Archive for the ‘Tom Quinn’ Category

Engage Your Most Dissatisfied Customers for Radical Thinking

By Dr. Philippe Duverger, Assistant Professor at Towson University

I agree with Tom Quinn’s recent post on the SMM Magazine blog—By Invitation Only: Letting Your Customers in Behind the Velvet Rope—where he advocates for a by-invitation-only brand community that leverages customer engagement in a private and exclusive environment. Facebook Pages and other initiatives that inform and lead your consumer base (customers and potential customers alike) to follow your brand and try your services and products is a different strategy than listening to your most valuable customers. Both strategies are valuable and have their place in the social media environment.

A social media strategy using Twitter, Facebook, blogs, and other open-to-the-public environments will raise awareness, trial, and traffic. But it will also allow competitors to listen in on the conversation. If you are in need of radical service ideas and want to mine your customer base or test new ideas, you should create a secluded environment where only trusted and creative clients can participate.

This is where the dilemma exists. Should you invite only your loyal customers to participate in idea generation through online brainstorming sessions? Or should you invite your most dissatisfied customers? I advocate for the latter strategy.

Your most dissatisfied customers are probably thinking about switching providers. They are more likely to feel underappreciated or have experienced sub-standard service from you. They might have logged a complaint, only to receive an unhelpful administrative response, which further enraged them, thereby increasing their dissatisfaction. So it is more likely that they can tell you what is wrong with your business.

You might not want to hear it, or you might dismiss the complaint as a rare occurrence or subjective to the customer’s unrealistic expectations. And you might be wrong. That customer could be a visionary who will feel compelled to find a service provider that will satisfy her needs. If none of your competitors provide it, the customer might decide to provide it herself (assuming she has what it takes), become your competitor, and drive you out of business. Too far, you think? Take entrepreneurs like Richard Branson (Virgin Group), Kemmons Wilson (Holiday Inn), or Howard Schultz (Starbucks). They all have a common characteristic: they did not like what was available in the market and went on to create it for themselves.

Interestingly, Starbucks recently engaged in a Web-based brainstorming exercise where anyone—including its competitors—could participate and watch. Starbucks collected thousands of ideas. Great… except that only one radical idea would suffice to make a winter-coffee company an all-season coffee and smoothies company. The Frappuccino, according to Schultz’s memoirs, was a customer’s idea and now accounts for almost half of Starbucks’ revenue.

Certainly, among the tens of thousands of participants, there are bound to be creative consumers, satisfied or not. But the most dissatisfied and creative ones either won’t participate or will be outnumbered by the conservative, happy, and loyal customers.

Cyberbullying is explained by the balance theory where a customer posting a radical idea might preface it with a complaint, leading others to defend the brand by bullying the culprit out of participating. The solution? Segregate your behind-the-velvet-rope communities between radical thinkers and those who only have improvement ideas. Or, more practically, have a radical-thinking community composed of your most dissatisfied customers. And then listen.

By Invitation Only: Letting Your Customers in Behind the Velvet Rope

By Tom Quinn, Chief Revenue Officer at Passenger

“Invitation only.” “Private.” “Exclusive.” “VIP.” These words hold significant power in the marketing world. Nightclubs make their living off this allure; the retail world has been revolutionized by the success of invitation-only sites like Gilt Groupe and vente-privee.com. Although often a mirage (an invitation to a private sale club is often as simple as entering your e-mail), the allure of exclusivity has a profound effect on consumer behavior. Mainstream brands have taken notice and are incorporating this into their marketing strategies.

The Web offers exponential consumer touchpoints, making it easier to regularly engage with customers. The common online marketing approach has been bigger is better—many use public social networks or develop branded public communities in hopes of acquiring new fans. You can reach a large audience, and the interaction is completely open, making it easy to see how consumers are reacting to your brand/product/service.

From a loyalty and advocacy perspective, however, public initiatives can feel less personal and participants less “special,” as everyone can see what you are offering or asking. Competitors could be monitoring your community, so you have to watch what you reveal. Attempts at a personal brand connection through public social networks can also go horribly wrong: consumers can instantly amplify positive and negative experiences. Many brands struggle to create authentic intimacy without losing the scale and reach necessary to compete in the mass market.

A different approach is to focus in on your most loyal and vocal customers by establishing genuine dialogue in a private setting. Ask consumers to participate in an invitation-only online community to help shape the brand, services, and products they care about. This personal invitation gets them in the door; you can then foster the “velvet rope” feeling by sharing exclusive content and involving them in the creation process.

There is no better tool for creating intimacy than demonstrating that you are listening. Bring them into the product development process, solicit input on a new ad campaign, or ask what types of perks they might like as part of a rewards program. Then show them how their input is being incorporated. Reward their loyalty and enthusiasm with access to insider information, special brand experiences, or online “credit.”

Most companies find that a majority of their business often comes from a disproportionately small percentage of loyal customers. With this in mind, it makes perfect sense to start small and build real, tangible relationships with your inner circle of fans. In addition to fostering loyalty, this inspires those behind the velvet rope to broadcast your messages publicly.

A well-run community takes engaged members and turns them into ambassadors—driving interest around offline events and building buzz around the community and brand. This is something a Facebook and Twitter presence can rarely accomplish because the level of engagement is not as high. Treating your customers as VIPs and giving them exclusive access to your brand and the decision makers that shape it can drive unprecedented levels of brand loyalty and advocacy.