From Old School to Beyond New Persuasion
"Consumer is an industrial-age word, a broadcast-age word. It implies that we are all tied to our chairs, head back, eating 'content' and crapping cash.' "
So says Doc Searls, quoted by Jeff Jarvis at BuzzMachine. Jarvis says that Proctor & Gamble doesn't go far enough in its recent efforts to involve customers in their advertising. P&G wants folks to vote for a new toothpaste, and the winner will be making appearances at your local drugstore. But ever the pushy, thoughtful blogger, Jarvis goes on:
If P&G really had balls, they would have the people create the flavors they want and make the executive decision about which ones to make and then create the marketing campaign about them. If P&G really wanted to succeed, it would give up control to the people they used to call their consumers.
We here at newpersuasion couldn't agree with Jarvis more. So in order to understand this company/customer relationship, I came up with these rudimentary charts so I could see in primary colors what's going on today:
1. Old School
One-way Communication. This is the traditional communication between a company and its customers. We'll tell you what's best for you.
Examples of One-Way companies: Pharmaceutical companies, ABC, NBC, CBS. Even Apple fits in here. Yes, I said Apple. Though it makes and sells innovative products, it doesn't look favorably on its customers' tinkering and it has sued bloggers who revealed information about new products.
2. The Conversation
Two-Way Street. The customer wants to be heard and the company is actually listening.
Examples of Two-Way companies: Yahoo, Google, Staples, Carmax, Whole Foods, and even P&G is getting here.
3. newpersuasion
The Overlap Begins. The customers begin to blend with the company. It's not just about listening anymore, it's about inclusion.
Examples of newpersuasion companies: Jones Soda, craigslist, Amazon, eBay, Sharebuilder.com. (GM's Saturn was here when it was first introduced, but the company took a wrong turn and became just another car company.)
4. The Great Beyond
A Blended Future. It's difficult to tell where the company leaves off and the customer begins. Almost a complete merging of company and customers. This type of company is often started by a dissatisfied user. (The Mountain bike was created by bicyclists who wanted something that didn't exist).
Examples of blended companies: The first one that comes to mind is Mozilla and their Firefox web browser. A product designed and improved upon by its users. Also, many online video games let their users play with code and design accessories and characters. As Charles Leadbeater recently wrote in The Observer:
If only 1 per cent of the one million players of a computer game generate new ideas, the game has a developer workforce of 10,000 people.
Leadbeater champions user innovation and wonders if this blending of worlds would work in other sectors besides the marketplace. Education? Politics? Health? Of course.
Do you have other examples of companies that fit in one of these categories? Is there a category I've missed? Let me know. Thanks.
Found on The Feature:
http://www.thefeature.com/article?articleid=101525
Wonder where to look for the next big thing? New research from MIT expert Eric von Hippel shows how harnessing bleeding-edge users in the development process can yield breakthrough products and services.
Eric von Hippel's new book, Democratizing Innovation, documents how breakthrough innovations are developed by "lead users," -- users with a high incentive to solve problem, and that often develop solutions that the market will want in the future.
http://mit.edu/evhippel/www/books/DI/DemocInn.pdf
Von Hippel argues that a user-centered innovation process -- one that harnesses lead users -- offers great advantages over the manufacturer-centric innovation model that has been the mainstay of commerce for hundreds of years. To this end, he has developed a systematic model for companies to tap into the innovation potential of their lead user communities.
Posted by: Inne ten Have | July 06, 2005 at 06:15 AM
I think control is the real issue here - it's really hard for companies to give it up. You should see when my daughter tries to find something on the internet for me - I'm itching to shove her aside and do it myself - I don't like when she has control - I like to be in control - so these companies that have functioned all these years in one way now have to let go - and boy is it gonna be hard.
Posted by: nellie lide | July 05, 2005 at 06:23 PM
Great post Nellie. And I, for one, didn't miss the implied color analogy (blended = green = the color of money).
When I ask my audiences what one thing destroys most relationships (and I hint by saying that it starts with the letter 'c') most reply "communication" or a lack thereof.
In fact, it's "control." Control not only stifles communication and creativity, but it also places the controlled in a defensive position. Certainly not one conducive to innovation and growth.
The same goes for business relationships. Customers are smart and in control today, whether or not companies like it or not. So they key to growth is to give up control and cocreate (or at the least, participate) with ones audience.
"You can't control the waves, but you can learn to surf."
Posted by: Tom Asacker | July 05, 2005 at 05:57 PM