5 Steps To The Conversational Economy
| posted by Nick RiceIt's no secret that the web is moving to a conversation platform. That's one of the major check boxes for all "Web 2.0" apps online. You can have a 2.0 look (big fonts, clean simple design, and gradient color buttons), but to truly be 2.0 you have to build your site around information sharing and user contribution.
Well that's easy to do if you're a start-up. But what's the benefit to Fortune 500 companies that are decades or centuries old? It's hard to wrap your head around this paradigm shift if you've been pushing information out to your customers for the last 20 years. In the old model, a company would buy enough airtime and/or print advertising to throw their message out in the market. It was a shotgun approach in the purest sense. Even as media-scarcity started to disappear, new targeting models came about to direct budget dollars to more appropriate medium. Think cable TV versus network or niche magazines versus the NY Times.
The good part was that you had a better shot at your audience seeing your message, but the message was still pushed out to the audience. Focus groups and the occasional talk to a sales person was the primary method of hearing what was going on with customers.
We all know the world has changed. The TV industrial complex is all but gone. That's not to say that no one will ever advertise on TV again. But we now understand that the expense rarely generates a worthwhile return on budget dollars. And there's only one true mass market TV event - the SuperBowl - and that has pretty much sucked from an advertising point of view for the last few years.
The music industry is falling apart. Why would a band sell their souls to a record label when they can get online distribution on their own? When was the last time you walked into a CD or record store and bought something? The world has changed.
Ten years ago we had no idea what Amazon and eBay would do the marketplace. They built systems around trust - not to mention the innovations around warehousing, shipping and distribution. Trust comes from real people giving recommendations, ratings, comments and reviews. It's not new. It's just enabled by global technology networks today.
So where do you start? How do you get on the bus? And guess what, if you don't you'll continue to see your profit slip. You'll continue to get bashed on Technorati (didn't know that was happening did you?). And you'll continue to feel the seismic shift underfoot until you fall in the crack.
So, here are my five ways you can start to revamp your business around the conversational web:
1. Make it easy for consumers to talk about you - good and bad.
If you sell products, let users submit reviews and ratings on your site. If you're making good products, you shouldn't have to worry because you'll see glowing reviews. If not, you've most likely found the source of your profitability or marketshare issues.
2. Customers are always right.
Even when they're wrong, in their heads, they're right. You have an opportunity to educate them but at the end of the day, they choose whether to stay with you or leave. You cannot control that. How you handle the education part makes a big difference in their decision.
3. Stop trying to please everyone.
Make an awesome product for one segment. Dominate that group of users. Turn them into your biggest advocates. When you try to make something for everyone, you end up with mush. Think Apple. The only way to survive the conversational web or economy is to have people talking about you. They can either love you or hate you, but if you're stuck in the middle, you're toast.
4. Understand that each customer counts.
Like Chris Anderson said, "the ants have megaphones." You have to recognize vocal supporters and address vocal critics. One bad review by an influential blogger and you've lost untold revenues. People don't trust mass media. They trust people like themselves. And if you feel like addressing individual users is too much hassle, you now see how far you have to come to participate in the new marketplace.
5. Do something worth conversation.
I'm not talking about a press stunt. I'm talking about developing products that people love. I'm talking about delivering service that is delightfully unexpected. Simply meeting expectations doesn't count anymore. There are too many options to pick from. That mentality comes from a scarcity mindset and we live in an abundant world. Create joy. Make a difference. Get people talking.
