The mouth that roared: blogger Jeff JarvisDear Mr. DellCC: Michael George, chief marketing officer andvice president for the U.S. consumer business, DellGentlemen, Your customer satisfaction is plummeting, your marketshare isshrinking, and your stock price is deflating. Let me give you some indication of why, from one consumer’s Jeff Jarvisperspective. I won’t bore you with all the details of my saga of Dellhell; you can read Associateall about it here and here. The bottom line is that a low-price professor andcoupon may have gotten me to buy a Dell, but your product was alemon and your customer service was appalling. director of the I shipped back my computer today and only — only — because interactiveI wrote an email to you, Mr. George, did I manage to get a refund. journalismI’m typing this on an Apple Powerbook. I also have bought twomore Apples for our home. program at the But you didn’t just lose three PC sales and me as a customer. City UniversityToday, when you lose a customer, you don’t lose just that of New York’scustomer, you risk losing that customer’s friends.And thanks to the internet and blogs and consumer rate-and-review Graduateservices, your customers have lots and lots of friends all around the School ofworld. Journalism
The stages of Dell’s response1. Denial Comment from Dell spokesperson on the firestorm caused by Jeff Jarvis’s blog: “With our direct model, we feel like we already have a good, two-way communications channel with our customers…The best process for getting issues addressed is to contact us directly.”2. Shutdown Dell’s explanation of why it subsequently closed its online Customer Forums: “As for the Customer Care board, many of the non- technical issues posted there can only be addressed by authorized Dell representatives with access to customer information – not by peers as the Forum is designed to facilitate. That said, these questions are best handled through other secure online tools.”
The stages of Dell’s response3. Anger Post left on Jeff Jarvis’s blog from a PR person working for Dell(!): “Hey Jarvis. I honestly think you have no life. Honestly? Do you have a life, or do just spend it trying to make Dell miserable. Ive been working with Dell the past three weeks researching trashy blogs that worms like you leave all over that frigen blogosphere and I cant honestly say that Dell is trying to take a step towards fixing their customer service. They hire guys like me to go on the web and look through the blogs of guys like you in hopes that we can find out your problem and fix it. But honestly I dont think you have a problem Dell can fix. Your problem is you have no life. “
Coincidence?Jeff Jarvis Jarvis’s blog beginsbegins drawing widespreadblogging attentionabout Dell Dell shuts down its online customer Dell issues a profit forums warning 11
Dell Quote“If we don’t do this at Dell.com, it’s going to be on CNET orsomewhere else. I’d rather have that conversation in my livingroom than in somebody else’s.”Michael Dell 13
Real People are Here and We’re ListeningTue. Jul 11, 2006Lionel Menchaca, Digital Media ManagerYesterday was the first official day of Dell’s one2one weblog andalready Jeff Jarvis and Steve Rubel were kind enough to tell us whatwe’re doing wrong. Thanks for the feedback, guys. Well keepworking to get it right…Our intention with this blog is to address issuesthat are important to our customers. Give us some time and wellprove it. Robert Scoble told us to listen, and to link to the folks whodont like us. First step was to launch Dells one2one. Check. We’reexcited to be here, and we welcome your ideas.174 Comments firstname.lastname@example.org
IdeaStorm is for specific suggestions by customersCustomers post ideas, other customers comment and vote. Dell tracks ideas and decides which to pursue. 16
IdeaStorm visitors can raise any issue they want 8,859 ideas submitted by site visitors as of mid-April 2008. 613,638 votes. 66,882 comments. Dell had implemented 20 of the ideas.
Dell Quote #2 "Im sure theres a lot of things that I cant even imagine, but our customers can imagine. A company this size is not going to be about a couple of people coming up with ideas. Its going to be about millions of people and harnessing the power of those ideas." Michael Dell 18
Jeff Jarvis, 2007 After giving Dell hell two years ago, I may well be accused of throwing them a wet kiss now. It’s a positive piece. But it’s hard not to praise them when they ended up doing everything I was pushing in my open letter to Michael Dell. I’m not saying that I caused that, just that we ended up agreeing and they ended up seeing the value in listening to and ceding control to customers. They reached out to bloggers; they blogged; they found ways to listen to and follow the advice of their customers. They joined the conversation. That’s all we asked. Dell realized that engaging in the conversation wasn’t just a way to stop blogging customers like me from harming the brand. We, the customers, bring them great value besides our money: We alert them to problem. We will tell them what products we want. We share our knowledge about their products. We help fellow customers solve problems. We will sell their products. But this happens only if you have a decent product and service and only if you listen to us.
Becoming a Co-‐Crea7ve Enterprise Co-‐Crea7ve Individuals Enterprise Co-‐Crea7on Customers Suppliers Partners Employees Build pla)orms to engage people to create value together Engage in a dialogue about experiences to generate new types of valuable insights Design products and services together with stakeholders in the ecosystem
The Return of Howard Schultz as CEO in Jan 2008“Welcome toMyStarbucksIdea.com. Thisis your invitation to help ustransform the future ofStarbucks with your ideas –and build upon our history ofco-creating the StarbucksExperience together…So, pull up a comfortablechair and participate in MyStarbucks Idea. We’re here,we’re engaged, and we’retaking it seriously.”
Hi, my name is Katie. I am a registered dietician and senior nutritionist for Starbucks. I have the pleasure of working with a group of passionate partners who are dedicated to bringing nutritious food & beverage options to your Starbucks store. As a Starbucks Idea Partner, I’ve enjoyed reading your posts and getting a better understanding of what our customers want. I’m thrilled to see the overwhelming requests for nutritious options – more whole grains, more Eiber & protein, smaller portions, etc. as well as other options like gluten-free and vegan-friendly. Let me tell you: WE HEAR YOU!
The Powerful Beneﬁts of Co-‐Crea@on Increased Strategic New Experiences of Capital and Returns Value to Individuals to Enterprises Co-‐Crea7ve Enterprise Co-‐Creators Co-‐Crea7ve Customers Co-‐Crea7on Engagement Suppliers PlaAorms Partners Employees Lower Risks & Costs Lower Risks & Costs for Enterprises for Individuals The Co-‐Crea@ve Enterprise Engages People to Create Valuable Experiences Together, while Enhancing Network Economics
Marc Benioff, CEO of Salesforce.com:I believe that these days, the rapid communication that isenabled by wikis, blogs, Twitter, YouTube and you name itensures that no matter what kind of company you are,your customers are having a conversation about yourproducts and practices.The question that every company has to ask is: ‘Do I wantto be part of this conversation? Do I want to learn from it?Am I willing to innovate on the basis of it?’ If you harnessthe power of this community, you will benefit. If you turnyour back on it, you get further and further out of touchwhile competitors flourish. So yes, I think this is a newkind of communication for a new age of customerengagement.
Becoming a Co-‐Crea7ve Enterprise ENTERPRISE x = CO-‐CREATIVE ENTERPRISE Engagement PlaAorms
Starbucks and Social Media “We don’t view social media as a marke@ng play, but rather as a customer engagement channel where we can have real connec@ons with our customers, engage them in the brand and answer their ques@ons. We are in constant dialogue with customers, par@cipa@ng in the communi@es of MyStarbucksIdea.com, TwiVer and Facebook. Our engagement allows us to understand their needs, stay top-‐of-‐mind in an increasingly compe@@ve retail environment and share interes@ng news about the company with a cap@ve audience.”
Making Engagement PlaAorms Co-‐Crea7ve Experience Mindset Increased Strategic Capital and New Experiences of Value Returns to Enterprises to Individuals Network Transparency Context of Rela7onships Dialogue Co-‐Crea7on Interac7ons Access Lower Risks & Costs Lower Risks & Costs for Enterprises for Individuals Engagement PlaAorms
Nike+ Results More than 600,000 runners signed on the first year More than 160 countries in the first year Over 40 million miles uploaded the first year Visit 3-4 times a week Nike captured 57% of the $3.6 billion U. S. running shoe market in 2007 compared with 47% in 2006 Nike has a goal of having 15% of the world’s estimated 100m+ runners using the system In August 2008, nearly 800,000 runners logged on and signed up to participate in a single event: Nike’s Human Race 10K help simultaneously in 25 cities from Chicago to Sao Paulo. These connections have grown into new communities (e.g., running for charity) Near the end of 2008, runners logged the 100th million mile on Nike+ By August 2009, over 150 million miles had been logged…
The community was the judge of the contest, not Nike
Members could search the site by users, videos, communities, team…
Leveraging Assets and Resources as Engagement Platforms• Smart Products• Websites and Social Media• Retail Stores• Mobile Devices• “Live” Meetings• Call Centers• Private Community Spaces• Open Community Spaces
Expanding the Space of Experiences Increased Strategic Capital and New Experiences of Value Returns to Enterprise to Individuals Expanding Stakeholder Expanding Rela7onships the Scope in the and Scale of Ecosystem Interac7ons Lower Risks & Costs Lower Risks & Costs for Enterprise for Individuals Expanding Linkages Among Engagement PlaAorms
ITC-‐IBD as a Nodal Company in its Social Ecosystem Mandi Choupal Sagar Agricultural Farmer ITC -‐ IBD Educa@on Sanchalak Samyojak Nodal Company Village Town “Pla)orm Tier 1” “Pla)orm Tier 2” “Pla)orm Tier 3”
ITC-‐IBD as a Nodal Company in its Social Ecosystem Farm Input Mandi Health care Choupal Sagar Agricultural Farmer ITC -‐ IBD Educa@on Sanchalak Samyojak Nodal Company Village Town FMCG Banks, and MFIs, and Durables Insurance “Pla)orm Tier 1” “Pla)orm Tier 2” “Pla)orm Tier 3”
E-‐Choupal Year 2005: Year 2013: Kiosks: 5,400 Kiosks: 20,000 Villages: 31,000 Villages: 100,000 Farmers: 3.5 million Farmers: 10 millionSource: Shivakumar, ITC
Becoming a Co-‐Crea7ve Enterprise Co-‐Crea7ve Individuals Enterprise Co-‐Crea7on Customers Suppliers Partners Employees Build pla)orms to engage people to create value together Engage in a dialogue about experiences to generate new types of valuable insights Design products and services together with stakeholders in the ecosystem Grow by expanding the space of experiences, scope and scale of interacFons, and linking engagement pla)orms in new ways CulFvate trust and social legiFmacy through more inclusive and sustainable growth.
As business and society evolves, so do our collec@ve experiences… Social. Proﬁt. ORG COM Public. GOV Human.EXP
Hospital Moinhos de Vento (Brasil): Co-‐Crea7ng Strategy
Strategic Challenge at Hospital Moinhos de Vento Rethink Strategy by considering the point of view of diﬀerent stakeholders (nurses, doctors pa@ents, families, companies, health insurance companies) Co-‐Crea/on Current Strategy New “Co-‐Created” Strategy
Co-‐Crea@on Process Current Strategy Co-‐Crea7ng new ideas with Innova7ve Strategies / Map diﬀerent stakeholders (e.g. Ini7a7ves pa7ents, doctors, families)
Ideas were “prototyped” and “experienced” in an interac7ve manner
Co-‐Crea@on Process Current Strategy Co-‐Crea7ng new ideas with Innova7ve Strategies / Map diﬀerent stakeholders (eg. Ini7a7ves pa7ents, doctors, families Build a new Value Proposi7on New objec7ves for New “Co-‐Created” New Innova7ve Strategic together the Strategy Map Strategy Ini7a7ves (core of the strategy map)
Advance Praise for Book "About half of our strategic ini@a@ves at HMV now come from a co-‐crea@on process of interac@ons with our key stakeholders -‐-‐ pa@ents and their families, physicians and nurses, our employees, business enterprises, and the health insurance companies.” Dr. João Polanczyk CEO Hospital Moinhos de Vento