In chapter one, IBM challenges CMOs to “Deliver value
to empowered customers”, reflecting the importance of understanding people and using digital media as a source for insight.
IBM asked CMOs to “rank each factor in terms of its expected impact on the marketing function over the next three to five years”. IBM also considers levels of confidence CMOs feel about managing each factor.
Figure 4 illustrates the critical issues.
While we completely agree with the critical issues, we are also keen to explore number nine, “Customer Collaboration and Influence” as a significant part of all the other issues. Collaborative agendas redefine the process and the multiple dimensions of value.
Value…a perception that is much stronger when co-created
“Value” has become far more than a simple, one word idiom. Value is an element that should not be underestimated, a complex feature, and an ever-changing “emotional” trigger. Truly appreciating people and value will take more than simply replacing or upgrading CRM systems. We think the future is likely to be defined by innovative forms of social media interaction and collective value. As noted in our book (Collaboration and Co-Creation), “We are no longer just consumers of value, but are also co-producers”. The process of co-creation forms a truly emotional connection that supports loyalty.
Co-creation also acts as a consistent motivator of innovation and brand strategy. To add depth to our discussion, we would like to share a recent post from Koert Bakker, Director of Strategy at Victors & Spoils.
This post is being republished with permission via koertbakker.com
Victors & Spoils guide to successful collaboration (part 1: Empowerment)
I’m excited by how new technology empowers social change – and marketing in the slipstream of that. When the ability to control production and distribution of information was a scarce resource, it was easy for brands to influence the way people perceived them. Those days are gone. Production and distribution of information have become abundant. Fueled by cognitive surplus and digital tools, people demand access to brands. For instance, Coca-Cola’s original Facebook page was created by two fans, Dusty and Michael. When Coca-Cola found out how popular the page was, they had to contact Dusty and Michael and ask permission if they could please participate in their own brand! Which they gracefully allowed. I admire brands that embrace collaboration instead of fight it. At Victors & Spoils we recently analyzed over 200 brands and five categories of brands emerged that successfully empower people with collaborative tools:
1. Social Media Engagement
This is basically collaboration 101; brands engaging with people in online conversations. Think of Old Spice, Best Buy, Twelpforce and Strip To Your SmartWool.
These are brands that tap into people’s collective brainpower and invite them to submit ideas that deliver against a set of rules – a brief. Think of Pepsi Max & Doritos Crash the Superbowl or Virgin America’s Toronto Provocateur.
Co-creation involves working on new product and service ideas together with the customers who are going to buy them. An obvious example is My Starbuck, but I’m also really struck by Nike 6.0 ID Nation StyleLab, which effectively turns Nike ID’s original mass customization (people designing their own shoe) into co-creation (people being able to buy shoes that other people designed).
4. Collaborative Consumption
With crowdsourcing and co-creation people help brands produce better products. But the other side of the coin, collaborative consumption, is also getting more popular, from car-sharing (Zip Car, Greenwheels) and bike-sharing (Vélib, B-Cycle) to group buying power (Groupon,Walmart CrowdSaver).
5. Collaborative System
Finally, new business models are emerging that place collaboration at their core. The brand is shaped by an ecosystem of participants. Successful recent examples are Threadless, AirBnB and American Express OPEN.