Apple: Losers Blog (what Business Week missed)
- Posted by Ephraim Cohen on May 25th, 2008 filed in Social Media
Business Week had an excellent update on the state of blogging but missed a core business lesson - do what’s right for your business, not what all your friends are doing. The article provides a worth update on how blogging has evolved, is right now and where it might be going. But like so many other articles on the state of blogging, it fails to focus in on which businesses need to engage in blogging and why. Instead, it leaves a blanket impression that blogging and social media will transform business.
While I’m out there every day talking about the importance of social media, I’m doing so by first discussing how to determine if and how your company needs to engage in social media activities. The world is more complex than simply saying you must do it. Just as not every company needs to be engaging broadcast media, not every company needs to engage in social media.
A core example is using social media to listen to the customer. Easily said but not always clear how to implement. Apple vs. Dell is a high profile case in point.
Apple is not known for designing products based on customer feedback; they are good at designing what they believe customers will love. And while they do talk to and listen to blogs, they do not seem to rely on them to make business changes. In fact, they’ve sued blogs that leaked secrets (something many other companies are wary of doing) and loud blog complaints often fall on deaf ears (e.g., battery replacement issues).
Dell, on the other hand, had a worsening reputation for PC design, quality and customer service. They’ve been using social media, blog outreach and other forms of social media driven customer communications to gain a reputation as a company that is listening to customers and improving based on what they hear. So instead of simply coming our with product and process improvements (a la Apple), they are showing how they listen first and will then, hopefully, execute.
Two companies, same industry, similar customer base, very different approaches. Bottom line: always seriously consider and pursue a social media strategy but first make sure it’s the right one for your company.
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May 25th, 2008 at 4:07 pm
One written letter to a company has more impact than 1000 emails, or soapbox “blog” rants. This “social media” stuff is a lot of self important puffery. Move along, nothing to see here.
May 25th, 2008 at 9:24 pm
While there is a lot of self-important puffery, there are also legitimate reasons to pay attention. For example, one well writen letter, posted and publicized on a blog can have a greater effect than just a well written letter. On the other hand, a thousand bloggers blogging about a company not blogging (it happens) may have no effect. Social media by itself is not critical. Like any media, it’s importance is the result of it being the right medium at the right time in the right situation.
May 25th, 2008 at 9:59 pm
Mr Dell needs to liquidate Dell and give the money back to the shareholders.
May 25th, 2008 at 11:41 pm
In recent years Apple has been very successful building what people want before they know they want it. Premium priced, well designed, good quality products with the best operating software on the planet.
They did it all while ignoring the advice of bloggers, bitchers and complainers.
Dell, on the other hand, has been very successful at cutting the cost of manufacturing their products. Poorly designed products made from cut rate parts running just good enough operating software. Trouble is, every other PC maker is making a better product than Dell at the same price.
Dell can’t make things any cheaper and that is their only area of expertise. They have no other tricks up their sleeves. They’re in deep trouble.
Do you honestly think blogging will solve Dell’s problem?
May 26th, 2008 at 11:31 am
Any attempts to show how blogging can help Dell solve their problems are both misguided and counterproductive to a discussion about social media.
In Dell’s case, I think blogging and other forms of social media can help in two ways:
1) Provide early indicators to problems (and opportunities). I read a lot about drops in customer service from activist consumers who blogged and wrote in forums before it made it to the newspapers.
2) Communicate to these consumers as to how problems are being solved so that, even before the solution is having an effect, people can see action being taken.
May 27th, 2008 at 4:20 am
Michael is blogging while Dell burns?
May 27th, 2008 at 11:21 am
I’m not sure how much Michael is involved but his executives do seem to post regularly. However, this is not necessarily a distraction. If they are in fact puttin out the fire, it’s better to let customers know how they are doing it then to make everyone wait (and doing that via a blog is easy) and wonder. You may create a confidence floor that is higher than if you kept people in the dark.