Brands Listen When Customers Speak

Historically, brands have ruled the roost — controlling messaging, product design, and distribution channels. In today's world, a power shift has occurred — away from brands and companies — into the hands of the consumer. The Internet caused the initial shift by creating a world of "perfect information." In game theory, players possess perfect information if all players know all of the moves that have taken place. In microeconomics, perfect information means that all consumers know all things, about all products, at all times, enabling them make the best purchasing decisions as a result. Similarly, Internet users gained complete power to research and get to know a brand and/or product prior to making a purchasing decision — they acquired perfect information. Today, the customer has become even more powerful — actively creating the information that is used to develop new products and services that companies bring to market.

Social networking has taken the power of the Internet one step further, completely turning traditional marketing on its head. No longer do brands or individual groups solely control messaging. Today, everyone is an equal participant in the brand dialogue. In fact, the consumer has as much of a voice as the corporation and brand itself. Brands are defined in real-time, with consumers reviewing products and services online, posting opinions on Facebook and Tweeting about their actual, real-life experience with a brand. The one-way "lecture" on products and services has come to an end.

While brands can no longer control the message, the power of the consumer provides a unique opportunity for brands to respond in a way that differentiates them from others in their space. If a customer posts a legitimate complaint, the company can correct the situation and create a positive brand experience. If a customer group wants a product in a particular color or combination, an opportunity exists to create such a product. Today, a positive brand experience can immediately drive recognition and sales to new heights.

Because of these implications, monitoring social conversation has become the methodology for companies to anticipate and learn what customers truly want in products and services. The consumer power trend has evolved from customers providing static feedback to directly influencing what companies develop and produce — allowing customers to co-create. Co-creation lets companies develop products and services in collaboration with experienced, creative consumers that can then champion brands. In fact, the concepts of co-creation and mass customization are now common. Nike heard their customers' desires for "one of a kind" footwear and rolled out the nikeid.com site. Customers now choose their own colors, fabrics, and shoe type to produce a shoe to their exact specifications. Funnyordie.com, a comedy video website, is another product completely built upon the concept of co-creation — combining user-generated content with original, exclusive content that can be viewed by all. After material is posted to the site, viewers vote for which videos they think are funny and which videos deserve to die.

Hearing the customer now requires brands to employ online monitoring tools to understand and successfully track brand conversations. Tens of millions of consumers proactively tell and show what they're feeling and doing everyday. Their unsolicited, truthful opinions of the brand help them change and evolve. These opinions and discussions give brands a fantastic opportunity to become exactly what their customers are looking for.