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eDay2011 - Doc Searls

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eDay2011 - Doc Searls

  1. 1. The Liberated Customer is Good for Business <ul><li>Doc Searls • @dsearls • 16 September, Emerce </li></ul>
  2. 2. The captive customer is bad for business.
  3. 3. We still believe the best customer is a captive one. <ul><li>Our language gives it away. </li></ul>
  4. 4. This is the language of what?
  5. 5.
  6. 6. We’ve built business to work like this: <ul><li>Even on the Web. </li></ul><ul><li>In fact, especially on the Web. </li></ul>
  7. 7. The Web we know is “client-server.” <ul><li>It looks like this : </li></ul>Server Client Client Client Client Client Client Billions more
  8. 8. Think of a Web server as one of these: Server
  9. 9. Think of a Web client as one of these: Client
  10. 10. Now think of client-server as this kind of relationship: Client Server
  11. 11. In the Web marketplace, it looks like this: Server Client Client Client Client Client Client Billions more Server Client Client Client Client Client Client Billions more Server Client Client Client Client Client Client Billions more
  12. 12. Each company has its own set of cow-calf relationships: Server Client Client Client Client Client Client Billions more Server Client Client Client Client Client Client Billions more Server Client Client Client Client Client Client Billions more
  13. 13. Helping manage this is a $16b business called CRM: Server Client Client Client Client Client Client Billions more Server Client Client Client Client Client Client Billions more Server Client Client Client Client Client Client Billions more
  14. 14. Client-server also causes weird legal effects, such as this stuff: You agree we aren't liable for annoying interruptions caused by you; or a third party, buildings, hills, network congestion, rye whiskey falling sickness or unexpected acts of God or man, and will save harmless rotary lyrfmstrdl detections of bargas overload prevention, or in the event of random siding management retrenchments, or Elvis leaving the building. Unattended overseas submissions in saved mail hazard functions will be subject to bad weather or sneeze funneling through contractor felch reform blister pack truncation, or for the duration of the remaining unintended contractual subsequent lost or expired obligations, except in the state of Michigan at night. We also save ourselves and close relatives harmless from anything we don't control; including clear weather and oddball acts of random gods. You also agree we are not liable for missed garments, body parts, or voice mails, even if you have saved them. Nothing we say or mumble here is trustworthy or true, or meant for any purpose other than to feed the fears of our legal department, which has no other reason to live. Whether for reasons of drugs, hormones, gas or mood, we may terminate this agreement with cheeful impunity, and there ’s not a damn thing you can do about it. Accept.
  15. 15. Thesis: Free customers are more valuable than captive ones.
  16. 16. So how to we get cage-free customers? <ul><li>By giving them tools. </li></ul><ul><li>Such as… </li></ul>
  17. 17. Give them tools for sending “personal RFPs” to whole markets on the fly . <ul><li>For example, send a message saying you need a 200w 220->110 converter </li></ul><ul><li>in Amsterdam on a Sunday afternoon… </li></ul><ul><li>— without giving any more than the required information. </li></ul><ul><li>Scott Adams calls this “broadcast shopping.” </li></ul>
  18. 18. Give them tools for managing relations with whole market categories. <ul><li>This is loyalty on the customer’s terms. </li></ul>
  19. 19. Provide tools that let customers set the prices they’re ready to pay. <ul><li>And to escrow those payments at banks and other financial intermediaries. </li></ul>
  20. 20. Provide tools for collecting and managing data from many sources. <ul><li>We call these Personal Data Stores </li></ul><ul><li>(or vaults, or lockers) </li></ul>
  21. 21. Provide ways for customers to assert their own legal terms <ul><li>And to provide easy ways for both sides to make agreement as equals. </li></ul>
  22. 22. Develop new forms of signaling, such as r-buttons: <ul><li>The red button on the site ’s side is a signal that says, </li></ul><ul><li>“ We’re open to dealing with you on your terms.” </li></ul>
  23. 23. Develop 4 th parties, to assist demand.
  24. 24. We call this VRM, for Vendor Relationship Management <ul><li>— Is how each of us manages relations with them … </li></ul><ul><li>at least as well as they think they ’re relating to us. </li></ul>
  25. 25. VRM is a counterpart of CRM. <ul><li>It can work together with CRM. </li></ul><ul><li>Or without it. </li></ul><ul><li>Either way, sellers will have to deal for real with empowered customers. </li></ul>VRM CRM
  26. 26. Personal Data Stores:
  27. 27. Personal RFPs:
  28. 28. VRM technology providers:
  29. 29. Oher VRM businesses:
  30. 30. Free markets work best with free customers. <ul><li>That’s why The Liberated Customer is good for business. </li></ul><ul><li>We’re going to get them anyway. </li></ul>
  31. 31. Let’s talk. <ul><li>http://projectvrm.org </li></ul><ul><li>[email_address] </li></ul><ul><li>@dsearls </li></ul>

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