We published this press release today:

AVIS UK WINS INNOVATION AWARD FOR SOCIAL MEDIA PROJECT

Avis UK has won the SOCAP award for innovation in Customer Service at the National Customer Service awards dinner held in London on 18th September 2007.

Avis UK’s work involved monitoring and benchmarking consumer generated content and making changes to its product and customer service practices in response, culminating in launching the We Try Harder blog. These changes have resulted in big increases in the approval rating for Avis (the Avis Net Approval Index has increased over 200% and remains well ahead of the competition) and key product innovations.

Market Sentinel provides the technology for CGC research and guidance on blog editorial.

Market Sentinel CEO Mark Rogers said yesterday: “The phenomenal growth of social media over the last few years has left many companies scratching their heads. Many congratulations are due to Eibhlin Payne and Xavier Vallée of Avis UK for demonstrating to others how to use statistical methods to understand social media and develop insights enabling them to forge real links with customers. We are very proud to have contributed to Avis UK’s success in creating a genuine partnership between marketing and customer service. Many thanks are due to Sheila Sang and Caroline Harris who worked so hard in helping Avis launch the We Try Harder blog, to Mathew Vattolil whose analysis drove decision-making and to our partners at Web Liquid, Matt Cronin and David Shiell who had the vision to bring the project to life, to Xavier Vallée and Eibhlin Payne themselves for commissioning the work and to Rob White for his tireless efforts in bringing it to reality”.

Saturday’s FT ran a piece by Ellen Kelleher about the rise of personal finance blogs. In it the former Wall Street analyst Henry Blodget was quoted: “The blogosphere functions the same way the stock market does–by incorporating millions of individual opinions into a general consensus. By itself, the influence of any one blogger is small, but if the ideas are persuasive, they will rapidly begin to influence the “blogosphere” as a whole.”

This is a profound remark. The blogosphere indeed functions as a marketplace in information, where spam takes the place of hype, and where a measurable consensus emerges around which companies have good products, and which ones are poor. Where a company’s employees, channel partners and customers spill the beans on how the company is doing 24 hours a day, 7 days a week. The blogosphere can be seen as “setting the price” of goods by forcing those with a bad reputation to discount in the search for buyers. Conversely those with a good reputation can charge a premium.

The interesting thing about this marketplace is that - unlike the stock exchange - the numbers are very hard to extract. You have to use social network analysis, natural language processing and statistical profiling to establish authority and sentiment. Having said that, these techniques exist (we and others are using them) and over time Wall Street and The City will track reputation indices as avidly as they track Standard and Poors ratings.

I am addressing a CBI conference this week in Birmingham, UK, where the agenda is to discuss Crisis Management and digital media.

When we established Market Sentinel two years ago we thought that online monitoring and response would be a leading part of crisis management. As time has gone on and we have learnt more about crisis response, we now have a much clearer idea of what works and what does not. Onlinetools have a part to play, but they are more effective in crisis prevention and in dealing with the aftermath of a crisis than they are in managing the crisis itself.

The nature of a crisis

A crisis rarely comes out of the blue. Normally it is something which was previously an “issue” - poor earnings, a problem with a product, a safety worry - which suddenly flares up. In principle the web is a great medium for addressing such issues before they get to the crisis stage, but in practice this rarely happens (more on that below).

When such crises arise the management of a company has an imperative first to act and only then to speak. When they speak they do well to speak to the nearest mass media, radio, TV and print - ideally simultaneously. Such statements should of course be carried on the website or blogsite, but that is not the first outlet for them. Most media outlets will put the full text on their news websites in any case.

When a crisis happens the senior management of a company would naturally be well advised to monitor the response to their words. PR company Weber Shandwick recently reported that a large majority (61%) of business executives were sceptical about responding to bloggers, even if they had their facts wrong. They instead highlighted fixing the underlying problem. The communications professionals should perhaps be exercised by the response to the message, but in practice - again - their time is better spent talking personally to key stakeholders, answering questions and getting the message out.

There is, however, a huge opportunity for using the web to speak directly and in detail to smaller stakeholders where call centres can simply not cope. For example - is your laptop battery one of those which is likely to explode? Here is a link to the webpage.

The nature of the web

The web is an accretive, not a narrative medium. It helps to think of the web as a palimpsest of information, where new information does not quite efface old information, but gradually becomes more prominent, thanks to the impact of new links, new ways of looking at the old information.

Search engines react to changes in corporate reputation only slowly, as the consensus around a topic changes over time. Google indexes only part of the web, and indexes disproportionately the pages that change frequently. Often the key pages in corporate reputation management belong to influential but staid bodies like institutes of safety, or regulators, or tax authorities.

This means that it is only when the immediate firefighting of the crisis is out of the way that the web comes into its own. Perhaps the brand has sustained some damage. How much damage and from whom? Who needs persuading of the error of their information?

This is the time when the tools that could usefully have been deployed earlier, in the pre-crisis, issue management phase of the problem can be deployed. Here it is useful to benchmark corporate reputation in relation to an issue, to identify key stakeholders who need to be communicated with, on or offline, to monitor those stakeholders, to analyse their own networks of influence and to work at understanding how knowledge flows through the group.

So, I am in the lucky position of not having a crisis on my hands, what should I do? First: write down the issues that might become crises; second; note what I am doing to keep an eye on them from a communications perspective; third: ensure that I know who the key authorities are in relation to these issues. Understand them, listen to them, monitor them. When they start talking about these issues, you know that the issue has moved one step closer to becoming a crisis, but you also know where to address news of your response.

A lot of people visit this site on the search term “brand audit”. Even with the miracles of Google analytics it isn’t always possible to tell who they are and what they are looking for. If you came here searching on “brand audit” or you are a brand owner interested in “buzz tracking”, here is a short scratch sheet on how you can use companies like ours to analyse the competitive DNA of your brand. Market Sentinel answers the following questions:

Who are the stakeholders in my brand? The partners, customers, regulators who have an opinion about it? Which of them talk about it, with what degrees of authority? What words do they use? How can I address them? Change the climate of opinion?

How do my customers rate my brand? What aspects of it do they particularly like, and which do they particularly dislike? Which characteristics of the brand are key to my customers recommending it to one another? How does my brand compare to other brands?

What is new here is the ability to answer these questions using reliable, tried and trusted mathematical techniques. What is new is the ability to reliably benchmark one brand against another, and to do so repeatedly. Market Sentinel performs this kind of analysis for Avis, Intuit, GSK, Rio Tinto, BP, Hyundai … It can be applied in any industry sector, or to any brand large or small. Our customers are in corporate communications, e-commerce, word of mouth marketing, customer service and market research.

Set up times vary, but you can get expect to get actionable data within two-four weeks.