Cluetrain:  Eight years down the tracks.

Are markets really conversations?  Let's talk about it.

In 1999, four web marketing professionals published a series of 95 theses about how the internet would change marketing--and signal "the end of business as usual."  This was done at the height of the dot-com bubble, and today, some elements of The Cluetrain Manifesto read as archaically as as the corporate-speak the manifesto was lashing out against. 

  Original post date:  1/7/08


The 95-theses parallel to Martin Luther's ideas for the Protestant church was indeed a bit unfortunate, and when you read through the document, you can see the authors stretching and straining to get to the magic number of 95.  But there are some definitely powerful nuggets of wisdom within Cluetrain, particularly when you look at how they manifest themselves in the marketplace today.

The end of "business as usual," or a new player in the game?

The key premise of The Cluetrain Manifesto is that with the two-way communications capability of the internet, traditional ways of doing business no longer apply.  People don't respond to corporate-speak.  They ignore advertising.  The want to communication with human beings, and they want to feel like they're being heard.

A lot of this is absolutely true.  The capability to engage audiences and interact with them is something that just wasn't readily possible with traditional mass media.  The one-way communications model of television, radio, and print forced companies to shout at people, rather than talk with them, particularly as the marketplace became more crowded. 

So the ability of the internet to allow customers to talk back changes at least part of the game completely.  Companies get something they say they've wanted for a long time--immediate feedback. 

But be careful what you wish for.  Are you ready for the parody of your latest commercial on YouTube?  Can you handle the chatroom your employees set up to talk about the ineptness of your management?  What happens if all your customers suddenly start comparing the price lists you've given them?

Once again, reality stands on the neck of idealism.  Sort of.

All this is pretty scary stuff to most of the corporate world, where control of information is still a critical function.  So when we look at how things have changed in the last eight years, we notice something pretty obvious: the predicted end of the corporation has yet to come about.  In fact, we don't advise holding your breath on this one.  Most companies still communicate with their audiences in much the same way they always have.  And many of them will likely never change substantially.

Why would they?  Does it matter to you if Wal-Mart posts a blog if their toothpaste is still a dollar cheaper than anywhere else?  In fact, Wal-Mart's blunders in online marketing are infamous and have investors wondering if the company is straying too far from its core competency.  For a company who's message is simple--everyday lowest prices--how much conversation should there be?

That, however, doesn't mean that the world is standing still around corporations.  The power of the web as a social medium is growing exponentially, and while the 30-second commercial hasn't gone away, its application is certainly changing in Cluetrain-like ways.  So is media in general.

Miss the latest episode of Grey's Anatomy?  Or the last three?  Watch them online to catch up (you can even replay--as many times as you like--the limited number of commercials by Lexus, who's presenting the online broadcast to you).  Then talk about the show with fans at any number of other websites.  Want to have a spot in next year's Super Bowl?  Start working on your idea, because somebody will have a contest.  Or if you're just tired of traditional TV, watch episodes of LonelyGirl15 at YouTube.

The power of the genie out of the bottle.

Companies all over the world are cutting back on traditional media outlet spending and investing in new channels.  A viral marketing campaign can reach millions at a fraction of the cost of traditional media, and the information comes from a friend, not a company.

Even stodgy, staid, struggling GM has tested the waters.  Last year, GM held an online contest where people could create their own commercials for the Chevy Tahoe, its big SUV.  GM supplied footage, artwork--everything needed for would-be directors to build a spot on their computers and send them in.  GM created a special website where people could go to view the spots and--of course--learn more about the Tahoe.

Funny thing happened.  Some people took GM's generously supplied content and created commercials that talked about how SUVs destroy the environment, how GM was wasting oil, how corporate America was being irresponsible.  Within hours, these were plastered all over websites, and GM was faced with the problem of having its own information used against the company.

Then a funnier thing happened.  GM did nothing. 

The website stayed up, even with links to the parodies.  People kept conversing.  More than 600,000 of them visited the GM site, and--surprise--Tahoe sales went up in a down SUV market.  For every Tahoe detractor, there was somebody (not a GM spokesperson, a human) who liked the vehicle and told others.

GM got it right by letting people talk without interference.  In fact, it got extra points (and sales) by creating the forum for them to do so.  And GM was smart enough to understand that this will happen whether it chose to participate or not.

Nearly 30 years ago, a mentor told a BrainPosse member that "people are going to talk about you anyway.  It's your decision whether or not you want to get heard, too."

The Cluetrain guys were dead-on.  There are new marketing conversations going on, and they're not going to go away.  People want honest information.  And they're not going to take just your work for it. They want second opinions.

If a company understands how it can--and should--participate in the process, the rewards can be tremendous.

It's worth reading, or re-reading, The Cluetrain Manifesto.  Even if you giggle at the bits of naivety, you'll also marvel at some of the insights.

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