Naked Conversations makes a good point with respect to blogs being a key component in successfully making the move to an online (digital) business model.
Customers (especially the Digital Generation) generally love conducting business online. They love the control and efficiency it brings. They love the lower cost and price transparency it brings. They love the speed and ease of use. All of these are obviously subject to the service provider having an efficient, intuitive and robust online platform. But even when this is the case, nobody is entirely immune to an unhappy customer; nobody can possibly hope to answer online every possible question a customer might have with respect to the product or services being offered. Additionally, there is nothing more powerful in terms of generating customer loyalty and strong word-of-mouth marketing than dealing effectively with a customer problem or issue. (The opposite is also true: bad experience = angry customers - beware!)
So how do you provide this excellent customer experience under all circumstances while not bankrupting your business in the process by driving your costs through the roof? I think it would be naive to say there is one silver bullet, and like so many things in life and in business, alot of it comes down to hard work and diligence, but I would agree with Shel that “blogging is an affordable way for companies to talk with their customers.” Generalising a bit more, the most successful companies in the future will be the ones that adeptly choreograph the intricate combinatorial ballet of conversational channels - in person, voice, email, IM, blogs, wikis, etc. - to create an at once excellent yet (cost) efficient customer experience.
Social software is not just a fad. It will be a key tool in running an effective digital business.
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