The Portable Network & Social Media Loyalty
10:27 PM
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I've been thinking about brand loyalty and social media lately, specifically related to some of the changes to features and interfaces that have shown up lately on Facebook and Twitter.
Looking back, Amazon became the 800 lb. gorilla of ecommerce through performance and usability. They set many new standards for online shopping... facilitating simple tasks with superior usability and capabilities. This drove incredible customer loyalty, in turn. In contrast -- with social media -- performance and usability seem to take a back seat on many sites and services today, and there seems to be no overt linkages in this area with customer loyalty.
Whatever the case, this higher threshold for poor experience doesn't explain why people tend to become more loyal to one tool over another (e.g. FriendFeed vs. Twitter), or why people abandon one network for another (e.g. from MySpace to Facebook).
Diving deeper, it's easy to note five key factors that influence social media brand loyalty with lay users today (Note - these are not the same factors that influence early adopters...):
- The actual or potential size, significance of the end-user's in-channel network (my network)
- The ease of replicating a user's in-channel network within another channel ("portability")
- The tools base level of reliability and performance (base level functionality & decent "up time")
- The existence of other tools that help alleviate application shortcomings (e.g. Tweetdeck for Twitter)
As a result, the leaders continue to grow exponentially with little competitive threat. At least, it's this way, today.
This isn't a pipe dream - we're partially there now. I'd say Facebook, Google have the current upper hand, but FriendFeed, Linked In and Microsoft are obviously moving, too... The day is still young, and there's room for other companies out there to play in this space. It won't be easy - there are many practical and technological hurdles as well as practical challenges in gaining critical mass that are too complex to discuss here.
One giant issue in this will be building user trust and preserving confidentiality and user privacy. Missteps in this area may represent the end of some promising tools, and are probably inevitable. This will probably be a good thing because it will raise awareness and hopefully, lead to the establishment of new industry standards for social privacy management.
In the end, it's not likely to be one -- but perhaps several companies that will make our networks truly portable. The ones that accomplish this successfully will reap a windfall in the form of usage, adoption, data, IP, usage insight, power and profit.
In the future, It won't really matter what users subscribe to ... because it will be easier for users to be, in a sense, omnipresent, traveling at-will to use the "best" features of various tools, sites and services at-will. People may not migrate away from "favorite" sites like Twitter and Facebook - as they seem to be hitting critical mass. However, people will be more likely to have a highly redundant presence across various social media sites, tools, networks and communities.
While this may be great for the user, it will be an uncomfortable reality for social media business. It's likely that we'll see a shakeout within the social media categories ensue, as some players fail, and other sites and tools partner, engage in acquisitions and mergers with other companies -- just like the .com and portal years. Membership numbers will be overshadowed by data that shows either a high level of "in-channel" user engagement - or the creative ability to market directly to individuals (Cost-per-individual marketing) themselves. As users become more active across an array of sites and tools, competition for eyeballs and clicks will increase, making effective advertising a more challenging prospect. Profit models for sites and networks will change with an emphasis on fee-for-service. While free services will continue to exist, we'll see more sites charging for "premium" access. Fee for use and micro-transactions will also play an important role.
To justify fees - user experience will again take center stage, as users will demand highly ergonomic, seamless experiences with full features and functionality. Social media sites, networks, tools and channels will become more important for their features, performance and functionality (like Amazon was) rather than their ability to provide us with access and control over an in-channel network.
When the smoke clears and the frenzy of social media tool proliferation dies down, we'll see different loyalty drivers at play. In the end, the winners will be the ones focused heavily on serving customer needs, providing a well integrated experience, preserving privacy and identity and providing outstanding performance. Privacy will take center stage as the public becomes more ardently concerned about the data available in the cloud. Customer loyalty will belong to proven trust agents...rather than ruddy pioneers.
Labels:
digital media; twitter; facebook; blogging; social networking; Social Media,
loyalty,
trust agents
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