email interview.

While there are individual and contextual reasons why some people speak up more readily than others, the main reason why people do not speak up is “fear” – something that we inherited from our earliest ancestors. As the researchers point out: ” it seems we’re all hard-wired to overestimate rather than underestimate certain types of risk—it was better (for survival) to “flee” too often from threats that weren’t really there than to not flee the one time there was a significant risk. So, we’ve inherited emotional and cognitive mechanisms that motivate us to avoid perceived risks to our psychological and material well-being…Thus, fear of offending those above us is both natural and widespread.”

The interview talks about some ways to change a company culture so that people speak up more frequently. The reality is that changing a culture of hard-wired fear is very difficult. Add to that the fact that change hurts and it may be impossible to really change a company culture without also changing the fundamental hierarchical nature of companies.


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Customer communities do pay off!

October 31st, 2006 francois Posted in communities, marketing, self-organization, social innovation, social networking, technology enablement 9 Comments »

collaboration.jpgThe most recent Harvard Business Review reports on a study (requires subscription) that was done on the impact of customer communities on customer behavior at eBay in Germany (disclosure – I have an active interest in this topic as I have agreed to chair a conference on the business of communities – Community 2.0 – but more on that later).

The numbers are quite interesting. The experiment involved 140,120 eBay customers who had bought or sold on eBay but who had not participated in the eBay customer communities before. 79.242 were invited to join the online customer community, while the remaining 60,878 were used as a control group. Of the people who were asked to join the community, 3,299 became active participants and 11,242 became lurkers. Over the course of a year they compared the behavior of the active participants and lurkers to that of the control group and found that:

  • Lurkers and active participants won up to 25% more auctions
  • Lurkers and participants paid prices that were as much as 24% higher
  • Lurkers and participants spent up to 54% more money in total
  • Active participants listed up to 4 times as many items
  • Active participants earned up up 6 times as much monthly sales revenue
  • For first time sellers who were lurkers and participants, 10 times as many of them started selling on eBay after joining the community

All in all the activities of the lurkers and participants resulted in 56% more sales during the year of the study – bringing in millions of additional dollars into eBay’s bottom line.

So can the results of this experiment be replicated in more traditional businesses?

Some people clearly think so, while others who used to be very enthusiastic about the business of communities are starting to become very skeptical.

Communities require a certain critical mass to get going – and not all companies have a large enough customer base to get to that point. They also require a lot more work and resources than most companies are willing to invest – to set up the infrastructure, to nurture the communities, to acquire content, etc.

Active communities of employees, customers and partners are clearly powerful management instruments that can dramatically improve core business processes like innovation, product development and marketing & sales. They can also backfire and have very negative impact if they are not managed properly, or set up wrongly. Before embarking on this path, companies have to truly understand the dynamics as well as the pros and cons of communities. They also need to find out if they have the resources and wherewithal to create their own communities or whether they should play in someone else’s sandbox.

Unfortunately, many will start the process by throwing technology at the problem – let’s just hope that those ignorants won’t destroy the market for the rest of us like email spammers destroyed email marketing and (un)ethical zealots are slowly destroying word of mouth marketing.

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Is global warming awareness reaching the tipping point?

October 23rd, 2006 francois Posted in social innovation No Comments »

the great warming.jpg

Right on the heels of Al Gore’s fabulous “An Inconvenient Truth” movie on global warming, another documentary is scheduled to hit theaters in the next few weeks – Great Warming. This one is sponsored by various corporations who position themselves as “green” marketers. As part of the whole effort they also developed a free booklet on climate change for 13 year old kids which seems like a great little book.

If only they could distribute that in classrooms it would help reach parents through the kids.



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All kinds of minds

October 9th, 2006 francois Posted in social innovation No Comments »

all kinds of minds.bmpRandy Antik told the moving story of how he was instrumental in the founding of All Kinds Of Minds with Dr. Mel Levine last week at the Businness Innovation Factory’s 2nd annual Collaborative Innovation conference.

Every year thousands of kids, who often times are not less intelligent, but more intelligent than average, suffer unnecessarily in the traditional learning environments as they learn differently. All Kinds of Minds is a non-profit Institute “that helps students who struggle with learning measurably improve their success in school and life by providing programs that integrate educational, scientific, and clinical expertise.” They achieve this by educating K-12 teachers about the science of learning and on how to provide a good learning environment for all students. So far the organization has trained over 30,000 teachers and they estimate that more than three-quarter-of-a-million kids have benefited from their program! One of the biggest coup for the organization came when Mayor Bloomberg announced that all NYC teachers would go through the program.

It is great to see how ordinary people with a passion can get involved and achieve success in providing for a good future for our kids – but where is our government in all of this? Other than trying to bring more faith into the classroom, or to try to confuse our kids about what constitutes science versus dogma…which of course we all know they are doing a good job at!

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When government and industry team together to make a better future for our kids

October 6th, 2006 francois Posted in social innovation No Comments »

Kamen_Johanssen.jpgRhode Island congressman Jim Langevin opened the second day of the Business Innovation Factory’s Collaborative Innovation conference yesterday with the announcement that the Business Innovation Factory, a non profit sponsored by the Governor’s office, in partnership with Dean Kamen’s FIRST Challenge, will now bring a robotics program to every high school in Rhode Island.

Through a series of robotics competitions, Dean Kamen’s FIRST (For Inspiration and Recognition of Science and Technology) project brings together industry partners and schools to stimulate kids and instill in them a love for everything that is science and engineering related. Born out of the realization that we are losing our future competitive edge by not educating enough scientists and engineers, the program has been found to have a dramatic impact on science and engineering education. In fact, a study conducted by Brandeis University found that 59% of FIRST participants want to pursue careers in science and engineering. Not only that, the same study found that there is a 50% higher likelihood that students who participated in the FIRST program will go to college! FIRST participants are also 10X as likely to take on internships during their college Freshman year, and they are more than twice as likely to pursue a science and technology career.

This demonstrates how industry and government can team up together to truly deliver transformational projects in the area of education. Hopefully many other states will follow suit!

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