How is your customer support doing?

According to BlueWolf, not so hot. More than half of businesses still have never responded when customers tweet about a bad experience. What are you waiting for?

The information they collected for their infographic shows how unforgiving we have become as a group of customers. When things go awry, 17% of customers bail on the first mistake, and 40% will leave after two strikes. Wow.

It seems these days almost everyone is using social media for customer support. The newspapers are filled with stories. My daughter’s GenY is getting hired (when they can find a job) doing such work for a wide variety of companies: clothing stores, restaurants, and other retailers. It wasn’t too long ago when just getting a website up and running was a challenge for many of these businesses. Now the bar has been raised, and they have to do better at engaging and keeping their customers.

We have come to expect more from our suppliers. We want things fixed. Here is one example. I have been a Vonage customer for seven years. But lately, I am not really using the service. I find myself going between Skype and my cell, and I long ago stopped having an actual physical desk phone in my office. So I went to try to terminate the service. It took three phone calls to their call center: the first was dropped (perhaps accidentally, perhaps intentionally). The second I was tricked into keeping the service. I lucked out on the third call and got a supervisor who was able to do the deed.

Now, I liked my Vonage line when I used it: it gave me a freedom from Ma Bell and I had few problems over the number of problems that I had their service. I liked that I could move my 310 phone number from California to St. Louis. I liked that I could resolve most issues on my own with their Web portal and self-service controls. But the termination experience left a bad taste in my mouth. They shouldn’t have to make it so hard to say goodbye. I wasn’t trying to get a better deal: I just wanted to end our relationship.

The warning signs are clear: if you don’t keep your customers happy, someone else will.

Going back to basics with your next startup

I have had the opportunity to mentor quite a few startup companies in the St. Louis region over the past several years. I was asked yesterday why I do it, and it because I want to give something back to my community, help others avoid some of the same mistakes that I did when I started my own business, and also because it is a lot of fun to meet entrepreneurs who are so passionate about their business.

It is also fun to see the widening of the entrepreneurial community in St. Louis: we just had a business plan competition (the Arch Grants) which gave away grants of $50k to 15 different startups, a few of whom are in the process of moving into town (as part of the deal to take the dough). This is just one of numerous other ways startups can raise funds here, as Jay DeLong shows you in this video.

The common theme that I keep coming back to is taking care of the basics of business isn’t always easy. What do I mean by basics? Things like pricing, understanding your market, and making sure that your niche is as narrow as possible. Let me give you a few examples.

One services firm I know was charging too little: in fact after getting some mentoring they doubled their rates! Figuring out what you charge isn’t easy: I wrestle with this all the time, particularly in the down economy that we have today. My own rates have fluctuated over the 20 years that I have been in business, and today I still marvel at firms that want me to do work for them at bargain-basement rates, or better yet, for free for “the exposure.” If I wanted exposure, I would go hiking in the mountains. I keep telling folks that I am not a charitable organization: I work for a living, and so should you. Yes, there are times when I will work for free, but under very structured and controlled circumstances. For example, I will speak at different local community-based organizations’ conferences. A speaker friend I know books up to one pro bono event each month and puts on her calendar. I like that method: you treat these freebies with the same value of paying gigs. She makes her money selling her books and consulting services from these events.

Yes, setting the right price is more art than science, but you do have to spend some time looking at your competitors and understanding that there is an implicit value in your rate: if you undercharge, you will be undervalued.

If you need help with your pricing, spend some time doing some testing: see what you can get at different prices from different clients. While this isn’t very scientific, it should give you an idea of how high your should (usually) raise your rates.

Do you really have the right niche for your product or services? One software firm that I am working with has a very narrow niche for its product, and has done well continuing to focus on what people in that niche need. But what happens if your niche is evolving? You have to evolve with it. As I said earlier, you want to continually find a narrower niche, so you can become the dominant player in that niche. Many new ventures make the mistake of going too wide rather than deep: then you are in different markets with limited resources for each.

The term du jour is “pivot” which used to mean solving a set of linear equations back when I was in grad school but now means that you refocus your startup business. That gives the impression that your original idea wasn’t sound. Instead, constantly refine what your offerings are.

Finally, if you have the right price and the right niche, there is the right market for your goods and services. Another firm I know was focused on the college-age market. They had a second service and designed it around this audience, because this customer is someone they knew and understood. They want to leverage their expertise in this space, not try to be all things to all ages. It is a valuable lesson.

Stupid PR Tricks

“I saw your article on the [ …] and wanted to clarify some confusion in the article around pricing,” began an exchange with one PR person last week about something that I wrote in my first week as Business Channels editor at ReadWriteWeb. For those of you that missed that memo, I have taken on a new job there running four different enterprise IT-related sites for them. To paraphrase Garrison Keillor, tech PR is the place where the pitches all seem strong, the products all claim to be good looking and the reps are all still below average.

So it seems my real job is that of PR educator or trainer, or at least getting folks to give me correct information. My article, one of 20 that I posted last week on the site (not that I am trying to brag, but still), had the wrong pricing info for the product. Okay, simple enough, I thought. “Please give me a couple of examples of what typical enterprise pricing would be, thanks,” I replied. Moments later came the reply: “Enterprise pricing varies from one enterprise to the next because it’s based on the number of subscribers. There is no ‘typical’ pricing for enterprises.”

Okay, how about if I sign up a 25 person company for this service, what would that cost? Seems like a straightforward question, right? Nope. “We don’t break out pricing publicly that way.” In the end I really never got an answer, and had to replace specific but incorrect information with vague but accurate statements. Was my reader served by this? Not one bit.

Oh, now I remember why I went out and worked for myself: I hate this kind of PR dumbing-down. Sigh.

So for those of you that plan on pitching me story ideas, here is a guide to help.

First off, before you send anything, read my clips! Figure out what I write about. Then take a deep breath and send your pitch to my RWW email address. If you can’t find it inside of one click from our home page, then stop right now and figure out something else to do with your career. This is not quantum mechanics.

The one exception to this is if I wrote about category of web widgets and your client has a really great one that I should have covered. Save us both a lot of time and add a comment to the article, making it clear that you represent the client. Maybe I will return to the topic in a few months and pick up some news on your client. Maybe not. But I am not inclined to write another widget article anytime soon.

Second, if you don’t have a story with something Web-based for enterprise IT workers, you can save both of us a lot of time. That is what I cover. A new printer? If it does have some interesting Web interface, it is a stretch but maybe. A new database engine for Web apps? Most certainly. There will be some other stories that I will write about, but probably not because you pitch me but because I think our readers will find them interesting.

Third, I love demos. Or better yet, access to a working version of a product that I can try out. (Please, no 30 day timebombs, because I guarantee you that on the 29th day is when I end up actually beginning my tests.) I want to see the actual product or service that my reader is going to be using in the same kind of context.

This means no slide decks, no long 30 minute conference calls where your CEO has to go over in detail how each round of capital was raised and how many of his or her cronies came from formerly fabulous places to round out the dream team. Honestly, I couldn’t care less. If you must use slides, send me a deck with three of them that I can review beforehand.

And yes, please put some kind of pricing in there. Readers are shoppers and shoppers need to know what something costs before they can honestly consider what they should do.

Finally, be responsive and get back to me soon. Real soon. This is the Interwebs, people. Our deadlines are measured in minutes sometimes, and if I have to hold a story overnight, it may never see the dawn’s early light, or even be posted. Sometimes I get two of the same email pitches, spaced a few days apart: yes, my email is actually working and the servers dutifully deliver the messages right to my little computer pretty much all day long. There is no need to follow up with a duplicate message checking to see if systems are AOK. Or worse yet, a phone call to confirm that the email was delivered. If you are so worried about it, learn to use encrypted email with delivery and read receipts.

Some of this may be old school to some of you, and you know who you are – I am happy to say that not everyone is below average. But based on my not-so-random sampling of my first week at RWW, I am not so sure.

CMO.com: Dell Lends its Ear to Social Media

The first rule about getting involved in social media is being a good listener. And probably no one does this as well as Dell. The computer giant has been slowly improving its listening abilities, and late last year formally opened its Social Media Listening Command Center at its headquarters outside of Austin, Texas.

The listening room is just one of many social media marketing strategies that Dell is using. The company has numerous Twitter accounts that broadcast special prices, a series of Facebook pages with user-generated content promoting its products, and formal ways to incorporate customer-based suggestions into the next round of product features.

While the room is a sexy cross between an air traffic control tower and a TV production studio, it really is just a room. The more important aspects aren’t to be found in the room, to the point where when I asked Manish Mehta, Dell’s vice president for social media and community, how many people worked for him he couldn’t tell me. And he wasn’t just being coy. “The biggest misnomer is that you have to be physically present in the room to listen to the social Web,” he said. “We have others located around the company and indeed, around the world who are monitoring and participating in these conversations.”

The social media listening and command center may or may not be appropriate for how marketing is done in other companies. It depends how they are organized or want to organize for social media, as well as the volume of conversation about their business, products and services. Mehta says, “However, the social media listening command center offers us a great, real time global view of conversations and enables us the aggregate and track the data so that in real time we understand what topics matter to our customers. When you are embedding social media as a tool across virtually every aspect of the company to be used by employees as one of the ways they stay in touch with customers every day, then we cannot total up number of people or dollars we are investing, as it is part of how we do business”

And listening has really become part of Dell’s marketing, and by extension its core business. The company tracks tens of thousands of Tweets daily that mention the company and its products, in 11 different languages. “You have to start with social media by listening and understand how many conversations or places you are being mentioned and which are relevant to your business,” he says. Issues are tagged and delegated to the appropriate department for quick resolution.

It is ironic that Mehta is such a good listener, given that one of his earliest jobs was an engineer for the Three Mile Island nuclear plant, although working there about a decade after the accident. “The nuclear industry did a really bad job back then about addressing public fears and safety concerns,” a lesson he has taken with him for his tenure at Dell.

To give you an idea of their global reach, the Dell.com Web site is now delivered in 34 different languages and locales. Many of the conversations are in English, despite the native language of the original customer. “Quite a few people use English in Asia and elsewhere, so our coverage works out to about 80% of all conversations we could have,” he says. “Listening is core to our company and our values.” Dell plans on opening new listening rooms in China and Europe later this year to extend its model and to focus attention on the function. “The listening room is a great tool to galvanize our work force and employee base to show physically how to do it and how easy it is to participate in these conversations,” he said.

The company counts on social media being part of a lot of different jobs throughout the company, and to emphasize this has trained more than 5,000 out of the more than 100,000 Dell employees worldwide. As part of an effort that they call Social Media University, Dell has developed a series of 11 different internally created classes that staffers can take to get certified in using social media, starting with a two-hour basic class. “We have a pretty regimented curriculum to go through, and all told it is probably a day and a half of different classes,” he says.

The classes are held all over the world, including in Dell’s offices in China, Germany and India. “Our goal is to get to the next level where we do more engagement using social media. We can’t expect everyone in the company but we want to certify and train more of our employees.” Once you finish the class sequence, you are authorized to blog, tweet, and post as an official Dell representative. “We need to get the level of engagement where this becomes a natural part of people’s jobs,” he says. “That is our next frontier.”

Social media can be used for a variety of marketing purposes, including helping with better communications or handling crisis management. “Some companies use social media as a defense play or for thought leadership, such as promoting their blogs and position pieces. And cable companies and airlines will use it for better customer service. Some will use it for idea generation, like Starbucks, to improve products via customer input, or to generate demand for viral marketing or ad campaigns or lead generation. And others have used social commerce, putting social media feeds right inside their Web sites to drive conversions and sales. The difference here at Dell is that we are using it in every one of these functions. Every department uses it distinctly for their part of the business.”

There are lots of examples how Dell uses the information it gets from all this listening. These conversations have influenced a wide number of its past and present products and plans, as well as helping to refine several of its marketing messages. What has happened is tighter and quicker feedback loops between customers and the company are happening in many different areas:

  • They fixed Bluetooth drivers when a software update resulted in significant issues;
  • They have launched new Products based on input from Ideastorm
  • (Product Red);
  • Feedback from ratings and reviews resulted in new drivers and speakers in a laptop model;
  • They are currently following up on some packaging questions raised across the Web;
  • Have gotten feedback on some of their mobility products hasresulted in constant improvement on newer versions..
  • They changed images on Dell.com because customers thought there should be clearer representation of size and shape of replacement batteries.

As another example of its marketing reach, Dell’s main Facebook page contains an item called “tag team” which aggregates user-generated reviews to help customers choose the most appropriate system. It allows much of their marketing of their systems to be placed in the hands of their customers, since they identify how they want to use a certain system and they can compare it to suggestions from what other customers have chosen.

Mehta compares the state of social media to the state of Internet email back in the mid-1990s, when corporate standards were still evolving and not everyone understand the power of the connective tissue of the technology. “We didn’t think about having any return on investment for the telephone or for corporate email back when they were introduced,” he said. Now Dell has corporate standards for how it creates new social media accounts – employees are identified by their first name appended by “@Dell” in their Twitter handles for example. “We register everyone who gets trained so that we can keep track of who is posting. We also do this so we can terminate your account when you leave the company. There are lots of issues that we haven’t really seen yet, such as what happens when a Twitter user leaves and takes their fans or followers with them to a new company?”

The same standardization is true for the official Dell Facebook pages. At one time, the company had hundreds of them, proliferating as various product and account teams set them up. “Now we have less than 50, and we are trying to make more sense of using Facebook,” he says.

While Dell got it fabled start in a college dorm room and became big by selling directly to customers, the company lost its way in the mid 2000’s with a series of quality control and attitude issues brought on by hypergrowth. That thankfully has been turned around, and today the company is on the forefront of how it listens and reacts to its customers.

Charlene Li, the founder of Altimeter Group and author of Open Leadership, gave Dell one of her awards for organizations that best demonstrate open leadership principals. She says, “Dell has been an active participant in social media but what continues to impress us is that they are committed to continually pushing the boundaries of social business by pushing engagement into all areas of their business practice. What started out as basic monitoring and reputation management has turned into a way of doing business that permeates through every department. This does not come easily or quickly and Dell is being recognized for their dogged determination to being “direct” with their customers in multiple ways.”

By listening and engaging with customers via discussion forums, product photos and videos, member profiles, and chats, Dell’s Enterprise Technology Center has influenced new sales cycles and has helped move current sales cycles forward.  In one year, the Tech Center community has experienced a 270% growth in website traffic, according to Dell representatives.

Dell has had some cybersquatters or others who misrepresent themselves as official corporate spokespeople, but so far these have been just blips on the radar. “Usually people back away when our legal department contacts them. But it is a bit of a whack-a-mole, in that you can’t rest, there will always be someone popping up.”

Despite all the social media marketing efforts, Dell isn’t resting on its accomplishments. Manish wants more staffers certified and trained. “I feel that we are in the lead, but we are in inning two of an extra inning ball game of the social web. I also want to see examples of other companies that have turned the tide and doing great things with social media.” Always the listener.

Learning branding lessons from chess champions

Chess may be one of the ultimate strategy games, but marketeers can learn a lot from the game, and they don’t even have to know the moves of the pieces.

A few weeks ago we had the Women’s US Chess Championship matches here. They took place a few blocks away from my office at the St. Louis Chess Club, a dandy new spot in the ‘hood that also was the scene of the US Open earlier this year. As part of the festivities welcoming all the chess nerds was an event that I attended at my favorite local art museum, the Kemper on the Washington University campus, where the women chess champs were going to play roulette chess. It was a great evening, a combination of smart women and interesting ideas. What more could this geek want?

At the museum, I got to meet the current, three-time women’s champion, Anna Zatonskih and the woman who invented roulette chess, Jen Shahade. Both are babes, to say the least. This year’s tournament netted Zatonskih a cool $15 grand, the largest purse of a women’s tournament ever. Granted, this isn’t big money for other kinds of contests, but in the world of chess, it is a lot.

I am not a very good chess player, although I learned when I was much younger only to get routinely trounced by my younger brother, who continues to play and even doesn’t need a chess board to keep track of his moves.

While it certainly was fun to meet the women champions, I was more interested in seeing how Shahade has done such a great job branding herself online. Here are just a few links to get your juices flowing:

First off, she wrote a book entitled, Chess Bitch, about the current crop of women chess players. Apart from the brilliant title, it is a great idea for a book. In chess, many players refer to the all-powerful Queen with that moniker, something that I wasn’t aware of. (For those of you that don’t play, while the object of the game is to capture your opponent’s King, the Queen has the most allowed moves on the board.)

Second, she has all these wonderful ideas about how to invigorate chess by making it more like a sport or like poker, ideas that I have to say I find interesting (and play off my earlier column about making science a spectator sport here).

She even wrote a column for the New York Times a few years ago about it (now that is great branding just right there).

Third, she understands that sex sells, and apart from being a very attractive woman, she does things like play chess while spinning a hula hoop and against a naked (sadly) male opponent. These are two separate activities, but all in the interest of getting more attention to the game. She claims the naked chess is better for her to hone her concentration, as well as to ensure the opponent isn’t hiding any assistive electronic devices. Yeah, right. In any event, you can check out her video on her Web site here:

Home

Finally, she does a lot of different events, both demonstrating unusual ways to play chess as well as getting inner-city girls excited about the game. Thus, she combines her passion with some solid volunteerism, which as you should know is a great way to spread the word on your brand.

So those of you that are looking for some new ideas, check out some of these links. The combination of video, catchy titles, and stimulating ideas is enough to give you your own ideas on how to brand and market yourself online. Even if you don’t play chess.

Behind the scenes at the Cisco AXP Contest

Today Cisco announced the winners of its AXP contest. If you haven’t heard of the contest before, you aren’t alone. It was an interesting combination of people, places and events. The goal was to design an application for a relatively new add-on module to Cisco routers called Application eXtension Platform (AXP), a Linux “blade” that allows third-party applications to be integrated with Cisco’s IOS router operating system and network applications. It has its own CPU and can store from 1 GB to 160 GB of data, depending on the model. Here is a more details Q&A about the AXP.

Earlier this year, Cisco announced the contest and a $100,000 prize purse. They received 100 submissions from teams around the world, and the three finalists were announced this week. Check out the winning entry from MAD Network here – it is a very clever use of a variety of materials to explain their innovation, and I am sure one of the reasons why they won.

Brian Profitt, one of the judges in the contest, wrote about his experiences in a blog post here. When I spoke to him, he was very upbeat about his participation. “Initially, I was skeptical that we needed apps there on the AXP, but after seeing the apps from the contestants, I realized that it is a good thing and they made a believer out of me. It is definitely a platform that you can build something that is useful for businesses. Cisco could have kept this all to themselves and developed all of their apps in house. By having this contest, they opened the door for people that probably wouldn’t have gotten to otherwise. They asked people to play with it, and certainly the prize was a big motivation, but this was a very significant move. I am hugely surprised and pleased by the number of international entrants. We had teams from all over the place – South American, Europe, elsewhere. I think this is a product of Cisco’s strength and how well they are known globally. I saw a number of women in the demo videos, which also was good too and runs counter to the notion that all coders are men.”

Profitt, who is the community manager for Linux.com, think that this is a very viable model for how you can really get developers into your enviroment. It also was his first time working with Cisco too.

How to start a 100% virtual company

As many of you know, I spend a lot of time with young entrepreneurs
here in St. Louis as part of a volunteer organization called the
Venture Mentoring Service . But sometimes there is no substitute for experience when it comes to starting a new company, and that is where my dinner with Bruce Fryer comes in. We caught up with each other last week when I was out in Salt Lake City on a business trip, where I was doing some screencast videos for Symantec.

Bruce and I are the same age and have known each other for more than 20 years, back when he was toiling in the fields of IT and I had just left those fields and become an editor for PC Week. We both were getting interested in local area networks and how they could connect to IBM mainframes, which at the time was cutting edge technology. Fast forward to the present and Bruce is embarking on his latest startup, a company to try to cut the costs of delivering worker’s compensation treatment for clinics.

What is interesting about the company, called ProtoHit.com, is that it
is 100% virtual. Fryer works out of his home office. He isn’t even on
payroll, because there is no payroll. Everyone is a contractor. He
uses a set of cloud-based tools that he has cobbled together himself
— why bother building a data center? He’s got a deal with a New
Mexico bank that handles his treasury operations. He has a lawyer in
New Mexico and VC investors scattered all over the landscape. And he loves every minute of being, as his lawyer calls him, COE – chief officer of everything. Like me, he is a lone wolf, trying to sell his vision and make a few bucks along the way. It is the wave of the future.

What he really calls his idea is Cheap Bastard Startup, because he
doesn’t have a lot of dough to invest in fancy digs, tools, or
high-priced talent. He’s been down the high-priced road before and
came up short, indeed, is still paying off the bills from it. There is
nothing like learning from your last blow-up, and so this time Fryer
is determined to prove that he can do it on a shoestring.

So what are some of his tools, just in case you are interested in creating your own cheap startup? Go to his website and click on some of the links here.

Great domain huh? Thanks, that was my idea. Yeah, I just added another $10 a year to his cost structure.

He starts off with Amazon’s EC2, their cloud-based computing services.
Amazon recently added VPN services, which when you think about it
makes a lot of sense – now you can have your cloud and still have an
encrypted path into and out of it to your own office, if you have an
office. He uses DropBox, a cloud-based file synch and storage service,
so he and his staff can share their common business documents. He is
building his app using Google Gears and Mozilla Prism, so his
customers will have a desktop experience but still have the best of
the cloud world too. He uses vTiger for his customer relationship
management – no need to spend the megabucks on Salesforce.com. His
team is using WebCollab for project management and task tracking. All
in all, he spends less than $1000 a year on his infrastructure. Back
when we were young pups just getting started in IT, you couldn’t even
pay your monthly mainframe utility bill or write a requirements
document for $1000. It sort of gives you perspective. I wish him well
and feel free to share other tool tips that you are fond of that
support this model.

The different Twitter account types

I have been studying a presentation that Brent Payne made earlier this year and can be found here, entitled “How to Connect Great Journalism with the Greatest Possible Audience.”

Payne is in charge of the search engine optimization efforts for the Chicago Tribune Web site, and knows a lot about what he speaks. The presentation is chock full of a lot of great stuff, and I would urge you to download it and study it as I did. One particular section bears further discussion, and that is how to deploy a corporate Twitter strategy.

Payne talks about several different Twitter account types that are part and parcel to any business use of the popular microblogging service. And until I saw them delineated, I didn’t realize how important it is to keep them straight. The four basic types are:

News feeds — Here is where you automate posts from your blog sites and other RSS properties to this account. Don’t follow anyone or send any direct messages from it. An example of such an account is @ccnbrk, the breaking news feed from CNN.

Celebs – You should force them on Twitter and give them the freedom to be human and Tweet about their personal lives and follow/respond to their followers. If you want some extra assurance, work with Twitter to have these made into verified accounts so people will realize that they are legit. @Andersoncooper and @oprah are two of these, I am sure you can think of dozens more. If your company doesn’t have a celebrity spokesmodel, then don’t worry about this.

Brand Personae – These are characters or avatars or Twavatars (I just made that up), something that your customers can identify with and lead brand awareness and perception on Twitter. This is the social media face to the public of your brand. They can engage your audience and represent you in the Twittersphere. Think of what Spencer the Katt did for PC Week back in the heyday of the PC era. And as we did with Spencer, we protected who it “really” was that was writing that important back-page rumor column as a trade secret (no, I never penned the column while I was there).

Ordinary folk – For the rest of us that don’t fit into any of the above categories, it is still important to be on Twitter. Make sure you set some ground rules about how people will participate and what they will and won’t Tweet that is part of your corporate acceptable use policies. Make sure you give employees some basic training in libel laws and also mention that they should be able to Tweet about competitors and speak honestly. Understand that mistakes will occur and that sometimes human resources might have to help out here. Don’t get too heavy-handed though.

Finally, make sure you promote your Twitterers. List their IDs on their business cards, in their email sigs, and on your corporate Web site right next to their email addresses in your contact page. What you don’t list email addresses on your Web site? Hmm, that is the subject for another day.

When you think about it, the different Twitter accounts is similar to the different ways that companies use blogs too: the difference is that with 140 characters, a Tweet can be a lot more flexible than a longer blog entry in terms of developing a personna.