Communities

“Share of mind, share of experience are key. A trusted relationship is necessary, even in business portals”

Introduction

What are communities and why are they successful. Initiatives like Second Life and YouTube have surprised the internet world after its rapid rise and fall at the turn of the century. Back in 1998 I defined communication concepts around community thinking, too early.

Below I will combine community thinking and the use of media and message to explain the success of these initiatives.

Communities

A community is a group (of consumers or businesses) with a common interest in a certain subject, common (predictable) behaviour and therefore common (predictable) needs of information, communication, products, entertainment and/or education etc. By defining communities, building a (virtual) environment for them in which they feel comfortable and in which their information and communication needs are satisfied. Thus inviting them to participate in a natural way as part of their day-to-day lives.

Advantages over the traditional ways of communication can be realized with these target audiences. Information will be welcomed instead of abominated. Within the communities all media can be used in the optimal multimedia mix designed for the specific purpose. Also referred to as media cascading.

The general idea is to build communities for these target groups and facilitate these communities with the desired information and communication infrastructure. The result of this, as we see it, is the creation of a commercial environment which otherwise would have been left unexploited.

Content

Content is used to serve several purposes but differs from community to community. It always attracts and holds target audiences. A constantly monitored tailor-made system has to be used to measure the effect of the content provided. Basically content is generated by community members.

The media and tools used need to be tuned to the need for different characteristics like; frequency, pace, situation, context, contact intention, state of mind, etc. This can be seen as the new way of publishing, which is basically reversing the way in which publishing takes place nowadays. I earlier referred to this topic as “the publisher’s dilemma”.

Media Cascading

The use of different media to get THE MESSAGE across is not very new, but it is rarely used in an effective coherent approach. To resolve the main issue for the Internet, “predictable traffic”;
The media cascade is used in four basic steps (4 step communication program):
1. Draw attention
2. Interest and hold attention
3. Transact and deliver
4. Personalize and relate
For every specific situation a tailor-made cascade can be designed.

It is evident that every type of communication is based on these four steps. Even the exchange of opinions follows this concept. The main reason is that there has to be a basis of trust, a relationship must be established before a transaction can take place, before an opinion is accepted and/or countered.

It is also evident that the use of forced exposure is a necessity to start up the communication process. In step one, “broad band” media will be used to draw as much attention as possible. (E.g. TV, Radio, Newspaper, Billboard). A conversion of interested individuals towards the chosen relationship medium – where the permission marketing is executed - is necessary. This could either be DM, Internet or even paper coupons, depending on the chosen concept. Optimizing this conversion can be done through integrated concepts that go beyond basic marketing techniques.

Community concept thinking and the target group approach.

One could argue that the community concept thinking is nothing new at all. Many target groups exist and many target groups are subject to information providing and market communication activities. For example ANWB and KNVB (two of the largest associations of individuals in The Netherlands) could be defined as communities, the first one of bicyclists and car owners, the second one of soccer players. And although they have certain basic characteristics of communities as defined earlier in this plan, still they are no digital communities. The reasons why not are;
· They are not treated as a community; the members do not feel as community members; there is not enough affinity and dedication;
· There is no infrastructural binding of the members: the special interest magazine, the website etc. are not part of a larger integrated infrastructure; they are bits and pieces;
· There is hardly any information available of the members of the community: their preferences, their desires, their circumstances, their needs;
· The infrastructure in the “community” is far from complete: databases are missing, a dedicated television channel is missing, content providers are missing;
· The marketing approach to this audience is still group oriented versus individual thinking as part of a common interest group.
Though the mentioned groups could form a basis for a community, the community structure, thinking and approach is yet far from present.

The new economy community is different from old economy communities. The most important differences are;

Successful communities are to be clear about the following topics;




Reversing the marketing approach

In order to make communities successful it is essential to totally reverse marketing principles. Consumers will only participate in a commercial transaction with their explicit permission. Once the permission is granted a relation of trust and participation can develop.

Trends in the market

Trends in the market communication business are:
· An overkill of advertisement activity in general and on TV in particular;
· An upcoming resistance against direct mail and direct approach by telephone;
· Market oriented thinking makes way for individual oriented thinking;
· Transaction oriented thinking makes way for relation oriented thinking;
· Individualization of the society: the target group thinking is being replaced by target individual thinking;
· Mass customization
· Cocooning: getting the world into the homes rather than going out into the world.
Community thinking exactly fits in these trends.

These trends are facilitated by the ever-increasing possibilities of ICT-driven media and Internet in particular. The real world is more and more replaced or taken over by virtual worlds.

The advantages of the community concept are:
· Increased trusted relationships (not loyalty – if you want loyalty, buy a dog!!)
· Positive approach by customers on receipt of (desired) information;
· Reduction of waste in market communication and advertisement activities;
· Reduction of market communication costs.

Communities as I see it can create a revolution in market communication thinking and market communication approach. It will at the same time contribute to a more efficient society and create a new business of community building and content building.

The schema below illustrates the shift in communication, companies will use in order to be competitive. “The community is the company”.

The basic model is to give away value first and go for commercial results once a relationship is made. Behind these communities concession models are exploited - amongst others. The value of the relationship is rarely based on company names, but on the contents and intensity of the community.

The size of the market for communities is hard to estimate since a lot of revenue streams are invisible to the outside world, as well as which parties hold concessions within the communities.

There are much more successful internet communities active in all shapes and sizes. Whether they value by fun like YouTube or value by transaction like Marktplaats or eBay or even referral like Google and news portals. Two things really stand out.

1. Their value is based on the kind and number of their relationships.
2. None of them have been started by traditional companies and/or marketers.

Could it be a blind spot in market approach?

Self organization

Self organisation is a popular topic among ICT people. We have in fact been “self-organising” our society since the dawn of man. From family into village into tribe into nation into the global village world.

In general self organisation means that a group of “individuals” create a way of co-habitation / communication among themselves that allow them to work together based on a set of mutual interests and rules. This includes language, value systems (e.g. religion), decision making, value transfer (money) and entertainment. In our modern society an extra element is added to the way we work together, computers. They help us communicate, structure information, make appointments, meet in chat or video session. In one word it allows us to collaborate without physical limitations.

Society will re-organize itself with the aid of computer networks. New and different social networks will arise. In my youth everything happened in the real world. To make friends or better to maintain friendships you had to meet in person. This limits the total number of social connectors one can deal with. In this digital age people meet on the net without moving physically. My oldest daughter’s social network is at least three times my network at the same age. They contact through SMS, phone, chat boxes and exchange info through profile sites on the internet. News travel fast in a social network

Intelligent matching software will enhance the role the network is playing in the social environment. Matching of contexts, preferences and relationships. They will constantly and automatically evaluate the value of a match (or relationship). You’ll have to realize the different specialisms computers have. They can – for instance - negotiate a thousand times per minute. I myself will call someone maybe once every hour if it is really important. Great in logistics and scheduling!

Many social networks arise with the introduction of Web 2.0. Just Google around and you’ll find many of them.

Summary

Means : Web 2.0 application technology allows for single page websites where individuals can form groups around topics. The applications behind this will rapidly develop into multi functional environments replacing the functionality of PC’s and standard office software. The market for PC applications will shrink fast. Microsoft biggest thread.

Message : Companies and individuals will be drawn to the most attractive offering they can find. It is there that they will listen.

Media : Media have to address the user’s individual drivers and context. Interaction is the main ingredient to meet this goal. Traditional media will rapidly loose their grip on these developments.

Cascading media

“New publishing concepts stress the different roles of and synergies between various media and produce content, context and relationship- tools in one go!”

What would it be fantastic if your radio commercial results in booming revenues and that your customers refer to your products in every conversation they have. Fortunately it doesn’t work that way or a lot of people would lose their jobs.

Since the introduction of new media (internet, mobile phones and games) marketeers and communication specialists are trying to get the best out of each medium.

During my appointment as director of technology and business development for a large IT company we addressed the issue of synergy between media. Joint efforts with publishers and TV-producers led to interesting developments in a world that was basically dominated by technology. Even what we called “look and feel” tasted like technology. These cooperation led to the view that interactive media should “smell” good, to give the user a feeling of comfort.

Later on I developed the philosophy of “cascading media”. The idea came in the early days of they Internet when traffic was the success factor for every initiative. A conversion of a TV audience to an Internet initiative can generate such amounts of traffic that success was guaranteed.

Media Transfer

Imagine a prime time entertainment show that uses the endgame to transfer viewers to an interactive environment where the viewers can participate in the game show for the next 24 hours, returning to the next episode of the game show. The game show reports back the results of the last 24 hours and shows which of the interactive contestants have qualified for the next TV show.

Transfer of eyeballs is a concept that is hard to achieve. People are basically lazy when sitting in front of their TV set. Just ask yourself what effort it would take to get you out of your chair and behind your computer to start up the Internet. Nothing I guess. To influence behaviour with such impact requires high rewards

If it is possible to find a way to guarantee such a transfer is worth a lot of media value.

Integrated media approach is becoming a regular standard in both media and marketing. For instance the radio show that uses SMS, telephone and Internet facilities to poll opinions during transmission. The opinions are used to spice up the discussion in real time.

Marketing campaigns that include Internet subscription, SMS services, Music events and privileged e-mail communication.

The TV world is also using SMS and telephone as a viewer feedback. In this case with the aim of making as much money as possible. Call TV type programs are of a simple structure. “If you know the answer, call us and win the possibility to win a prize”. This transferring mechanism is the simplest in existence.

Nevertheless, This TV world is a lazy one. It sticks to plain TV, radio broadcast and straight forward campaigns. They support their programming with digital variations like streaming missed programs, Pod-cast etc. Only occasionally different media are incorporated into the programs / campaigns concepts.

Two random non existent examples will illustrate what I am implying;

1. Imagine a TV show called Game-Set-Match. (GSM – Global System for Mobile communications)). Of course the main driver here is the mobile phone. Answers are given in real time. Besides the studio audience anyone can play along. The GSM players outside the studio qualify for the next show. The intermediate results can be found in the Internet Control room, accessible only to those who played the game.

The span of attention of the format is prolonged long after the TV show has ended. In format advertising increases the formats media value and a massive phone income is generated.

2. I developed a combined Internet TV format called WebQuest™. I was in the early days of the Internet. Powered by a TV game show it would be the start of a digital treasure hunt. The hunt would lead the audience along certain pre planned websites of the program’s sponsors, enhancing the formats media value. Players and audience will come to the control centre to evaluate the intermediate standings, get tips and hints. Contestants can chat with each other and help or even delude the opponents. The frequency could be daily for stronger relationship and more frequent eyeballs. The results of the hunt are presented in the next TV show. The hunt can continue for weeks and the final treasure can be of considerable value.

Both formats were introduced with both public and commercial TV. It seemed a bridge to far at the time, but here we are, seven years later and still no true cross media format is programmed. Transferring the TV audience towards digital media is not an issue in TV thinking.

Transferring however, is a commercial mechanism with a lot of history. In the “paper”-days newspapers and magazines often used paper coupons to allow readers to react to a certain subject (or product). You could send in your personal data and receive a product or a sales call. We have been transferring people from;
o Advertisements to shops
o From commercial to internet
o From TV format to SMS
o From billboard to Shopping Mall
o Etc.

Transferring is the most intensive behavioural influence a marketeer can achieve. If you are able to transfer 10% of a viewer’s audience in a game show to the same game on the Internet, what would the additional media value be worth? The converted audience is an interested “intense” audience, worth more than accidental viewers. If you could lure them into leaving personal data you’d have a privileged audience you can target in the future.

Will advertisers be interested in a cross media approach to reach their customers and can you sell a cross media advertisement package in one deal? I think so. Proof is already there in the market. Advertisers are shifting from loyalty programs towards integrated involvement programs.

The examples I gave so far come from the entertainment industry. But all kinds of communication will follow the same pattern. Be it commercial communication for products or services, education or even government.

The use of consecutive media in a commercial concept I call a “media cascade”. One medium refers to another intensifying the customer relationship with every step.

Media Cascades

The philosophy is based on the creation of relationships. I recognised 4 basic steps earlier that apply tot all sorts of communication (personal, commercial, non-profit, etc)

Step 1 Attention. Make sure your recognised. Shout! A simple yet attractive message is required.

Step 2 Information exchange. Tell about your product or service and check if more is needed.

Step 3 Transact. Build trust and exchange information / services or products that establishes the relationship

Step 4 Now you can start building. Connect your Relationship into your business processes and use the added value of this relationship in building new relations.

Since all steps have a different character different types of media will be used in each step. Where Step 1. is a typical broadcast step (TV, Radio, and Print) Step 3 for instance is an interactive step where to customer supplies information to you. “Warmer”, more personal media should be used because the communication is drawn to a personal and trusted level. Mobile phones and internet communities are typical in this step.

You have to realise that you have to convert people from one step to the next and so from one medium to another. Your reach (eye balls) in step one falls out into two Referral (media transfer of customers) and Waste (users that do not react). Maybe you can catch them still by adding different angles in Step 1, the most crucial step.

This integration of media results in a different approach towards marketing and business processes and as a result toward ICT since processes must be designed to accept external information (Step 3). For instance subscriber self-care portals.

Research in the USA showed already in 1998 that personal media like the internet could not boost without other media as a referral platform. Different types of media referring to the internet resulting in concrete sales were;
– TV 55%
– Radio 15%
– Print 7%
– Internet 23%

The cascades you can build around different types of communications can consist of different media. Let me give you a few examples.

In the market for government information congresses are used regularly to relate to fields like industry, healthcare etc. It is obvious that in order to generate enough attention Billboards, Broadband Advertising, etc are used. Secondly potential attendants are facilitated with a subscription facility (internet, paper forms). Once the primary exchange of information has taken place the congress becomes the relationship platform. Not only between organisation and attendants but – even more important – between attendants.

There is a distinct relationship between the message you want to send and the distance between the used media type and its user. You could divide media in 4 different categories using this rule. The closer the medium the more trusted information can be exchanged and the more interactive the relationship will be. You should also appreciate the different situation the viewer finds himself in.

Just a brief overview of screens and distances as I described in media characteristics. From these categories a media cascade could be build. I will leave the paper equivalents out this time.

Media categories

45 feet Billboards, Cinema screen, etc. The viewer finds himself in a random crowd. No interaction.
9 feet TV Screens. Viewer finds himself in a family type of situation. Remote controlled
3 feet PC/Internet. Viewer sits in his personal environment, possible with trusted friends.
0 feet Mobile Phone, PSP, iPod / iPhone etc. User/viewer is alone. Usually no one else is allowed in this environment.

Since these media types play a different role in users lives and behaviour these messages sent are different but must be tuned to the goals your organisation has set for it self.

Rightly tuned synergy between media could lead to;
. More business
. Tighter consumer relationships adding value to your portfolio
. Better tuned business processes
. Better information mining opportunities
. Better margins

Monomedia

This all does not mean that I see no existence for stand alone media. I can see magazines, TV programs, newspapers, book and so on with no additional cross reference what so ever. The thing is that the used formula must be so powerful that it automatically generates word of mouth referral.

Summary

Means : Customer interaction, the prime ingredient of a trusted relationship, requires flexible and reliable service processes. ICT supporting these processes will change rapidly over the next years. Business alignment is not enough. Business prediction is necessary. Old monolithic systems will be shielded off – encapsulated – with portal technology based on web 2.0 type solutions, creating direct input form the outside world.

Message : The message distributed over a range of media should have a strong conceptual idea behind it. It should be applicable in all 4-steps in a media cascade.

Media : Cross media marketing will increasingly dominate the marketing world.