Reading Reflection #3

Connecting with the groundswell

In Groundswell, Josh Bernoff and Charlene Li show people how to turn the force of customers connecting to their own advantage.

Companies are embracing internet as a marketing vehicle, gradually giving up some control of the brand, embracing the power of the groundswell and energizing customers to make their own contributions.

Companies that shift from traditional advertising to social media advertising, face several risks but can save lots of money if they have a well thought-out plan. Companies need to understand the needs and wants of their customers.

"It sounds so logical, so easy - keep the customer at the center of your organization. But the reality of departmental priorities and ingrained marketing and customer service practices keeps us far from this ideal.''  (p.217)

Not every company succeeds in the groundswell for different reasons. If a company is not willing to let go of the control and be flexible to allow a few of their employees who are knowledgeable and enthusiastic in groundswell take a leadership role, no matter how well the plan looks on paper, may not succeed. 

As stated in the case study, Dell encountered several complaints from customers who were unsatisfied with their products and services and the company did not seem to understand clearly what was going on until one of the customer used social media platforms to get Dell’s attention. Dell refunded the customer his money and they ceased the opportunity to engage their customers in a positive way using groundswell which turned-out to be a great choice for the company given the hard start. 

Due to Robin Good interview Josh Bernoff, author of "Groundswell" has talking about the biggest mistake companies make when trying to create a conversation with their customers:

It`s not difficult to loose control under the situation when you are used to traditional marketing - Dell was based on direct sales, relied on low costs and flexible products.

But once it entered groundswell and didn`t use all power of customer support to keep developing communications with customers, it became a real nightmare that nobody could predict.

But there is positive example of using a groundswell. It is a L’Oréal connecting with.

On November 2011 L’Oréal USA Professional Products Division (PPD) was awarded a Forrester Groundswell Award in the category of “Business to Business: Spreading” for its salon Facebook program. 

The aim in social media marketing for the beauty industry is to reach the audiences. Since dealing with salon market represents a B2B business model, the establishment of The Salon Facebook Program acts as a two-folded clever platform where the company is capable to reach the distributors and the end users as well.

This program empowers more than 5,000 salons that partner with the various brands under L’Oréal USA PPD to connect with customers and grow their business via social media. L’Oréal USA PPD collaborated with Buddy Media, the social enterprise software, to provide partner salons access to a social marketing suite that contains easy-to-use tools that enhance their own Facebook pages, with features such as how-to-videos, appointment booking services and product and service information about the various L’Oréal USA PPD brands the salons carry.

The Salon Facebook Program enables salons to market themselves to existing and potential clients. Features that salons can launch on their Facebook Page include dynamic how-to videos, an appointment-booking engine and information on L’Oreal products which directly connected with end users in a B2C perspective.

Now customers express your positive attitude to its products through social networks Instagram, Facebook, Twitter, YouTube:

Facebook

YouTube Channel

Instagram

Connecting to groundswell is very hard and long process, it includes daily feedback monitoring, 24 hrs customer support and updates in real time!

 

Embracing the groundswell!

Asking your customers for ideas

Above all, I want to welcome you to my blog! 

This week I going to discuss about  ways to tapping into any company's customers, about idea  exchange with them; to increase the chances of developing something customers want.

My reading reflection deals with Chapter 9: Embracing the Groundswell of the great book, Groundswell by Li and Bernoff.

Product growth is really hard work for organization! Why not let customers help to market research department with it?

Company  development, based on the customers' opinion, is such a good thing that I have ever heard.

 "...when it comes to collaborating with your customers – really bringing them into your development and innovation processes – one real truth is this: it's challenging". (p.182).

This is really truth, because most companies are typically not setup to listen to this feedback and work with customers in this way, they have developed everything internally.
The other side of the coin is, however, that if you  have embraced the Groundswell, then you have opened a channel of communications with your customers and they are now getting deeper into your company. Besides, embracing the Groundswell is defined as making customers an integral part of the way you innovate, with both products and process improvements.

Customers don’t take long to tell you what they want – as soon as you are ready, you can quickly tap into these sources of innovation. Once you tap into customer feedback, you can continue to ask more questions to continue to refine products.

"If I were a banker, I would give my customers a say in things, and together we would build the bank of tomorrow". From there, there are two main choices - enter a suggestion, or see other people's suggestions. (p.188). 

In 2007, Credit Mutuel its ad campaign. Viewers were directed to a sijetaisbanquier.com site (what means ''If I were a banker"). Once a week bank selected one person who made a suggestion. 

Actually, businesses from all sectors posted much improved results as sluggish domestic activity was offset by new sources of growth, notably in emerging countries, in which context the group’s major accounts were able to use its international network to respond to their customers’ needs.

Doubtless, through points of sale, the internet, mobile banking and social media, the group is building closer ties to members and customers with seamless communication through all channels, both physical and remote. It is now developing a multichannel and omnichannel (several media and uninterrupted contact in every channel) relationship with customers, which is more human, responsive and helpful.
Two of Crédit Mutuel’s founding principles are putting people first and promoting mutual aid. Its commitment to research and public health are integral to its sense of responsibility.

The Groundswell effect is that customers are chomping at the bit to tell you what to do and are actively complaining and praising your product on forums such as blogs, videos and review sites. They are now part of your process because they can look over management’s shoulders via these channels.
Banks must choose between three approaches of rising risk sensitivity subject to the authorisation and under the control of their national supervisory bodies: standardised approach, foundation internal ratingsbased approach, and advanced internal ratings-based approach. Each banking institution is required to adopt the approach best suited to the stage of development of its activities and to its organisation.