So you love your customers…and you let others take care of them

Saying that customers are businesses’ most important assets is now a common view. First because their money make the business live, second because they are its best ambassadors when they’re happy with the delivered service.

Of course, an happy customer is a customer who’s delivered a service that meets his expectations. He also gives value to the quality of the quality of the customer relationship. To some extent, some would value more an average service with a good relationship than a perfect service with poor relationship quality because they like to be listened to, to see people do their best to give them satisfaction.

Note that’s the same with prospects, either in a B2B or B2C context : the promise that are made matter, but the relationship a business can foster with its prospects matters a lot. Ditto with employees.

That’s one of the impacts of social business in the relationships between a company and its ecosystem. Either it’s about marketing, sales, support, innovation, both companies, partners, customers, employees are looking for a new form of engagements. This engagement has first to be build then harnessed.

And, of course, many are outsourcinf their customer support, their recruitment, and sometimes a part of their marketing. I’d like to know how to build a strong relationship between a business, a brand, and its ecosystem, by letting a third party act and talk on the company’s behalf.

Outsourcing sometimes mean more control on costs, get access to competences that don’t exist internally. But it also mean the loss of any chance to build something with the other. Through the marketing relationship, through customer support, people want to interact with YOU. They want to discovert who YOU are. A good relationship is a two people game, without any go between. That what helps to save a deal when things go wrong. So you’d like to let someone else initiate and manage this relationship ? Someone who’s not you, who has not your culture, for whom you’re only a customer among others ?

Community management is something serious one has to manage himself. Not an undercontracted job, or a task assigned to an intern with too much idle.

Value is created and survives through relationships. Saying so is good. But that’s not enough if behaviors go the opposite way.

You’re wondering what a customer community can be used for, what your facebook fans are worth ? No you now. Now it’s time to initiate things yourself instead of outsouring, then rely on the group to leverage

PS : Whenever you can’t understand what’s at stake, ask yourselves what would have happened you you asked a friend to replace you at your first date with your future husband/wife. Get it ?

Lessons from a crisis and the behavioral economics

A year ago, the world entered a crisis that didn’t let it unhurt. A crisis I won’t call economic or or financial since I think the disease was deeper. Anyway, many people understand that, this time, we’ll have to be more creative than in a past and not rebuild things as they were. But we still have to draw all the consequences of this crisis, even if they makes us uncomfortable, because keeping our eyses closed is the best way to face an even more critical situation in the upcoming years.

Among others, there is the failure of one core credential the economy has been built upon for decades : the rationality of economic players. What made us model everything as indicators and forecasts that could not be wrong. Clients were predictable. Employees too. The price of raw materiels, interest rates, shareholders… everything was writen. Modeled. Under control.

So we were all elements of a complexe mathematical function which was guaranteeing us endless growth and enrichment.

And everything collapsed. We knew (or should have known) that nothing is rational on earth. Easy to say. In the future we’ll have to take irrationality into account in all business and economic decisions if we don’t want the same causes to have the same effets. Of course, uncertainty can be reduced…but not removed. That’s  what we used to forget.

In one word, as writen in this HBR article, businesses now have to pay more attention to their employees, customers, partners. Not only because it’s positive for business, but also because it’s the only way to avoid making huge mistakes anymore. This is about behavioral economics.

Surveys showed that the whish for rationalization, that is often embodied by an increased control, makes people cheat and is an obstacle to collaboration. They also point out (but is it a surprise) that a discontented customer looks for revenge toward the enterprise, regardless to the cause of discontent Businesses can’t afford anymore saying “it doesn’t matter” because the price to pay is immeasurably more important that the cost of a lost customer, whatever is prejudice is and even if it’s only subjective. Some could see crowdsourcing as good way to improve things : if things are not predictable, listening is a good means to lower uncertainty. In the same way, no one is sure that customers will accept a new product as predicted by surveys. Involving them in the innovation/design process can reduce uncertainty.

Cheat and revenge seems to be the consequence of not taking people and their irrational ity into account. And the price to pay is high.

One can found that depressing or demoralizing, but it’s a part of our economy from now on. According to the author, business will have to get the right capabilities to face it. It may be long and uncomfortable regarding to acquired habits. It means listening to people and an ongoing experiment system A new way to embrace marketing and customer relationships, but also employee’s motivation.

Who said that value chain and processes has to be socialized ?

From the 5 eras of social web to transforming organizations

I had the chance to meet up with Jeremiah Owyang during his last coming in Paris. He presented us his report on the the future of social web. An interesting discussion followed, then we came to have a drink and carried on.

One thing I used to sense and which was confirmed is the specificity of european and especially french people according about privacy issues. Jeremiah launched the discussion on his blog, feel free to participate. Generally speaking, and I had the opportunity to discuss it many times whith German Friends, it’s obvious that social media adoption is a lot about cultural issues. Local culture on the web, both corporate and local culture within companies even if, considering enterprises, the fact people have to achieve things together, things they are assessed on, may help to unlock the cultural barrier. Language matters too. It’s an issue I’ll tackle in a later post, I just need to throw myself into Geert Hofstede‘s work again for what’s about internal issues. Common sense being enough to explain external ones.

During the presentation, Thierry De Baillon was quicker than me and asked : “the” question : how can these “5 eras” apply to organizations. Jeremiah answered that the model was only about the outside. We got deeper into this point later in the evening.

Jeremiah’s words makes a lot of sense : his work is about of internauts, consumers will behave and businesses have to understand that in order to adapt and not to lose their market. Let me add another point : in order to follow their customers and adopt appropriate strategies toward the outside, businesses will also have to change internally, for many reasons :

• efficiency : it’s impossible to have the needed culture, the vision and implement projects that will be successfull externally if they contradict what the company is, the way the work is done. There will be a moment when the elastic will break, when employees won’t be able to meet customers’ expectations anymore.

• credibility : it’s harder and harder to keep things secret, to make enterprises walled gardens. It’s impossible to be engaged in social dynamics with the market and, at the same time, to have internal practices that isolate people, refuse to accept everyone’s specificities. The only fact the market will learn, understand, how the company operates, to what extent organization and management are not aligned with the marketing promise, will ruin all the undertaken efforts. Would you hire a torturer as a babysitter ? QED. I’ll also add that the impact on employees would be very negative. They surely won’t accept to be less considered than clients, or to be accomplices of a masquerade. Bad for engagement and motivation.

• socilogy : future employees are also players of this under construction social web when the walk through the office’s door. No suprise that they will try to bring their usages inside the company.

In short, businesses will have to adapt to the reality of social web. Articulate with it. The challenge : avoiding to lose their clients and demotivate their employees. This makes me feeling like thinking more about this articulation, about what could be the “5 eras of the social enterprise”. What could they be, in your opinion ?

Thanks to Gil Yehuda for providing me with these few tips to help me getting started.

External social networks are not only for marketing purposes

Generally, when I talk about social networks for other people than employees, I’m answered “ah ? I thought you were not interested in all these marketing things”. This is the obvious proof that, for many people and many companies, when you aim at an external audiance it’s for communication and sale purpose, following a one way flow. Said differently : “outside we talk, inside we work and both have nothing in common”. Seen with a little distance it embodies the idea according to which it’s the company that condition its environment and not the opposite.

Preconceived ideas that were true at a given moment but shows we are now entering a new era.

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