My first impression: It’s still early in the game. Very early. We’re still wrapping our head around the whole concept of VRM. Since the idea was to bring together visionaries/practitioners of VRM and CRM, the discussion often reverted back to CRM and how to monetize the customer/data. Clearly, all of us have problems transitioning from the old marketing/advertising paradigm into a new world where advertising is pure demand creation, driven by the attention economy, and relationships between brands and people fall under the VRM umbrella, purely intention driven.
CRM was designed to control customers even better. VRM is an added layer to provide customers with controls. To create an ecosystem that delivers value to all parties. Value doesn’t necessarily mean monetary value. To build all these systems to get $1 off on a deal doesn’t seem worth all the effort. The value is in creating real relationships between people and brands. By collaborating and co-creating value with customers. The future of business is in creating something more valuable and meaningful than just pure shareholder value.
As Umair Haque says in his “Smart Growth Manifesto”,
“21st century economies will be powered by smart growth. Not all growth is created equal. Some kinds of growth are more valuable than others. Where dumb growth is unsustainable, unfair, and brittle, smart growth is sustainable, equitable, and resilient.
Here are the four pillars of smart growth – for economies, communities, and corporations:
1. Outcomes, not income. Dumb growth is about incomes – are we richer today than we were yesterday? Smart growth is about people, and how much better or worse off they are – not merely how much junk an economy can churn out. Smart growth measures people’s outcomes – not just their incomes. Are people healthier, fitter, smarter, happier? Economics that measure financial numbers, we’ve learned the hard way, often fail to be meaningful, except to the quants among us. It is tangible human outcomes that are the arbiters of authentic value creation.
2. Connections, not transactions. Dumb growth looks at what’s flowing through the pipes of the global economy: the volume of trade. Smart growth looks at how pipes are formed, and why some pipes matter more than others: the quality of connections. It doesn’t just look at transactions at the global, regional, or national level — how much world trade has grown, for example — but looks at how local and global relationships power invention and innovation. Without Silicon Valley’s relationships powering the development of personal computing and the internet, for example, the volume of trade between Taiwan, Japan, and China, would be a fraction of what it is. Smart growth seeks to amplify connection and community — because the goal isn’t just to trade, but to co-create and collaborate.
3. People, not product. The next time you hear an old dude talking about “product”, let him know the 20th century ended a decade ago. Smart growth isn’t driven by pushing product, but by the skill, dedication, and creativity of people. What’s the difference? Everything. Globalization driven by McJobs deskilling the world, versus globalization driven by entrepreneurship, venture economies, and radical innovation. People not product means a renewed focus on labour mobility, human capital investment, labour market standards, and labour market efficiency. Smart growth isn’t powered by capital dully seeking the lowest-cost labour — but by giving labour the power to seek the capital with they can create, invent, and innovate the most.
4. Creativity, not productivity. Uh-oh: Creativity is an economic four-letter word. Why? Because it’s hard to measure, manage, and model. So economists focus on productivity instead — and the result is dumb growth. Smart growth focuses on economic creativity – because creativity is what let us know that competition is creating new value, instead of just shifting old value around. What is economic creativity? How many new industries, markets, categories, and segments an economy can consistently create. Think China’s gonna save the world? Think again: it’s economically productive, but it’s far from economically creative. Smart growth is creative — not merely productive.”
While many VRM initiatives will be driven by innovative divisions within enterprises, the real change agent will be customers. They will be the enzyme in the evolution of VRM. We have to help them understand that tools will be soon available that give them equal footing with brands, that give them power to engage with brands on their terms. That’s a powerful message. Especially in this new normal economy, people want to extract more value out of brands than just a coupon or a silly loyalty program.
And, that’s just the tip of the iceberg. If done right, VRM tools will revolutionize all aspects of our lives: health care, government, education – you name it.
From what I gathered from the workshop so far:
- We’re close to achieve data portability
- While Doc Searls believes VRM code should be open source, I heard some dissenters
- The value proposition for people is still too vague to excite people outside of our bubble
- We’re too focused on transactions. Instead, we should focus on value exchanges
- We still have to identify the change agents within organizations. Marketing? Customer Service? (Gulp) IT?
- How can fourth parties create stakeholder value?
- How can VRM complement legacy VRM systems?
I don’t think anybody was expecting comprehensive answers for all these questions in a workshop. On the contrary, I hope for more questions to arise on Day 2. My goal for this workshop was not to get all the answers. My goal was not to stop questioning.
Below a few Twitter highlights from Day 1:
@jyarmis: 1995: the invention of the cookie. the end.
@missrogue When we solve problems for individuals, we actually end up solving problems for businesses in the process.
@mjayliebs Search is really the entire set of activities i perform, including talking to friends, neighbors, trusted sources,oh, and google
@nitinbadjatia User driven search (VRM search) – control over input, control over output and control over who gets to help you
@glfceo enterprises trying to predict customers intents will fail
@joeandrieu John McKean: the real challenge is the behavioral one: will individuals move from a CRM-directed world to a self-directed one?
@joshuakahn yeah, a lot of the stuff I’m hearing here is early, but actually alot farther along than I thought.
@missrogue With VRM, I have the opportunity to say, “You earn my trust and I’ll give you the key to all of my information.”
@kevinmarks Josh Weinberger: who are the best communicators in your org? your support people. Why get them off the phone to customers?
@mkrisgman Business is based on exchange of value, power, expectation, and degrees of valuation.
@mjayliebs VRM and CRM are whole lot closer to each other than people think – the gap is culture and understanding as much as principle
@DeanLand For VRM enterprise level uptake: leverage data, show benefits (aka: enable the information) create a VRM ecosystem.
@nhbaldwin vrm offers the vendor a b2b relationship, tighter personalization, with the consumer
@candres this is the confluence of intention and solicitation.
@joshuakahn cookies; designed to be low level machine ID’s, not useful for human ID’s, no matter how you bake ‘em. <- Craig Burton
@jyarmis privacy is only as good as the number of people you can be confused for
Looking forward to Day 2