Web 2.0: The New Better Business Bureau

As marketers we are pondering how to tame the web 2.0 beast and span it in front of our wagons. And why shouldn't we, if a way could be found! But the aspects of web 2.0 that are about consumer empowerment, consumer generated content and social networking make that really tricky to do.

As my colleague at Unica, Andrew Hally, put it: With TV advertising we could shout but not listen. With the new, new media we can listen but we cannot shout.

Many conclusions and action items can be derived.

One of these is well known. Thanks to blogs and YouTube, customers can bring all our dirty laundry to light. The AOL example where a customer tried to cancel their account will probably always remain the stereotypical example of what - not - to do. (Sorry AOL guys, even though you long since improved your practices, so I hear.)

There is an analogy here that I wanted to suggest.

Economists speak of “externalities” when they refer to the fact, for example, that companies are likely to pollute the environment because the rivers, air, and climate don’t cost anything. The costs are external to the economic system.

Well, it seems that in web 1.0 companies could get away with treating the customer experience almost like an externality. A bad experience did cost something, namely the customer’s repeat business. But, especially on the Internet, it seemed as if you could always go get new customers. And customers could read but they could not shout (ouch).

Well, now it is the customers who are shouting. So a bad customer experience is no longer an externality. One would hope that this will foster better business practices. Just like there is hope of fostering better environmental practices by putting a cost to carbon emissions.

Just a fun thought.

P.S.: See Peppers & Rogers' Return on Customer for a reality check on the idea whether there really are always new customers to go and get.