Don Thorson - Marketing 2.0

Virtual World. Real Money

Where the virtual world meets reality. Check out Second Life if you don't know about it.  Another example of social media. It's interesting on several levels. In this RPG (roll playing game), people create virtual "material things" that have value inside the game using something called Linden Dollars ($L). But here's the trick;  You can exchange Linden dollars for real dollars. In this Business Week article (and listen to the podcast), you'll read about a company that has formed in China that makes money creating things and selling them to other players. That's right, creating real world wealth, in a virtual monetary ecosystem - a true economy. People are actually making a living doing this.

Check out this "build" and you will see how it relates to social media. These people built a virtual happening, in which people paid to participate and then the Linden dollars were converted to real dollars to provide Hurricane Katrina Relief.

And, no surprise, where people gather, advertisers will come. Companies like Coke and Disney have already figured how how to participate (have a presence) in this world.

Milestone Affiliation

This morning I am pleased, and honored, to announce an affiliation with the Milestone Group, a top-tier global business consultancy, with offices in Palo Alto, Sydney and Amsterdam.  This affiliation allows me to bring very senior talent, depth of knowledge and expanded services to Momentum customers, while at the same time contributing to the success of Milestone clients around the world.

“Milestone Group’s experts put new energy, new ideas and new possibilities into your company’s revenue model. We do it by getting you plugged in. Plugged into an entrepreneurial group of operational and process experts covering sales, business development, marketing and product strategy. Plugged into an approach that helps you see what needs to be done, and then helps you deliver on your vision”.

More to follow,  as the dust settles... (I am very pleased)

I Love Peets

For a first hand "customer satisfaction success story",  check this out . I dropped into Peets Palo Alto yesterday afternoon to take advantage of what I thought was a free coffee giveaway in celebration of their 40th anniversary. Turns out the coffee wasn't free. The story that follows is an impressive display of corporate values and customer service. Check it out. These guys are good.

The Constellation

In the traditional marketing world, messages were very expensive to deliver. This made it necessary to get every word , and every picture, exactly "right". Marketing vehicles were subject to countless reviews and filters before being rolled out to the customers. The classic path was: 1. Meet with the content originator (executive, product manager, other). 2. Take his words and re-craft being sure to include all the key messages. 3. Give the copy to design after 4 or 5 revisions, including a legal review, then deliver it through some inefficient , static medium.

These vehicles were tested for effectiveness and measured for ROI. This filtering process often resulted in "dumbed-down", over - refined, over-produced vehicles that went directly into the trash. Marketers were often satisfied with 1 -2% response rate, translating to very high costs of customer acquisition.

The new world, the world of the "Living Web" gives companies a viable alternative. It allows them the opportunity  to reach thousands of customers at a much lower cost, and if they're doing it correctly, it's happening "in active, inclusive  conversation". Companies need to understand that their customers are their best marketing people. They will deliver their messages in a highly trusted, "peer to peer" environment (The Constellation), The Living Web brings us back to the days when business owners had face to face contact with customers and built their businesses on long-term, trusted  relationships.

You Don't Own The Message

Grabbed this off Docs site yesterday. It's a good example of why companies need to understand these new mediums. Chevrolet decided to have a contest to motivate customers to tell their story for them. The bad news is, you can't control the message and people tell the story THEY want to tell and not the story  Chevrolet wants to be told. Check it out. It's worth the watch.

The good news is "your customers will make you smart". If Chevrolet is listening they'll learn from what customers are telling them and respond to the voices they hear (I know, fat chance) but thats how it's supposed to work

Social Media

Social media is replacing traditional media as the most trusted source of customer information. Customers now turn to "people like them"  to get input on products and to make purchase decisions. Customers today have learned that calculated, precision messaging is designed first to influence, and second to accurately inform. They have learned that the higher the density of the medium, the lower it's communication value.

P to P email, telephony, text messaging, blogs, wickis  are replacing traditional mediums as the trusted sources of information. These mediums are not only less expensive to create, they are highly efficient because of their extreme reach and long tails. Companies need to learn how to participate in these new arenas if they are to maintain their customer relationships. Unfortunately, it's not only about learning the medium, it also requires a change in company behavior.