For my first CMO 2.0 Influencer Conversation, I spoke with Rob Kozinets, a professor of marketing from York University in Toronto, about communities, consumer tribes and word of mouth marketing – not surprising considering that Rob was the editor of Consumer Tribes, a collection of research papers on consumer tribes, recently finished a book on word of mouth, and is one of the few researchers looking at the practice of business through the eyes of an anthropologist/ethnographer (among other things).

We started the conversation by talking about the disconnect between the world of academics and the world of business, especially as it relates to marketing. It is an unfortunate fact that many mistakes could be avoided if marketers were making informed decisions based in part on some of the recent findings in the fields of behavioral economics, anthropology, complexity theory, sociology, and psychology.

One of Rob’s main themes is that consumer learning, opinions and transmission of influence happens in smaller groups - hence the idea of tribes. Today’s tribes have looser affiliations and are more hedonistic in nature than ancient tribes. They are nomadic by interest, rather than geography, and centered around expertise and commercial culture. Consumer Tribes are also not typically focused on a single brand but rather on a whole group, a whole culture or lifestyle, or a set of activities. Another challenge for marketers, according to Kozinets, is that consumer tribes don’t typically develop long-lasting relationships. Even some of the stronger tribes, like the Star Trek groups that were so popular in the 90’s, aren’t as active anymore - people move on as they get more options. It would actually be interesting to see if the Harley community is still as strong as it used to be. People move in and out of consumer tribes, and the tribes seem to have a natural life and death cycle - including a revival stage sometimes.

Of course, most marketers don’t think of their customers as tribes yet, or don’t realize the enormous impact that successful customer communities can have, so for many of them this is an non-existent problem.

According to Rob, one of the big problems with communities is that companies are setting them us expecting fixed ROI. In reality the measurement of the the impact of communities is very hard. They are hard to set up, take time to take off, and are challenging to maintain. And, as Rob points out, a lot of the successful community marketers have had their communities formed for them by their customers - much like Harley.
We also talked about the proliferation of special interest communities sponsored by various companies - e.g., small business focused communities, of which there are dozens. Obviously members will not want to belong to multiple small business communities, so what then? Consolidation, with most members gravitating towards the most successful small business community, or further fragmentation, with more user-driven communities aggregating around micro objectives? It’s hard to predict where we will see consolidation vs. fragmentation of communities as we do not quite understand how people move in and out of those spaces.

An interesting concept which Rob brought up was “share of community time,” which, in a way, is a measurement related to John Hagel’s Return on Attention (John has also agreed to conduct a CMO 2.0 Influencer conversation with me - stay tuned for a date). The problem with calculating share of community time is that there is a huge spread in the estimated number of people who participate in communities - between 100M and 1b.

Other things we talked about include:

• The role of payments and incentives in communities
• Whether online focus groups are stretching the possibilities of online community environments
• How to engage with your detractors as well as your champions
• How, if you are going to open things up, you should have a strategy to deal with criticism that will come
• The pros and cons of having a neat classification system for communities based on the different needs that they are trying to solve
• How community organizers need to think about members first and brand second

We also touched on word of mouth and how most marketers expect word of mouth to amplify their message, when in reality most word of mouth will transform your message.

As usual, you can listen to the podcast below, and we will be releasing transcripts soon.

Some of those interviews will be conducted in public - right here on the site. Periodically we will be interviewing community managers and executive sponsors in public webinars that will be recorded and posted on this blog. We hope you can join some of them.

Also, and if you know someone who might want to be interviewed, please let us know by leaving a comment in the comment section of by emailing francois [at] beelinelabs [dot] com

The study surfaced valuable insights, lessons learned, and best practices for moving forward.  Below and at right are highlights and resources for learning more.

THE MAJOR TAKEAWAYS

#1: Communities are about Delivering Game-Changing Results

• Communities can increase revenue per customer dramatically, i.e., 50%
• Communities will increase product introduction success ratios
• Communities amplify everything you do- increasing effectiveness and decreasing costs

#2: The Rise of the CMO 2.0?

• Communities should be an important part of the CMO’s toolset (but for many large companies - there is an under-investment and scale problem)
• Companies should evolve the role of the CMO into Chief Community Officer (but that will require drastic changes in attitude and approach to marketing)
• If done properly, communities will transform the way marketing works (reduced costs, improved effectiveness, new opportunities)

#3: The Need for New Management Thinking

• Mismatch between community goals and associated investments
• Major gaps between Community Goals and what is being measured
• Communities have yet to combine with major talent initiatives
• Communities will transform most business processes

#3.5: The Worst Practices Enjoy Wide Adoption

• The “build it and they will come” fallacy
• The “let’s keep it small so it doesn’t move the needle” phenomenon
• The “not invented here” syndrome