What SMEs cannot do without..........

As per the Latest SME Buzz in Economic Times, Top 10 disciplines that SMEs cannot do without include-
1. Customer Relationship Management
Tools that companies use to interact with customers which includes Marketing, Employee training and special purpose CRM software.
2. Knowledge Management Tools
Tools for managing knowledge in organisations for supporting , creation, capture, storage and dissemination of information to enable employees to have ready access to organisation's documented base of facts, sources of information and solutions.
3. Enterprise Resource Planning
Systems which are intended to manage all the information and functions of a business or company from shared data stores.
4. Online Collaboration Tools
5. Information Security
6. Social Networking
7. Payroll management tools
8. Search Engine optimisation
and many more........

Cocreation through social media

In an era where companies talk about the new form of value creation-Co-creation, where companies are moving away from a company and product centred value creation to an experience centred value creation (Prahlad,Ramaswamy), participation is becoming a desired ingredient. Objectives of co-creation include identifying the right customer set to interact and after identifying the requirements of this customer set, alter product offerings as per requirement of the same.

Some interesting observations from research (Prahlad,Ramaswamy) on Co-creation.
1.In the emerging economic model of value cocreation, consumers and companies routinely collaborate to create personalized value.

2. Cocreation, is not the transfer or outsourcing of activities to customers or a marginal customization of products and services. It isn't scripting or staging of customer events around the company's offerings. Those kinds of company-customer interactions no longer satisfy most consumers today.
IT IS THE CO-CREATION EXPERIENCE(NOT THE OFFERING) THAT IS THE BASIS OF VALUE FOR EACH INDIVIDUAL.

It is hence, this procedure of participation which is important.
Co-creation may require a dedicated approach from the management to allow consumers to not exactly take over the brand, but definitely have a larger voice share. However the high involvement opportunity it offers with substantial value growth drives commitment from organizational leadership.

Kraft's use of co-creation
Consumers co-create 48 products they want to buyis a case in point.

Use of social media to build online communities for consumer engagement to leverage the collective intelligence and experience of the community emerges as a strong option for organisations interested in securing consumer participation...they may also need to focus on the experience they provide through these communities to the participating population.

There are consumers interested in getting involved in every stage of the Product life cycle from concept, through post launch and beyond. The bottomline is-there are passionate groups of involved customers willing to PARTICIPATE. It is upto the organizations to identify them, build relationships with them and leverage the immense power of the participating community for organizational growth.

The correlation between Consumer Generated Media and Sales

As the democratisation of consumer expression leads to a viral proliferation of information online, the newage communication ecosystem has prompted the need for a careful evaluation of the potential of CGM or buzz as it is called. With each passing day, consumers find innovative ways to express their satisfaction/dissatisfaction about a product or brand.

An investigation of the relationship between blog buzz, market promotion and sales in the Consumer Packaged Goods(CPG) industry, by Nielsen Buzzmatrix revealed the following-

1.CGM has the potential to influence and generate incremental publicity for products, enough to effect their commercial prospects, specially in the CPG category.

2.CPG Marketers should consider the role of Buzz in their Marketing Mix, with respect to New product communication plans.

3.Ad spend is a large factor involved in generating CPG buzz.

4.There is a strong correlation between buzz and sales.

5.Buzz helps in generating accurate forecasts.

6.Buzz Magnitude: Top 10 % of products were responsible for over 85% of total buzz generated. Buzz is higher

7.Buzz Timing: Buzz usually precedes product launch and sales and is usually highest in the initial stages

As the above reiterates the prime motivational factor for consumers to create and post CGM-To be on the forefront of something new, it is profoundly clear that CGM will need to be an intrinsic component of the new product communication plans for marketers.

Social media and the iphone

The Apple iphone has been an explicit example of how social media was used to create a buzz around a product, in the pre-launch phase, as a marketing strategy.
Blogpulse graphs are a clear indicator that the buzz about iphone at the time of launch was higher as compared to the one around the time of release. With as many as 244,626 blog posts about the iphone being tracked by technorati as per date, it will be important to monitor the for the same post-adoption by consumers, as CGM will come into play to showcase the positive as well as negative reactions as product-users.

Case study on buzz created through social media for iphone posted by Nielson Buzzmatrix,is a graphic account tracing the amount of impact of social media as a marketing tool for a product.

Consumers can make or break brands

In the words of Chris Ward, Commercial Director, Microsoft Digital Advertising Solutions,

"Social networking has changed the rules of the game and consumers now have the power to make or break a brand. This type of relationship provides a two way dialogue where the brand receives feedback and the social networker could be monetised for their efforts – positive or negative.”

It is common knowledge now that the huge traffic on social networks has made them very interesting marketspaces for marketers ineterested in brand building and product positioning. The changing attitudes to social communication and research figures hugely indicative of the potential of these networks has not only made these social networks important components of the value chain but also a complete market segment that needs to be targetted.

As advertisers move to understand the dynamics of this media,the consumer demographics and behavioural aspects, it is important to understand that groups of people interacting socially observe an etiquette and targetting them will need to be sensitively planned and executed.

Some recent usage trends of social media by corporates have been -

1. The Apple iphone has a myspace profile and as of date, already has 469 friends.It may be recalled that the Apple ipod pink nano which had a profile to promote the product, had amassed as many as 80,000 friends on myspace, before the site was removed. Nice promotional strategy by Apple

2.UK based Topshop by maintaining an online profile on Myspace through a participation in the community, special offers and discounts was able to generate a sizeable amount of visits, as per a report from Hitwise.

3.SouthWest Airlines has a group on myspace,having over 1000 members for those working/associated with southwest airleins. This includes the loyal southwest fyers.The idea is to form a community to share information, plan trips, share travel tips and network.

4.Creation of virtual spaces by VOLVO and MSN on windows live spaces.Consumers were invited to write about their exciting experiences and adventures in a Volvo-brande "What's your story" area.
Here Volvo was able to tap into the motivational factors behind an individual seeking to be an opinion leader feeling like anempowered consumer.

In view of the need to engage the online consumers,Microsoft has released the ‘Word of the Mouse’ Advertising Guidelines recommendations for usage of social networks for proliferation of their brands.

1. Understand consumer’s motivations for using social networks
- 75% of British users use the sites to keep in touch with friends and family
- Approximately half use it to express opinions and views on topics of interest
- 49% use social networks to deepen relationships with like-minded people.

2. Express themselves as a brand
People are using social networks to express their individuality. Networks can be used to express a side of a brand people don’t normally see and encourage them to interact with it – but it needs to remain authentic.

3. Create and maintain good conversations
Individuals are powerful in this environment – they are the content creators, conversation creators and community creators. Brands that are willing to have a dialogue could benefit.

4. Empower participants
You are entering a world of empowered participants who control their own content, are expressing their individuality and would welcome having this power over branded properties on their Space.

5. Identify online brand advocates
Advertisers need to identify relevant networking sites i.e. a site which includes people who already use/buy a company’s product and align to this audience and existing customer segmentation models.
By researching blogging habits or comments on a product in this environment, advertisers can reach out to influentials and begin a dialogue, for example by offering free samples or advanced product releases.

6. Behave like a social networker
A fundamental principle is that the best advertisers on Spaces will behave like the best Spaces owners by:
- Being creative
- Being honest and courteous (ask permission)
- Being individual
- Being conscious of the audience
- Updating regularly

As Advertisers understand that they need to gradually focus on the networked aspects of these communities and use them for spreading messages virally, these social networks provide profound relationship building opportunities with the consumers.

The consumer was the king and we all seemed to know it.

According to the fifth annual PRWeek/Manning Selvage & Lee Marketing Management Survey, polling 279 U.S. chief marketing officers, VPs of marketing, and marketing directors and managers, and focussing on new media/CGM, integrated marketing and industry ethics, only about 12% respondents had CGM on their mind when considering marketing platforms.

Now why is this so?
CGM or consumer generated media is gaining imporatnce as the newly empowered consumers finds himself with a voice to express his opinions and post purchase emotions.

Organisations on one hand have a set of satisfied customers generating content about their positive experiences and influencing product adoptions by their friends and relatives, and on the other hand have to contend with unhappy customers sharing their woes with the threat of doing so in a technologically empowered digital environment capable of replicating the thoughts umpteen times, as people take to reading each others creations and linking to them.

As per the ADAGE article on the above subject, reasons for non-adoption of CGM as a promotion tool by several organisations stems from-

1. Fear of empowering a consumer to the point of no control.
2. No clear ROI on the subject yet.
However, the cost-effectiveness of this media over traditional media is bound to eventually let it get into vogue sooner or later.

Agreed that organisations are wary of embracing a medium where the echo of the consumer voice may be uncontrollable, but in an era where marketers are talking about
-Customer Relationship Management
-Customer Lifetime Values
-Increasing customer shares rather than market share
-Product Customisation
-Customer data warehousing and datamining and
-Using customers as brand evangelists,

will it not be contradictory to keep the consumer voice muffled?...After all, the consumer was the king...and we all seemed to know it.

Society concious corporates and the consumer

Coca-Cola recently entered into a tie-up with environmental group WWF. As part of a $ 20 m initiative, Coca-Cola is investing in 8 fresh water programmes overseen by WWF in regions where it has bottling operations.In return WWF will advise the drinks firm how to improve it's use of water , make it's bottling operations more efficient and reduce it's carbon footprint.As companies balance their objectives of profits, by focussing on the consumer, while also taking care of society's interests, the Societal Marketing approach to marketing is much in focus.

In an era of environmental problems, resource shortages, population growth, worldwide economic problems and neglected social services, there is a rising need of organisations which are sensitive to these issues to adopt the SOCIETAL MARKETING CONCEPT .

This concept of Marketing leads organisations to determine the needs and wants of target consumers and deliver desired levels of customer satisfaction more effectively and efficiently than competitors in a way that maintains or improves the consumer's and society's wellbeing.

Responding to nutritional concerns across the world, the $11 billion Kellog's company has decided to phase out advertisments targetting younger children for most if their products in case they do not meet nutritional guidelines.Mc Donalds has started churning out advertisments for adults. As consumer advocacy groups fight against anorexia across the world, Uniliver has announced a set of guidelines barring subsidiaries from using excessively thin models in a bid not to promote unhealthy 'slimness' in their advertisements.

Approaches like the above showcase the dedication of the organisations towards consumer welfare and positively influence their credibility. As more and more corporates embrace the concepts of Corporate Social Responsibility and consumer welfare, good corporate citizenship breeds not only consumer satisfaction, but also aids corporates in their efforts towards customer aquisition and retention.

Can social media be used by corporates to manage customer satisfaction?

It is common place knowledge that
Customer Satisfaction=Customer Perception minus Customer Expectation.
If the client perception of the product delivered is lower than their exepectations, negative satisfaction is the result.
If however the client's perception of the product delivered exceeds their expectations a positive level of satisfaction is achieved.

Companies have by far understood that by effectively managing the three elements of this formula, they can ensure client satisfaction and hence garner competitive advantages.
The question here is...Can social media be used to manipulate the above equation to garner positive differential between perception and expectation.

1. Can companies use this media to reduce customer expectations?
I guess yes, by being conservative and talking about their products with realistic expectations.
Customer expectations are typically based on past buying experiences,the opinions of friends, and marketer and competitor information and promises. However, reducing customer expectations too much can satisfy those who buy, but may attract few customers and can create a risk of competitors enticing the prospective customers with better products. So, for starters, this may not be the right approach.

2. Can companies use this media to increase customer perception of value?Definitely .
Social media can be used efficiently in 2 ways to achieve the above.
a)Companies can set up corporate blogs which are sophisticated brand building and product positioning approaches.By managing the customer's subjective and intangible assessment of the brand, they can increase the brand equity, hence adding to the customer's perception of value.
b)Companies can ride the CGM wave,and by suitably incorporating the same in the marketing mix,identify some evangelists. It is clear that a few influencers can generate a great number of product mentions if they decide to feature a particular product or service in their blogs. By building relationships with these individuals, companies can not only have positive media generated about them, but also increase the value equity of it's products in terms of quality, price and convenience.

Both the above strategies(a&b) can aim at increasing customer perception of value for the company and it's products. Agreed that customer perception is a final function of the quality of the product delivered, but considering an optimum condition where the product is of standard quality, an increased customer perception of value for a company's brand definitely helps in increasing the level of customer satisfaction.

Levels of social participation in Social Media

As per the Social technographics report published by Charlene Lee of Forrester Research, there are six levels of social participation in social media in the U.S.This comprises creators, critics, collectors,joiners, spectators and inactives.Interesting comparison of Apple and Dell users and relevant from the point of view of marketers who can identify their target market and which rung of the ladder they are on, thereby creating appropriate strategies towards using web 2.0 for onlime marketing and branding, developing customer relationships, and using customers from a CGM and customer evangelism point of view.
However, if we consider the case of a country like India, where the total population is something like 1,129,667,528 and 40,000,000 web users , with a .035% web usage, the majority of the population would be in the inactive segment.How relevant something like this would be in an Indian context is something for only the urban population to decide.

Employee communities in the web 2.0 space

Sandeep Dadlani's post on Linked-in across the extended flat world enterprise reiterates the need of an information structure within an organisation wherein the offerings of Web 2.0 can be leveraged to gain access to an employee database with personal information and probably employee photographs to get a personal feel of the entire setup. He sites geopgraphical locations as the primary cause for organisations to feel the need of sucha set up. This is very relevant with respect to developing an employee community where employees can communicate and collaborate with others with si,ilar skillsets and objectives and at the same time giving them a forum to voice their views. Communities are important not only as they provide employees a sense of belonging, but also an opportunity to showcase their achievements. Networking helps them develop affinity with other members at the workplace while simultaneously increasing the approachability of the members at the higher level.The ease of access provided by this model definitely makes it a viable option for organisations.Several organisations have already developed such communication models-The Sun Microsystem blog system is a case in point and the site statistics are impressive-
Total weblogs: 3200
Total users: 3557
Total entries: 67200
Total comments: 63417
The ideology behind floating the blog is aptly reflected in the fine print on the first page:
"This space is accessible to any Sun employee to write about anything."
Well, employee opinions matter...don't they...and as the 67200 entries show, it looks like...employees do have a lot to say!!!!

Corporate Blogs and their objectives

Corporate Blogs are now becoming authoritative sources of information regarding a company. There value and importance can be gauged when a simple technorati search on the word ' Corporate Blogging ' yeilds more than 19000 results. Considering the amount of buzz generated by the same, their importance with respect to leveraging consumer intelligence and magnifying success stories is now undeniable.

As Linkedin launched its corporate blog , the objective they stated was interesting-
"Linkedin was started with the goal of helping you manage your professional relationships better, and today we’re launching our corporate blog to not only help you leverage LinkedIn more effectively but also to provide you a sounding board for all things LinkedIn. So, if you’re looking for a singular information source on LinkedIn with regular updates on upcoming product features, tips-and-tricks, and events or if you’d just like to hear about all the fun stuff associated with working at LinkedIn, you have reached the right place."

A query on the objective behind the Corporate Blog of Bill Marriott, CEO , Marriott Hotels states the following blog objective-
"The purpose of the blog is to create a forum for people to interact with Bill Marriott. We're proud of our culture, history, service excellence, and especially our 143,000 associates whose Spirit to Serve makes us so successful. Part of what makes us great is our belief in service to the customer and Success is Never Final.This blog allows us to hear from you and build on the community that we've nurtured for 80 years."

The DellBlog-
"Our goal is to build Direct2Dell into a community that’s driven by direct communication. We hope to provide you insights into Dell and the employees that drive the company forward."

Digital Straight Talk is a blog produced by Cox Communications. It's a source of views and news on the many issues affecting broadband providers and consumers.
"High-speed Internet, cable telephony, HDTV and a whole host of related innovations and issues in the digital space have created intense competition among providers. And, where there’s competition, there’s no doubt info overload for consumers and others trying to make sense of it all. With Digital Straight Talk, we want to make sure those in the industry, consumers and others who care have a clear understanding of our vision, direction and opinion."

Corporate Blogs are set up by companies to-
1.Build Product Brands.
2.Create a customer-centric approach for the company.
3.To give people a contact point by attaching a face or name they can interact with, hence catering to the concept of relationship building.
4.Create a buzz about New product/project launches.
5.Act as a source of consumer redressal.
6.Act as a source of viral marketing. Its a place where people chat about the company and the products and if they talk well, well you've got a word of mouth campaign already started.
7.Create communities for communication, collaboration,customer-interaction.
8.Image building purposes by showcasing any good work done by the company.
9.Showcase any achievements by the company and any recent successes...

At the end of the day it all boils down to securing more customers and retaining already existing ones....broadly....add to the value perception of a company's customers!!
Don't you think Customer Relationship Management is the ultimate goal of any corporate blog?

Eric Kintz's response to Corporate Blogging and CRM

As i pursued my quest on Corporate Blogs as a tool for CRM, I decided to query a few writers behind these blogs...Response from Eric Kintz, CMO, Hewlette Packard, to my query on Corporate blogging as a tool for CRM

“As HP is substantially into corporate blogging (am an avid reader of these blogs), do u think it has been successfully able to levearage these blogs from a CRM point of view?Vandana”

“I think that blogging is still unproven, but is a great way to provide a personalized dialogue with customers. The vast majority of my readers are HP customers and they have through my blog a personal interaction and personal dialogue about what HP is trying to accomplish in the marketing space. Eric”

Web2.0, Networking and Image Building

Sat through a very interesting lecture by Bethany Cheney, the Marketing head, U.S.A. of Techtribe-an online community established courtesy Web 2.0. She spoke on
" Building the Brand of a Leader" and brought out how increasing visibility, networking appropriately and developing charisma were the key ingredients to a successful image building exercise, which inturn would be very useful for individual growth and success.

Her interesting observation that 'there are only six degrees of separation' highlighted the power of networking and how connectivity can be established between total strangers to accrue benefits for the others. Web2.0 in turn has opened a plethora of options to leverage this understanding of networking to build relationships.

These online communities have been setup for developing contacts with other people as well as sharing information and knowledge for growth,as also forge vital business associations. A valuable outcome of this new phenomenon is that senior corporate honchos, who could be well established names in their respective domains can service the community by functioning as mentors to the youth.The youth in turn can have the dual advantage of developing rapport with established industry names, as well as gain vital information through participation...

Object Centred Sociality

This is a real heavy term which caught my attention as i carried on researching the reach and impact of social and business networks...

The essence of my exploration is...........people connect with other people not only for the sake of connecting...they need to have something in common...be it a some common object or objective or interest....something that creates a kinship...something that generates a desire to associate, share and for that matter, keep associated....

Dont we all relate better with people who agree with us...people who are part of our immediate environments....who are affected by what affects us....cohesion results as people tend to garner support for their ideas and beliefs,as also benefit from those around. Infact we identify best with people who support our ideas or are instrumental in helping us achieve our objectives and goals.

The keypoint here is....when the common objects breakdown, the social network breaks down too.

That is the reason we have to make use of alumni associations...ex-employee groups...forums....to keep in touch...and generate a common platform for interaction......blog posts are also one such object of sociality......most of these networks cease to be functional when the commonness erodes.

www.itvidya.com is a very good example of 'object centred sociality'....a network of individuals brought together by the common 'object'---the desire to learn, share knowledge, ideas and maybe in some way, be useful to each other....A key point here,obviously is Ajay who keeps adding to the 'object' by posting information on useful events,seminars,links,...the works..............hope more and more people keep adding to the "object " and stay connected!!!!

Ryzing and Orkutting

Business and Social Networking along with Corporate or Business Blogging are tools which are catching on like viral fever across marketing communities.
Networking on Business and Social Networks-groups of individuals and organisations has emerged as a key technique in modern marketing. This is a fact we all are aware of...only the size and volume of the entire userbase hit me hard as i read a post on 'Virtual Reality Marketing' posted by Eric Kintz, VP, Global Marketing, HP. He has talked about Korea's Cyworld where 17 out of the 48 million South Koreans are hooked in to this online community....at this rate, being a part of one such network is akin to a qualification/important part one'spersonality.
These online networks help individuals and organisations achieve goals through relationshipping and friendshipping.One can develop relationships, build new contacts and establish friendships.The idea is to develop relationships first and then use them for business.

The focus is hence, on the VCP model(Visibility,Credibility, Profitability) of Marketing-

1.Visibility-The success of all networking is based on the ability of people to remember who you are, what products/services you are associated with and what services you provide.

2.Managing Relationships-Evolving simple aquaintances into credible relationships
3.Collaborating-Joining together for achieving business goals,by making best use of opportunities.

This relationship capital has huge potential if we are able to mimic the dynamics of the real world through online sites and replicate them appropriately to achieve our end objectives. Patience, interactivity and sensitivity are three areas which one needs to work on!! Ryzing on
Ryze and Orkutting onOrkut are the latest buzzwords.