The Top Ten Ways Businesses, Associations and Organizations Can Use Social Networking

(Update January 2007: Welcome, Lotusphere attendees! Thanks for stopping by and making this one of the popular Dogear’d articles at the show. Please note a greatly expanded version of this article is available as an e-Book and as an online slideshow. )

Here are the top ten (and two bonus) ways that businesses, associations and organizations can use social networking in the professional sphere. Some of these are ways to use social networking to connect with customers and members, some focus on internal organizational communication, some focus on the network as the way to find knowledge within the organization. Enjoy!

Customer and Member Relationship Development
Customer satisfaction is at an all-time low, perhaps as a result reduced business focus on actual relationships, and an increased business focus on “customer relationship management” systems emphasizing management of data rather than personal connections. Online social networks allow a prospective customer or prospective member to easily facilitate a real, human-level connection with individuals within an organization. This enables genuine business relationships to form and puts an authentic human face on the interaction, changing the external perception of an organization from a sterile, faceless behemoth into a collection of individuals who are ready to help.

Customer Support (Connecting The Customer With The Right Resource)
Successful customer support achieves a number of goals. Basic customer service includes, of course, assisting customers when they have problems or questions about an organization’s products. However, online networks enable exceptional customer support that goes beyond the basics, which allows customers to connect with experts in an organization who have deep knowledge in a particular area. Similarly, a strong online network enables experts within an organization to be alerted when a problem that requires their knowledge comes into the customer support queue, and facilitates the creation of strong communities in the form of valuable user groups and member networks.

Use The Network To Find An Expert Or Locate Implicit Knowledge
Only a fraction of an organization’s “knowledge” exists in databases. Another fraction exists in the form of explicit documents and reports that may be found on an organizational intranet. The vast majority of organizational knowledge, however, exists only in the heads of its members. Inside an organization, online networks with even basic profiles of its individuals’ experience, location and interests can greatly reduce the time required for organizational problem-solving, through enabling faster connection between a questioner and the person who has solved similar problems in the past.

Ease Post-Acquisition Integration
Even though acquisitions are on the upswing, a majority of mergers and acquisitions fail within three years of inception. The most common cause of failure is lack of alignment and understanding between individuals in the acquiring and acquired organizations. Online social networks, giving a view to the “real” individuals within the organizations, aid in the creation of understanding between both parties by allowing members of both organizations to view each other as a collection of individuals, rather than an amorphous “them.”

Provide The “Whole Product”
It is rare that a single organization can provide all the pieces needed to meet a customer’s entire need. For example, even though a real estate agent aids in the process of buying a home, an entire network of other service providers, such as title company, bank, insurance agents, contractors, and others, is required in order to fully meet the customer’s need. By creating a strong network of complementary providers with similar philosophies and business practices, a single service provider can provide a much greater proposition to a prospective customer than an individual working without the benefit of the network.

Understand And Visualize The Actual Communication Paths Within The Organization
While an organizational chart may show the reporting or budgeting hierarchy of an organization, the connections in an online social network create the actual flow of information for an organization. Explicitly creating a social network within the organization can help all members better understand how information gets shared and highlights the areas within the organization that are truly responsible for effecting change, turning the “company directory” into a living, breathing knowledge network.

Supercharge Meeting Facilitation And Preparation
The unfortunate part of meetings and conferences is that it always seems like you don’t run into the people you really want to meet until the final day of the event, when you run into them randomly in the buffet line. A dedicated online social network created before the event enables attendees to use their time at the event more efficiently, by enabling attendees to determine who they want to connect with before they even leave home.

Increasing The Value And Extend The “Shelf Life” Of Conferences
Similar to the above point, creating an online social network of event attendees extends the “shelf life” of a conference, enabling the attendees to remain connected and take action on the items discussed at the event. This can evolve a meeting, event or conference from a “one time” occurrence into the catalyst of a community that more effectively achieves its goals.

Pull Together The “All-Star Team” That’s Right For This Customer
Especially in service organizations, creating the right set of skills and culture are both key to creating a connection with a prospective customer. An internal social networking system enables the individuals responsible to creating relationships with prospects to pull together the “right” team to meet both the prospective customer’s needs and, at the same time, pull together the unique group of individuals who will resonate with the prospect at a personal level as well.

Share Knowledge
By connecting an social network with basic subscription technologies (such as RSS, or “Really Simple Syndication”), an individual can easily “subscribe” to updates from customers and colleagues. This enables a straightforward way to stay abreast of the goings-on in projects of interest, as well as a way to share knowledge within an organization without additional effort. It also addresses the issue of email overload, as knowledge is pulled by those who have a need or interest for updates, rather the updates being pushed to those who may have only tangential interest in an issue.

Differentiate Your Service With Brand You
In a number of industries, the fit between customer and service provider is the differentiator. If a customer can easily identify his or her areas of commonality with a prospective service provider such as a financial planner, real estate agent or insurance provider, that customer can have some assurance that the service provider will understand the customer’s point-of-view, and provide the type of service that the customer expects and supports.

Prepare For Coming Demographic Changes In Business
Although online social networks are relatively new to business, the MySpace and Facebook generation has grown up with them. By the time these individuals enter the workforce, online social networking with simply be a part of the fabric of business, and the organizations that have determined how to best integrate them into their operations will be the ones that are most successful.

See some more examples here.

Doc Agrees CRM Needs To Be Turned On Its Head

Doc writes:

We need an instrument of demand that works from the demand side, outside of any of the media’s own systems. We need something that works in a free-range way, by and for individuals. Something independent. We need something that expresses the user’s or the customer’s intentions.

Think about it as Vendor Relationship Management — and the reciprocal of Customer Relationship Management. It’s what Drummond Reed calls CoRM, for Company Relationship Management.

It’s vigin territory. And you can’t get to it from the sell side. You have to approach it from the buy side. From the customer’s, or the user’s, side of the relationship.

Obviously, this is a development project. In fact, it’s the project I’ll be working on with the Berkman Center over the next year. I was thinking in that direction during this interview, but we made a lot more progress in just the last few days. I’ll be writing more about it this week, mostly in Linux Journal and IT Garage. Naturally, I’ll be looking for help.”

In June of 2005, I wrote:

“What’s been broken with so-called ‘Customer Relationship Management’ systems so far is that, well, they don’t really focus that much on the customer, do they? Under the rubric of ‘CRM,’ there have been three primary classes of systems: sales force automation, customer service and call center automation, and marketing automation. All of these look at the world from the seller’s point of view. And all of them focus on how the vendor can crank more customers through a particular process in a given unit of time. They don’t necessarily help to truly build relationships between individuals. In fact, they are more likely to commodify it.

There has been a considerable amount of research done in this area, and there in an increasing body of data that suggests that building this kind of ‘enterprise social network’ has measurable benefit for both customers and vendors alike. Perhaps the cornerstone of recent work in this area was done by Lichtenthal and Tellefsen, and is called ‘Toward a Theory of Buyer-Seller Similarity.’ L&T write: “These findings suggest that internal similarity [perceptions, attitudes, and values] can increase a business buyer’s willingness to trust a salesperson and follow the salesperson’s guidance, and therefore, increase the industrial salesperson’s effectiveness. In contrast, the literature also indicates that, under most circumstances, observable similarity [physical attributes and behavior] will exert a negligible influence on a business buyer’s perceptions or a salesperson’s effectiveness. Thus, the key finding is that it is more important for buyers and sellers to ‘think alike’ than ‘look alike’.”

To date, there just haven’t been tools like this aimed at the enterprise, that take this idea of creating real relationships between individuals and providing a means for customers to explicitly state their case, and determine with whom they want to do business at a real, interpersonal, non-synthetic level. So, we built one.

Of course, what we built to address this problem is now widely known as Haystack networking.

So, it’s not quite virgin territory, but we, as both customers and as an industry that connects customers to the people and things they need, certainly have many miles to go before we sleep on this. Doc, greatly looking forward to the work you’ll be doing on this at Berkman.

Oh Well…So Much For That Business

The unfortunately named (tagline: “Help us get the wet stuff you want!”*) was launched last week in response to the United States government’s ban on many common items such as toothpaste in airline carry-on baggage. From the website:

“ strives to provide the frequent traveler with the broadest possible array of single-use and travel-size personal care products. Our product catalog will continue to expand as more and more products are packaged for maximum convenience and minimum waste.

As we ramp up a brand-new company for a brand-new market need, deliveries will begin on September 29, 2006.”

Today, Forbes reports that the government has greatly reduced these restrictions.

“The government is partially lifting its ban against carrying liquids and gels onto airliners, officials said Monday.

Most liquids and gels that air travelers purchase in secure areas of airports will now be allowed on planes. That means that after passengers go through airport security checkpoints, they can purchase liquids at airport stores and take them onto their planes. The new procedures go into effect on Tuesday.

New procedures also were announced for toiletries and products like lip gloss and hand lotion that passengers bring to the airport. Previously, those liquids have been confiscated at security checkpoints. Now, these products will be limited to 3-ounce sizes and must fit in a clear, 1-quart size plastic bag. The bags will be screened and returned if they are cleared.”

Reminder to self: never base a business model on capricious policy decisions.

* – yes, seriously.

Your Call Is Very Important To Us. No, Really!

Just listened to the most recent podcast from Jeff Hoyt, which addresses the frustrations of call center hell. Hoyt’s an accomplished voice actor, and presents the topic in an interesting way…sort of a Seinfeld-meets-This-American-Life sorta thing. (This is helped by the fact that he sometimes gets into the interesting situation where he is forced to listen to himself tell himself that his call is very important to him, since he is actually the recorded voice on a number of these type of systems.) Check it out here.

The Rabbit Goes Around The Tree…

Originally uploaded by Leslie Duss

Overheard yesterday at the little guy’s school:

Little Guy (whose shoelaces had come undone, and needed help tying them): “Why don’t you double-knot it?”

Teacher: “Because if I double-knot it, you won’t get better at tying them.” (smile)

Just because something doesn’t work, it’s not always a “failure.”
Sometimes it’s just practice.