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Embracing & Reinvigorating Trust at the BBB International Torch Awards

Much of what's propelled my fascination with CGM and social media has been the topic of trust.  Trust is the currency of productive business relationships as well as the cornerstone of effective advertising and marketing.  Since October I've had the unique opportunity to shape the agenda of marketplace trust in my capacity as Chairman of the Board of the National Council of Better Business Bureaus.  Below are remarks I delivered last night to kick off the BBB International Torch Award ceremony at the Reagan Center in Washington DC. It was an amazing evening, keynoted by Chris Matthews and hosted by ABC Good Morning America consumer corresponded Elisabeth Leamy, and I was honored to be a participant.  A list of award recipients, including Target, American, Honda, and Cincinnat-based Messer Construction company, can be found here.

 

It is such a privilege and a delight to welcome you to the BBB International Torch Awards.

 

This is a difficult time for our nation and for our world. To be honest with you, we thought about cancelling tonight’s event, as so many organizations have done in recent months. But we felt that would be sending the wrong message.

 

In fact, we came to the conclusion that this particular event is needed more than ever. BBB is all about marketplace trust, and our market is experiencing an unmistakable crisis in trust. Restoring, rebuilding, and celebrating trust must be at the top of everyone’s agenda.

 

The loss of trust in the business community has been growing since Enron’s collapse and scandal in 2001, followed by revelations from the World Com audit in 2003, and most recently with the ongoing subprime crisis which kicked into high gear in 2007. All of this has made marketplace trust issues exponentially worse.

 

And our current economic mess is directly traceable to the loss of confidence – read that as “loss of trust” — that we have in the banking system and Wall Street — in business generally, and in government — and frankly, to some extent, in each other.

 

Every day, in my capacity as a market research executive, I see telling, if not sobering signs, of the erosion of confidence and trust in our marketplace – from shopper behavior to the tone and tenor of what consumers tweet on Twitter.

 

So it is crucial that those of us who work so hard to advance trust in the marketplace – who understand the relationship of ethical and trustworthy behavior to economic success – gather to celebrate the “best of the best” in business and consumer leadership.

 

We are here to honor those who conduct their business and their career with the utmost integrity, compassion and dependability.

 

So it’s fitting that we have gathered here tonight to remind ourselves – and the public – that most businesses are honest, dependable, reliable and trustworthy.  These companies and individuals we honor tonight are doing a remarkable job of advancing trust in the marketplace

 

And by recognizing exemplary performance, we hope to encourage all businesses to follow the examples set by this evening’s honorees. 

 

The BBB International Torch Awards program is an integral part of our mission to advance marketplace trust. Last year, we expanded the categories and changed the program to increase visibility for our award recipients, and for the issue of marketplace trust.  We are delighted that you are here to share this special night with us.

 

What's Said in Vegas at WOMMA Confab Will Definitely Leave Vegas!

Off to the Word-of-Mouth Marketing Association (WOMMA) Summit in Las Vegas starting tomorrow.  If you are there, look for me and we'll catch up. I'm delivering a keynote on Friday.    The agenda looks fabulous, and I'm proud to be associated with this group!  More information on the conference here.

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May 9-10 WOMMA Spring Conference: Sign-Up Now!

If you are serious about all the issues and themes in this blog, you won't want to miss the Word of Mouth Marketing Association's (WOMMA) Spring conference May 9-10.  It's like a shot of WOMdrenaline!  If you still are not convinced, watch this video from last year's event. (If you still are not convinced, check out this video from the very first WOMMA conference.) This year's event is entitled "WOMM-U" and a big focus is on "activating networks, influencers, and communities."  Sign-up here!  Here's the latest list of speakers at the event.  Imagine the time and expense of connecting with all these sharp minds individually.

• Clayton Closson from Quicken Loans
• Erin Byrne from Burson-Marsteller
• Liana Frey from Dell
• Brian Reich from Echo Ditto
• Blake Cahill from Visible Technologies
• Myra Norton from Community Analytics
• Rob Key from Converseon
• Warren Sukernek from VML
• B.Bonin Bough from Weber Shandwick Web Relations
• Leslie Forde from Communispace Corporation
• Jason Anello from Yahoo!
• Rohit Bhargava from Ogilvy Public Relations Worldwide
• Deb Eastman from Satmetrix
• Rod Brooks from PEMCO Insurance
• Brandon Evans from RepNation Media
• Geoff Nelson from Buzz Corps
• Geno Church from Brains on Fire
• Michele Makowski from Intuit
• Kate Niederhoffer from Nielsen Online
• Walter Carl from ChatThreads
• Brad Fay from Keller Fay Group
• Lynn Eastep from Fleishman-Hillard
• Kathy Baughman from ComBlu
• Chris Lightner from PopularMedia

Personal Note:  There are few things in my marketing career that have been more inspiring, empowering, and enlightening than my work with WOMMA.  When we created this group four year ago, we sought to shape a new way of thinking about marketing that puts the consumer at the center of the universe.  We were also determined to tackle head-on the issues like word-of-mouth ethics that we knew, if abused, had the potential to destroy all that is so special and unique about this "listening" and "conversation" anchored space.  The group remains committed to all these issues -- adamantly and passionately -- and whether through membership, conference participation, or -- even better -- putting your name in the hat for the new WOMMA board, please participate.

 

Upcoming WOMMA Summit: November 14-15

If you are looking for go-go juice to feed you passion and interest around CGM and word-of-mouth, The Word of Mouth Marketing Association (WOMMA) will hold its 3rd Summit on November 14-15 in Las Vegas.  This years theme, appropriately, is Social Media Heats Up the New WOM. If you have never been to the Summit, it is wall-to-wall cases and real-world experience split equally between brands and agencies. Among the topics:

• Social Networks: Do consumers want to be your friends?
• The Influencer or Network?: What Matters More? 
• Who Owns Word of Mouth in the Marcom Mix? Who Should?
• What’s the ROI on Word of Mouth?

This year we will feature the great stories behind word-of-mouth, including content from Microsoft about the impressive, buzz-generating launch of the Xbox's Halo 3. Also on hand will be the head of WOM-powered Cranium Games and many others.  Here's a short video I prepared in anticipation of the last WOMMA summit in New Orleans which includes a host of enthusiastic testimonials from attendees.

(Full disclosure: I'm a founder, board member, and very proud advocate of WOMMA.)

WOMMA Gathering as Mirror Into Evolving Conversational Map

Last week I found myself "rejuvenated, refreshed, and reinvigorated" after attending a quarterly board meeting of the Word-of-Mouth Marketing Association (WOMMA) -- so much so that I dedicated this morning's ClickZ Column ("Passionate Faces in the Conversational Crowd") to my post-meeting observations.  It's wasn't just WOMMA, per se, but the issues and themes we tackled, and the diverse medley of stakeholders who discussed and debated them.  Importantly, word-of-mouth continues to evolve in powerful new ways, enabled by new technology, social networks, and of course deeper consumer experience (and practice...and repetition) in expressing oneself.  Because WOM touches so many diverse stakeholders (marketing, PR, research, advertising, interactive marketing, external relations, various agencies and measurement firms), it's beginning to soften organizational silos, drive greater cross-platform integration in marketing campaigns, recalibrate the nature and definition of an "agency,"  put long-overdue focus on operational issues like customer service, and open up windows into new ad models (many good, some bad).

Wikipedia Extends the Definition:  And even right before our eyes, we're seeing a powerful new definition of WOM emerge in Wikipedia, now inclusive of "text messages sent via SMS and web dialogue, such as online profile pages, blog posts, message board threads, instant messages and emails."  Some prefer the term "conversation."  Others prefer "social media."  I tend to focus on the online trail of consumer-generated media. But at the end of the day, we're talking about offshoots and line-extensions of word-of-mouth. Consumers are talking, offering opinions, making recommendations, solidifying their voice through the concurrence and reinforcement of others -- and using every available tool at their disposal to get their point across.  Brave new world!  We'll tackle much more of this at next WOMMA summit in Las Vegas November 14-15.  Again, here's the article in ClickZ.

How Accurate is "Mad Men?" Let's Ask An Ad Veteran (My Father)

My father is 83 years old, and he spent the better part of his career, starting in the late 50s, in the advertising business.   In some respects, he was one of the original "Mad Men," and he actually worked for the same firm, BBDO, rumored to be the setting for the AMC series.  Like me, he's been watching the series with both a curious and critical eye. In the good spirit of home-made CGM, I turned on the video recorder while visiting him a couple weeks ago and asked him to share some thoughts. In this first installment, he reflects on elitism in the advertising industry, drinking culture, how concepts and ideas really came to fruition, and the nature of agency-client interaction -- all themes right smack in the center center of AMC's Mad Men.

Ten Important Takeaways From Steve Jobs' iPhone Pricing Apology

What an incredible year to watch and learn from CEO-level behavior in times of crisis and difficulty.  First we had Jet Blue, faced with an impossibly difficult situation, take to the airwaves on YouTube, apologize profusely, and announce a new passenger bill of rights.  While Menu Foods practically hid their CEO during the pet recall issue, Mattel put their CEO, Bob Eckert, on the website video airwaves to nurture trust and confidence in the wake of the toy recall (a still-in-progress case study).  Now we have Steve Jobs, who just wrote and posted the most remarkable letter in response to concerns about iPhone’s recent price decrease. He coupled an apology with a $100 Apple credit for all early-buyers of the iPhone.  This is classic Defensive Branding.  I predict it will be one of the most discussed, debated, and linked-to letters of the year, and so far I've already counted over 800 unique blog postings referencing his letter since 6 PM last night.  I'd thought I'd dissect the letter, and draw out key "takeaways."

Exact Text From CEO Steve Jobs Letter

I have received hundreds of emails from iPhone customers who are upset about Apple dropping the price of iPhone by $200 two months after it went on sale.

1. The Power of Listening: He read his mail, and he understands the core issue. Most CEOs wait for the formal report from the consumer affairs department.

After reading every one of these emails, I have some observations and conclusions.

2. The Power of Responsiveness He has listened, and now he is responding. 

First, I am sure that we are making the correct decision to lower the price of the 8GB iPhone from $599 to $399, and that now is the right time to do it. iPhone is a breakthrough product, and we have the chance to 'go for it' this holiday season. iPhone is so far ahead of the competition, and now it will be affordable by even more customers. It benefits both Apple and every iPhone user to get as many new customers as possible in the iPhone 'tent'. We strongly believe the $399 price will help us do just that this holiday season.

3. The Power of Restating the Rationale: He’s re-affirming excitement around the product, as well as rationalizing Apple’s core decision to lower iPhone price. He’s doing so confidently and rationally, and as a build up to his eventual apology.

Second, being in technology for 30+ years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon.

4. The Power of Empathy: Jobs is attempting to show empathy and understanding for those who have a tendency to buy products as soon as they hit the market. These are the coveted early adopters and enthusiasts, and they represent to sweet spot of the “new” marketing.  These are also the same consumers who ranted to loudest when Job's announced, barely 24 hours earlier, a 33% price slash. They are the influentials. 

The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced.

5. The Power of Service as Brand: He’s underscoring Apple’s historic legacy of providing value and exceptional service, no matter when and how consumers buying the product.  (Caveat: a smart statement, but not 100% accurate. Apple still has service blemishes.)

Third, even though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price.

6. The Power of Accountability: In essence he’s taking accountability for not being sufficiently sensitive to these coveted early customers. He's also expressing resolve to right the wrong.  Key message: we can't afford to lose you!

Our early customers trusted us, and we must live up to that trust with our actions in moments like these.

7. The Power of Nurturing Trust: Job's is openly underscoring the undeniable role of trust in the relationship between the brand and the consumer.  Indeed, trust is what makes the world go around, and it’s one of most important drivers of credibility.

Therefore, we have decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T, and who is not receiving a rebate or any other consideration, a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store

8. The Power of Walking the Talk!  Jobs is putting a real, tangible value on consumer value. If you were there for us early on, we will credit you $100.

Details are still being worked out and will be posted on Apple's website next week. Stay tuned.

9. The Power of Imperfect Timeliness: Jobs didn’t have all the detailed worked out but he clearly saw the upside in communicating the basic concept as quickly as possible

We want to do the right thing for our valued iPhone customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Apple.

10. The Power of Forgiveness: In the end, he is offering a sincere apology, but also advertising the degree to which Apple consumers expect and demand more.  In essence, his apology is reaffirming the power of the Apple brand. Here it's also important to note that saying you are sorry is a "consumer bonding" moment. It cements emotional connections.

Let's keep this case study alive.  And to that point, what promises to be an excellent thread has just started on WOMMA's Facebook thread.  My very smart WOMMA colleague Rick Murray of Edelman has fired off the first comment, suggesting that "entire episode was avoidable had Mr. Jobs done one thing: reach out to and listen to his most ardent fans.

Top Marketing Blogs - A First Cut!

Probably a total fluke, but this consumer-obsessed marketing blog managed to make Forrester analyst Peter Kim's first cut at a Top Marketing Blog ranking.  My current slot is #5, but here's an important caveat (before you high-five me).  Peter narrowed the criteria to "the most popular blogs written by client-side marketing professionals.  These are people who are doing their brands a favor by engaging customers and prospects in conversation."   Put another way, these are blogs that are not directly linked to the formal marketing services.  Many other superb marketing blogs -- far more insightful than my own -- didn't make the cut!  Also important, Peter's taking suggestions.   (I read or subscribe to most of the other blogs on Peter's list, but there are a few new ones I knew little about, so use his list to push your frontier of awareness.)

Thoughts on YouTube's Proposed Revenue Sharing Model...Revisited

YouTube just announced it would start sharing revenue with key "content" partners.  This is generally a positive direction but it raises a host of new, somewhat challenging questions. Less clear is whether all content providers would share in the revenue, as currently takes place with video sharing site Revver.com.  "Now some of your favorite YouTube members--including LisaNova, renetto, HappySlip, smosh, and valsartdiary--will begin to participate in the same revenue-sharing and promotional opportunities that are available to YouTube's other partners," YouTube said on its blog.  The word I'm fixating on is "some."

But whole hog or half-way, moving to a revenue sharing model is a very big deal, and it has a number of very important implications, including around transparency and disclosure (see my earlier 11/6 ClickZ Column, YouTube or Confuse Tube?).  I outlined a few of these implications last January when the first news leaked that YouTube leaked might be considering a revenue share model.  It's worth another skim!     

Ten Implications of YouTube's Revenue Sharing Model
 

Speakers, Meet the Surfers!

This digital space continues to evolve in new and exciting ways.  Just yesterday, the Nielsen company announced it will purchase the remaining outstanding shares in the firm in which I work, Nielsen BuzzMetrics.  As part of the arrangement we'll be combining with NetRatings, a leader in Internet audience measurement, to form a unit providing measurement and analysis of consumer behavior in the space.   These two cornerstones of consumer engagement -- speaking (CGM) and surfing (audience/site measurement) -- have the potential to tell a more complete story about consumer behavior, and I'm quite excited to be part of any effort to bring more holistic, integrated analytics to the table for customers.