October 20, 2005

A Hypothetical "Conversation Department" At A Corporation Might Look Like...

A while back, I wrote a Spin column reacting to the first chapter of AdAge editor Scott Donaton’s book, Madison & Vine. It was called “Why Resist Consumer Dialogue?” and it morphed into this neat conversation that spanned across a few blogs, most notably Steve Hall’s AdRants.

In the above-linked post on AdRants, Steve suggested the creation of something along the lines of a “Consumer Conversation Department.” I’ve been thinking about that quite a bit lately.

I’ve written a few Spin columns, as well as a few posts here about the old DigiTech GSP-2101 list. (See this post for background.) In my marketing experience, the GSP-2101 list was the only example I could point to of a company that mass-produces a product actually engaging in meaningful conversation with the folks who buy and use the product. The more I think about it, the more I’m coming to the realization that the only reason that DigiTech was able to do this was because they’re small and they gave their marketing director the freedom to do so. After all, we’re talking about a niche product here, not something that everyone and their grandmother buys. Had it been something like Coca-Cola or McDonald’s, a marketing director would be quickly overwhelmed by the sheer volume.

I’m a realist. And as much as The Cluetrain Manifesto is revolutionary, I don’t expect the move toward the principles outlined in it to be revolutionary in the sense of a violent, overnight shift. I think that it will happen gradually, just like getting brand marketers to not laugh when you suggest spending more than 5 percent of their marketing budget online has taken a dozen years or so.

But I think we can agree that comparatively few companies have made any sort of investment in opening and continuing meaningful dialogue with their customers online. We’ve got the broadcast model to thank for that. As you know, when you’re holding a hammer, every problem starts to look like a nail. When folks are out there praising or panning a product or brand, corporations tend to look at the problem as a mass marketing problem. In reality, most of the panning can be dealt with effectively by empowering somebody to join the conversation, actually listen, and take the feedback to the company for incorporation. Most of the praise can be greatly amplified in the same way.

But how does a company, especially a large one, empower individuals to do this? I see the big barriers as:


  • Effectiveness measurement - It’s easy to set up a call center, because a company can set sales goals for a call center and know exactly how many sales a call center is responsible for at any given time. Similarly, a company knows the value of a customer service department, mostly by watching customer retention rates and other metrics. But how does one prove the value of a Conversation Department? Why would management approve the investment?
  • Cross-disciplinary expertise - Anyone serving as an outward-facing conversationalist on behalf of their company needs to know intimate details of product development, features, design, company history and about a million other things. (Or at least they need easy access to that information.) You typically find these types of people entrenched in management. It’s tough to find the people who are so intimately familiar with both brand and product that they can respond quickly and easily and contribute to a conversation. That person also needs to be plugged in to the proper corporate departments to be able to influence decision-making with feedback from customers. That’s a tough thing to do, mostly because it’s hard to find the people who are up to the task.
  • Toolsets - This is probably the easiest of the barriers to overcome. Finding the conversations as they’re happening is tough, but it’s made a lot easier with search engines and RSS. Corporations could probably get by with a list of custom feeds and searches for right now. If there’s demand for it, I’m sure quite a few companies would get into the space and develop tools for tracking conversations. I’m not as worried about this one as I am with the others.
  • Scalability - What I’ll call “The Thorderson Solution” (after Randy Thorderson, the marketing guy from DigiTech who represented the company on the GSP-Users List) simply isn’t scalable. If a product or brand is much bigger than the GSP-2101 was, one person can’t handle all the interaction. It begs the question – What does a Conversation Department look like, structure-wise?

It’s that last question I’d like to address. Problem is, since no one I know has ever done this at scale, how the heck do you make any sort of assertions about what a corporation needs in order to create a Conversation Department? Hopefully, this will get picked up by some folks and the blogging community will jump in and provide some suggestions.

So let me toss something out there to get things started. Then all you Hespos.com readers (all 18 of you) can jump in and shoot my assumptions to hell.

First off, I think a company needs a director-level person to head up the department. Such a person would report either to the VP of Marketing or to the CEO, depending on how a corporation handles its marketing discipline. A director would be charged with:


  • Supervising day-to-day operation of the department
  • Proving the department’s value to C-level management, P&L responsibility, etc.
  • Ensuring meaningful information exchange between the Conversation Department and product development, marketing, customer service, etc.
  • Judgment calls on matters that cannot be resolved at lower levels

From there, you probably need a supervisor-level person or two (or three, depending on how many conversations are going on). A supervisor needs to:


  • Coordinate the information arising from conversations, process it and turn it into actionable intelligence for other department heads.
  • Coordinate the follow-up re: the above
  • Ensure the technological and informational needs of lower-level employees are being met.
  • Quality Assurance – Ensure meaningful participation in key conversations.
  • Instruct and mentor Ambassadors

You need a bunch of folks to work under the supervisor, who we’ll call “Ambassadors” until someone comes up with a better name:


  • Identify relevant conversations online
  • Familiarize oneself with the subject matter
  • Represent the company in these conversations
  • Identify action items from the conversations
  • Distill information from conversations
  • Kick up action items and information to the Supervisor, along with preliminary recommendations for how to proceed.

This looks like it might be a decent structure for a hypothetical department. At least it can scale. If the workload gets too overwhelming, you add more Ambassadors and Supervisors to supervise them.

It would be awfully nice if the folks who actually work on the products could fulfill this function, but I don’t see that as being realistic. Representing a company in distributed conversations across the blogosphere and community media is likely a full-time job, and I don’t know what a product development team could expect to accomplish if they spend as much time as this function demands participating in online discussions. (They’d likely never get a product out.)

Again, I think most of this happens in a series of incremental changes, rather than in some bloody overnight revolution. And nothing would make me happier than to see Corporate America start marching down the path toward meaningful participation in distributed conversations. I think the first step has already happened – blogs and citizen publishing are already on the radar screens of corporations that engage in mass marketing. Most of them see it as a nail to mass marketing’s hammer, but that may change with all the work folks are doing in this space to make sure corporations see these emerging media through the lens of the “markets are conversations” model.

So let’s hear it, folks. Would it work? If not, what would you do to improve it? If so, who would be the first to adopt this model and move forward with it?

Posted by THespos at October 20, 2005 04:50 PM | TrackBack
Comments
All comments are property of the individual poster who left them. Everything else, copyright 2005, Tom Hespos

Why not go further? Make it the job of every employee to talk with customers and figure out what they need? We have more than 2,000 bloggers at Microsoft. You might check in on what we're doing. Start at my blog at http://scobleizer.wordpress.com -- on the right side I link to many of the other employee bloggers.

Posted by: Robert Scoble at October 21, 2005 02:06 PM

Hi Robert:

I'm aware of what you guys are doing at Microsoft, but I'm not sure that such a model can work for most companies. The issue becomes how much time an employee should be expected to work on blogging and community relations in comparison to the nuts and bolts of their other job duties. Can you shed some light on how Microsoft helps its employees allocate their time appropriately?

The other difficulty I see with an "everybody blogs" strategy is that two people within the same company might have completely different information about a given topic. So let's say that Company X has a policy against recommending that their product be used in certain applications. Joe Six Pack asks a company blogger whether he can use the product in said application and one blogger (unaware of the policy) says, "Sure, go right ahead..." while everyone else says, "No, we don't recommend this." What happens? Let's also say that the use of the product in this fashion causes it to explode in Joe Six Pack's face. What then? Is Company X legally liable for the blogger's mistake? Of course. You can see how this might get hairy. I'm interested to know how Microsoft deals with the notion of a company blogger recommending something that ends up hurting the company or the customer.

Posted by: Tom Hespos at October 21, 2005 02:23 PM

I am not making this up...I walked out of a meeting about 3 hours ago thinking, "we need a job here to manage interactive communications". The head of Comm and head of the business unit want to do a blog, but don't yet really know what that means. I am part of a team beginning to address develop a response. Unfortunately most of the team is pretty clueless about blogs as well, I feel alone inside the corporate walls. I love finding posts like this, it helps me get through the day.

As to further thoughts, should the Conversation Department also be responsible for the internal conversation? I think blogs as an internal conversation tool for corporate vision, alignment, etc. is compelling as well. Maybe that is part of how you leverage the Microsoft model, better alignment inside probably leads to better conversations outside.

Posted by: Lee White at October 21, 2005 04:05 PM

Interesting thread, we recently opened up forums to our community of users. After the first week, we created a communication policy.
Loosely defined, a designated resource reads the posts, answers the ones he can, then divides the rest among the people who can best answer the individual posts. This keeps us from posting different answers to the same question, we have a dedicated resources who monitors for us, and we all know that questions are being handled.

B-)

Posted by: Bill at October 21, 2005 04:50 PM

Hi;
We have one … a Conversations Department. And it didn’t start on a nice planned background. We had all read the Cluetrain Manifesto, and were much inspired by it, but also saw it not working out as planned at all. Our customer’s service was exactly as old-fashioned as the rest of them and not really having conversations with anybody, but struggling to keep the inbox (3000 e-mails a week) down. And we were still a start-up – only 4 years old!! So we went back to some of the “methods”, we never thought, we would have to use in our “soft” business of delivering organic vegetables to the doorsteps of 30.000 Danish households a week. We changed the whole staff of 10 people and moved it from the province to Copenhagen. Why?
- to hire a staff of actors, students, academics, guides, chefs etc. (eager to communicate and learn about people and food and to match the customers who are mostly from the city)
- to be able to do short term contracts- only 2 years, then you move on within, or to the next company (no “burn-outs”, thank you..)
- to start from scratch by de-learning all the bad-corporate-habits and introducing the cluetrain-be-yourself-courage (or maybe we hired people who didn’t have them?..)
- to start up an uncensored forum on the web-site, and know that there were people able to answer everything (that one was though, everybody “hears” everything on a forum!..)
- to get closer to our goal of being a transparent company (should be nothing to hide in vegetables and farming?!.. we ran an Open Space on transparency and one on conversations, including all 100 employees).
Did it work? So far (1 year) we think so! The Conversations Department is a fun and tough place to work, everybody’s engaged, conscious and very responsible (that’s often the result of giving freedom.. ;-)), inbox is kept empty and the customers have access to us, meet a human voice and get an honest answer (uh, it hurts some times…).
Bottom line for us I guess is: Hire people who really want to do conversations, insist on it when you sooner or later are tempted to compromise…and yes management must be in on it, its part of a culture they have to lead!
And this task will never be done and we’re constantly challenged by customers and by ourselves. It’s sort of a hard-fun-thing doing business this way, but we certainly don’t want to go back and it probably keeps us in the right colour of water.. :-)
Long story – hope it’s useful to someone.
Best; Annette, managing director of Aarstiderne (..the seasons..)
http://www.aarstiderne.com/default.asp?path={8E280C40-690F-478F-8689-462378353941}

Posted by: Annette at October 23, 2005 01:58 PM

Interesting Anette.

Does the conversations department integrate product development/marketing which i think was your original idea?

Or is that more that they are in proximity to each other physically?

Posted by: Thomas Madsen-Mygdal at October 23, 2005 02:33 PM

The Conversations is our “sales and marketing” department. Every time we think we need a sales and marketing project, we end up with suggestions that always feels kind of phoney held against the markets are conversations thinking, so we drop it and engage the people of the Conversations in events like street-kitchens, participation in fairs, aso. And since we hired interested and communicating people – they are the customer’s voice in our organisation, demanding quality and development, "annoying" at times, but a lot better than not having them ...

Posted by: Annette at October 23, 2005 03:33 PM

I'd love to hear from more of you about how you're handling this function inside your company. Obviously, this piece was written more for the larger corporations that will tend to have a lot more difficulty adjusting to the "markets are conversations" model, but I'd love to hear from those of you in smaller companies.

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