The problem with our current business models

There is a seismic change going on in the way companies communicate with their customers and prospects. In the traditional model there are three company departments that communicate with their market, typically in a silo-ed manner:

• Product Development. Through research, including panels and focus groups, savvy product developers try out concepts with users, receiving feedback on usability, features, appearance, etc. Unfortunately this feedback is not truly unbiased because there is a selection process associated with these situations.
• Marketing. Marketing traditionally pushes out complimentary brand and product messaging, in part based on research and demographics and in part based on ‘creativity’. We market at people, not for people. Today we’re marketing with people.
• Customer Service. Customer service is viewed as problem-solving, the primary problem often being viewed as the customers themselves. The product may be imperfect but the customer caller is someone to be avoided through phone trees, referrals to automated help systems, etc.

Social media unites research, communication and service

With the advent of social media, all of these functions need to be reevaluated to the point where I’d argue that all should be eliminated in favor of a Customer Interface Department. The Customer Interface Department would be the central point in the company dedicated to understanding what customers want, what they feel about the company and the products, and how the company responds to those needs. A department that champions the customer.

Social media means businesses have ceded control to the market

There is little separation among these functions when you have access to monumental global conversations about your products and services, conversations that are unguided and honest. Being able to understand these conversations changes market research, communications and problem-solving. The social media eco-system provides all of these functions as people review, question, complain, compliment, tear apart, suggest and spread the word about products they are interested in. The company that understands this understands that they must fundamentally change the way they interact with this system.

Your choice is to respond and change now or later; but you will be changing

This is not a voluntary change in the way businesses are structured. It is the way things will work going forward. Start with this premise: Your products and service must be the best on the market or have a considerable price advantage that outweighs their defects. Given that nearly any product eventually becomes commoditized in a global digital marketplace, the former is your only competitive option.

Only best in class products and service, combined with honest engagement will make it

You cannot pay lip service to being the best, you must actually be the best. Why? Because anyone considering a purchase, whether it’s a high-end server or an electric toothbrush is going to go online and ask others what they think. The detailed responses they find will determine their buying position. And the entire decision process including their experiences interacting with your company and your people will be public and globally accessible via search.

How does social media affect us? Where do I start?

Are you wondering ow this affects your business?

How your culture is going to adjust to drastically changing internal and external relationships?

The first step is o take a look at where you are vs. where you will be.

If you’d like to have a conversation about how social media will impact your business in the near future, give me a shout at MartinEdic.com