“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.
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.
