Online Customer Communities
The Internet is now a key decision-making tool in our society because it allows us to draw on a broad social network of people for advice or to share experiences. My kids (ages 7 and 10) would hardly think about buying anything without looking it up online. (Yes, "to google" is a verb in my house!)
People don’t forget that the Internet exists when they go to work, which is why Connected Customers (Trend 4 in Facing the Forces of Change®: Lead the Way in the Supply Chain) describes how business customers will increasingly use the Internet to gather information from other customers rather than manufacturers or wholesaler-distributors.
Is your company taking this new development seriously?
ONLINE COMMUNITIES
I found internet forums (a.k.a. communities) to be one of the most fascinating aspects of my research for the latest Facing the Forces of Change® report. Customers can communicate with each other by reading and responding to messages posted for everyone to see. Exhibit 4-6 (page 82) lists 21 active forums with participants who would be customers of wholesaler-distributors.
You will probably be amazed at the quantity and detail in these online conversations. Spend a few minutes browsing the many forums at ContractorTalk.com. You’ll see customers giving product reviews, sharing business tips, and discussing buying strategies. One recent conversation gave a fascinating peek into how contractors view the tradeoff between the services of a lumber wholesaler versus Home Depot. (See
Nothing beats outstanding service, but saving thousands is tempting.)
The discussion forums on TractorbyNet.com provide another active forum with plenty of advice to and from customers. Are you skeptical that customer will get independent pricing information online (as I suggest on pages 79-80 of Lead the Way)? You will reconsider after reading the posts in the Buying/Pricing/Comparison forum.
DEALING WITH 'NET REALITY
I’m just scratching the surface, so I suggest that you take some time to find out what your customers are doing online.
The fifth Question for Management Discussion from chapter four (page 90) suggests that you research customers who have used online forums.
- How many of your customers are visiting an online forum in your industry? (Don’t say “none” unless you’ve bothered to find out.)
- What information were they searching for? Did they find what they wanted?
The big question: Does participation in an online forum lower the perceived value of a wholesaler-distributor?
You can try searching for online communities at the Open Directory of Internet Social Communities – or just ask a few of your net-savvy customers.
1 comments:
As more people are becoming familiar with the Internet and understanding the benefits of online communication and “getting connected” via Blogs, Chat Groups, or any other electronic version of community communication, it is becoming increasingly important for those trends to be acknowledged and fostered by Businesses.
I believe direct communication of the Business in online communities is negative. Generally the population looks at it as annoying or some Marketing propaganda, and nothing to take seriously. The most effective means of communication back to customers is via three major channels, 1) Listening, 2) Business Conduct and 3) Automated Means
Listening
The internet is about communication, and getting connected is about being able to communicate what you want with people willing to provide solutions. In the case of Distributors, Value is added by return communication generally though business conduct. However, the majority of the value added is simply by Listening, not contributing.
In the 2007 Facing the forces of change, you talk about Weld Talk, a web site run by Hobart Welders and point out the benefit of the real-time insites their customers provide them via their 200,000 website posts, and 8000 daily contribution members. Online communities can, and should be used to point out real time issues to listening distributors. .
Business Conduct
Rubbermaid CEO is said to have heard his Doorman griping about the new lip on the companies latest dust pan, and how it was improperly designed and wouldn’t properly assist in sweeping the doorway area. He immediately went back to those responsible for designing and developing the lip and had a replacement on all the new products making it function better and providing better value to customers moving the company from good to great status (Jim Collins: Good to Great). Similarly, Blogs are an easy way to hear about the negative aspects of products and a means to direct Business Conduct. But it can’t stop at Hearing, the resulting Business Conduct is the value added.
By listening and understanding what consumers want via Constant online research, Web Analytics, or monitoring Blog/Community Discussions will help add value to customers and leverage internet usage to boost your sales numbers. For example, if a major topic is part of the product that doesn’t function well, release plans on your website announcing the “fix”, and make sure Google picks it up when the topic is searched for. Someone contributing to the group chat is sure to spot it.
I think that the conclusion is a crawl, walk, run approach (Jim Collins). Crawl by experimenting with hosted online forums, blogs, and other communications means on your own websites. Walk by debating with a “online marketing team” on how to best approach the information and communicate back to the customers that you are listening and conducting business appropriately. Determine the best way to deliver value by solving problems, being available 24/7 to assist with self service problems, and by integration your core business functionality into the website/online community. .Finally, run with a final solution that helps build your core business, integrating online sales, information and support with the communication needs of the customer.
Moving forward, the question isn’t how to respond to online communities, the question is how are you going to gain access to the needed analytics information to respond? Are you going to invest in a software package that shows what customers are searching for on your web site? Are you going to have your marketing/sales team monitor the Blog you host? Are you going to change your business processes if an angry group of online customers are dissatisfied? Are you willing to open your company up and allow customers the visibility and communication channels they are demanding to be successful in the new age market place? The Bottom line is Online Communities are forming power and demands, and its your profits on the line if you fail to respond.
~Josh Christian
Reference: Good to Great: by Jim Collins; NAW: Facing the Forces of Change 2007;
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