Brian Millar has a brief article in FastCompany about his company’s strategy of consulting “extreme customers” to get insight into existing products and ideas for new ones. He writes, “You can learn a lot about mobile phones by talking to a power user. You can learn even more by talking to somebody who’s deliberately never bought one.” And

We recently worked with some Brazilian transsexuals on hair-removal products, looking at ways of making the process less painful. I can assure you, we had their full attention. Some are still sending us ideas.

It’s a great illustration of the fact that innovation tends to come from the intersection of orthogonal streets.

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I’ve got a post at the Harvard Business Review site about what I’m calling (not too seriously) The Gettysburg Principles. The point is that you can keep your customers buying from you if your business is of your customers, by your customers, and for your customers. “Of” means that your business is made up of people like your customers. “By” means that your customers are contributing to the creation of your product. “For” your customers means you put them first. These three terms give a handy way of analyzing why customers stick with some businesses even if they have to pay a bit more or make some other adjustments.

Anyway, there’s more over at HBR…

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Julianne Chatelain investigates why Rich Berlew’s Kickstarter project became one of the top ten of all time, and the #1 in the creative category. She provides a concise, insightful look at why user experience counts for a lot, even when you’re supposedly just making a business proposal: give me $57,750 and I’ll reprint one of my “Order of the Stick” web-comic compilations. Berlew received $400,000 in the first 12 days.

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It used to be that on my birthday I’d get untouched-by-humans birthday wishes from my dentist’s firm and perhaps a local car company and real estate agent. Now I get them from sites I once age-verified for (gaming sites, not porn, fellas), a Prius forum, a diabetes forum, and — one level of abstraction up — from Xing itself.

If these groups are going to issue pro forma birthday wishes, I think they ought to be required to hire someone who has to sit there and actually think warmly about each person before pressing the “send” button.

And then, as a special birthday present, keep your stupid marketing messages to yourself.

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With Douglas Rushkoff I’m keynoting a Ketchum event called “Respect the Internet” [more here] tomorrow. The subtitle of the day is “Is marketing ruining the Net?” Sounds like it should be fun. (It’s being webcast, starting at 10am.)

I have a 20-30 min slot in which I’m planning on saying something like the following:

Yes, markets are conversations, as Doc once said. That shifts power from vendors to customers. It also turns markets as demographic abstractions into real social entities. But markets are conversations now because they are networked, and thus are taking on the properties of networks: evanescent, light-weight group formation, and, most of all connected via shared interests. For example, the people on the Web right now talking about which bike to buy constitute a networked market of bike purchasers. The bad news for traditional businesses is that hierarchical businesses (i.e., businesses) do not fit well architecturally on the Net. E.g., who gets to talk for the business, for businesses do not actually have mouths?

I then plan on talking about two properties of networks being expressed by markets now.

1. The fact that the Net is composed of interests has exposed what we always knew: there is usually a lack of alignment between markets and businesses. Markets talk about bikes because they have the usual range of interests in bikes: to be green, to save money, to get exercise, to recapture one’s youth, etc. But bike companies as businesses are interested in having us pay them money. Same objects of discussion (bikes) but very different interests. Businesses have tried to rationalize their lack of alignment by talking about “authenticity,” a term that I think does not apply very meaningfully to companies. Nor do I think that Michael Porter’s “shared value” idea addresses the real misalignment of interests.

2. Networks tend toward transparency. I will quickly mention four types of relevant transparency: of self (you are who you say you are), of sources, of humanity (you and your products are fallible), and of interests. (I may drop this section. I think the line of thought would be clearer if I do.)

Finally, I want to ask why the Net is such a weird and different medium. Answer: The Internet is not a medium. We are the medium. Because the Net is interest based, messages (memes, links, poems, whatever) move through us: I send you that link because I think you’ll like it, and I have something invested in your liking it when I pass it along. We are literally the medium.

So, that’s why marketers should respect the Internet. The Internet is ours. No, we don’t own Verizon’s wires. But that’s not the Internet. The Net is its open protocol and the social products and life it has engendered. So, mess with the Net with intrusive marketing and you are messing with us. We won’t like it.

That’s roughly it.

(By the way, I rarely mention where I’m talking because I’m a little shy, in weird ways. I’m thinking I ought to bite the bullet and just blurt out my scheduled talks. Why? Marketing! E.g., would you like to know that this morning I keynoted the Canadian Research Knowledge Network meeting outside of Ottawa, and that on Monday I gave the John Seely Brown lecture at the University of Michigan School of Information? Or is it just boastful noise, which is how it sounds to me?)

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Amazon’s pitch for its new Silk Browser describes a client-server architecture from the 1980s applied to the Net. In 1995, when I was VP Marketing at Open Text (1995-6), I tried to get the company to describe the architecture of its Web-based collaborative tools as Client-Surfer.

I’ve been waiting 16 years to re-introduce that pun. Is now the time?

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I’m at a conference in Helsinki. The speaker before me is href=”http://www.crackunit.com/”>Iain Tait, creative director of Weiden + Kennedy, the agency behind the genius of the Old Spice man commercials.

He says the secret of going viral is to find a beautifully attractive man who men feel safe liking, do a personalized social media campaign, etc. It is, in short, completely unrepeatable advice, which is his point.

He talks about how they did 186 personalized videos responding to influential bloggers who had commented favorably on the ad. It was taking 10-15 mins for the text to come in, to tape it, and to post it. To decide who to respond to, they looked at reach but also the creative opportunity: could they find something funny to say. They were careful not to reply only to celebrities, so that everyone would feel they might get a response. They got 40M views in week. And sales went up. And it helped to rebrand Old Spice “which used to be how your grandfather smelled.”

One approach to Web marketing is to go for the “big sneeze”: Create something big and push it hard through every channel you can find. The Old Spice ad went viral through lots of little sneezes: ordinary folks pointing and reposting. The world now works through little sneezes.

You should also try to create “lubrication,” making the act of sharing as frictionless as possible. The personalized videos were all re-shared. To do this, you need something that is “good, funny, or interesting”? It also should be easy to describe to someone else. And “what does the content say about me?” And “Will I get kudos for posting it?” Also, it’s good to respond in human time, not in “brand” time.

“Think about content creating its own media spaces.”

The secret formula for guaranteeing viral effect:

(Big Sneeze) x (Tiny Sneezes to the power of the number of tiny sneezes) x Shareability x (Content and Distribution that play together) x The Intangible. But what is that intangible? What was the magic ingredient in the Old Spice ad? The six pack? The writing? The acting? The rapid response? Unfortunately, the magic is not itself subject to a formula. And if you don’t have any magic, the viral campaign will never amount to anything.

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Jay Rosen has an amazing Storify thread in which he engages in a public enquiry about Edelman PR’s taking NewsCorp on as a client. Jay is breaking ground in how journalism works.

DISCLOSURE: I count Richard Edelman as a friend. I like and respect him. I have also been paid during a couple of stretches as a consultant to Edelman on PR in the networked age. The last time was maybe a year ago. I have not spoken with Richard or Edelman employees since then.

In my last engagement, I tried in my small way to get Edelman (the company) to adopt a view that recognizes that the Web is quite literally built out alignments of interests: People put in links and affiliate with one another because they share interests. Marketing traditionally has been premised all too often on a misalignment of interests: The business wants one thing and the market wants another. PR should, imo, recognize and respect the Net’s aligned nature. PR should genuinely enhance the interests expressed in the market, and otherwise shut up. Something like that.

I have also advised Edelman that when a business’s interests and the market’s interests are not aligned over matters of fact or philosophy, the business should consider adopting a tactic of “advocacy marketing” in which the business states its case frankly, truthfully, transparently, honestly, and respectfully. So, if the company think it’s getting a bad rap, it should (for example) put up a site that acknowledges what’s being said about it, make its case, address the contrary claims, engage with those who disagree, and always link to its sources.

If I were Edelman PR, I would probably agree to take on NewsCorp, but only if I were satisfied to a reasonable degree (yes, them’s fudge words) that NewsCorp was ready to tell the truth. (Clients do lie to their PR companies. The first time Edelman catches NewsCorp lying to them, Edelman should quite publicly drop them.)

If I were Edelman, I would not suggest advocacy marketing. NewsCorp does not have a side of the story worth telling. The only way forward for NewsCorp is to go many extra miles in transparency. Come clean not only about the phone tapping and the bribery, but about the culture of soft influence, the partisan reporting that fruitlessly claims it’s non-partisan, the degradation of once worthy newspapers.

Edelman should not, in my opinion, be helping Murdoch tell his side of the story. Edelman should be helping Murdoch to confront the truth, to follow the truth all the way through, and to tell the truth over and over and over again.

Taking on NewsCorp will test the ability of PR itself to continue to exist as a representative only of the client that pays the bill. I do not believe PR can survive if it does not see itself and its client first and foremost within the web of shared interests.

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Miriam Meckel is giving a Berkman lunchtime talk on “Communicating Trustworthiness: Drivers of Online Trust.” She will present research she has been doing at U. of St. Gallen along with government and some businesses. She’s investigating how trustworthiness is communicated, and what the initial drivers and cues are. She’s going to look at the changing conditions, some basic ideas on initial trust formation, then her study, and then the cues identified in initial trust formation.

Users’ willingness to provide data about themselves depends on some sort of trust. There’s been much discussion about this, including the importance of preserving privacy. For example, Facebook restricted info about users to the user’s schoolmates, but over time it has become far more permissive. (See here for article and diagram.) Both Facebook and Google have said things indicating they believe our attitude towards privacy has changed. E.g., Eric Schmidt: “If you have something you don;’t want anyone to know, maybe you shouldn’t be doing it.”

What is trust? Miriam provides three definitions, each of which involves vulnerability. When we trust someone online, we understand we are making ourselves vulnerable in various ways. Trust enables us to manage the complexity of our social world, reduces the cost of negotiations, facilitates the adoption of new technologies, and reduces perceived risks. Initial trust is especially important since you can lose a customer forever by screwing it up.

In her study, they interviewed 23 online businesses active in Germany. They also did in-depth interviews with 43 users representing a range of socio-demographic sections. From this they derived a model of nine trust drivers: Reciprocity and exchange, proactive communications, user control, brand, third party endorsements, design of user interface, offline presence, technology, and customer service. Then they did a quantitative survey of German users to find out how the different factors are applied to diff business models. 11,000 users from across socio-demographic segments were invited to participate in an online survey for a little money, with a response rate of 12%.

She goes through the nine components of trust:

Reciprocity explains about 35% of the variance of the data. The mutual relationship of customer and organization is crucial. Users are willing to hand over personal info, if they know what they gain from it, if it is transparent, and if both sides benefit.

Brand and reputation: A well-known, establish brand helps build trust. If it has a large customer base, it is perceived as more reputable. You also need a professional feel for the web site.

User control: Users want to know who will have access to their data. Ask permission.

Proactive communications. [missed it. sorry]

Customer service: Multiple ways to reach a person. Provision of different payment methods.

Offline presence: The existence of physical stores helps build trust. Show a photo on your web of your brick and mortar store.

Technological reliability. This can be an issue when your service involves third parties.

Third party endorsements: Not only are seals of approval helpful, but so is having a high search ranking for third parties.

The next step is how these factors are differentiated by B2C business models. Only four factors turn out to be relevant across the board: reciprocity, third party endorsements, user control, and technological reliability. Miriam looks at online shopping, online banking, etc., to see which factors are relevant [but I can't keep up with my typing. sorry] It seems that for building trust-based relationships with potential clients, you have to have fair communication, mutual benefits signaled, privacy and security policies being displayed, clear T&C’s, engage in issues mgt to follow what is being said about you on the Web, explain the business model and data needs, explain the flow of info to third parties and what the policies are, communicate third party endorsements, engage, peer groups and communities, bring in your offline reputation, and consistently apply corporate design with good design.

Some implications: 1. Users are more willing to trust large, well-established and popular online services. High search-engine ranking can be considered a trust measure.

2. The visual appearance counts.

3. Reciprocity is very relevant in all online transactions.

4. Offline presence, technical reliability and customer service have barely been researched yet.

5. Organizations need a strategic approach for communicating trust to their stakeholders. Take an integrated communication approach, including issues and risk management. They should communicate proactively, in a conversational tone, and transparently.

What not to do? Don’t be Facebook asking Burson Marsteller to find bloggers who would attack Google.

Q: [me] Customer ratings? And the presence of customized trust mechanisms as at eBay and Amazon?
A: Third party endorsements include customer ratings. But we surveyed a represented group of German users, not ones as sophisticated as others, plus there may be cultural differences.

Q: Is your work ethical? An evil company can read your work and figure out how to appear to be ethical. Also, Germany has stronger regulatory protection, which change the signals
A: Yes, companies could fake being trustworthy.

Q: How about SSL?
A: The awareness of the need for SSL is frighteningly low.
Q: Anyone care about authentication certs?
A: [general laughter]

Q: Would the same trust drivers be applicable in news sites and other such non-sales sites?
A: Just in parts. [I can't read her table because I'm too far back :( ]

When you look at the erosion of privacy caused just be clicking on opt-ins, you get to a point where you just accept whatever the terms are and however they’re changed.
A: People don’t read privacy policies when they’re changed.
Q: Maybe it’s that when the privacy policy looks impressive, it’s a signal of the quality of the service. But, the key question is whether people who say privacy policies are a trust driver actually read them.
Q: There’s some survey support that most people mean think that a privacy policy is there to protect your privacy. [general laughter]

Q: [me] To me, third party endorsement means you get celebrities or associations or other companies to endorse you. But the real trust-driver for me frequently is peer endorsement. Maybe it would be worthwhile to separate those two, especially since businesses need to do different things to gather other companies’ endorsements and to gain a good reputation among peers.
A: Yes, that would be interesting.

Q: What supersedes trust?
A: There may be the desire to be “in” as opposed to “out.”
Q: There are network effects are. How many of friends have to join before I throw away my privacy cBerkman

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Shel Israel [twitter:ShelIsrael] has posted email interviews with Doc Searls and me about how cluetrain came about and how it’s held up. He asked us the same questions. We responded fairly consistently about the history, but ran down different paths in the more forward-looking questions.

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