Disruption!

It’s everywhere. I live in Silicon Valley where many say that the terms disrupt and disruption have become buzzwords. Pundits believe that the word is losing its promise and impact through the acts and examples of entrepreneurs and businesses that misuse the word to describe intentions rather than associating it with a desired or natural effect.

In some of the startup meetings I attend for example, digital disruption is actually a stated business objective. Instead of “killing it” or “crushing it” many businesses are aiming now to disrupt it!

Kidding aside, disruption is more than a buzzword of course. It is a term that is becoming an important part of everyday business to describe what is happening to and around markets and ultimately companies everywhere. While it may be a genuine goal, disruption is the act of disturbing or interrupting the norm and its effect is measured by the the following series of events that unfold.

Like it or not, disruption is a natural part of life. I refer to this phenomenon as Digital Darwinism, when society and technology evolve faster than the ability to adapt. Every so often something comes along and completely upsets the norm. And this is only accelerating. Either you’re disrupting or you’re at risk of getting disrupted.

Continuing the Digital Darwinism metaphor, businesses, like nature itself, are open to natural selection. One of the three common forms of natural selection (including directional and stabilizing selection) that I’d like to explore is that of disruptive selection, which selects against the mean of the population. Adapting the definition to suit the purpose of this discussion, disruptive selection singles out average businesses in any given population making room for speciation, the formation of new and distinct species in the inevitable course of evolution.

In my research on disruptive selection, I found several references to London’s peppered moths. H.B.D. Kettlewell, an English physician set out to study the unexplained color variations of the peppered moth in the 1950s. Kettlewell set out to better understand why in the industrialized areas of Britain, the peppered moth population evolved from light gray-colored individuals to that of primarily of dark gray species. In rural areas, the peppered moths were predominately light in color. Kettlewell learned that darker moths survived predators in the industrial areas by blending in to polluted environments. The lighter moths stood out and were seen easily by predators. In rural areas, the opposite would occur.

In the realm of digital disruption, disruptive selection opens the door to creative destruction, which is set to unleash up every industry imaginable. As Joseph Schumpeter noted in, “Capitalism, Socialism and Democracy” published in 1942, creative destruction is the process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. Said another way, there’s always going to be instances where new kills old or the the old evolves into something new.

Let’s take Uber for example as a form of disruptive selection. Who here loves taking taxis? I’m often in San Francisco and New York and the experience that I have is often poor. Cars don’t stop to pick you up. When they do, cars are often dirty, drivers are frequently less than pleasant, and the goal of getting from point A to B is generally by way of creative way points.

As a result, I’m a big fan of Uber as is anyone who uses the service.

For those unaware of Uber, it was founded in 2009 by Garrett Camp, Travis Kalanick and Oscar Salazar as an on-demand mobile platform that connects passengers to available drivers. The app shows passengers available cars, the distance/time to them, an estimated price based on their destination and an integrated payment system so that you can simply step out of the vehicle rather than doing the oft uncomfortable dance of remittance. More importantly, Uber introduces a human touch, giving passengers the ability to rate drives and also learn more about each driver and the experiences other Uber users have shared for each. This is important because it introduces a shift in the value proposition.

Each time I get into an Uber car, I interview the driver to learn more about why they use Uber. The story is often the same. As you would guess, money is part of the equation, but so is service. Each driver has their own process of greeting passengers and ensuring that their ride is clean, pleasant and personalized. Those who don’t get it…don’t get it and it’s clear in their reviews. PASS!

At a minimum though, Uber offers black car or luxury car operators to expand their customer base when they’re in between jobs. The price is often comparable to that of a standard cab and as you can imagine, taxi operators are not in love with Uber. Essentially, Uber is disrupting the taxi industry and this has regulators up in arms as they flail to protect their way of life.

Rather than fixing the taxi industry’s problems or setting out to improve passenger experiences, regulators and officials instead cry foul and attempt to block Uber in each city it introduces. WTF!? If anything, that’s a response worthy of Digital Darwinism and a strong example of disruptive selection in action. If you have a choice, the decision is easy. And over time, unless the taxi industry innovates to compete, companies such as Uber and Sidecar will at come point become the norm. To date, Uber is now in 29 cities internationally and was recently awarded Fast Company’s “2013 Most Innovative Company in Mobile.”

Disruption eventually gives way to models and templates for others to follow. Eventually however, disruption evolves into business as usual until it is disrupted again through a process of disruptive selection. Reacting to disruption may already be too late. Setting out to improve experiences and outcomes and finding innovative ways to do so is your only answer. And, this is something that becomes part of everyday business.

Setting out to disrupt markets is commendable, but to compete for the future takes more than intent to disrupt, it takes vision to see what others cannot and perseverance to do what others cannot or will not. The best investment you can make in business is the quality and experience of your product for it is the experience that people will document and share. In a connected economy, those shared experiences become the trusted leverage other consumers seek to make informed decisions.

Every threat has its antagonist. Disruption is only thwarted, or also fueled by, innovation.

#InnovateorDie

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I had the opportunity to present at LeWeb in Paris, arguably Europe’s largest conference dedicated to the future of technology. The theme of the conference explored the Internet of Things, where devices and things connect to one another to perform certain tasks and/or track activities to improve what we already do or make possible what we’re trying to do.

The Internet of Things is bigger than we may realize. We are experiencing a shift from a world of inanimate objects and reactive devices to a world where data, intelligence, and computing are distributed, ubiquitous, and networked. My fellow analysts and I at Altimeter Group refer to the Internet of Things (IoT) as the Sentient World. It’s the idea that inanimate objects gain the ability to perceive things, perform tasks, adapt, or help you adapt over time. And, it’s the future of the Internet and consumer electronics.

In 2008, the number of things connected to the Internet exceeded the number of people on earth. By 2020, it’s expected that there will be 50 billion things connected.

A network of things creates an incredible information ecosystem that connects the online and physical world through a series of transactions. In a world where data becomes a natural bi-product of these exchanges, developers, businesses, and users alike are faced with the reality that data isn’t only big, its volume and benefits are also overwhelming.

Did you know that the world creates 2.5 quintillion bytes of new data every day? According to IBM, 90% of the data in the world today has been created in the last two years alone.

Considering the relationship between the Internet, data, and devices, I can’t help but think about Marshall McLuhan’s ominous words, “The more data banks record about each one of us, the less we exist.”

With the Internet of Things, that data takes residence in the cloud with various devices and apps siphoning and funneling information in and out, requiring an incredible amount of vision and architecture to organize, analyze, and present it in a way that makes sense while also offering insight and utility. Instead of eclipsing our individuality, I believe the future may reveal the exact opposite. There’s a sense of empowerment and personalization that emerges and, along the way, we subconsciously and consciously begin to crave it. We become insatiable in our pursuit of personalized feedback and it may, in fact, define us.

The Convergence of Devices, Data and the Net

We’re starting to realize the magic of the IoT today in some of the most basic aspects of our lives. While at Le Web, the audience was introduced to Lockitron, a clever system that combines a mobile app, a household device that mounts to existing door locks, and the Internet to open and close doors remotely. I immediately thought of a partnership with Airbnb to give renters peace of mind in controlling their rentals.

Nest is disrupting the long dormant world of thermostats by connecting mobile devices to existing thermostats (heating/air conditioning) with the simplicity and elegance of an iPod. But it’s more than controlling energy and temperatures remotely, Nest learns and begins to adapt without input.

Square’s Jack Dorsey has disrupted the age old world of payment systems by transforming mobile devices into cash registers, connecting money, data, and the net into one frictionless transaction. It’s the data part that represents something so much more however. In that regard, Dorsey sees the real value beyond the transaction—where the swipe and the receipt ultimately become a communication medium. In his view, payments represent “a necessary transaction” to create a channel where merchants learn more about individual consumers and equally, consumers learn more about their behavior.

The Convergence of People, Devices, Data and the Net

When I marvel at the future of the Internet of Things, I can’t help but think about another often shared idea from McLuhan that, “the medium is the message.”

There’s more to smart appliances and devices than utility or remotely controlling our surroundings. The underlying current of this powerful information exchange are the experiences that surround and emanate from each transaction.

What if the medium wasn’t just the device, the medium was us?

At the center of the IoT and Big Data are the very people who fuel the constant exchange of information. At the same time, it creates a human network, where we become nodes and the information that ties together people and devices feeds new experiences and changes our behavior over time.

This is an era of which my good friend Loic Le Meur and I refer to as the Human API, the idea that who we are, who we know, what we experience and do are important layers in the Internet of Things. While this may sound foreboding, we do in fact become part of the “machine.” I’m not referring to Skynet or Raymond Kurzweil’s theory of Singularity, however. I’m talking about how we open the door to a new generation of technology development that improves lifestyles and enhances relationships while unlocking aspirations.

If you’re unfamiliar with the meaning of API, it stands for application programming interface. Simplified, it’s an interface for programmers to develop upon a common platform where software can communicate with other software objects and also devices.

The Human API represents an opportunity for relationships and technology to be linked by an open source platform…you.

The Medium IS the Message

Revisiting McLuhan’s “medium is the message,” where the form of a medium embeds itself in the message, as a result, it creates a symbiotic relationship by which the medium influences how the message is perceived. The idea of the Human API sets the stage for devices to not only talk to one another, but also talk to us and affect how we process and adapt information to influence how we go through life every day.

If we intentionally program for the Human API, I believe we can design a complementary track within the Internet of Things where products combine utility, experiences, and outcomes.

Let me give you a simple example. Fitbit, makers of wireless trackers and scales, had a tremendous presence at LeWeb. Many speakers and attendees wore these wireless devices to track steps, distance, calories burned, and stairs climbed. At night, it measures sleep cycles, to help users learn how to sleep better. The intention is to motivate you to reach your goals by bringing greater fitness into your life. It is the social element and the corresponding activity that I also find fascinating.

Products such as Fitbit and also Nike’s FuelBand build upon the Human API by collecting the digital breadcrumbs of users and assembling them in a way that makes sense of daily activity and validates progress. Perhaps more importantly, these devices, the data they collect and present, and the social relationships linked by publishing this information in social channels drives the ongoing pursuit of goals, and brings people together to help one another live better. As these devices are connected socially, experiences become the epicenter of engagement and encouragement, inspiring people and networks of people through extended relationships along the way. Imagine if they could also talk to one another…across devices and also across the various contexts of usage, personal, professional, medical, etc.

That’s the point.

Over the years, many developers have created specialized apps and devices that helped us accomplish things through creative “life hacks.” These hacks have given us a taste of what’s possible and are now about to become a way of life. To do so, they now require intentional design to create desired experiences and to change behavior and bring about thoughtful outcomes.

The Human API and the Need for Experience Architecture

Designing new threads within the Internet of Things around people, information, and devices requires architecture. Rather than exploring the deeper convergence of human and machine (“singularity”), the idea of solidarity seems more apropos here and now. I’m not referring to the trade union movement in Poland during the 1980s that inspired opposition to communist regimes across Eastern Europe. I think of solidarity in this case as a movement where individuals come together around a common interest to promote mutual support within the group.

Developing solutions that spark solidarity is only possible through experience architecture. This is where the next generation of visionaries and leaders will push us forward for they represent an emergent genre of experience architects.

This is where you come in…

The Human API opens up tremendous opportunities to develop devices, apps, and experiences that connect information, people, and aspirations to change behavior….on a common platform.  This form of human interface design introduces the potential to create harmony in a world of digital chaos, making sense of noise and information overload to accomplish tangible goals or help people see or do things they didn’t or couldn’t before. In the process, we strengthen on our connections around common goals and interests.

This raises questions that experience architects need to consider:

1) What does all of this tell us about ourselves and those around us?

2) How do our devices better communicate and improve how we communicate and adapt?

3) How does the IoT bring people together around a purpose, outcomes, or aspirations?

4) How does it enable us to optimize the lives of our users and customers?

5) How can these devices work together to help users get a holistic body rather than disparate streams?

The future of the Internet of Things requires the balance of experience architecture and the exchange of human information between people and machines, and it is beautiful. And, it takes design.

Imagine what we—as users, entrepreneurs, investors, and enterprises—could do with all of this information. Imagine how we can improve connectivity, lifestyles, and relationships by constructing ecosystems that foster meaningful experiences and inspire changes in behavior.

This hyper-connected world will bring devices, systems, information and people closer together … to create new possibilities, all based on human APIs. As experience architects, the future is yours to develop.

What are your thoughts on the idea of the relationship between people, devices, the Internet of Things? Let’s keep the conversation going!

Below is video of my presentation at LeWeb on the Human API. I hope you enjoy it.

UPDATE 1: Foursquare co-founder Naveen Selvadurai wants you to hack his personal API

UPDATE 2: My work and the work of others on the Human API over the years seems to have inspired a new company (read: platform). It sounds promising and I hope that they credit everyone who worked over the years freely to introduce the need for a common platform.

Image credit: Esther Gons

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My friend Tim Stenovec (@TimSteno) just published a great story on Amazon’s move to create original programming a la Netflix for The Huffington Post. He was kind enough to include me in his article (thank you Tim).

He sent along a few questions as I was boarding my flight from NY to LA. As Tim was on deadline, I needed to send a thoughtful response as soon as I’d have the opportunity to turn my phone back on. The quote in italics is what made the cut…but, I also wanted to share the additional thoughts I sent along for context. Amazon’s move is an interesting one indeed and I believe it’s reflective of a bigger movement in brand publishing that’s just beginning to spread its wings.

“Content is king. In an increasingly distributed consumption economy, Amazon is betting that content creates a bridge between Amazon, its products and services, and customers.”

While this is an expensive proposition, Prime subscribers are Amazon’s prime customers…they spend a great deal more per average than everyday customers. The goal of course is to create value beyond standard Prime benefits to increase subscriptions and overall spend.

Additionally, Amazon is facing competition on new fronts via Hulu Plus but more specifically Netflix. Original content is setting the standard for value add and preference beyond the standard programming that could be considered a commodity.  Amazon’s means and resources are great and I would look to Amazon to consider content to also become part of its hardware and media strategy, not only helping it compete with Netflix and the like, but also complement it in competition against Apple and other Android tablet manufacturers. And, Amazon’s just getting started. Think ecosystem…rumor has it that the company is also building a video streaming device to earn a place in the coveted digital living room.

What do you think about Amazon’s move to create original content?

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Have you ever watched TV while using a laptop, smart phone, or tablet? Wait, why am I asking. Of course you have. That’s what we all do now right? So I guess the real question to ask is how often do you use Twitter vs. Facebook while watching TV? In many ways, Twitter is becoming a bona fide second screen experience while watching television. And in many ways, TV may also serve as the second screen to those engrossed in their Twitter streams. If you think about it, the idea that the TV becomes the second screen to digital experiences is rather provocative. Perhaps this is why Twitter is making some notable moves in the television analytics market recently.

Late last year, Twitter and Nielsen announced an agreement to create a new Twitter-based TV rating. Steve Hasker, President, Global Media Products and Advertiser Solutions at Nielsen shared his view on the importance of Twitter’s role in the new world of TV in an official statement, “As a media measurement leader we recognize that Twitter is the preeminent source of real-time television engagement data.”

Twitter didn’t stop there however. In February 2013, Twitter announced the strategic acquisition of Bluefin for its TV-centric data science to, according to Twitter COO Ali Rowghani, “help us create innovative new ad products and consumer experiences in the exciting intersection of Twitter and TV.”

Analytics. Ad products. Experiences. The deals with Nielsen and Bluefin represent wise investments considering that they were led by a leading social media company that’s often misconstrued as a mere second screen product in this space. Instead, we can consider Twitter now as an extension of personal experiences…a digital form of self-expression if you will.

So how is Twitter affecting our television viewing habits? To answer the question, we need not look any further than an ebook that Twitter UK recently published, “Tune in with Twitter.”

The ebook opens with a strong assertion that the relationship between Twitter and television is strongly symbiotic. It’s justified perhaps with this follow on statement, “Twitter is the shortest distance between you and what interests you most.” This is in my research what truly makes Twitter less of a social network and more of an information network. Whereas Facebook is the digital habitat for the social graph, Twitter is the social club whose members form the interest graph. At 400 million Tweets published per day, Twitter is the popular voice for a connected society. Is 400 million daily tweets a significant number? If I told you that electric car manufacturer Tesla reported $400 million in losses last year, would that seem significant to you? Consider that amount on a daily basis.

Discovery + Engagement

The magic of Twitter is that it promotes discovery and engagement as part of its nature. As Twitter denotes, Tweets and TV programming drive each other in a complimentary cycle. Hashtags aired in programming is proven to boost online engagement by organizing viewers around a common Tweet to Action (T2A) where people tweet reactions to trigger interactions. A TV-related Trend or Tweet on the other hand sparks discovery.

The goal for content producers and advertisers is to create content that positions and strengthens the TV as the first screen and introduce “Tweetable moments” to spark engagement. Those that learn how to better introduce Tweetable moment drive outcomes and as Twitter found, drives increases in brand recall scores.

Social Programming Profiles

Twitter UK monitored the social profiles and tweet patterns of popular programs. The team observed that Twitter activity follows patterns driven by three factors: genre, demographics and time slot. Tweet peaks and engagement are driven by content, storyline, of course celebrity Tweets and also hashtags displayed prominently on air.

Twitter also learned that Tweet patterns differ based on the genre of the aired program. Please see the ebook for histograms that display Tweets per minute TPM for each genre). Tweets tend to compartmentalize around the following five categories:

Factual
Engagement patterns mirror key events or iconic moments.

Drama
Dramas tend to see peaks in Tweets that bookend the beginning and end of episodes.

Entertainment
Entertainment often sees a higher proportion of Tweets from mobile. Tweet peaks are largely content-driven, but also occur during ads.

Current Affairs
Interestingly, a higher percentage of Tweets emit from desktops. Tweets peak largely following climatic moments in the narrative or because of on air #hashtag prompts.

Films
Films on TV regularly trend on Twitter. Tweet patterns follow key storylines with quotes often tweeted widely.

Twitter is already observing consumer behavior and the patterns around how, when and why they Tweet. Content producers and advertisers must rethink their approach to create Tweetable moments based on the genre of the content, including advertisements. Production and creative teams can now work together to converge social storylines and product/brand placement into Tweetable events complete with desired discovery and engagement journeys. This opens the door to new monetizable products for program sponsorship as well. Social programming and architecture will fuse the first and second screens and the desired relationships and activities among connected viewers will unfold as a result. Without it, viewers will act and react as they see fit, which may in fact relegate the television as the second screen instead of the primary screen.

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Guest post by Danna Vetter, VP, Consumer Strategies, ARAMARK

You’ve heard it all before. You do your research. You write the strategy. You set the goals and objectives. You train your community managers. You go live in two weeks.

Facebook announces Timeline.

You kick [insert EVERYTHING].

There is only one thing that can be done in situations such as these – control what you can control. As marketers, we have all come to rely on these external social platforms, of which we do not own, control, or lead. There is obviously a certain compromise that we all must accept in this new world – we don’t make the rules. It’s not our code. It’s not our functions. It’s not ours.

Welcome to Digital Marketing 2013.

But here’s what you can control – always preparing your organization. Give them the tools and resources they need to be successful in social media every single day.

Training is a fundamental part of getting your users ready for managing social media. But learning can’t end there. The industry evolves and changes too much. Education and knowledge need to be a continuous process. What they learned yesterday is already the past. And by continually providing the right tools and resources to your managers, you can ensure they are prepared in the best ways possible.

Get your team the technology to manage social media. At ARAMARK, we started with a social media management system (SMMS). This gave us a place to corral all of our company’s social accounts, and just as importantly, it gave our community managers a one-stop shop where they can manage multiple social channels and campaigns. They can schedule, publish, and track content, as well as measure analytics. Most SMMS providers now even have functionality for ads buys on Facebook as well as targeting your content’s audience and promoting your posts.

Also, we kept our social managers up to speed on the latest developments through topical resource guides, mini playbooks, and even infographics. Be creative. Collaborate. Communicate. Share knowledge. Hear what your team needs, what they want, and what they are missing. Then provide it back to them.

Learn from each other. If you don’t have an internal collaboration network, consider cloud versions like Yammer or Chatter. If your company wants to keep everything in-house, use email. Or pass notes. Maybe shout. Find anyway possible to share information and experiences. If you don’t have the answer for a community manager, maybe one of their peers does.

There’s so much out of our control today as marketers. But no matter what, at a company, you win and you lose together. So stay ahead of the game and keep your company prepared. And look out – Facebook just changed how people access and use newsfeed!

Part of an ongoing series…

They All Laughed – The Road to Becoming a Social Enterprise

The 5th P of Marketing is People – Engagement begins within

 Mitigating Risk in Social Media Engagement

Follow Danna on Twitter

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Question: What is your #1 advice for social media strategists and managers?

Answer: Stop talking about social media

Type “social media” into a Google search bar and you’ll find roughly about 4.7 billion results in .30 seconds. Next, try “social media conference.” You’ll see something along the lines of 1.2 billion results in .25 seconds. Social media is important but I’d argue we aren’t celebrating it for the reasons we should. Instead, we are forcing social media to conform to traditional thinking and processes rather than adapting business philosophies and supporting methodologies to meet new opportunities.

Every day, I hear about how social media strategists and managers are frustrated with the lack of executive support. Yet, many aren’t doing themselves any favors. Executives don’t speak the language of social media. They speak the language of the C-Suite and their audience are shareholders and stakeholders…not necessarily customers or employees or “people” in its most human sense.

So, in the face of skepticism or fear, the best advice that I can offer you is to learn the language of the C-Suite when making the case for what it is you believe is the right thing to do. Making the case for social media has less to do Facebook or Twitter or Likes, views or Retweets and more to do with using these networks to glean or introduce value. To earn the attention and respect of the C-Suite and ultimately customers is the ability to connect the dots to the very things that every stakeholder values and communicating it in a way that is approachable and appreciated.

This takes a thoughtful approach to rendering value in a contextual means that hits home with different people their way.

Altimeter colleague Charlene Li and I conducted a series of research interviews and surveys over the last year on this very topic…how social today’s social media strategies align (or do not align) with business goals. We shared our findings in a newly released report, “The Evolution of Social Business Six Stages of Social Media Transformation.” Needless to say, we found a significant gap And, it is this gap that makes communicating value to executives difficult if not impossible.

Charlene and I found that only 34% of businesses felt that their social strategy was connected to business outcomes and just 28% felt that they had a holistic approach to social media, where lines of business and business functions work together under a common vision. A mere 12% were confident they had a plan that looked beyond the next year. And, perhaps most astonishing was that only one half of companies surveyed said that top executives were “informed, engaged and aligned with their companies’ social strategy.”

In the early days of social media, emergent networks changed how people connect to one another and the information that’s important to them. With each update, shared experience, and event, the world shrank. People were and are becoming increasingly connected and as a result they are more informed. With information and connectedness comes the reality of increased customer expectations. Value, engagement, entertainment, personalization, people must takeaway something meaningful from the exchange otherwise there can be no relationship. A relationship is after all a mutual exchange where all parties believe that connectedness is beneficial.

Facebook, Twitter, Youtube and every network thereafter are merely communities, ecosystems, and platforms where information is exchanged and relationships are formed and abandoned. How you make the case for engagement and how to deliver or extract value isn’t directly tied to the nature of the environment as much as it is the facilitator of the way and the weight that value is defined, expressed, and measured.

If we’re not providing solutions we may in fact be contributing to the problem. See, social technology isn’t the answer; it’s part of the answer. Yet social strategists are often caught up in a socialized ecosystem of catch-up and that’s part of the challenge and the test. There’s always going to be a new network or another shiny object. There are always new case studies or expert theories flooding blogs, conferences, and books.

Again, the best advice I can give you is to stop talking about social media as a means to an end and start thinking about how social media becomes a means toward triggering meaningful activities or outcomes that align with business priorities or objectives and customer expectations.

This is the time to get back to basics. This is the time to take a step back.
Social media is not the crux of you argument. It is an enabler. This is your opportunity to lift the conversation from tools to value and to translate the promise and opportunity of social into an emissary of meaningful engagement that aligns business goal, social media strategies and customer value.

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This post originally appeared at AT&T’s Networking Exchange

Back to Basics: Shutterstock

I received an email from my friend at CIO Journal just as I boarded a United flight from Mexico City to San Francisco. He was on deadline and the topic was too good to miss. I’ve spent more than a fair amount of time studying and reporting on the social landscape as it pertained to internal engagement, communication and collaboration.

I frantically typed on my iPhone with my thumbs before the door closed. Time was.running.out. With the hit of the send button, the door closed, and I was relieved to know that I made the deadline.  Fast forward….the article recently ran in WSJ’s CIO Journal with a few of my thoughts. Since the topic is important to me and hopefully you as well, I wanted to share the response in its entirety. I’d also love to hear your thoughts on the subject…

Here’s the setup (edited):

A company has rolled out a new social media platform to its employees in the hopes of improving its health and safety record by getting workers to talk about best practices and also to point out problems or things that need to be done differently.

Question 1:

Is it unusual for companies to introduce a social media platform to fix this type of problem (versus trying to foster more collaboration for business processes)?

Answer:

Research shows that when a majority of the employee workforce is “disengaged,” it’s due to the reality that a lack of leadership or belief in overall corporate purpose or direction is prevalent. Social + gamification without uncovering and fixing employee relationships is simply gaming the system. However, social + gamification combined with an overhaul in process, management, and communication is how to bring about true change. Without investing in the culture, most initiatives are short lived and often minimizing the problem.

As my good friend and digital sociologist Stowe Boyd would say, “The tangible result of culture change is behavioral change.” The opposite is also true. This is why management needs to explore its DNA to give employees something to align with.

Question 2:

Is adoption of enterprise social media a challenge. particularly when there is distrust of management?

Answer:

A recent Altimeter Group study published by Charlene Li found that businesses that employ enterprise social networks without a true vision for collaboration or how to improve relationships often fail to meet expectations. Also, without leadership adoption, it’s impossible to lead by example.

Hope this helps.

Join me as the story continues…#WTF

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Elements of inspiration that went on to become my new book, What’s the Future of Business, Changing the Way Businesses Create Experiences

Blame it on the youth they say. Indeed, there’s a great assumption that the future of technology falls in the hands of emergent generations. The youth of today will someday represent the majority of consumers, employees and citizens. That’s always the case, but what we don’t yet fully appreciate is just how different young adults think today. We don’t yet understand what it is they value and why. We’ve not yet assimilated how they make decisions and what factors influence their daily activities and journeys.

Generation Y, also referred to as Millennials, and Generation Z represent those individuals born in the late 1970s or the early 1980s to the early 2000s. They follow Generation X, my generation, and they are already a powerful force in the future of the global economy and politics.

70 million people in the U.S. belong to the Millennial Generation aka Millennials today. Millennials also represent 35 percent of the workforce today, and by 2014, they will comprise of almost half of all employed professionals. In a separate study conducted by Millennial Branding, it is expected that by 2025, Generation Y will represent 75 percent of the workforce.

Right behind them is Generation Z. And as they grow up, they too will have a profound impact on society. In fact, they already do. In the United States, Generation Z is said to already control up to $30 billion in spending.

What’s different about these generations than those before them? Gen Y and Z were born with digital in their DNA. While that may seem like a given, it is the very detail that separates them from their parents, teachers, businesses, governments, and any organization other than those already run by Gen Y and Z. As a result, our society splits into two camps, those who “get” these connected generations and those who do not or will not.

Your Experience is Not Their Experience

I’ve studied connected behavior for many years now. And it never ceases to amaze me how older generations refuse to see the world any other way than through their perspective. It’s almost as if there’s a superior and inferior right to certain life experiences. Yes, to ignore our own experience and point of view is a personal strength. But when considering the vantage points of Generation Y and Z, it is also a potential weakness.

For each decision we make in life, we bring an abundance of life lessons that help us choose what we believe the right path at every personal and professional intersection we encounter. But we are not qualified or truly experienced for that matter to assume that how we make decisions and how younger generations make decisions are in parallel. And, we cannot assume however, that as we design products, services, or any agenda for that matter, that Gen Y and Z will appreciate those outcomes as we seem the. The reality is that they already see the world differently than you and me.

Perspective is a gift nowadays. It’s in how we see the world through their eyes that we can then invest in the future of their experiences.

Why?

They will not do the same for us…at least not yet.

Some of us can multitask, but we say our ability to do so diminishes each of the tasks we simultaneously perform. This is not true for younger generations as their brains are wired differently.

We complain about privacy in social networks. They’ve mastered it.

We don’t get why people share as much as they do online. They’ve created incredible filters to sort through the noise.

We use Google.com to find relevant information but younger Generations go to trusted networks or rely on YouTube videos to make decisions.

We watch TV on televisions. They watch TV on tablets and smartphones

We listen to radios on radios. They listen to music on Pandora, Spotify and the like.

We can eat dinner or sit in the same room with loved ones without looking at our phones and we get angry when others don’t return the favor.

We trust family and friends and younger generations trust people “like” them whether they know them or not.

This is just the beginning…

Empathy is the Gift worth Getting: Seeing the World Differently

Look, getting older doesn’t mean we have to become irrelevant. Assuming that the way we live is the only way to live is incredibly presumptuous. Young adults started life differently than us. What they know is what they know. You and I had to learn how to evolve from analog to digital and we’re still learning. But the gap that separates us and them is bridged only by our ability to take the first step toward understanding their behavior, expectations, and preferences. Then and only then can we build a more connected world and chart a better course for the future of education, commerce, government, art, and everything that keeps society and humanity moving forward in positive and productive ways.

In a study of young adults in the US and UK conducted by JWT entitled “GEN Z: Digital in their DNA,” we learn just how connected they are and how different they are from us.

When some of us wonder whether or not Facebook will follow the way of MySpace and all the other social networks that succumbed to digital irrelevance, we can see that for those 13-17 and 8-12, Facebook is the online homebase for 84% and 46% of younger generations respectively.

For those who question whether or not kids who focus on their screens are having an affect on conversations in the real world, be warned. Times, they are a changin’. In the study, almost half of Generation Z expressed that they feel their real social life happens on social networks. And, 43% in aggregate feel more comfortable talking to people online than in real life.

Online relationships are also making the world a much smaller place. This is true for all those connected online however. But for 26% of such a young demographic to say that they would have to board a plane to visit their online friends is exceptional and practically unprecedented.

And when you ask Gen Z parents how they feel about their children’s online behavior, 68% wish they would log off and engage more with the real world. But that’s just a digital fantasy it seems as younger adults are already affecting how households make important purchases.

73% influence this week’s dinner menu.

69% influence entertainment.

60% influence TV.

The list goes on…

Born Digital

What’s clear is that Generation Y and Z are born digital and therefore engagement strategies, products, services, and employee relations need to also be born digital to meet expectations. If you think you’re placating or giving into this generation whines or unfounded demands, think again. This is just a way of life for them and any organization or decision maker that doesn’t understand them cannot with any meaningful effect engage them or earn relevance among them. But think for a moment what this means.

These younger generations aren’t the only one who are becoming incredibly connected. Anyone who throws themselves into the digital lifestyle start to exhibit different but eerily similar behavior to that of their more youthful counterparts. iPads or Droid tablets, smartphones, laptops, Nike Fuelbands, FitBits and other personal devices, social networks, connected devices, collectively contribute to an always-on society. The result, people are not only connected, they’re informed, empowered, and discerning. This means that they are also either elusive or immune to traditional marketing messages in traditional marketing channels.

According to a Google Insights macro study exploring the “Zero Moment of Truth,” today’s shoppers now rely on over 10 sources when making purchase decisions. This is twice as many as the previous year. The more society embraces the digital lifestyle the more likely this is to go up.

We’re moving from a world that prefers “screen face” to face-to-face engagement and it knows no geographic or demographic boundaries. In a separate Google report, “The New Multiscreen World,” it the extent of cross platform, cross screen consumer behavior among connected consumers was revealed. Google found that we are indeed becoming a society of multi-taskers and multi-screeners with consumers spending an average of 4.4 hours of leisure time across four screens every day. Those screens include smartphones, laptops, tablets and TVs. The study also found that only 10% of all media interactions are non-screen based, which include radio, newspapers and magazines. Wow.

What’s clear is that Millennials and Generation Z behind them are in fact born digital. To get them takes effort. And, to keep up with younger generations takes a shift from antagonism or skepticism to that of comprehension. Understanding how they connect, why, and how doing so influences online and real world behavior, we can make informed decisions about how to develop relevant engagement strategies and meaningful products and services.

Essentially we must become digital anthropologists and ethnographers to learn and appreciate the differences and subtle nuances that create a great divide among living generations. Doing so teaches us about current culture but also conditions us to better anticipate change. This is important as technology is only accelerating therefore making change a constant.

As we learn more about these digital natives, chances are that we too, might very well become the people we’re trying to reach. What we cannot do however, is underestimate the influence of these connected generations on economy or society. They, and those who learn how to connect with them, contribute to a culture that’s not only digitally literate but also interconnected. Perhaps soon, we will not be so different after all.

Join me as the story continues…#WTF

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Image Credit: Intel, “How computers are born”

Part Two. An edited excerpt of What’s the Future of Business, Changing the Way Businesses Create Experiences

In Part 1 of this series, The First Mile: The Broken Link of Social Media Customer Service, we reviewed the opportunities and challenges that face any business seeking to engage customers in social networks. To become customer-centric requires a culture that supports customer-centricity and an active investment in defining the first mile experience.

The first mile of customer engagement is a post-commerce or post-transaction strategy that invests in an ongoing experience to keep customers happy now and over time. Doing so sparks positive word of mouth and in turn influences decisions the dynamic customer journey that defines the new era of connected consumerism. If in fact getting closer to customers is a key objective, then why do many businesses neglect the first mile of customer experience?

In February 2012, American Express published a report that found 46% of U.S. internet users stormed branded social media presences to express frustration about poor experiences.

In the American Express study, the results were as telling as they were indicative of how much work it’s actually going to take to transform customer experiences. For the most part, brands miss a majority of activity in the social web whether it’s good or bad. But, if you break it out to the most common engagement opportunities, companies will need to rethink the overall social media strategy and allocation of resources. Social media marketing is just the beginning. Customers aren’t on popular social networks because they’re looking to be entertained by their favorite brands. They’re online to seek and share experiences.

Take a look at these numbers for example…

50% – The number of customers seeking an actual response from a company about a service issue.

48% – The percentage of people who praise a company for delivering great service or experience.

47% – The influence factor of your customers who share information about service and experiences with a wider audience.

46% – Those who vent frustration about a poor service or experience.

43% – The amount of customers asking others how to have better experiences.

Rejoining the links

If people are acting as either an extended and connected sales force, marketing team or as detractors, perhaps a reset in priority is necessary.

When you look at how social media is supported inside the organization, you find that there’s a broken link between social media marketing and customer service. In fact, the majority of time, money and resources are invested in marketing and not in supporting customers through influential social networks.

If a customer shares an experience or asks a question the ability for marketing to acknowledge the act is certainly there. The trouble is that most of the time, the person or team in front of most social presences cannot effectively respond with any form of resolution or satisfaction. Nor is there an internal process or technology platform that connects outside activity through social marketing to customer service and back out again. This leads to a phenomenon that I call the Broken Link of Customer Engagement or the Social Arc Effect.

Let customers own their experience

Just because a company does not have a dedicated presence for customer service on social networks doesn’t mean that customers understand the difference. To everyday consumers, a Facebook page or a Twitter handle is the brand. Customers do not see silos, they see one company. It’s up to the social media team to connect the dots instead of lock social in a silo of its own.

Customer-centricity starts with recognizing that customer experiences are in fact owned by the customer. As much as we attempt to integrate experiences into product features and design, the ultimate experience unfolds at the point of outreach. In social media, most activity is run out of the marketing department. As a result, when a customer expresses discontent, praise, or simply requires direction on the social presences of any brand, it is initially received by the community manager or the representative agency/consultant.

The lost art of following up

Depending on internal processes and connectedness, chances are that customer sentiment will pass the first point of entry, but according to statistics, customer needs will become the victim a siloed enterprise. In reality, marketing doesn’t talk to customer service and customer service, without design, doesn’t recognize conversations and expressions en masse.

In a study conducted by Satmetrix in mid-2012, it was revealed that less than half of the companies it surveyed tracked and followed up on customer feedback in social media. An astonishing 28% do not track or respond leaving customers to question their value to the businesses that they support. The lack of acknowledgment or engagement also leaves the door wide open to competitive courtship.

Linking social media to improve experiences

In 2007, I wrote a piece on how social media presented an opportunity to turn customer service into the new marketing. I believe that acquisition in social media is only part of the story. The brilliance of social networks is that it presents opportunities for engagement to transform negative experiences into positive outcomes. Conversations also inspire opportunities for product refinement or innovation to create remarkable experiences from the onset.

Retention is the new acquisition. For the companies that are experimenting with social media, it’s time to break it out of the traditional call center and create a proactive group of expert agents. While social media is yet another channel for agents to engage customers such as chat, email, and phones, the reality is that it requires a different philosophy to effectively manage relationships and agent performance.

Time to resolution, cost per engagement, NPS, wait time, these are metrics of an aging era. Advocacy, referrals, positive endorsements, reviews, loyalty, these are the metrics that can be directly linked to social customer service among many other tangible outcomes including ROI.

Unlocking advocacy

The first mile of customer satisfaction starts with reflection and introspection. To become customer-centric requires a change in how we value customers and the role they play in the decision making cycles of those who make choices based on the shared experiences of others. The first mile is then paved through listening, governance, and engagement.

The Arc Effect is a visual representation of what is and what could be. Completing the arc should become a 2013 priority investment for any business genuinely pursuing customer-centricity. It takes good intentions of course, but to truly improve relationships and unlock advocacy requires that social media strategists work with customer strategists to create an integrated series of processes and defined roles and responsibilities. Doing so delivers a holistic experience that turns customers into stakeholders and stakeholders into protagonists of aspirational experiences.

ctrl-alt-del

The story continues…#WTF

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Photo Credit: Shutterstock

This post is based on a piece I wrote for AT&T’s Networking Exchange

Part One. An edited excerpt of What’s the Future of Business, Changing the Way Businesses Create Experiences

For all that social media is doing to change business for the better, it’s not yet enough. Interview any executive and ask them what their priority business goals are for 2013 and I’m sure you’ll see some element of customer-centricity on the list. Yet the challenge that exists for any organization trying to get closer to customers lies in the definition of customer-centricity. If getting closer to customers is a key objective, why do many businesses neglect the first mile of customer experience? Sure products and services count for almost everything. But if and when a customer has a question, wishes to share ideas or provide feedback, or needs help, why is it often the beginning of buyer’s remorse or resentment?

Over the years, companies invested in automated solutions to improve the efficiency of inbound customer engagement. Sophisticated voice recognition systems alleviate the hardship of pushing a button to direct calls. Improved call transferring lessens the frequency of getting dropped. Web forms, click to talk applets, and email now ensure that the first round of automated replies you receive look more human than ever before. And, internal metrics are now designed to reduce the amount of time we can get our issues resolved, reducing the need to build comfort, confidence and trust in each call. No, I’m not serious. But this is the reality that a majority of human beings experience to attain satisfaction or resolution.

The Customer is Always Right—Right Now

Enter social media. Customers no longer require a “hotline” to express sentiment nor do they need approval to do so. Everyday people express themselves through every channel possible. You’ve heard it before. A happy customer tells a few people, but an unhappy customer tells…everyone. Thanks to Twitter, Facebook, YouTube, Yelp, blogs, Foursquare and a myriad of other social networks, customers now possess the ability to share their experiences and affect the impressions and ultimately decisions of an unprecedented number of peers each and every day.

If you’re reading this, you probably already get this. Yet, still today, almost eight years after the inauguration of the social media movement we know today, there’s still a disconnect between the importance of social networks and customer expressions and the ability for executives to appreciate the affect and the consequences of not engaging. It’s the difference between the function of customer service and the intentional result of customer satisfaction.

In the realm of social media however, every comment either compliments or peels away from the sanctimony of an engineered brand. And, if the formula of happy customers telling a few and unhappy customers telling many more holds true, the collective of customer experiences are indeed indexed for others to find and consider in their decision making cycle. One must not need be a mathematician to understand that when someone searches about your company, chances are that without engagement or design, posts, comments and real-time conversations will work against you. In February 2012, American Express published a report that found 46% of US internet users stormed branded social media presences to express frustration about poor experiences.

Imagine considering a series of brands related to a product category you’re investigating. In the first round of research, you find a series of posts, videos, and conversations that reveal negative experiences and the inability for the company to positively change opinions. Chances are that you’ll react accordingly.

In Part 2 of this series, we’ll discuss the disconnect between social media marketing and social customer service within the organization. We’ll also take a look at how the majority of time, money and resources are invested in marketing campaigns and not in supporting customers. If customer retention is the new acquisition, a shift in the balance of marketing and support is desperately required.

The story continues…#WTF

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Photo Credit: Shutterstock

This post is based on a piece I wrote for AT&T’s Networking Exchange

How do you define engagement?

No matter how you define it, engagement is something that we most likely underestimate. Engagement symbolizes the touches that occur in various moments of truth and this should completely change not only how you engage someone in each moment but also how the inside of your company works with one another to make it frictionless and experiential.

Whether a customer stands on the stage of awareness, consideration, purchase, or post purchase, touch points open and close. And, it is in those moments that engagement, regardless of source or shape, affects the next steps and impressions of customers.

These moments of truth however are not limited to any one channel. Whether customers are navigating social, mobile, web or IRL (in real life), they approach each stage of the journey with different needs, in varying stages of decision making, and with one of several frames of mind depending on the context of engagement and also the screen (smartphone, PC, tablet, TV, etc) they’re using in each moment. It’s becoming increasingly complex, but then again so is the path of consumer decision-making. That’s why I wrote WTF, What’s the Future of Business…someone had to tell the story of the new customer journey, their way points, and how to reach them. The answers revealed that social was only part of the adventure.

The image above represents a detailed customer journey map, which outlines the important steps your connected customers take during and following decision making. The map also introduces the diverse elements that factor in to each step. Perhaps more importantly are the channels and screens individuals use to make their way along the journey. Mobile, social, web, IRL, they each contribute to a customer experience that either helps or prevents them from moving along in your favor.

In my research I’ve found that more often than not, each stage of the customer journey along with the mixed channels that they use are defined or programmed by different groups within the organization. The social experience is developed independently of the mobile experience, which is disconnected from the web experience. The point is that customers only see one brand or business and therefore each channel should complement one another to deliver against a desired experience and journey optimized for the moments of truth and for the context of each screen.

The Expansion from Social to Digital Engagement

One of the ways I’ve defined “engagement” over the years was quite simple, when a business and consumer interact within their channel of relevance during various moments of truth. Engagement though, is then measured by the actions, sentiment, and outcomes that result from each interaction. To optimize results, experiences, click paths, outcomes, and sentiment must be defined and enlivened through each channel in each moment. To do so takes vision, articulation of that vision, and collaboration with all stakeholder groups to cast a unified approach. Yes. It’s the age-old argument of bringing down silos and opening doors between departments and groups that just don’t talk to each other right now. But, that’s just what needs to happen and the more progressive companies are already taking note.

One such company is one that you’re more than familiar with. Starbucks recently appointed Adam Brotman, former senior vice president of Starbucks Digital Ventures, was appointed to an entirely new executive role, chief digital officer. The CDO role assumes all of Starbuck’s digital projects, which includes web, mobile, social media, digital marketing, Starbucks Card and loyalty, e-commerce, Wi-Fi, Starbucks Digital Network, and emerging in-store technologies.

Sephora is another forward thinking company that is uniting disparate channel strategies and various customer journeys in the name of holistic experiences. Sephora recently underwent a makeover to define the ideal customer experience and how it would play out in digital and real world channels, including in store engagement, while complementing and optimizing one another.

Perhaps a Chief Digital Officer is just the beginning. What we’re really talking about is someone who can bridge marketing, sales, service, and technology to create a frictionless path between customers and the business…at every step of the journey. Perhaps it’s time to think about escalating the role to someone who can own the entire customer lifecycle and bring the people within the organization together to do it. To break down walls, someone must be able to show how and why everyone can and should work together and also what’s in it for them. It would take someone who isn’t tied to any one function but instead someone who has everybody’s best interest inside and outside the organization to redefine the experience and how it’s formed and sustained. As I write this, I imagine someone taking over the role of customer journey management for digital, social, mobile and IRL.

The digital lifestyle is just a way of life now and businesses that don’t think beyond social or traditional will miss the greater opportunity to lead desirable customer journeys, experiences and outcomes. Take one more look at the Dynamic Customer Journey. As you plan for 2013 social, mobile, digital, and other channel strategies, consider how each can converge into a reciprocal and congruous ecosystem. The future of customer experiences lies in experience design and more importantly, customer journey mapping…across the screens and IRL.

Welcome to a new world of customer journey management (CJM) and the ability to bring people together around a common vision for improving customer experiences, sentiment and relationships.

The story continues…

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Photo Credit: Shutterstock

This post is based on a piece I wrote for AT&T’s Networking Exchange

Guest post by Eric Schwartzman, founder and CEO of Comply Socially, which helps employers manage the risk and capitalize on the opportunities of social media in the workplace. Follow him on Twitter @EricSchwartzman

The online Boston Marathon bombing witch-hunt last week dragged social media down to a new low.

Social media has become “the cocktail party from hell,” writes Maureen Down in her column “…with the flood of information jeopardizing meaning.”

When everyone’s talking about a crisis in real time and you have unlimited access to what they’re saying, the wisdom of the crowd can be very hard to find. With so much information swirling around, looking for meaning manually is impossible because there are never enough people to consider everything out there at once.

“What happened to Sunil Tripathi’s family scares the hell out of me, and I feel that any sort of crowd crimesolving platform needs to take that into account–the risk of lives being disturbed by overenthusiastic sleuths is just as important, in my opinion, as the potential for solving unsolved crimes,” says Neal Ungerleider, who wrote about how Reddit became a hub for a crowdsourced Boston Marathon bombing investigation.

Like most of the other social networks overflowing with new posts every millisecond, Reddit lacks even the most basic analytics. According to another story by the AFP, Reddit uses Google Analytics to monitor their own traffic.

We need to take a moment to acknowledge the critical importance of being able to find trends and credible sources in big data. When Google Reader goes away on July 1, 2013, not a single alternative offers in-feed search or analytics, and nobody seems too concerned about. In my book, that’s totally crazy. Without the ability to drill down and analyze your feeds, all that news is just a bunch of noise.

At what point does it become irresponsible to provide the world with access to a communications tools that can literally reap havoc in the lives of individuals and companies without providing any visibility at all into the patterns and shapes of the content being shared?

Is a social network without integrated analytics like a vehicle without a safety belt?

Freddy Mini, CEO at Netvibes — a Google Reader alternative that’s more focused on providing insights than powering engagement — says, “Context is the comparison of metrics.”

Meaning comes from the intersection of multiple sources. In the old days, journalists triangulated truth against a handful of sources. Today, we need to triangulate truth against millions of sources.

An avalanche of information is not necessarily a good thing. More often than not, it’s a path to obfuscation rather than enlightenment, where speculation inflicts irrevocable harm and sensationalism travels farther and faster than tolerance.

If you’re a business, the takeaway is that sharing without analytics is essentially useless, that engagement is not as valuable as insight, and that seeing things in context is more important than being popular.

Image Credit: Shutterstock

Like many, I found myself gripped by the real-time reports that poured in on the evening of April 19th…Boston Police were in close pursuit of the second Boston Marathon bombing suspect. Up to this point, I mostly followed the story via @CNN and CNNLive. I noticed however, that some of the most interesting updates were shared via Twitter directly by the Boston Police (@Boston_Police).

As police surrounded the second suspect while he hid in a recreational boat in the backyard of a home in Watertown, I shifted from online to TV. Yes…my  phone was nearby and it was in fact my second screen. I tuned in to Anderson Cooper on CNN to witness the apprehension as it happened.

Cooper cut to a report from a CNN field correspondent, who shared unconfirmed cheers among local residents. In that moment, I saw a Tweet come through on my phone from @Boston_Police, “Suspect in custody. Officers sweeping the area. Stand by for further info.”

Just then, something truly significant had occurred. Once again, we were reminded that…News no longer breaks, it Tweets.

Anderson Cooper then asked the reporter to hold on as he looked down at his phone and on live television, shared with the world, that Boston Police had confirmed that the suspect was in fact in custody…via a Tweet on Twitter.

TNN, the Twitter News Network is a powerful thing. In real-time, people create an incredible information network that expedites awareness. While it also raises the need for real-time fact checking, the information divide that Twitter introduces between citizen media and mainstream journalism is notable and game-changing.

Here, the Boston Police broke the story via Twitter and essentially informed and scooped traditional media in the process.

We do in fact live in interesting, and tweetable, times…

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I’m so excited. As I type, I’m moments away from heading to SFO to visit Tokyo for the first time in years…

Shortly before the official launch of What’s the Future of Business, I spent several weeks writing new chapters for The End of Business as Usual.

Why?

I’m proud to announce that it’s finally the End of Business as Usual in in Japan!

The new book features new content specific to the Japanese economy. But that’s not all. It also has received a new title and cover design.

Introducing… エフェクト = EFFECT

Mr. Natsuno, a board member of Nico Video and professor at Keio University contributed a special message at the beginning of the book. Thank you Mr. Natsuno…

There will be a special presentation and press conference to celebrate the occasion. The event will take place in Tokyo at the Place Hotel, 1-1-1 Marunouchi, Chiyoda-ku.

The book is also available now on Amazon.

I would very much like to thank Hide Hashizume and Eiko Hashizume for all of their work and support over the last year on the book and this event. Also, thank you to Mr. Kanayama for his work in translating the book. It’s more than exciting to finally have completed エフェクト and to have the privilege of bringing it to Japan personally.

ありがとう
Arigatō

#EFFECT

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Over the years, businesses have developed sales, marketing and service strategies around the funnel. Awareness, interest, desire, action, to this day, describes the likely steps a customer may take in making a decision. Over the years, it was assumed that the liner path would also continue through a transaction to a state of loyalty and ultimately advocacy. The process of customer engagement to this day is designed to shepherd people along this delicate path. For at any moment, consumer attention, interest, and resulting action could fall astray without superintendence.

I call this the “Cluster Funnel” and it’s meant to demonstrate how a customer lifecycle when viewed in aggregate is broken.

Without awareness there can be no consideration. Hence, businesses today invest to varying degrees and effectiveness in marketing, advertising, and communications strategies. To earn customer attention isn’t a switch that toggles on and off, it is a state of perpetual engagement. The blaring noise that customers continually experience has forced them to adapt. Second nature acts as a defense mechanism to tune out the constant barrage of marketing messages and clever campaigns. Awareness at the top of the funnel is elusive but never more important.

The Cluster Funnel from What’s the Future of Business

For the sake of this discussion, let’s assume that everyone understands the value of the funnel (or at least the idea of it) to attract customers and invest in long-term relationships. But what if businesses were investing their time and resources in the wrong places? What if where we think we can impress upon customers or get them to notice us is not at all where their attention is actually focused?

These are important and timely questions to answer as they will reveal a new journey to embark upon. The truth is that what we know and what we need to know are in fact separated by an unfolding reality that requires immediate intervention.

Your market has already been disrupted. Through an unforgiving series of technology revolutions paired with an era of individual empowerment, your customers are not only more informed, their expectations have matured. The “C” change in consumerism has ushered in a genre of connected consumers. As a result, your customers are learning about you or your competitors differently. How they make decisions does not at all follow a linear path. How they are influenced and in turn influence others is profound in its reach and effect. What was once simplistic, or overly simplistic depending on your point of view, representation of a fluted customer journey is in fact much more dynamic and connected.

Engagement is as much art as it is science. But to better understand the behavior of your connected customers or as I refer to them “Generation C,” takes practice of the social sciences from digital anthropology and psychology to sociology and ethnography. Understanding behavior exposes patterns in consumer activity that in of itself reveals new touch points. Appreciating how customers form and make decisions and why inspires empathy and creativity. This research will specifically point to what Altimeter Group refers to as the Dynamic Customer Journey. What you’ll learn following your research is everything. Most notably, your business will now earn clarity in how and where to focus efforts on shaping decisions and experiences pre-, during, and post commerce. Additionally, you’ll learn the specific factors, people, technology, communities, and resources that affect every stage of your customer’s journey. The results will contribute to a far more accurate point of view that tailors marketing, sales, service, and loyalty strategies to be more effective and engaging. But it won’t stop there.

Inspired by McKinsey’s work and my own research during the writing of The End of Business as Usual, we re-imagined the traditional funnel into a constant and very public elliptical path that often repeats itself.

1. Awareness
2. Consideration
3. Evaluation
4. Purchase
5. Experience
6. Loyalty
7. Advocacy

The stages of the Dynamic Customer Journey are familiar as they reflect similar methodologies in the traditional funnel. However each step is unique in the contributing factors for how consumers discover, analyze, choose, and share. The screens they use to search and purchase, the people who influence them, the content that informs them, the social networks they rely upon, the collective experiences of others, and the real-time conversations that shape impressions, each introduce guidance, doubt, and validation that works for or against your right now. The most important revelation in the DCJ is how every stage feeds into a discoverable online repository of shared experiences that influence all those who embark upon a similar journey. Without positive influence there is no hope for preference. And, without positive experiences there can be no chance for loyalty or advocacy.

It is only by traveling in the digital footsteps of your customers that uncovers a new landscape for engagement and also a new reality for your business. Embracing your connected customers will help them embrace you in return. At a minimum, the gifts you receive by embarking on this journey and investing in engagement, education, and meaningful experiences are empathy, relevance, and ultimately reciprocity…all of which is measurable by traditional business metrics.

The story continues…

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This post is based on a piece I wrote for AT&T’s Networking Exchange, which is a preview of content in WTF

“If we feel instinctively liked by someone else then we tend to project unto them the qualities we like in other people…and that’s priceless.”

Those are the wise words of Kare Anderson, expert on the art and science of understanding and perfecting behavioral cues. As she shares, emotion precedes rational thought. In this episode of Revolution, we learn about the importance understanding what we do and don’t appreciate in others to improve how we connect and communicate. If you’re aware of what of these nuances, you can bring out the best in other people including yourself. Kare’s work doesn’t just focus on real world or even interactive engagement. She believes that the same techniques can be applied to improve design, user experience, and ultimately relationships.

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Shot on location at The Four Seasons Hotel, San Francisco

We are indeed witnessing what can be best described as the end of business as usual. With the closure or dwindling performance of businesses once regarded as too big to fail or with the rise of every new Occupy-like movement around the world, we are reminded of the grand chasm that exists between consumer values and the values of today’s businesses. What is becoming painfully obvious is that people everywhere are calling for change and they’re taking to the streets and also their smartphones, tablets, and popular social networks to demand attention.

The reality is that people are much more connected than ever before and their mission is to not only mind the gap, but narrow it. Technology is a game changer and through the devices and networks that connect consumers, it is also the critical path for businesses to earn and re-earn relevance and trust. Without evaluation or introspection, businesses however may well face digital Darwinism, the evolution of consumer behavior when society and technology evolve faster than the ability to adapt.

On April 21st 2011, Forbes ran a sobering article that carried an ominous prediction, “If the current trend continues, over 70% of Fortune 1000 companies will turnover from 2003 to 2013.” Change is in the air and what the relationships between customers, stakeholders and businesses look like from here forward is uncertain. But, it is in the attempts at defining meaningful relationships where businesses will find guidance moving forward.

Think about it for a moment. Today’s biggest trends- the mobile web, social media, gamification, real-time- are changing the consumer landscape. Everyday people are empowered and influential. What we must realize however is that consumers are learning how to improve their online experiences and as a result, it is forcing individuals to think and re-think about the people, organizations, and information they choose to connect with. You are either part of the equation or you’re not.

While this is the end of business as usual, it is also the beginning of a new era of relevance. Businesses now have an opportunity to become relevant in new channels and networks by earning attention and forming meaningful alliances. To do that takes far more than gimmicks, creative marketing, contests and viral videos. It takes the consistent delivery of value based on ongoing listening and meaningful engagement.

The reality is that how this new breed of connected consumers discovers, shares, and communicates differently than their traditional consumer counterparts. To connect with them requires study to identify challenges, themes, POVs, and interests. To adapt, organizations need to examine the impact of technology on consumer behavior and understand its affect on how connected consumers make decisions and influence the decisions of their peers.

People have uninhibited access now to social platforms, channels and tools to express themselves at will. And, people too have an offline and online voice that when used individually and collectively, they can reach the masses and organize movements that cause everything else to pause for reflection. Yet, even though we know this, businesses are still struggling to understand the real impact of connected consumerism. Many still wonder if this is all just a fad.

At the heart of this consumer revolution is the need for people to be heard and for them to see that action is taken on their behalf. Technology serves as the glue that bring like-minded people together. This is why relationships are now more important than ever. Even though people are connecting in social networks, just creating a presence on Facebook or Twitter isn’t enough to show that you’re listening. Nor does it convey empathy or a new vision. Hosting conversations or getting people to follow you on Twitter or Like you on Facebook is one thing. But, to connect and foster real relationships, organizations must learn how to dedicate resources to listen, learn and adapt the processes, systems, experiences and prevailing culture that will entice and nurture consumer engagement.

The reality is that we live and compete in a perpetual era of Digital Darwinism. But, nothing today is too big to fail nor too small to succeed as long as relevance and value are in scope. Even though technology may seemingly play a role in working against your business, it can also work for you. The good news is that you have a role in defining where all of this goes.

Everything begins with learning how and where to listen. I’m not referring to the type of listening that tracks mentions of your company or competition. I mean discover how to deliver value based on what’s said and unsaid. It is attention and value that will attract connected consumers and ultimately earn their affinity. Additionally, what you learn, must permeate the organization to help it adapt to new opportunities. To survive digital Darwinism, it’s not about the survival of the fittest, it’s about the survival of the fitting. I refer to this as the Laws of Attraction and Affinity in Chapter 11 of The End of Business as Usual and have included an excerpt of the list below.

To attract consumers and earn affinity, business must follow the Laws of Attraction and Affinity:

1. Identify where the attention of the connected consumer is focused.

2. Define a higher purpose along with genuine intentions. Also, establish a sense of value to attract connected consumers, giving them something to align with.

3. Establish an identity and a presence worthy of affiliation. Give people something to believe in and something exciting to be a part of.

4. Design the presence and engagement strategies and all that fuels interaction to be beneficial and shareable—this is, after all, about shared experiences.

5. Based on the presence of each D2C community, localize the value, content, storefront, and engagement program to match the culture and activity within.

6. This isn’t a power switch; stay consistent and dedicated through meaningful interaction.

7. Remain true to the original mission and intention. Do not be swayed on the basis of short-term temptations.

8. Recognize and reward community participants—reciprocity is a strong pillar of community and relationships.

9. The adaptive business will listen, learn, and change based on the needs of the connected, and all other consumers to stay relevant, indispensable, and valuable.

The story continues…

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Yes…that’s me floating above Shaq’s head.

One of the highlights of SXSW Interactive this year was Dr. Shaquille O’Neal (did you know he had a doctorate degree?). He joined me on stage at the Long Center for Performing Arts to a theater packed with adoring fans. Before we took the stage, we spent some time to shoot a special episode of Revolution.

Not only is Dr. Shaq an NBA champion, an Olympic gold medalist, a 15 time All Star, 6th on the all time scoring list, and an all-around icon, he’s an active investor and self-described geek. His portfolio includes Google (pre-IPO), Five Guys, Vitamin Water, Muscle Milk and a whole slew of traditional businesses and tech startups. While at SXSW, we walked through the Startup Village as part of a “Pitch Shaq” initiative hosted by real-time video network Tout. At the end of our session, Shaq announced that he would take official meetings with two lucky startups, Speakerfy and Beam.

On the technology front, Shaq is always looking for the next big thing. He bypassed traditional media and announced his retirement on Tout, a platform that at the time had only been live for six weeks. Shaq was early to embrace Twitter where he still engages with his now 7 million fans. In fact, Jack Dorsey was once asked who he thought the ideal Twitter user was and his response was Shaq. Why? Because he’s engaged, it’s him, and he believes in community. His mantra for social media is 60% to make you laugh, 30% to inspire you and 10% to let you know about this product.

Take a few minutes to watch this enchanting interview. I think you’ll agree, Shaq is not only an investor, geek, and super star, he’s also a wonderful human being.

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Jeff Ashcroft (@JeffAshcroft) along with @TheSocialCMO host the popular #MMchat (Marketer Monday) every week at 8 p.m. eastern on Twitter. It’s a rapid fire exchange not only between the organizer and the guest but also everyone following along #MMchat. It certainly makes for exciting dialog in real-time and also later when the full transcript is published. I recently joined them to discuss the future of business and why now is the time to become the hero in your hero’s journey. I’ve recreated our exchange (each in 140 characters or less) for you here…

Question 1: Why are experiences more important today than ever before?

A1: .@TheSocialCMO Thank you so much for having me on again. This is always one of the most invigorating conversations I can be part of.

A2: Experiences are something we feel and we share what we feel. We share what moves us

source

A3: When people ask questions for advice or direction, shared experiences are the result. In social, they’re more important than ever

A4: Customers are sharing experiences about your business now. Why leave them to chance. Define them at every step!

Question 2: In the book you say experiences are even more important than products! Bold statement can you share your reasoning on this?

A1: Experiences are more important than products. Products are manifestations of the experience you want people to have+share

A2: Products are just part of the experience ecosystem. You have to first define the experience you want people to have

A3: Products play a role in the manifestation of the experience they will have and share. You must define the moments of truth

Questions 3: Seems like everyone is talking about disruption. You’re saying disruption is more than just social media, can you elaborate?

A1: Disruption is something that occurs naturally. It’s “creative destruction” if you will. But it’s accelerating beyond social

A2: Social is just one part of disruption. I call it “The Wheel of Disruption” and it includes big data, mobile, real-time, etc.

A3: I suggest that change agents look at the experiential aspects + new touchpoints in the 4 moments of truth. That’s disruption

Question 4: Need for more emphasis on experience is clear in the book. How is user experience now starting to influence business decisions?

A1: Shared experiences form an influence loop that is connected to each moment of truth. It’s what people find that guides them

A2: It takes more than google now. people are talking and connecting. experiences are shared in tweets, posts, videos + reviews

A3: You’ve optimized search, your website, your mobile app, but you haven’t optimized for shared experiences

A4: Shared experiences affect customer impressions and next steps in each moment of truth. Shift from impressions 2 expressions

Question 5: In WTF? There seems to be underlying story recounting the hero’s journey. Can you share your thoughts with us on this journey?

A1: A VERY GOOD QUESTION!

A2: Joseph Campbell’s Hero with a 1000 Faces has influenced so many, including Hollywood…Star Wars, The Matrix.

A3: The Hero’s Journey explores mythical journeys such as those of jesus and buddha and the common experiences they shared

A4: I revisit the Hero’s Journey from the standpoint of your customer. What is their journey? What is their experience?

A5: Your customer is your hero…you define their journey

A6: In the end however, as the reader, you are also becoming the change agent. Therefore you are also “the hero”
A7: I re-imagined the Hero’s Journey for you to outline where you’ll meet challenges and how to break through them

Question 6: Brian, love design of the book. I understand in this case it wasn’t your typical publisher process, how was it different?

A1: Number 6 is great too!

A2: 2 show the importance of experiences, you have to create an experience. Whats the Future of Business is an experiential book

A3: The publisher gave turned over creative control. I worked with Mekanism and @gapingvoid to create a true “social object”

A4: The book is square, think coffee table format, 4 color, full of visuals, and its designed to be an analog (mobile) app!

Source: Jeremiah Owyang

A5: @gapingvoid provided an original piece of artwork for each chapter based on what he took away after reading it.

A6: What’s the Future of Business is as helpful and inspiring as it is beautiful… #promise

A7: Remember, this is your time… #AdaptorDie

A8: The future is yours to define… #InnovateorDie

A9: Thank you everyone. You always get my mind racing with possibilities!

FIN: Thanks for joining us! Your participation & feedback was GREAT! An extra SPECIAL thanks to @BrianSolis for joining us! #MMchat

The full transcript including all responses, questions, and answers is here.

WTF is now available!

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When he’s not starring in movies and television, Adrian Genier is a serial entrepreneur. Most recognized for his role as Vincent Chase in HBO’s Entourage, and also the upcoming movie, Grenier has co-founded or invested in several companies including SHFT, Fansnaps, and Churchkey Can Co. Now he’s at it again but this time, he’s changing his tune.

While at SXSW in Austin, I spent some time with Grenier to talk about his new music incubator, The WRECKROOM. The idea is not unlike tech incubators planting seeds of innovation around the world. WRECKROOM is a collaborative space built in Grenier’s home in Brooklyn. Artists are encouraged to come by, write and collaborate. And for those artists that get the attention of the team, recording and distribution could be a possibility.

On the website, you’ll see and hear some of the WRECKROOM’s current portfolio including Caldwell, a band he formed with Emily Caldwell. While on set, we were also introduced to another WRECKROOM project, The Skins, a band that I also fell in love with during their live performance that followed this interview. Let’s hear from Adrian now on this latest episode of Revolution.

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