Starbucks Gets Web 2.0 Religion, but Can It Convert Nonbelievers?†

New Blog, Social Networks Will Likely Reignite Debate If Move Is an Attempt to Empower Consumers or Advocate for the Brand

Advertising Age, March 24, 2008 — How many ways can its legion of latte-sipping loafers ask for free Wi-Fi? Starbucks is finding out.

Last week at its annual meeting, Starbucks announced the launch of My Starbucks Idea, a social network where consumers can post ideas for how the company can improve its service and products or comment and vote on others' ideas. Voting will be tallied online, with each idea assigned a point value.

Consumers will be kept up to speed on what Starbucks is doing with the proposed suggestions on a new blog, Ideas in Action.

Though the program sounds like a smart Web 2.0 move, it has already drawn a dart or two from observers of the company, and is likely to reignite debate over whether brand-created blogs or social networks are a smart attempt to empower... continue reading

Hoping to Make Phone Buyers Flip

New York Times, February 29, 2008 — These days, designing a new mobile phone can seem like something out of an episode of “Dr. Phil.”

LG Electronics, the maker of the Chocolate and Voyager phones, begins by asking focus groups to keep a journal, jotting down feelings about features they like most. Participants can call a toll-free number to share their emotions about the phone they are testing. And sometimes they are asked to draw pictures that represent their mood when they hold the phone.

“Our job is to be behaviorists and psychologists,” said Ehtisham Rabbani, LG’s vice president for product strategy and marketing. “We constantly have to be reminding ourselves that we tend to be geek types and our customers are not.”

Executives and industry analysts say it has become... continue reading

Next in Line for Reinvention: The Art of Selling†

Consultant Ram Charan Says Focus Is All Wrong; What a Customer Needs

Wall Street Journal, January 28, 2008 — Ram Charan is known for his platinum clients and his relentless schedule. The business professor-turned-management consultant says he's worked seven days a week for 30-plus years, advising executives at the likes of General Electric Co. and Verizon Communications Inc. on such topics as improving results and execution.

In his spare time, he has written or co-written 16 books, mostly on strategy and leadership.

Recently, Mr. Charan turned his attention to sales, particularly from one business to another. He doesn't like what he sees. In "What the Customer Wants You to Know," published last year by Portfolio, he argues that companies need to "reinvent" the way they sell, to focus on their customers rather than product features.