In their 2006 book "Naked Conversations: How Blogs Are Changing the Way Businesses Talk With Customers" authors Robert Scoble and Shel Israel explore how businesses from local mom and pop operations to international companies can use New Media such as blogging and podcasting to build trust, establish a brand, connect with customers, and manage crises.
As might be surmised from the title, the book focuses on blogging's unique conversational tone. The authors contend that businesses of the past built trust through building personal relationships with customers, a practice that is increasingly difficult today especially in larger companies. Blogging's converational nature, based on reader interaction in comments and linking, has a tendency to build trust quickly.
Excellent bloggers aren't necessarily using their blogs to sell something, but rather to establish their expertise, ignite interest, and constructively use feedback from their target customers. As other blogs link to interesting posts, the message has the potential to reach millions of readers quickly and cost effectively. This in turn can lead to dramatic increases in revenue as a wider pool of customers becomes familiar with and trusts your brand. Scoble and Israel note that "no form of viral marketing matches the speed and efficiency of a blog."
The authors discuss the important question of return on investment (ROI) in regards to blogging, and give several striking examples of how blogging can boost revenue, but they also frankly acknowledge that the biggest investment a successful blog requires is time. Blogging can save vast amounts of advertising money, and can reach more people who are weary of traditional marketing (and now have the technological tools to tune it out), but it costs time to do it right. Effective blogs require consistent, interesting, and well-written posts, lots of research, and willingness to respond thoughtfully to reader feedback through comments and follow-up posting.
Businesses that are willing to devote the time to blogging often find that customer feedback can help them improve a product, repair their image, or stay in front of customer needs and desires. Even negative comments give a company a chance to respond instantly, thoughtfully, and openly, which is an invaluable opportunity to project a positive and responsive image, further building trust with your customer base.
That same ability of instant response will serve your company well in the event of a crisis. Scoble and Israel discuss companies that sustained high losses and lost credibility due to product failures that they were unprepared to address in real time through the internet. If a problem arises in your product or business, having a pool of blog readers with whom you have already established trust gives you a platform to quickly and effectively reassure customers and keep them informed on how you're making the situation right. Even a small acknowledgement and reassurance may be enough to prevent a viral spread of negative information about your company.
Although books on New Media quickly become outdated, the core points in "Naked Conversations" are valuable and may provide an impetus to more companies to establish a New Media presence, or overcome management objections and resistance where New Media strategies are being considered.
As always, if New Media is something your company or organization would like to look into, we would be happy to help.