9:00 AM Friday November 13, 2009
ANDREW MCAFEE
You’ve probably heard by now that “your brand is no longer yours.” The assertion’s based on simple math. In the era of blogs, discussion boards, Facebook, Twitter, and other Web 2.0 tools, virtually everyone can get online and talk about your company and its offerings. As a result, the amount of information your marketing and PR departments can generate is only a small percentage of the total volume of content on the Internet about your firm.
What’s more, if some of the external voices become as popular, or perish the thought, more popular than your official voice, then they’re going to show up high in organic (as opposed to paid) search results. For example, I just typed “Hummer” into Google. The second result is the Wikipedia entry about the vehicle, and the fourth one is a site full of user-submitted photos that are not likely to please the brand’s owner.
Every large organization I’m aware of is highly sensitive about its brand, and few are happy about losing or even sharing control over it. They react to the reality of Web 2.0 era in many ways, but most of them amount to some form of trying to exert or reestablish control. Some move their mass media campaigns online to counteract the outside conversation. Some try to influence the influential external voices. Many companies monitor the new online conversations, and also participate in them by setting up official Facebook fan pages, Twitter accounts, and so on. More than a few try “sock puppeting” or having someone on the payroll pose as an outsider with nothing but good things to say. This rarely works; Web users are reasonably good at sniffing out inauthentic voices and ignoring or blowing the whistle on them.
A few large, brand-sensitive organizations have taken another approach; they’ve accepted their lack of brand control and have actively encouraged insiders to join the online conversation without making any attempt to censor or even guide them. They’ve said, essentially, “You know us really well. Talk about us on the Web. We want the world to hear what you have to say.”
Does that sound risky to you? Can you envision dozens of ways in which that approach can go horribly wrong? Me, too. And yet, I keep reading stories like the recent one in the New York Times about MIT’s student bloggers, and they make me appreciate the brilliance of this approach.
Five years ago Ben Jones, then the director of communications in MIT’s admissions office, added a single student blog to the office’s web page; there are now eleven of them. Student bloggers are selected after submitting writing samples, and are paid $10 per hour.
I was an undergrad at MIT (just a few years before the blog era) and I assure you that most students there would treat the administration’s suggestions about appropriate self-expression about the same way Roger Federer might treat the local club pro’s tips on improving his forehand. The admissions office understands this, and wisely doesn’t try to edit posts or comments.
And not all content reflects glowingly on the institution. One blogger complained about problems with the resident advising system, while another wrote that she’s felt several times that she didn’t fit in at MIT. She also went on to say, as the Times story reports, that “MIT is the closest you can get to living on the Internet…IT IS SO TRUE. Love. It. So. Much.”
MIT could spend lots of money on their brand and image and never come up with a better advertising tag line than “The closest you can get to living on the Internet.” Indeed, part of what makes it so effective is not just its clarity and cleverness, but the fact that it’s being shouted across the Internet by a current student who is clearly speaking in her own voice. It’s just tremendous marketing; the admissions office couldn’t ask for, or pay for better.
Putting student blogs front and center is a mark of MIT’s confidence: confidence in itself as a healthy organization where the pros outweigh the cons, confidence in the members of its community who represent it to the world, and confidence that the people who come to its website will know how to interpret the information they find there. According to the Times article, potential applicants to the university are “less interested in official messages and statistics than in first-hand narratives and direct interaction with current students.” Does that sound at all like your customers?
Is your organization as confident as MIT? Are you ready and willing to let more internal voices communicate and shape your brand over time? If not, why not? Is it that you don’t trust your people, or your customers? Is it that you don’t want any negativity at all to appear on your digital properties? Or is it that you’re afraid there might be too much negativity?
I don’t think these are unfair questions, or trivial ones. Their answers will reveal not only how your organization sees itself, but also about how it’s responding to a world of reduced control over brands, conversations, and messages. Leading organizations are embracing this trend and, like MIT, they’re giving up tight control even when and where they don’t have to.
Lagging organizations are holding on to the illusion that tight control is still possible.
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The original post is from the Harvard Business Review and can be found here. It was written by Andrew McAfee. Andrew McAfee studies the ways that information technology (IT) affects businesses and business as a whole. His research investigates how IT changes the way companies perform, organize themselves, and compete. He coined the phrase “Enterprise 2.0” in a spring 2006 Sloan Management Review article to describe the use of Web 2.0 tools and approaches by businesses. He also began blogging at that time, both about Enterprise 2.0 and about his other research. He also maintains a Facebook profile and Twitter account.
McAfee is currently a principal research scientist at the Center for Digital Business in the MIT Sloan School of Management, and a fellow at the Harvard’s Berkman Center for Internet and Society.
He received his Doctorate from Harvard Business School, and completed two Master of Science and two Bachelor of Science degrees at MIT. McAfee is the author of Enterprise 2.0: New Collaborative Tools for Your Organization’s Toughest Challenges (2009, Harvard Business Press).
Tap into Your Super-Consumers
Tap into Your Super-Consumers
8:39 AM Wednesday November 25, 2009 by Eddie Yoon
In any product category, roughly 10% of the consumers account for more than 50% of the profits. These super-consumers, as we call them, are the hot dog buyers who eat five pounds of hot dogs a month, wolfing down as many as 4 per sitting. They are the stapler users who own 8 different staplers. They know what they want, they’ll buy a lot of it, and they’ll pay a premium for it. They’re passionate and engaged — sometimes even a little obsessive — and they exist in every category, from soft drinks and air travel to fast-food and oral care products. Many managers assume that their super-consumers are a unique species whose extreme appetites say little about what more casual consumers might go for. They also figure that their super-consumers are already sated, so there’s no point in probing them further. That’s a mistake.
We’ve found that companies that listen to their super-consumers and use their insights to refine their message ultimately grow sales and margins across all segments. These companies aren’t trying to convert light users into heavy users. Rather, they’re figuring out what it is the super-consumers like so much and then offering it to them. Invariably, acting on the insights from those consumers who spend disproportionate time and energy in the category uncovers insights and innovations that encourage trade-up behaviors across other segments as well.
Consider this: A stapler company we consulted for found itself heading for a price war with competitors. What to do? Market research with its community of stapler groupies — users who stapled ten times as much as the average person — found that they valued anti-jamming above all other features, and would happily pay a premium for high-performance, jam-free staplers. Running with this insight, the company redesigned its point of sale to emphasize electric staplers and refocused its marketing message across all products on benefits (like reliability) rather than features (like color). The strategy boosted sales by 20% and improved margins overall. Not only did electric stapler sales increase (fueled by super-consumers), but the merchandizing strategy emphasizing the benefits of trading up increased sales of heavy-duty manual staplers across other segments.
Or consider how a refrigerated-meat manufacturer used super-consumer feedback to develop a fuller understanding of its true core customers — teenage boys and their moms. Their heaviest users, they found, were not summertime backyard grillers, as they’d thought, but households with teenage boys who eat hot dogs for after school snacks. The boys liked the taste of the all-beef products, and how filling and easy to cook they were. The moms liked their quality (certainly compared to the junk teenage boys normally eat). Armed with this insight, the manufacturer focused its portfolio strategy on all-beef products, emphasized taste at point of sale, and shifted its marketing to extreme sports and gaming environments to build awareness among teen boys — who’d push their moms to buy the brand.
While these decisions were grounded in the insights of the super-consumers, the strategy ultimately paid off across all segments. The brand grew over 40% in three years, increased its share of household penetration and successfully usurped the number one position in the category. While super-consumers accounted for more than 40% of that growth, those weekend backyard grillers drove a nearly equal percentage, with the remaining 20% realized through category expansion. Delivering the optimal product to super-consumers was certainly the primary goal, but in the process the brand succeeded in commanding a price premium and encouraging trade-up behavior across other segments as well.
Has your company tapped the wisdom of its super-consumers? Are you willing to listen to them — and respond?
Eddie Yoon is a Principal with The Cambridge Group. During his more than ten year tenure with the firm he has helped global clients across industries leverage super-consumer insights to fuel profitable growth.
This post is originally from HarvardBusiness.org and can be found here.