RENEGADE THINKING from the CEO of Renegade, the social media & marketing consultancy that helps clients make more out of less by transforming communications into "Marketing as Service."

Socializing the Retail Experience

01/20/12

Climbing way up the tallest building in the world (Dubai’s Burj Khalifa,) one of Tom Cruise’s electronic gloves loses its grip and the hero of the latest “Mission: Impossible” thriller is forced to improvise. At this moment, the viewer is also reminded that technology can only get you so far, at which point it is time for some lifesaving human ingenuity.

Looking ahead to a panel discussion at MediaPost’s Social Media Insider Summit next Wednesday in Key Largo, I’ve decided to go out on a somewhat futuristic ledge here and imagine how social media could dramatically alter the retail experience. Since most of this technology already exists, add in a touch of creativity and this becomes my very own “Mission: Possible.”

Knowing: “So Nice to See You Again, Ms. Shopalot”
Since many of the ideas below are dependent upon you, the shopper, sharing your social graph with retailers, let’s get the basic enabling technology out of the way. Near Field Communications (NFC) already allow for the instantaneous transfer of credit/debit card data from consumer to retailer, so sharing your social info via NFC shouldn’t be too far away. Now the fun can begin.

Personalizing: “Is that Beyoncé Wearing a Maternity Gown in Your Size?”
Now that the retailer knows who you are, opportunities for personalization abound. Electronic signage reacting to your social preferences could display your favorite celeb wearing an outfit that was on your posted shopping list or simply point to the floor or dressing room where you can find a product selection in the colors you like.

Bargaining: “Would You Like Some Friends With That?”
In the brave new social world, it won’t be the size of your closets that determines access to volume discounts. Instead, it will be the size and collective bargaining ability of your social graph. For example, a “social” wine store could provide their 10% case discount on single purchases because your social network completed the case requirement together that week.

Hearing: “OMG, Best Song Ever”
Sorry Muzak, but the days of one-size-fits-all audio at retail are soon to be over. Social retailers could tune into the preferences of individual shoppers, piping out personalized streams of music built from shared Spotify or Ping playlists. A shopper hearing their favorite jam will be pumped up and in the perfect mood for a heaping dose of retail therapy.

Surprising: “That’s the Coolest Thing I’ve Ever Seen”
Projected touch screen displays (see demo of PicoMagic at CES 2012) combined with social data could completely transform the retail shopping experience. Entire walls could become interactive, allowing shoppers to sort through vast amounts of virtual inventory that is preselected based on social preferences. Sharing and comparing also would become a snap.

Out-smarting: “Dude, Where’s My Bar?
Social integration into products might just save us from ourselves if we’re so inclined. For example, if you check in at a bar, your car instantly will know to only start the engine after you pass the Breathalyzer on your smart phone. If you don’t pass the test, your phone will track down your nearest and most sober friends.

Rating: “That’s the Way (Uh-Huh Uh-Huh) I Like It… On Facebook”
Reviews of products and services are ubiquitous online, and it is only a matter of time until these move in-store. Now imagine that the products themselves can display reviews in real-time and highlight those from your social graph. Suddenly that banana-flavored craft beer your friends liked is just what the doctor ordered.

Klouting: “Tell You What I’m Gonna Do Just For You…”
Rewarding influential customers with superior service or free/discounted goods is nothing new, but social integration could take those perks to new heights. For example, once a retailer recognizes a customer with a high Klout score (or equivalent), discounts commensurate with their potential influence could be offered with a promise of more after the social sharing occurs.

Gaming: “Shopping is a Game, Isn’t It?”
Once a retailer can respond to your social graph, the opportunities to introduce game mechanics multiply faster than you can say “Batman: Arkham City.” Based on your in-store behavior, instant coupons could be earned or, perhaps more interestingly, virtual points could be aggregated for redemption in Farmville or another Facebook favorite.

Traveling: See You in Key Largo?
Clearly, this little imaginary excursion just scratches the surface when it comes to the true potential of integrating social media into real-world products, which is why I hope you’ll join me down in Key Largo next week along with fellow panelists like John Yi of Facebook and Lars Djuvik of Specific Media/MySpace. It should be a lot more fun than hanging from a window with a broken electronic glove…

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Teaching Social Business at San Jose State (with IBM)

01/13/12

Ben Franklin’s line, “well done is better than well said,” gets at the very heart of Marketing as Service.  If you want to truly engage your target to the point that they have a genuine desire to do business with you then you have to do something–it can’t be just talk.  A great example of doing something is IBM’s recently announced collaboration with San Jose State University with a program they call The Great Mind Challenge.  This program brings together students, teachers, IBM’ers (as mentors) and local companies that seems to be a win/win/win/win for all involved.

As part of my background research for a story on this program (see FastCompany.com), I interviewed Larry Gee, the SJSU instructor working with IBM to teach “social business” to a select group of undergrads.  I think you’ll find what Gee has to say about this business/academic collaboration quite interesting.

DN: Can you give me a little background on this program from SJSU’s perspective?
SJSU,  College of Business, has always brought innovation to the classroom so students can learn, apply, and differentiate themselves in the business world.   SJSU and IBM has a long relationship over the years.  It is only natural that ideas are bounced back and forth between us;  how we can make a difference when preparing the next generation of leaders.  Bringing social business into the classroom was one of those ideas that fit the innovation framework.

DN: Why did SJSU decide to collaborate with IBM on this project?
SJSU, College of Business,  decided to collaborate with IBM on this project because Social Business is a critical skill that students need to have to be competitive in the market place.   Social Business is a transferable skill across multiple disciplines ie business, bio-sciences, engineering, humanity & arts, etc.  Students worked on a real business problem, real time, to learn and apply social business tools and processes.

DN: Do you have collaborations with other large corporations?
Yes, we have collaborated with other large corporations such as Cisco, Google, Microsoft to name a few.

DN: If you were talking to another educator at a different university who was considering a similar collaboration, what advice would you give them?
My advice:  1) Identify key social business partner asap.  This is critical because a real life component is needed to reinforce key concept and process.  2)  Plan quickly with a clear course work and administration buy-in roadmap for execution in 60 days.  3)  Execute plan and have class up and running by next term.

DN: How are you evaluating the success of this program?
Students must be able to understand and apply social business tools/process to a real life problem.  The program success is measured on how well students learn, grasp, apply, and demonstrate how social business can be used in a business environment to increase competitive advantage or improve business process cycle time.

DN: How have students responded?
Students response has been great because they have already been exposed and used social media, Facebook, blogs, bookmarks, wiki, to name a few,  basic components of social business, at a very young age.   What is new then?  They are able to build a social business environment using various social media tools they already know and use, but this time, in a business setting.

DN: Can you speak to the advantages of having IBM experts mentor your students?
Certainly.  Having a subject matter experts available to talk, demonstrate, and relate to actual projects are key.   One can read articles and talk about them in class.  But when you are given access to the latest  materials and platform to create a social business environment then this is collaboration at its highest.  Mentor is only a few clicks away to kick around ideas and bring those ideas to reality.  This is where academia  and business intersect.

DN: Is there a risk with a program like this that it will be perceived more as a marketing ploy for IBM than a more company-neutral business course?
I don’t believe the program is a major marketing ploy but rather a  business neutral course because majority of tools and contents used were not IBM but rather current tools such as Facebook, Twitter, Bookmark, wiki, etc.  GBS, IBM Business Partner, provided the real life problem for students to do a deep dive into their social business space.

Q&A w Nina Miller, Gibson Foundation, Best Gig in the World!

01/12/12

GuitarTown, one of the coolest examples of Marketing as Service I’ve yet to come across, was the brainchild of Nina Miller, now the president of the Gibson Foundation. I had the pleasure of catching up with Nina late last year at the headquarters of Gibson Guitars in Nashville (pretty cool, right?). My interview with Nina follows and though it is long, if you were ever wondering how your company could do well by doing good, it is well worth reading in its entirety.

DN: Tell me where the idea for GuitarTown came from.
Soon after I moved to Nashville, I saw these little catfish sculptures around town as a public arts program, and I thought, what do catfish have to do with Nashville? So I put together a proposal. And, thanks to the vision and support of our CEO, we were able to start the GuitarTown program – it launched here in Nashville in late 2003.

DN: Why did you think this would work in Nashville?
Because Nashville is such a great music community, obviously, but there are many other aspects to this town, and I thought it would be great to be able to pull the businesses, visual artists and musicians together for a philanthropic cause; so that the 10-foot-tall sculptures would be artistically designed by visual artists, partnered with a business or corporate sponsor and then signed by a celebrity – eventually to be auctioned off for charity.

DN: How do the guitars get sold and where does the money go?
After the auction gala, the funds raised are divided among a variety of non-profit organizations in the host city, so it would stay in the community where it was happening. We’ve raised over $2 million dollars for charity and, of course, it’s great branding for Gibson and Gibson Foundation. 100% of the funds that come into Gibson Foundation from sources outside of Gibson go back out to charity, none of it goes to administrative, or fundraising, that’s all covered by corporate. We’re very fortunate. Many non-profits take up to 20%, for their admin fees so we’re very fortunate not to have to do that, and we try to support a variety of different kinds of organizations in each city.

DN: What other cities have hosted GuitarTown?
Nashville GuitarTown was the first, and then we did Austin, London, Miami, Orlando, and a smaller project, not of 10-foot-tall guitars but of regular size artistically designed ones, that was called Cleveland Rocks. Now we’re doing GuitarTown Sunset Strip in Los Angeles, and that auction is on Dec. 3rd, 2011.

DN: So let’s break it down into a few components; so there’s the creation portion of it, where you have how many guitars? It varies from city to city. Usually it will be no more than 50, typically 25-50, because you can’t really have an auction, a big auction, with fewer products than that. In Nashville we did a “call for artists.” We had a panel that juried all the applications — over 150 applications, and narrowed it to the final 35-40, , but we also included some regular sized guitars, so some people who were unable to design a 10-foot-tall guitar were able to participate as well.

DN: Being associated with Gibson is a cool thing, that’s got to help.
Yes, it opens a lot of doors.

DN: So you’ve got the first phase, which is identifying the artists and announcing the program, what’s next?
Announcing the program, identifying the visual artists, and we were getting video, following a couple of the artists through the process, because it’s very interesting. You can’t do this in a day. I’ve decorated normal size guitars; it takes a good, long while just to do that. To do a 10-foot-tall guitar and to do it well, I would imagine could easily take several months, so these visual artists are doing this, really, for free. We give them a small stipend; we provide opportunities through various arts stores in the area for them to get their supplies, we encourage them to get sponsors for their project as well, because it can be costly.

DN: Is there resistance at all from the cities to say, “well wait, this is Gibson, they should be paying us for this exposure.”
We’ve never run in to anything even remotely like that. We have been welcomed with open arms for beautifying the cities and bringing positive attention.

DN: So it’s a win/win for them?
Right, and although it could be labeled as cause marketing, because it is branding with 100% of the proceeds going to charitable causes; it remains at its core a very charitable project. If we bring in $500,000, or whatever comes in, all of that will go to the designated charities.

DN: So there a display period and then an auction?
Yes. They are strategically placed around the city, or where the city has committed space. Here in Nashville I worked with Public Works to try and determine where we could place them, and we worked with one of the art schools to help keep them in good repair. They also have to be anchored down with heavy sand, and these are not small things, and so, yeah, you work with the different departments of the city. I first asked for permission from the Mayor’s office, and then I kind of figured out from there where to go with it, who to talk to and who to meet with.

DN: What’s the planning cycle for one of these?
For Nashville, I started planning either late 2003 or early 2004, I’d have to go back and look to be certain, but the first thing I did after I got various approvals, was to cold call sponsors, people and businesses I thought would be willing to sponsor the art work and to have it in front of their building. Loews Vanderbilt was the first to say yes, I remember that. And after that it was really easy. And I had help. The Country Music Hall of Fame, BMI and ASCAP were all helping with meeting and event space, we had a committee, that included people from the city as well as the art and music community. A good group of about 10 people to oversee it. We wanted it to be a community effort. And I think it really was. Each city has handled it a little differently, but that was our prototype.

DN: A lot of companies do something cool and then they walk away from it, and say, “what’s the next thing we can do?” What made you stick with this one?
Well, part of it is because the Foundation is in place and we do have this vehicle to promote charitable giving. That’s a big part of it. It’s also great PR and visibility for our iconic brand and it brings much needed attention to several charitable causes in each city.

DN: What caused you to keep going?
I think it was just the program’s success. Other cities came to us and said, “Can you do it here?” I still have people emailing me, even just last week saying, “would you consider here?”

DN: How much does one of these guitars end up going for?
It really depends. When you have one signed by Paul McCartney, and one signed by Dolly Parton, they can go for quite a lot. It depends on the art and the artist – and, of course, the buyer.

DN: So PR is one of the primary ways of measuring success?
Right. I was overseeing the events for Gibson when this started, and then I took off for a year, but stayed involved because I was very dedicated to this program. The person that took it over at that time was our head of PR and she did very well with it as well. So, there is the PR aspect, and the Foundation – the philanthropic aspect. That is very important to all of us here, that’s the key thing for me.

DN: So if a like minded company was thinking of embarking on a program that had a same idea but it was different and appropriate for them, what advice would you give them, in terms of making something like this happen?
Well I can tell you that when I wanted to make this happen I contacted someone in Chicago, I think, and asked for any guidelines that they had so that I could at least have a place to start. There are obviously some rules that we have in place about the artwork: nothing profane, nothing sexual, political or religious, no branding other than our headstock. We’re doing it to create art and raise funds for charitable causes.

I would also recommend finding an image that is meaningful to your city. Music is meaningful to many cities, and in Nashville, LA, Austin and London, it’s a big part of the culture. And find something that connects to the people’s passion. You want to get to the heartstrings of people, make them feel like they’re involved and part of something fun and meaningful.

DN: Music is so universal that you can go to so many different charities and do things like that. I would think that you would focus mainly on music education.
Most people think that and it’s certainly part of our mission, but our CEO, and the Gibson Foundation was his vision, is very philanthropic. He really wanted this to focus on children, globally, to provide opportunities that wouldn’t otherwise exist without the support Gibson Foundation provides. He feels that there is a responsibility on a corporate level give back, and he doesn’t just talk it, he walks it. He’s been very, very supportive. And Dave Berryman, the co-owner and President of the Gibson, oversees the Foundation, they’re both very, involved and very supportive of this.

DN: Tell me a bit more about the PR coverage you’ve received for GuitarTown.
It always gets coverage in every city when it’s happening. Typically a visual artist will be filmed while they’re in the process of creating the sculpture. When the celebrities come out to sign the guitars, that’s another opportunity, and there’s generally a lot of coverage of that on television, in print, on the web, everywhere. And then there’s the gala, and the gala always gets coverage because that’s a big deal.

Sometimes we’ve done red carpet for celebrities, sometimes we just throw the party. It’s all good. And everyone who comes is in great spirits, because they’re there part of something fun and know that when they’re giving, it’s going to charity.

DN: Do you find yourself, when you tell people what you do for a living, that they go, “oh my god that’s the coolest job I’ve ever heard of”?
Every job I’ve had at Gibson, I’ve had that. And here’s the funny thing, every job I’ve had here I’ve actually said, “this is the best gig in the world.” When I started with Events, I had the best gig in the world. When I was head of Entertainment Relations, I was like, “Oh this is heaven.” When I started with the Foundation, I knew it was the best. But I have thought every gig I’ve had here was the best.

DN: That’s amazing. So tell me why it makes it the best, because that just became my headline, The Best Gig in the World. What makes it the best?
You get to do good, you get to be part of something that’s making a major impact in the world, and it’s done in a company as great as Gibson. It just doesn’t get any better than that.

“Either Write Things Worth Reading or Do Things Worth the Writing”

01/11/12

One of my favorite bits of wisdom from my favorite founding father, Ben Franklin, is:

If you wou’d not be forgotten
As soon as you are dead and rotten,
Either write things worth reading,
or do things worth the writing.

I believe the folks at IBM are doing a lot of things “worth the writing,” which is why I seem to be writing about them all the time.  That and the fact that they treat me like a journalist by providing access to interesting people within their organization.  One such person is Michael Riegel, VP of Academics & Startups, who provided his insights on a just announced “social business” curriculum they are coordinating with San Jose State University.  As part of something IBM calls The Great Mind Challenge, I believe this is an enlightened example of how companies can do well by doing good.

DN: Please give me a brief description of The Great Mind Challenge?
In 2012′s The Great Mind Challenge, students investigate the emerging sphere of social business using the real-world example of an IBM Business Partner. Working in teams over a period of two months, students conduct a social business assessment of the partner organization, and then build a prototype social business solution based on their recommendations. Students receive education, tuition and mentoring from social business thought leaders, authors, top executives in the social business and of course IBM social business experts. Top-performing teams during the Challenge receive prizes and the potential for internships. The social business skills program with San Jose State University was the first time this challenge was offered in the US. However, globally, over the past several years, The Great Mind Challenge has attracted over 100,000 students and hasn’t only focused on social business skills, IBM is also mentoring students in key areas of technology and engineering including analytics, programming and software development.

DN: What is the primary goal of the collaboration between IBM and SJSU?
IBM and SJSU are collaborating to help students develop market-ready, social business skills. To be successful in today’s business environment, students need to be able to demonstrate that they can turn their personal, social networking savvy skills along with the things they have learned in the classroom, into real-world business solutions. The Great Mind Challenge presents students with an opportunity to develop their collaboration and problem-solving skills while working on exciting, real-world business projects. Students who participate in the Challenge have the opportunity to be recognized for their ideas and talents, while also working to make our planet smarter through the use of social business technology.

DN: Why San Jose State? Does its location in Silicon Valley play some role?
There is a long-standing relationship between IBM and SJSU. Beyond this exceptional relationship, there is so much innovation around social business taking place in the Silicon Valley area. For example, IBM Almaden Research Center, where many of IBM’s social business researchers and consultants are pushing the envelope and helping organizations develop the necessary skills for social business adoption, while breaking down the traditional barriers that might stunt adoption success. With this in mind, SJSU was seen as a logical fit for the pilot of this social business skills challenge.

DN: What was the planning cycle for the collaboration between IBM and SJSU? When did the initial planning start and how has it evolved over time?
Planning for the project with SJSU started in Spring 2011. IBM worked through the summer recess with faculty at SJSU to develop various parts of the social business skills program, including the education (curriculum) and measurement. During the course of the program we fine-tuned the delivery of educational webinars and online feedback sessions with students. As we move into 2012, and expand the social business skills program to include universities across the country, we will continue to modify various aspects of the program to ensure students get as much from this program as they possibly can.

DN: What are the metrics for success for the new IBM/SJSU program from IBM’s perspective?
First and foremost is the delivery of market-facing social business skills. When a student tells us they were able to progress through the interview stages and finally get a job in part because of the social business skills they learnt through The Great Mind Challenge, we take this as validation for this program and IBM’s vision of a Smarter Planet engendered by social business. We also look at the number of students who successfully complete the program and were happy to see that 100% of the SJSU students made it through to the finish line.

DN: The SJSU program involves a number of participants including SJSU faculty/students, IBM employee experts as mentors and business partners as real-life test cases. Can you speak to the challenges of coordinating all these players as well as the benefits of having so many different levels of participation?
We knew at the outset that we wanted the focus for this social business skills challenge to be as rich as possible. Bringing in IBM business partners helps tell a broader story and provides students with the opportunity to explore social business from different angles, different organizations and different business needs. IBM worked closely with SJSU faculty and students to ensure that the training was appropriate and not too “vendor-centric” as to strip it of its application throughout the market. Somewhat fittingly, we don’t feel a program of this scope would have been possible without having social networking tools available, whether it was collaborating on the design of educational materials, or handling project management across businesses and faculty. That’s where IBM’s market leading social business technology created real value for the students.

DN: Since the program includes training on IBM software and promulgates a major IBM initiative (i.e. social business), is there a risk that it might be perceived as one big marketing campaign? Or asked differently, is there a fine line between doing good for the community and doing too much good for the brand?
IBM’s social business vision has a broad scope that goes beyond pure technical adoption. This is one of the messages we are trying to get across with this challenge – social networking can fundamentally change the way businesses operate and create value, but it’s not just about adopting the technology. An organization must create a business culture that fosters transparency, sharing, and trust from its leadership down to those employees out in the field. Throughout the challenge with SJSU, we also encouraged students to explore and consider a variety of social networks inside and outside the firewall. They learned that a social business isn’t just a company with a Facebook page or Twitter presence, it’s about taking advantage of social internally, melding these social networking concepts into traditional business processes to fundamentally change how we do work and create business value. Yes, we did show the students how tools like IBM Connections can be used for social networking within the firewall, but for the continued success of the program, IBM was and is focused on developing and building social business skills that are not exclusive to any one product or technology.

Final note: stay tuned for my related article about “doing well by doing good” and interview with Larry Gee, the professor at San Jose State University who is responsible for teaching the “social business” curriculum discussed above.  And as always, if you found this post of interest, feel free to subscribe to this blog.

What Great Apps Can Teach Brands

01/10/12

Created with ColorSplash app

Just in case you missed this on MediaPost, here’s an overview of some interesting apps and what brands can learn from them.

I flat out love apps. Every time I discover a new one that enhances my life in some small way, I feel a burst of joy that demands sharing. Obviously, I’m not alone in my enthusiasm. Last week, Google announced the 10 billionth download of Droid apps, and Apple said they hit 18 billion downloads back in October. That’s a lot of apps to love.

Needless to say, not all of these apps are getting used. Like most, I download many more than I end up trying, let alone using regularly. No, it takes something truly special for an app to gain traction. Those that do find purchase, however, can teach numerous lessons to brands operating outside the app-happy universe.

Do One Thing Really Well
Despite Jim Collins’ advice for companies to have a “hedgehog” concept, very few brands have the discipline to stand for one thing and stick with it. Colorsplash, a beautifully restrained app, is a basic editing tool that dramatizes your photos by removing all the color and then filling in specific objects with your chosen hue.

Don’t Hang Out All By Yourself
Though the evidence is clear that tapping into social network APIs like Facebook and Twitter can build awareness and even drive sales, too few brands are doing it. Successful apps like Instagram, another photo modifying app, make ease of sharing across social networks a fundamental usage component.

There Are Still Unmet Needs to Be Found
Brands must continually strive to improve their offerings by identifying unmet needs. One trailblazing app is ZocDoc. The ingenious app allows you not only to locate nearby doctors that accept your insurance plan (in 13 US markets now) but also book an appointment at a specified time. Think OpenTable for doctors.

A Little Hand Holding Goes A Long Way
Some products are complex by nature and finding the added support you need to understand them can be challenging. Ringtones, a fun app that allows you to convert any song in your iTunes library into a ringtone, is a bit complicated at first, but knowing this, the creators also offer a great demo video that makes learning the 3 requisite steps a snap.

Extend the Utility You Already Offer to Mobile
Lots of brands offer great resources on the web that aren’t yet mobile-friendly. This is a big oversight. OpenTable.com, my favorite online restaurant reservation service, has a brilliantly functional iPhone app. Integrating nicely with iPhone GPS, this tasty app helps you find a restaurant with open tables and secure a reservation in less than a New York minute.

Form is as Important as Function
Today, having a product that works is not enough – aesthetics matter, too. To understand this notion, just look at the new Flipboard app for iPhone. The design experience is the brand. Never before has information consumption on a phone felt so joyously elegant, so positively delectable that mere words don’t do it justice.

Turn Your Customer Into the Star
For years brands have been saying the “customer is king” while spending the bulk of their marketing budget on self-congratulatory ads. Songify, a beyond-genius app that turns spoken words into a melodic song, is silly but addictive because it plays into my desire to be an acceptable, if not talented, singer rather than a tone-deaf writer.

Tap Into Your Customer’s Emotional Needs
All too often, brands focus on the practical needs of their audience, overlooking the irrationality that frequently guides behavior. One new app that appeals to our softer, whimsical side is Qwips. Built around personal voice recordings, Qwips allows you to manipulate your audio with effects and pictures sure to touch the heartstrings.

Deliver a Little Bit of Magic
Admittedly, not every brand can be Disney or Apple and find the magic in all they do. But that doesn’t mean you shouldn’t try. An app called Drinks and Cocktails delivers my kind of magic by helping me figure out what special cocktail I can make based on what’s in my liquor cabinet. The Sidecar I made Friday night was indeed heaven-sent!

Another marvel of ColorSplash.

Final Note
The average iPhone user has over 100 apps on their phone and spends over an hour a day using them. As apps become indispensible, consumer phone usage increases, as do their expectations for all mobile experiences. If your brand doesn’t have a mobile-friendly site, then you better make one fast. Beyond that, dare I suggest: ‘Appy New Year!

Why Build a Community From SAP’s Top Community Builder

12/9/11

One of the disadvantages of writing an article like 8 Bold Resolutions for Marketers is that you simply can’t go into detail on each of the topics covered.  The 5th resolution, “I will carefully cultivate my customer community,” was based on my extensive interview (below) with Mark Yolton, SVP of Marketing at SAP.  Mark is in charge of the extraordinarily successful SAP Community Network and not surprisingly, can and does make a great case why other marketers should cultivate their own customer communities.

DN: What do you think have been the keys to SAP’s success with the SCN to-date?
First, we began with a targeted audience and a focused mission: to help developers achieve success with SAP’s platforms and solutions. Only after we had critical mass in that audience did we expand to include a broader base, with the expansion of the target audience driven by the community itself, and features and functionality prioritized based on what our target community members wanted or needed.  Essentially, we were pulled along by serving them, rather than pushing them into new directions we thought interesting, with the success of our community members always as our guide.  Over time, we expended from the base of developers, to sysadmins and IT professionals more broadly, then to business process experts and project managers who straddle IT and lines of business, to business analysts and dashboard designers, and then to include university students and professors – all drawn by community member and market needs.  We moved from basic discussion forums which were appropriate for basic Q&A, to longer-form blogs, to a wiki which is more flexible for projects and work groups… and included aspects of gamification, a career center with job board when the economy took a downturn, to an outside-in innovation crowdsourcing space. Constant evolution through monthly updates and larger advances, based on active listening and responsiveness to community feedback.

DN: What are the real advantages of having a user community?

The advantages depend on your vantage point…

Our individual members report that they are more productive, finding answers and solutions faster, and of higher quality, by being able to consult with other customer and partner members of the 2 million-plus SAP community.  Individually, they elevate their expertise, and put it on display where the quality of ideas – rather than other factors – helps people rise to the top and get positive attention.  Their careers accelerate, their professional horizons expand beyond their city, or country, or industry.  On a more visceral level, there’s also an energy that comes with connectedness; members are energized by each other, the back-and-forth of interaction, the excitement and enthusiasm, and the feeling of being part of something bigger and more important than each of us individually … it’s a contagious excitement and an immeasurable but palpable sense of belonging and shared value.

Our SAP customer companies who have employees participating in the SAP community gain open access to subject matter experts for fast implementation and issue resolution so their projects are completed faster, and with higher quality, which helps them reduce their  operations costs and total cost of operations.  From the connectedness across industries and across global commerce, they are able to increase their business and technical knowledge and insight, make business connections within the vast SAP ecosystem to expand their market influence, and have an easier time discovering, evaluating, and accessing SAP and our partner solutions for more advanced implementations. They even have a greater ability to keep up with emerging trends, and to influence SAP and its ecosystem through participation and connections.  And prospective customers in the solution evaluation cycle have the ability to interact with active SAP customers to get their unfettered feedback and advice – and to get a sense of the extraordinary value and unique benefit the SAP community provides.

SAP partners have the opportunity to establish themselves as subject matter experts, and to gain access to the entire global universe of more than 170,000 customer accounts in our installed base for more fine-tuned market insight as a way to focus their solution offerings, and to keep an eye out for sales opportunities.  They can forge relationships with other SAP partners for solution co-development and joint go-to-market, and even post-sale they can call upon a wider set of experts to help speed problem resolution.   We can also demonstrate SAP’s unusually strong commitment to the SAP partner ecosystem through all of these efforts, as well as our work and investments to generate and pass along leads to partners – it strengthens those partner ties with SAP and the value of partnering with SAP, so we gain more of the best partners to augment and extend SAP’s core.

For SAP as the host of the community, we gain faster adoption and ramp-up whenever we introduce new or upgraded products and services to the market, since our reach and influence are huge and immediate.  As a company, we gain speed, agility, better decision making, and reduce our risk because we gain rich insights into what our customers really want and value, gleaned through our direct connections and fluid feedback loops and listening posts.  We can improve  product and solution quality through our customers’ direct outside-in feedback on our products, services, processes, and  customer experiences.  We reduce the cost, complexity, and time to provide core support while maintaining high quality – and can plow those savings back into better community mechanisms and product innovation.  Those and other forms of interaction lead to higher customer satisfaction and loyalty, better customer retention, up-sell and cross-sell opportunities on the top line, and efficiencies through cost savings on the bottom line.

DN: Would it be as useful (to you or your members) if it wasn’t so large?
There’s a certain critical mass that needs to be built in order for a community to be vibrant, diverse, distributed, and valuable.  If we had a very simple product or a homogenous market, we could deliver benefits with a small member base.  But SAP is a global company, with a vast array of products and solutions, operating in nearly every country and territory on the planet, every industry, serving every aspect of global commerce.  In order to serve our diverse market, we need a very large member base to gain access to experts in everything from Finance to HR lines of business, banking to mining to consumer-goods industries, in Europe and South America and Asia, and across every solution and sub-module of SAP’s portfolio.  We hit the tipping point at about a million individual members several years ago, and we continue to grow at about 40,000 new members each month.  Those kinds of member numbers give us depth and diversity of expertise in just about any relevant topic of interest to our SAP community.

DN: If you were advising a fellow CMO who was thinking of setting up a community today, what would tell him/her? Any shortcuts?
Without hesitation, I would advise any other CMO to lean forward and start building their community without delay, because the value far outweighs the cost, and it is the future.  However, it’s not easy, simple, or inexpensive, and it’s not something that you can build, launch, and then let go.  Community is part science – the platforms, plumbing, apps, and underlying infrastructure – and part art – the policies, practices, programs, and people-oriented components.  It’s uncharted territory, so you’ll need to navigate areas of company rules, emerging legal precedents, daily new learnings, and plenty of antibodies.  It’s not something that you can short-cut; authenticity and transparency and long-term relationships and commitments are key. Get an expert on board who has experience, form a core team to execute, and be personally involved.

DN:  Lots of communities are started (like LinkedIn groups) but very few gain traction.  Why do you think that is?
Communities take work over the long-term, and it’s clear that not everyone who starts one is expecting, anticipating, or willing to put in the time and effort to make them work.  There are hunters and farmers, and communities require aspects of both … hunters to undertake and execute big but limited-time and scope projects, launch them, and move on … short bursts of energy, big pay-offs, motivated by the adrenaline rush of achievement and covering alot of new ground fast; farmers who will toil day-after-day, pruning, nudging, nurturing over the long-term… almost imperceptibly small moves but with staying power, persistence, and timeframes of months and years.  I believe that some communities fail because they don’t take the longer-term view, expect results too fast, and don’t deliver enough value to their target audiences to warrant their members’ continued attention and deep engagement.

DN:  How do you see communities evolving in the next few years?
The platforms and tools have evolved, now, to the point where almost anyone can participate; you don’t need to be a tech guru to participate.  This means that for companies like SAP, we can move from technologist-based communities, to business-oriented communities, right on to communities of c-level members.  We will see both public and private areas where open discussions can occur, whether shared with the world or with a select group of trusted members.  We will see more companies hosting communities of their customers and partners, where those groups really set the agendas, guide the company to build products or to set standards that better suit the needs of the customers.  We will come to expect, as consumers and customers, that the brands we do business with provide the benefits to us of online communities.  And companies will see that the benefits of hosting customer communities will differentiate them, and then will be an expected way of doing business, with tremendous value to everyone who participates.

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