Frog Design's promised series on “Meaning-Driven Business” is taking shape. After introducing the concept of “Chief Meaning Officer” in the “Power” issue of design mind, we are going to formally launch this new forum in our upcoming special TEDGlobal issue (to be released on Sept. 21, 2009) as well as on a special microsite to be launched in a couple of weeks.
For the first round of essays, we are delighted to have received contributions from three industry and thought leaders: Beth Comstock, chief marketing officer of GE and one of the world's most influential Fortune 50 marketing executives, will take the economic crisis as an opportunity to make the case for marketing-driven innovation. Werner Bauer, Nestle's chief technology officer and head of innovation, will describe his company’s concept of “Shared Value” and how it enables a more socially responsible business. And Dev Patnaik, founder and chief executive of innovation consultancy Jump Associates and author of the book Wired to Care, will illustrate how “high-empathy organizations” of all kinds prosper when they tap into a power each of us already has: the ability to reach outside of ourselves and connect with other people. Stay tuned!
The conversation is continuing in other outlets, too, and some pundits want “meaning” to not only be an abstract concept, but a movement. Economist Umair Haque is one of them. His "Generation M (as in “meaning”) Manifesto" stirred some controversial reactions (just read the comments on his blog)--from unconditional endorsement to accusations of arrogance and naiveté. It is one out of many manifestos that have recently been published on the new “new economy”--this, too, is a sign of the times. Manifestos indicate an increased need for ideological alternatives – and meaning. ... Read more
(Credit:
Wikia)
I wrote earlier that "marketing with meaning" has the ability to "activate" customers. An effective way to activate customers is by activating the dormant social networks they inhabit (often without even knowing it). While social networking has visualized the so-called six degrees of separation, all business transactions have a social component and can be seen as expressions of the underlying social micro-universes, the "worlds within worlds," in which--shifting time and place--individuals travel and interact. As marketers face the daunting challenge of connecting with fragmented audiences that are increasingly split into billions of social atoms populating myriad micro networks, activating dormant social networks is their foremost task.
KLM's Africa and China clubs, launched in 2007 and 2006 respectively, provide an interesting case study. The Dutch airline offers business customers the opportunity to meet fellow travelers who do business with or in either of these two regions, before take-off or during the flight, online and in person. KLM plays the role of the matchmaker and adds value to the otherwise somewhat value-free hours frequent travelers spend at airport lounges. It is the principle of the social networking site Dopplr, applied to the exclusive crowd of business or first-class travelers: connecting travelers who share the same connections. KLM prefilters the club members so that travelers who sign up for the exclusive network are warranted a certain quality of contacts.
The clubs are a win-win-win: trade groups and business offices from the travel regions are provided with a highly targeted way to advertise their services; travelers benefit from a true value-add and a richer travel experience; and, lastly, the clubs bolster KLM's reputation as an airline that cares about its customers. Of course, these networks already exist, they're just dormant. KLM does not make immediate revenue but it generates "social wealth" as long-term equity.
The KLM clubs exhibit all the characteristics of "meaningful marketing" (see chart below):
- Social: The clubs help people connect.
- Personal: The clubs are relevant for the people they serve, and the service is exclusive and highly personalized.
- Storytelling: The clubs make sense of disparate information, perspectives, and events. They facilitate crossing paths by creating--quite literally--a common goal and therefore a joint narrative.
- Disruptive: The clubs disrupt the usual travel routine; they make it comfortable for business travelers to leave their comfort zone and go off the beaten path to meet new people.
- Responsible: The clubs generate social capital by bringing together business people in pursuit of related goals. The KLM Club Africa, in particular, has helped African entrepreneurs to get in front of influential business executives (investors) conducting business in Africa.
2009 will be a year of major uncertainty. The doom and gloom of the economic downturn, the deterioration of mass markets, the pervasiveness of the digital lifestyle, a host of explosive political conflicts, and the fragmentation of traditional societal institutions are causing anxiety and propel a new search for simplicity and non-economic value systems.
Consumption-driven wealth and status are being replaced by identity, belonging, and a strong desire to contribute and do something "meaningful" rather than just acquire things. Trust and reputation are no longer enablers for the exchange of goods, services, and information, they are replacing them. Values are the new value. Meaning is succeeding experience and customer satisfaction. "The job of leadership today is not just to make money. It's to make meaning," writes management consultant John Hagel. Out: Bottom-line-pragmatists and financial wizards. In: philosophers and ethicists.
This new cultural climate presents a historic opportunity for brands to transform themselves into arbiters of meaning. Becoming Chief Meaning Officers, business leaders must move beyond simply connecting products and customers with the goal to facilitate transactions - they must now create "meaning" through actions and interactions. When your brand is a vector, your base becomes a movement - that's what we learned from Barack Obama's campaign.
In 2009, we will see more examples of "meaningful marketing" and businesses generating value that goes beyond just meeting consumers' needs. This will imply several profound paradigm shifts: essence instead of luxury, free sharing instead of monetized scarcity, radical transparency instead of brand control, authenticity instead of image, empathy instead of focus groups, conversations instead of messaging, collaboration instead of dissemination. A "meaning surplus" will become imperative: Only brands that give more than they take will be able to create sustained brand loyalty.
(Credit:
Rivendell Bicycles)
Today we are in the throes of a slow return to a world of more personal connection between companies and their customers. Web 2.0 is allowing it, and for some people perhaps it is a new concept, but in fact it dates back to the beginning of commerce, to individual barter or the local market and the personal connection between those selling or buying the goods. For a long time we have engineered and marketed and grown our way out of this type of connection, and it is still quite startling when you see it happen in a genuine way. As the Cluetrain Manifesto preciently argued, "markets are conversations." Perhaps an "old fashioned" approach to business might be better suited to the future than a more contemporary one.
Case in point: Rivendell Bicycles.
Rivendell is not your typical bike company. They make bicycles only out of steel rather than more new-fangled carbon fiber or titanium. They advocate wool clothing rather than polypropylene. They argue for an upright position on the bicycle for comfort and safety rather than the more fashionable racer crouch. And they stay in touch with their customers in an unusually personal way through their catalog and newsletter, and come across with a distinctive, opinionated personality.
In a day and age over-run with corporate spin, cynicism and sound-alike PR departments, Rivendell speaks with authenticity. Though undoubtedly a niche player - they make fewer bikes in a year than China Bicycle probably makes in 30 minutes - they have an unusually strong following in large part because of how strongly and consistently they communicate their personality and values. Does it remind you of a certain computer company? Like Apple they place a premium on the experience of using their products, rather than the technical aspects, and through their various communications reinforce all the different ingredients that contribute to that experience. They don't see their bicycles as isolated jewels (though they are exquisitely crafted), but as part of a larger system of clothing, bags, accessories and set-up that creates the desired riding experience.
Rivendell is a small company, founded by Grant Peterson, who used to design bikes for Bridgestone back in their hey-day of the 1980's. He struck out on his own and has crafted a company that reflects his personality and view on the world. His voice is carried through in every touchpoint with the company, from the website to their printed items. (And he manages to pull it off without sounding big-headed - if anything he is self-deprecating in tone.)
Their latest catalog, #19, has an introduction to their firm, which gives a nice sense of who they are. Here are some excerpts:
We're an eleven-person, twelve-and-ahalf year old bike company specializing in really good, but untrendy bicycles and gear.
Our big ticket items are bicycle frames, and we make only lugged steel ones. The only saddles we sell are leather. We sell lots of wooly clothing, and go to great lengths to get all wool, no blends.
Our typical customers are between 40 and 65, athletic, usually successful or good at something in their life, and they're not searching for themselves or trying to fit in somewhere. They're smart, love to ride bikes, usually own modern bikes and gear, and come to us when they realize it's not working out and they think maybe another approach will work.
We like bike parts and things that make your bike more useful and comfortable and fun. We don't cater to racers, not even a little.
Our selection is small, but everything is good. We prefer plain to fancy, simple to complicated, natural to synthetic, originals to copies, and things made by users to things made by workers who are emotionally unattached to the goods.
Our prices are fine. I know a diligent recluse with a computer can knuckle down for a few hours on the internet and find a lower price on some of our more generic items, but our prices are fair and on the low side, given the quality.
[There's] a difference between tech and craft. Tech is buzzwords, hype, materials, features, high profit margins and widespread appeal. Craft is less showy and suffers on the pop charts for it, but ultimately is more satisfying to own and use.
I feel lucky and nervous all the time. We have too many balls in the air, and I'm behind on my Thank You notes. In our day-to-day business, the simple things are hard, but the complicated things are simpler than they seem. I'm at the point in my life where I'm starting to see our big picture here from the outside, not the inside. What's our role, if any? Are we grinding through life until retirement, or is their purpose and value in what we do?
There are many lessons here for much larger companies about how to communicate what you do, why and how you do it, and who you see as your customers.
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