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Business - Written by on Tuesday, November 4, 2008 12:00 - 3 Comments

HP Embraces the Digital Community

In a recent blog post, Alan Majer described his positive customer service experience with HP, so when I came across this video clip of CMO Mike Mendenhall I was interested to learn about the strategies that HP was integrating into their everyday practices to improve, not only customer service, but their marketing efforts as well.

After watching the clip there are two quotes that stick out as having provided some great insight into HP’s future direction:

“Brands are not defined today by campaigns but by the consumer ecosystems we nurture to support them”

“When you look at your customer service, the digital strategy can play an incredible role and in fact what I think and what we have seen is that it can actually be much more effective….We know of communities that have existed on their own as a social community around HP are actually solving customer service issues for HP customers better than at times some of our own service department people. So you can have more accuracy within this community, bring efficiency into the process of the operation and actually be more effective….I do believe it is a digital strategy that should exist across the operations of a company and not just in marketing and communications.”

It is evident that HP not only promotes consumer feedback and the creation of social networks around its product lines but it actually listens to what consumers are saying, which in turn creates a win-win situation for the both consumers and the company. As outlined by Mendenhall, it creates an entire process that becomes more efficient and effective –by using the information gleaned from these social communities to help correct consumer problems the first time they occur. This results happy HP users and a customer service department that isn’t laden with call-backs and complaints about the same problem. The positive customer experience that follows translates into positive word-of-mouth and ultimately creates a stronger brand. As HP has learned, it doesn’t necessarily matter what HP’s marketing campaign says about their brand, it matters what a trusted and influential source (friends, neighbours, digital communities) has to say about the brand. It is the old marketing rule dressed up in digital clothing; listen to your customers, apply the information they provide, create a satisfied consumer base. This may seem simple or straightforward but more often than not companies fail to see the value provided. Some companies aren’t aware that social networks about their brand even exist let alone use the information to improve their service and even worse some companies create social networks around their brand as if to say “we’re doing something digital” and then ignore any consumer-generated ideas. Companies like this invariably believe that they better understand their brand than does the customer. In other instances, customer suggestions make it inside the company boardroom but they either get lost in translation or because they don’t fit with the current strategy they are cast aside.

Hats off to HP for making the effort to actually listen to their customers, perhaps other companies can take a (digital) page from HP’s playbook, or else risk alienating clients and eroding brand value. In an era when existing and potential clients can connect with one another in ways never seen before, ignoring these influential, digital communities is a risky business practice for firms seeking to remain at the forefront of their industry.



3 Comments

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Elliot Saccucci
Nov 10, 2008 16:32

Interesting read, what thoughts (if any) do you have about a company allowing itself to be influenced too strongly by some especially vocal brand advocates, or detractors. At what point do you see the firm allowing its brand identity or focus to be diluted by perpetual modifications to its offerings. In essence, when does the company adjust so far to please a vocal few, that it strays from what made it so successful in the first place?

Andrea
Nov 17, 2008 23:20

Elliot, I think you bring up a good point. Here are my thoughts:
I don’t think that you need to adopt every idea or comment that a customer suggests but I think each response should be taken into consideration. Even if you consider the perspective that the extremists display it forces a company to either defend the strategy they currently have or maybe this new perspective highlights an opportunity for a small improvement or adjustment. When I say change I don’t mean that you should go from producing suitcases to lamps because a customer told you, but each comment or feedback a customer provides is a chance to enhance your existing product offerings or realize a niche in the marketplace that isn’t being filled. I think a company will find itself stretching too far if they don’t have clear objectives to begin. It is with almost certainty that I can say that companies who try to please everyone inevitably please no one. It is important for the company to have clearly defined goals and then use the customer feedback to help achieve these goals and enhance the core capabilities of the firm.

Peter Jones
Feb 6, 2009 6:32

Vocal customers in the Enterprise 2.0 world can be assessed by the nature of what they say. How realistic are they being ? How well do they understand working collaboratively ? If they are not prepared to behave reasonably, it may even be they have to be barred from the social network !

What HP seem to be recognising, (at long last), is that customer service really matters if you want to retain customers and win repeat business. In the UK, NTL failed to capture market from Sky precisely because it had a poor reputation for customer service. Now, under the much more brand-conscious Virgin, complaints and stories have reduced substantially.

The real beauty of social communities is that customers show themselves up for who they really are !

Let’s hope UK banks and utilities start “getting” social communities, and the value of “complaints addressed” soon, too !

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