DIY – Allowing Consumers to Create is here to stay

We all know that Generation X and Generation “Why” as some refer to them are coming into the work force with new expectations and desires. One big one is the work life balance – many don’t feel the need to have to ‘climb the corporate ladder’ because they would rather be with their partners, spouses or families.

Another big trend is individualization. While these generations are brand loyal to some degree, they prefer the opportunity to individualize their products; just look at Scion and Mini Cooper and you will see that they have grasped this need and are super-serving the market.

On a smaller scale, creating custom dresses, duvets and lingerie are just of few of the newer DIY businesses that have taken off. I just read an article on a new designer who has launched a website where you can customize your own purse from dozens of different styles and even more fabrics, snaps and other accessories.

From a product marketing perspective this is genius, it allows the customer to really have what they want so the chances of returns or refunds (if you even take them) are eliminated. Add to that the viral effect that this will have for if you see a dress or a purse that you like and you ask someone where they got it, the ability to say you made it yourself and it is unique is a key sales driver for this target. What a great way to advertise!

Crowdsourcing – A new social network application?

I love the Springwise newsletter. Its chock full of new ideas and companies that are making consumers lives better. In its most recent newsletter http://www.springwise.com/, there was a write up on Crowdsourcing. This is social networking at its best because it’s a platform that enables crowds (networks) to develop new ideas. It specifically talks about a company called Kluster. They have a set of project management tools to enable crowds to develop new concepts. This type of application can also be used to create brand identities, plan events or any other project that would benefit from crowd input.
Kluster joins the ranks of a few other crowdsourcing providers; Cambrian House and CrowdSpirit. Springwise states that the main advantage that Kluster has over its competitors is that it offers crowds an incentive for participating. Kluster has developed a rather creative and engaging system of rewards which we all know is critical to keeping people coming back to these types of Social Networking arenas. And, we all know if you don’t keep the content new and fresh and/or offer contributors some other reason to come back, the network will die over time.
With Kluster, members can earn “Watts” by helping solve problems or suggesting refinements or enhancements. They can invest their “Watts” and cash out if a project is purchased by a third party. This provides an opportunity for reward in a way that has never been contemplated before and I bet that more people will contribute just to have a chance at making it big with a cool idea. This is a big differentiators for social networking because, as we know, the biggest problems corporations face as they look to social media to help drive innovation and brand is keeping people coming back. As explained by Kluster: “Watts encourage users to participate and stay on target, keeping the community productive.”
In the best case scenario, the crowds will help brands create new hit products. At the very least, using Kluster will enable companies to interact with their most dedicated customers. Smaller companies can use Kluster as an instant research and development lab, enlisting (and rewarding!) the community to help ‘flesh out’ ideas that they might otherwise not be able to develop.

I like the model behind Kluster and I think it will enable many companies who are willing to embrace social media to communicate with consumers as well as give them a valuable incentive for continuing the dialog.

Executives Must Realize the Power of Social Media

I just read an article on BusinessWire entitled “Executives Must Realize and Learn the Power of Social Media” http://www.businesswire.com/news/home/20080228005828/en. The report is based on 71 phone interviews with marketing professionals in four countries – US, Canada, UK and France in late 2007. While 71 phone interviews does not a statistically significant study make, the findings are encouraging in that none of the respondents thought Social Media was a passing fad. Additionally, it validated for me the need for marketing firms to help educate corporations on how to embrace social media and leverage the capabilities to jump the curve of its competition and ensure success.
Furthermore, nearly 50% of the respondents agreed that the use of social media for corporate, brand and product marketing believe it is a vital component of corporate communications that should be monitored at the executive level and allocated significant resources. Additional findings include:

• “When asked about the uses of social media, respondents endorsed it as a strategic tool to gain consumer insights (37%), build brand awareness (21%) and increase customer loyalty (18%).”

• “…88% of U.S. respondents and 65% of global respondents were in agreement that reading and analyzing social media to understand unfiltered consumer perceptions would have the most impact on the future of their businesses. Word-of-mouth campaigns were cited as having the second greatest impact. All countries were in broad accordance at 62%, but the U.S. once again led with three-quarters agreeing on the effects of these marketing campaigns.”

• “The potentially most effective use of social media, chosen by more than 50%, is creating a user community of bloggers to provide user experience feedback. Another 47% believe using social media vehicles, such as YouTube, to generate a viral campaign would also be very effective in a product launch. Specifically in the U.S., more respondents support the idea of utilizing social media to boost the effectiveness of their social media efforts than their global counterparts.”

The article goes on to say that the early adopters of Social Media (they refer to them as the Revolutionaries) are more advanced in their understanding of social media and how to embrace it. The more cautious marketers (called the Wait –and-Sees) are only at the beginning stages of understanding social media.
Most importantly for us marketing consultants, the barriers cited for not embracing social media included lack of senior executive commitment and lack of expertise among business suppliers. The time is now for service providers to help educate companies to this new way of marketing. It validates why we started focusing our services in the space as we too saw a knowledge gap both in organizations and in suppliers at large.
For the full research report, visit www.SocialMediaInBusiness.com.

The End of the Technology “Early Adopter”?

We do a lot of segmentation work, and one of the tried and true target segments for new technology products has always been the Technology Early Adopter. You know, the geeky guys with a lot of money who always seem to have the latest technology craze. And what’s more, they are smart enough to know how to make it work.

But I think the days of this species are numbered. In the coming generations, everyone will be a technology early adopter. Kids today are growing up under the new wave of user friendly, intuitive technology, like the Mac and the Ipod. The ease of use of these new devices is a given, and is setting expectations that all other manufacturers must follow. Add to that the fact that these kids grow up online, perceiving and using technology as a practical enabler, not as a luxury or something that has to be figured out.

So what does this mean for marketers, especially when it comes to segmentation? There’s a new key segment in town..the influencer..stay tuned for more…