Digital business models: winning in digital channels

What does it take for established firms to develop winning strategies in online, social marketing channels?

How can legacy firms establish digital business models?

What are the key issues to winning in online, social and viral channels?

These were some of the questions I was asked to discuss in a recent keynote talk: Digital Businessmodels (in Norwegian).
A highly engaged crowd, packed to the ceiling with more than 125 people and a long waiting list, gave a great setting for shedding some light on some of these crucial areas.

Key conclusion: Today’s marketing managers are failing hard at using the strategic opportunities of social and digital technologies. You don’t have to like social media, but you need to understand it. Most don’t. They need to as the speed of digital disruption is only increasing.

RA PaperRead the full article here.

Digital business models: winning in digital channels

27. november: Digital markedsfĂžring: fremtiden er allerede her.

27. november: Det mest hardtslÄende, mindblowing foredraget om sosiale medier i 2012. Digital markedsfÞring: fremtiden er allerede her.

Opplev hva verdens modigste bedrifter gjĂžr pĂ„ digital markedsfĂžring. ForstĂ„ at mange norske bedrifter allerede er i gang. Men verden venter ikke pĂ„ gĂ„rsdagens markedssjefer. En global, digital verden tvinger frem et tett, intimt forhold til digital markedsfĂžring. Alternativet er tapt konkurransekraft og ”stilling ledig” for markedssjefer som ikke lenger fortjener jobben sin.

Morgendagens markedsfĂžring er digital, sosial og viral. Er du klar?

Stavanger, 27. november. — at Meld deg pĂ„ i dag.

27. november: Digital markedsfĂžring: fremtiden er allerede her.

Kolumbus og sosiale medier

(In Norwegian)

NĂ„r vi underviser bruk av sosiale medier ved HandelshĂžyskolen BI brukes ofte utenlandske cases. United Breaks Guitars er en klassiker.

I dag dukket det opp et strÄlende eksempel pÄ norsk: Kolumbus. skriver “Skrev om Kolumbus – fikk 5222 «likes» pĂ„ under ett dĂžgn

Kanskje det mest avslĂžrende i oppslaget er gjengitt under:

– Svarte litt sent

– Vi mĂ„ bare beklage. En sak har alltid to sider, men stemmer dette hĂžres det helt forferdelig ut. Dette er ikke en oppfĂžrsel vi synes er god. Vi har tatt tak i det og meldt dette til Boreal, vĂ„r operatĂžr. Vi har sett en Ăžkning i debatt og meningsutveksling pĂ„ sosiale medier spesielt om sjĂ„fĂžrenes oppfĂžrsel den siste tiden, og nĂ„ skal vi ta tak, sier Karianne Haarr NedrebĂž, kommunikasjonssjef i Kolumbus.

Sjelden fĂ„r vi se et sĂ„ godt eksempel pĂ„ manglende forstĂ„else for kundenes makt via sosiale medier. Det bekreftes med setningen som fĂžlger:“Hun forteller at Kolumbus mĂ„ler kundetilfredshet pĂ„ telefon mĂ„nedlig, og ombord pĂ„ bussene to ganger Ă„rlig“. 

Utsagnet vitner om en komplett manglende forstÄelse for muligheter og fallgruver ved Ä ha kundeinteraksjon via sosiale medier. Her ser vi en Kommunikasjonssjef som ikke har tilstrekkelig forstÄelse for den strategiske betydningen av sosiale medier eller klargjort selskapets Facebook strategi.

Dessverre blir heller ikke kunderservicen nevneverdig bedre.
Innen faget tjenestemarkedsfĂžring snakker vi om ”Service Recovery Paradox“. Forskningen viser at kunder som utsettes for skuffende serviceopplevelser kan snus til engasjerte fans hvis ‘recovery’ opplevelsen sterkt overgĂ„r deres forventninger. Enklere forklart, nĂ„r noe gĂ„r galt, kan og bĂžr kunder begeistres. Dette vil snu en dĂ„rlig opplevelse til en fantastisk opplevelse. Sosiale medier har i nyere tid gjort dĂ„rlige opplevelser til allemannseie, noe som gjĂžr at betydningen av Ă„ skape fantatiske recovery opplevelser blir enda viktigere. Dette bĂžr Kolumbus vite. Og med mer enn 5222 Likes pĂ„ Facebook og hovedoppslag pĂ„ har selskapet en gylden mulighet til Ă„ bevise at de vil begeistre.

Deres lĂžsning:
“Vi vil gjerne betale for drosjeutleggene hennes, sier NedrebĂž“.

TjenestemarkedsfĂžringsfaget sier “en gylden mulighet tapt”. Jeg sier en fantastisk dĂ„rlig servicekultur. Det mest spennende det blir hva kundene sier via sosiale medier fremover.

Lykke til, Kolumbus.

Kolumbus og sosiale medier

Bravo marketing!!

There’s marketing…….then there is marketing.

It’s not often you see what we call “experiental marketing” taken to this level – and then see it going viral, globally.
Experiental marketing, “When done right, it’s the most powerful tool out there to win brand loyalty”( Yet, in marketing, experiental marketing is poorly understood and hardly ever successfully used.

Writes “Wisegeek” on the subject: “Experiential marketing is a concept that integrates elements of emotions, logic, and general thought processes to connect with the consumer. The goal of experiential marketing is to establish the connection in such a way that the consumer responds to a product offering based on both emotional and rational response levels. Here are a few of the basics of experiential marketing, and how this process can often succeed when other marketing strategies fail.
Appealing to a variety of senses, experiential marketing seeks to tap into that special place within consumers that has to do with inspiring thoughts about comfort and pleasure, as well as inspiring a sense of practicality. This means that the marketer needs to have a firm grasp on the mindset of the target audience he or she wishes to attract. By understanding what the consumer is likely to think and feel, it is possible to get an idea of how to steer the customer in a direction that will relate with the product, and entice individuals to act on that impulse to purchase”

This video posted on April 11th, is already at 5,7 million views on Youtube, (two hours later, we are up to 8,1 million views) in less than a day. This is what every marketer dream of, but few achieve. Watch and learn from this amazing setup. This is what we call #Piratethinking. Bravo!!

Update five days later.
The YouTube hit is now at 22,3 million views…. and climbing. Will we get 100 million views on this video by June?

Two more examples of similar experiental marketing thinking (thanks,!/HaavardSkjold)

Bravo marketing!!

Nordea; 2012’s worst customer service?

A few months ago I moved into a new office space. It took me four weeks and too-many-phone-calls-to count to get the Internet up and running. In fact, I made sixteen phone calls to the company. At one point I even called the CEO’s office, but got ‘moved’ to a customer service rep (as a colleague at BI said today; only 16
At the time, I thought I had seen this year’s worst customer service. Until today.

Today I received a letter from my “Customer Advisor” – whom I’ve never met – at Nordea Sandnes. After having been a customer of the bank for as a long as I care to remember – and an emotionally connected one at that – I get this letter. After having been a customer at the bank since, well, some 20+ years, I get this letter. Not a phone call, not an invitation. This letter.

In effect, it states, “You do no longer qualify for our premium customer segment. In three months, everything you get from us, everything you do with us, will become more expensive”. (Note to self: Hm, does that count for my corporate accounts as well? I wonder

Let me just say thisto my Customer Advisor: THIS IS NOT YOUR JOB.

Your job is to call me. Book a meeting. Invite me to your plush offices. Get to know me. Understand my present and future needs. Understand my dreams, goals and desires. Understand how you can help me, in turn, get my entire private and corporate business into your bank. Help fund my next ventures. In turn, growing our relationship into a 20+ years affair of mutual respect, understanding and profitability. That’s your job.

But hey, thanks for giving me this nice example of how not to please your customers. It will be a great teaching case for my marketing students for the next two years.

Then I decided to test it. Test this as a social media marketing case. So I posted the first two tweets. On Twitter, Facebook and Linkedin.

In our marketing teaching, the “United Breaks Guitars” case is one of the most famous ones. Harvard Business School Professor John Deighton and research associate Leora Kornfeld published a 2010 case, writing: “This case dissects an incident in which a disgruntled customer used YouTube and Twitter to spread a music video detailing United’s mishandling of his $3,500 guitar and the company’s subsequent refusal to compensate him. The song was called “United Breaks Guitars.” Within one week it received 3 million views”.

So, what would Nordea do?

Turns out, a fellow blogger, Beate SĂžrum, had a similar experience two years ago. She posted it in her blog. The following day, after a few phone calls from Nordea, the case was resolved. Beate’s case and her blog is now required reading in some of BI’s courses on social medias.

Now, I’m just waiting. Whatever happens this will be a great marketing case to teach.

After teaching this as a case in a management course on October 20th, one of the Nordea employees in the class got things started.
Half an hour later I recieved this e-mail (translated by Google translate):

Hey Christian!

Hello and thanks for last! I tried to reach you on your mobile (92 41 59 49 ) Today, no luck, so I send e-mail instead. I hope it reaches you.
I was told by T.V. (Nordea employee and a friend of yours, I understood) today that you were not particularly happy with us at Nordea Sandnes.

The fact that you are not satisfied, I think the is highly regrettable, Christian! We rely on satisfied customers, and therefore I wanted to call you immediately to talk to you.

Great if you could call me back on ——– when you are available.

See you!

With kind regards,
Nordea Bank Norway ASA

General Manager Sandnes
Mob. ——–
Customer Service – tlf.06001

So he called me, I called him, and then, I have not heard a word since. So, like the say, the saga continues….

Nordea; 2012’s worst customer service?