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.

When we first speak with a brand manager or a PR person they normally ask us these questions:

“What are people saying about my brand in blogs?”

“Can you help me monitor that?”

We say: we can help you monitor blogs, but first you need to do to help us define the questions you want answered. Monitoring blogs, review sites and messageboards on its own gives you large quantities of information, but few answers that can help your business. It is easier to make a business case for spending on online research and analysis if you can be pretty specific about the question that you need to have answered and about the relationship between that question and the business’s bottom line.  These are the questions that we suggest the client starts with: Question 1: “Why do people choose my product?”

Question 2: “Why do people choose my competitor’s product?”

Question 3: “Why do people recommend my product to their friends?”

Question 4: “Why do people recommend my competitor’s product to their friends?”

Questions 1 and 2 may seem at first blush to resemble questions 3 and 4. But actually they are dissimilar. When someone recommends a product they will often choose a reason that says something about themselves. People will rarely say: “I chose this product because it’s cheapest”, but they may often say: “I chose this product because I care about the environment”. Conversely, why people actually buy a product is often around a combination of product features, reputation and price.

(Reputation and price are in some measure inversely related. Products with good reputations generally achieve that reputation by good service. Good service costs money and although consumers are tempted by cheap offers, they know that “free broadband” generally carries a cost in poor customer support. We recently completed some detailed research in this area which shows that brands with good customer support can keep their prices higher for longer than their competitors. )

All these questions are answerable from online research, and we can put numbers against the characterisitics of a product which are most likely to drive adoption. Those numbers have direct benefit to a key hiearchy of stakeholders within the company:

a) the product managers suddenly know which aspects of the product are key to marketing success (and which need most attention);

b) the marketing managers know what is the key product strength to push in relation to the corresponding weakness of a rival’s product;

c) the word-of-mouth marketers and PRs know which messages are most likely to drive viral adoption amongst users and can devise appropriate campaigns.

A very good pull-together on how to respond to negative blogs from the folks at Multi-Channel Merchant. It suggests that a good initial response is to monitor what is being said, and recommends a thoughtful approach to response. Here are some excellent, clear rules on how to blog, courtesy of Stephan Spencer of NetConcepts:

1. Create a “safe haven” for employees to experiment with blogging. Set up a private blog on your intranet or extranet, or start a blog that’s password-protected. Then offer access to that test to a selected audience. Your inexperienced bloggers will feel more comfortable knowing that all your customers and competitors are not watching their every move.
2. Decide on a permanent home for your blog. The Web address you choose should be one that you will be happy with for years to come. Remember that it will become difficult to switch blog services if you allow the service’s name to be part of your URL. Ehobbies.blogs.com, backcountryblog.blogspot.com, and sethgodin.typepad.com are all examples of blogs that are forever wedded to their blog platform, for better or for worse. If they switch platforms, all the links they’ve earned will be unavailable to their new blog. Links are the lifeblood of your search engine visibility, so the significance of this cannot be overstated.
3. Select a scalable, flexible, and user-friendly blog platform. There are so many solutions to choose from! Some are hosted services, such as TypePad, Blogger, and WordPress.com. Some are software packages that you install on your Web server, such as WordPress, Drupal, or Movable Type. You can pore over comparison charts (such as the one at www.ojr.org/ojr/images/blogsoftwarecomparison.cfm), though I suggest you simply go with WordPress (the software package, not to be confused with the hosted service at WordPress.com). WordPress is free, so the price is right. It’s highly configurable, since it’s open source, and it has a plethora of free, useful plug-ins written for it.
4. Decide on a posting schedule. Try to post at least three times a week. Allow several hours per week for this. I typically spend two to three hours a week blogging. Don’t hire a ghostwriter for your blog, or you’ll get slammed by bloggers for lack of transparency (an unwritten rule in the blogosphere). As far as retaining readers, recency is more important than frequency. A couple weeks of inactivity makes the reader feel like nobody’s home. Conversely, having the latest post be only a day old makes the blog appear “fresh.”
5. Build relationships with respected bloggers. Not only will they be more likely to link to you, but they will also offer advice and bolster your street cred. Posting thoughtful comments on their blogs is only the first step. Attend blogger conferences such as BlogOn and Blog Business Summit and meet bloggers in person. Keep the dialogue going through e-mail and through phone or Skype conversations. Become an evangelist, and you will really get them on your side.

Yesterday we attended the Blogging4business conference in London. It was very ably put together by Matthew Yeomans and Bernhard Warner of Custom Communications - two journalists who have put together training packages and strategies for communications professionals moving into blogging.

With this in mind, we designed a one pager Your 3-step guide to the blogosphere, (PDF download 70k) which we distributed at the conference. The HTML version follows …

1. Get started:

- Go to Technorati, the biggest of the blog search engines.
- Enter the topic you are interested in.
- When you find a blog that appeals to you, you can use Google desktop (a quick download) to automatically notify you when there is new content.
- Or save your search as a Watchlist, and get relevant information from a variety of sources.

Blogs to explore:

Boing Boing: A Directory of Wonderful Things A lively commentary on events, the world’s most popular blog has 66,000 links from 22,000 sites.
Engadget Well-written technology reviews.
Dooce Personal blog by Heather Armstrong, who got sacked for blogging about her work colleagues
Public Relations Onlinefor discussing how businesses can best understand and use consumer generated content
British businesses using blogs:

The Guinness blog - bought to you by the Guinness branding team
The Cadbury’s Creme Egg podcast - with Kate Thornton
The Honda blog launched 28th February 2006, already has 107 links according to Yahoo

2. Join in

- Go to Blogger to create a blog for yourself. It takes about three minutes and is as simple as setting up a Hotmail account. Your blog will have the format http://yourname.blogspot.com.
- If you want to set something up with your own domain name for business, talk to a blog creation specialist like Market Sentinel.
- If you would like to comment on someone else’s blog posting, click on comment and complete the form. Sometimes (in Blogger and Moveable Type) you have to register in order to comment – this is to protect bloggers against spam comments from advertisers.
- You can comment on a blog posting on your own blog and put the address (http:// …) of the original comment into the “trackback” section of your blogging software. This will mean that your blog post is automatically linked to the blog you are commenting on. This facility has been abused by spammers, so most bloggers check trackbacks to prevent spam.

3. Get your blog noticed

- Optimise your blog for the subject matter. If your blog is about skincare, then put the word “skincare” into the name of the blog, and into the url: www.skincare.co.uk
- Update your blog regularly, at least once a week and ideally two or three times. Search engines visit sites according to how often they find new content.
- Tag your content. When you make a post, use the “category” or “tagging” facility to tell everyone what it is about. Someone on Technorati will be searching on the tag “dry skin”.
- Use Technorati or Google blog search to find out who else is writing about your subject matter. When you make an interesting new post, politely email them with the url and suggest that they might be interested in reading what you have written. You will make some new friends, and you might benefit from some links!
- If you are hosting your site, make you “ping” all the right ping servers when it is updated.

Market Sentinel works with top brands like Yahoo! Europe monitoring blogs and advising on marketing response.

For more information on how to integrate blog communications intoyour marketing strategy, call +44 (0) 20 7793 1575 or mail simon DOT rogers AT new DOT com

Tomorrow I am on the blogging4business panel in London and talking on the topic of “what blogs are saying about your business”.

So what are blogs saying about your business? In the US, where blogging has become a widespread phenomenon, blogger Eric Mattson has just demonstrated in an anecdotal survey that top US companies are much discussed. [Hat tip to John Cass of Backbone media for the link]

The UK situation is different. Athough the last few months has witnessed a huge growth in the use of community sites like mySpace, the majority of bloggers are either hard-core early adopters, or younger people. That still leaves blogs as a smaller scale phenomenon in the UK than in the US as far as most brands are concerned. Pick a UK-focussed brand like John Menzies and the comment count on Technorati is pretty anaemic. 79 comments in the database, and most cut and pasted from online news sources like Reuters and the Scotsman.

The truth is that for most UK industries the bulk of commentary happens in message boards or in other traditional sites. This kind of commentary is technically harder to get at than blog commentary (Technorati won’t be much help) but it’s also less susceptible to infestation by keyword spammers.

Market Sentinel has a number of automotive industry customers and our automotive database is comparatively light on blogs. The majority of these sources are sites which allow customers to review cars, or simply message boards. For the automotive sector at least, blogs are a rather small part of the story thus far.

This is not to say that the automotive industry shouldn’t itself use blogs to communicate with its consumer base - of course it should. And the most enterprising of the online brands are either doing this already or have plans to do so in the near future. But as far as listening is concerned, brands need to spread their nets a little wider than the blogosphere.

[Update] My colleague at our partner Onalytica Flemming Madsen draws attention to a phenomenon which can be made use of in the blogosphere today, and that is something he calls “statistically improbable links” and which we deliver in a branded form as “Stakeholder Spotlight”. That is to say - what urls are disproportionately linked to by the stakeholders in a particular topic? We have found this to be a fascinating predictor of trends and an early indication of problems. Flemming has identified that the Vodafone stakeholders are highlighting a blogger who has a complaint about data charges. For other Market Sentinel customers we have found that this functionality throws up interesting links to companies that might be considered acquisition targets, with the stakeholder group serving almost as a focus group of what might be considered cool and interesting on the web.

Charlene Li gave an interesting and wide-ranging keynote Friday morning at the New Comm Forum. She took a 30,000 feet look at social media, with particular reference to blogging, aiming her sometimes impassioned comments at a broad audience.

“Social media is all about ceding control to build the relationship with the consumer. They won’t put up with anything else, as the processing power has moved to the edge of the network, the consumer has been empowered by it.

“Look at my own situation - I can work anywhere. The rest of my team works remotely from me. I am displaced.

“What has made this possible? Cheap hardware, for one. Have you seen this $200 computer? Incredible. The impact of RSS - I don’t have to go looking for information, I can subscribe to it. It finds me. Sites like Trip advisor[travel reviews], Blogger, Wikipedia, eBay, Google and services like Bit Torrent [file sharing], the Linux operating system show this in action. Technology has moved towards the “people”.

“Like anyone, I trust recommendations from friends and family first, followed by online recommendations way ahead of other sources. Brand loyalty is declining. It is down from 59% to 54% in two years between 2002 and 2004 in Europe. It may not sound like much but 5% over two year is a major decline. The new technology has empowered communities, not institutions.”

Li mentioned as case studies some work done by Umbria about mobile pricing plans, analysing customer complaints online and using them to create a more consumer-friendly offering. She cited the website istockphoto, which derives its inventory from user-generated photos, and mentioned Burpee seeds, who have given their business a huge fillip just by shrewd use of RSS feeds of seasonal offers.

“Brands are being defined by the communities that accept them. For example on Bob Lutz’s famous GM blog, there is a Community-driven conversation about the Solstice” Li reported an exchange between commentators on the blog …

“Guy one: I can’t wait to own a Solstice: it’s a chick magnet of a car

“Guy two: What about us family guys?

“Guy one: Get rid of the kids.

“The phenomenon of Digg [tech-focussed news where the item’s prominence is driven by social bookmarks] derives from the same motive. If you are a corporation, you have to let the customers become the brand. This is what Nike ID have done with their software which lets you design your own shoes, and then encourages you to let other consumers vote for your design. Similarly with CNet, they have taken the decision to window other sites’ content

“From companies I hear from corporations a lot about the risks of ceding control - the fear that the employees and executives will say something bad: ‘We can’t have negative opinions on our site’

“But the point is that constructive criticism should be welcomed. Sure, you don’t need abusive comments, but it is better to have your brand advocates engage you directly with their constructive criticism, than have them do it behind your back. People say: ‘We’ll lose control of the brand’. I say: ‘You already lost control of the brand.’ They say: ‘People will delete the RSS feed.” I say: ‘Do you really want to send unwelcome emails, instead?’ People say: ‘We’ll get sued.’ I think those risks are easily manageable.

“So, how does your company get involved with all this? First: decide how involved you want to be with social computing. At a minimum listen to what is being said in message boards and on the blogs. Test the waters and immerse yourselves in the tools. It’s a new mindset and you are not going to get the hang of it straight away.

“Take the case of Dan Entin: he blogged that he couldn’t find his favourite deodourant (Degree Sport, as it happens). A sharp-eyed Unilever employee spotted the post got in touch, advised him on local stockists and then gave him a box of the stuff. He blogged it, naturally. That is a huge PR win for Unilever.

“I would argue that companies should focus on the relationship, not the technology. It is not so much about blogging or about podcasting … it is about the relationship with the consumer. Technologies will come and go, but the relationships will outlast them.

“For companies my advice is: start small and prove the business case. It’s a mindset: it will take some time. It took eight days to set up the small block blog. If you want to get your feet wet I would suggest that a recruitment blog is worth having. You always want to attract new talent to your company. Or at the very least ensure that your press releases are in RSS, or that when you do an earnings call you make it available as a podcast. You don’t have write new stuff necessarily. You probably have some existing speeches from executives that you can repurpose.

“The key thing to consider is to let you cusomters tell you when you are doing it right and also when you are doing it wrong. And then measure engagement, measure frequency of visit, length of stay, links. And benchmark your position before and afterwards.

“I hear about return on investment: Typepad costs me $15 a month and I have got $1m of business off it in the last year

“In conclusion: what does it all mean:

“Social computing will move into the enterprise. Wikis and blogs are perhaps even more effective internally than they are externally.

“Consumers want to create their own applications. Jeff Bezos said that Web 2.0 was all about computers talking to other computers. That makes it easier for consumers to use applications to create new applications of their own. For example you can take Google maps and overlay something else

“I predict that Community-based political systems will emerge, where people who share common views will seek out candidates to represent them.

“Finally social computing will become like air, as it becomes part of everyone’s experience, it will disappear …”

To Paris yesterday to hear the great David Weinberger, by the special invitation of Guillaume du Gardier, now with Edelman.

David Weinberger was one of the editors of the Cluetrain Manifesto and thus has a legitimate claim to be at the heart of the philosophical shift that underlies the rise of consumer-generated media, and the transition of public relations into “public relationships”.

Weinberger is now at Harvard Law School’s Berkman centre for the Internet and society. As he spoke I made some notes on my PDA. This isn’t everything he said - it is everything that he said that I thought was interesting. So not an impartial account at all - and please mail with corrections!

Weinberger:

“If you want to understand at how the internet has impacted information look at Wikipedia. It has 994,000 articles in English alone. I mean, Encyclopedia Britannica has 32 volumes and contains 65,000 articles. That’s not just because the editors decided there are only 65,000 things in the world that are interesting enough to write articles about. It is because of the sheer costs of paper and printing, and shipping books about the place.

“And the Wikipedia is not edited at all, in the conventional sense. No single person decides what’s in or out. Famously, there are articles about the use of the umlaut in heavy metal - something that would never find its way into a conventional encyclopedia. The Wikipedia approach to knowledge management is that the originators don’t manage it at all. They allow people, members of the public to decide what’s relevant, and what’s not.

“What the Wikipedia is to knowledge management, the blog is to personal expression. Everything is allowed. Tonight, though I would like to talk about what a blog is not. A blog is not about advertising …”

Weinberger used the Wrigley’s Juicy Fruit blog. He pointed out that this was not a blog in any meaningful sense of the word. It was not a true expression of someone’s experience. It seemed to revolve around two people arguing which of them liked Juicy Fruit more.

“I mean - even the guy from the advertising agency doesn’t like Juicy Fruit that much … Anyone from Juicy Fruit, here? No. Good. I mean, come on.

“A blog is not about cats. I hear that a lot from people in marketing. People blog about their cats, right? In fact one of my neighbours in Boston really answered that the other day. If I want to blog about my cat, who are you to say that I can’t do that. I should be able to blog about anything that interests me. And in fact, there are many blogs about cats. But that is not the point. A blog is about whatever I want it to be about. It is my agenda, and not yours.

“A blog is not about journalism … although some journalists blog and some bloggers are increasingly being hired as stringers by the news media. The worlds of blogging and journalism overlap, but they are distinct. Bloggers distrust journalists because they suspect them of being corporate whores serving some kind of hidden agenda from the news organisation’s proprietor. Journalists distrust bloggers because they suspect bloggers don’t check their facts (right! and newspapers do, I suppose?) and that they are single issue merchants and cranks.

“Blogging is not about 1 to 1 marketing. 1 to 1 marketing in blogs often doesn’t work, because one of the 1’s isn’t really a 1. It is a big corporation. How can I have a conversation with Wrigley’s, or with Ford? The fact is that blogging is about a conversation. Blogging is a new social space. My weblog is me. It is my body in the new public space.

“One of the key things about blogging which distinguishes it from the stuff that’s gone before - the marketing messages on the one hand, and the conventional journalism on the other - is the freedom to write badly, the freedom to make mistakes. Making mistakes is a sign of authenticity. It is a sign of being human. Of course we are all going to make mistakes. It establishes intimacy. And on the internet pretty good may be good enough. “

Weinberger went on to talk about links:

“Links are little acts of generosity. They are saying: don’t stay on this site, visit this other site. The web is based on links. The web is links. But look at the home page of the New York Times (registration required). It only links to itself - oh, and to advertisers. Journalists talk about bloggers being narcissistic. That’s narcissism. The New York Times home page.

“In the old model, businesses thought of themselves like a fort. They controlled their brand, they released only the information they wanted. But now the fort has holes in the walls. People are having conversations about those companies that the companies can’t control. The fortress business model has been overtaken. Now our customers know more about our business than we do. And the customers trust other customers to tell them about our business more than they do the marketers. You cannot control your customers by the selective release of information. Customers are not there to be managed. We trust Google, craigslist, Robert Scoble and Jonathan Schwarz because they are there for us. They are for us.”

Weinberger talked about Howard Dean’s election campaign, which he was involved with as an election strategist.

“The thing that characterised the Dean campaign was its openness, the sense of involvement that it generated. And typical of that was the way that they got this 31 year old kid Matthew Gross blogging. Traditionally the campaign messages are tightly controlled by the candidate and by the press officer. This time Matthew Gross just blogged the whole campaign, talked about it the way he saw it. It caused a sensation, got huge buzz.”

Weinberger on branding:

“Branding - as a metaphor - is drawn from what you do to a cow with a red hot iron. And that is still - mostly - the way it is done. Branding is done by someone to your customers, the way you might brand a cow.

“And yet business is evolving. You start with brand and you move towards the idea of reputation and then the idea of relationship. That means that every business is going to be involved in blogging one way or another.”

Weinberger on trust:

“Blogging is best - or at least very good - if taken internally. The blogosphere operates as a vast, amorphous focus group - a defocus group. It creates a sense of trust. I feel that this is my company. That is like the relationship I have with Google. I feel that Google is my company, although I don’t own stock. “

What should companies do?

“Public relations needs to turn into ‘public relationships’. Companies need to listen, to audit, to engage, to give up control to their employees. Companies need to develop a blogging policy - not rocket science, just saying that blogging employees need to observe the same standards as anyone else - keep corporate secrets, don’t run down the corporation. Fundamentally companies must try to sound like a human being, to be like a human being. Engage, don’t defend, be transparent, and link, link, link, link, link. “

What mistakes do companies make?

“You don’t know more than your customers. Your customers know more than you. Don’t be boring. Take risks. Blogging is about opportunity, about connectedness, about breaking down the walls.”

Weinberger then fielded a few questions. What would he say to corporations who worried about loss of control:

“You would better ask: do you want people to talk about you? That is the question. If you do, you should blog.

“Thinking we were in control was magical thinking, it was delusional. People have always talked about us, we were just deaf.”

We are working with a customer in the automotive sector looking at commentary in both message boards and blogs. It has brought out some interesting characteristics of web users. The volume of commentary in blogs is somewhat lower, and that in message boards somewhat higher than we had anticipated.

I am not aware of any research which compares blog-writers with message board contributors. It seems to us that there are distinct contrasts. Bloggers tend to solitary, opinionated, contrarian, message board contributors are friendly, clubbable and consensus-seeking. Bloggers are cats and message board contributors are dogs. Not very scientific, I know. I am always quoting some Delahaye research which showed that 23% of blog comments are negative and only 11% of message board comments. Previously I had assumed that this was because of the nature of the conversation. The blog is a monologue (with interjections) and the message board is a dialogue, or even a public meeting. Now I am beginning to think the differences go deeper.

We will look for chapter and verse.

An excellent article in Red Herring reporting on work by Umbria in Boulder, Colorado, draws attention to the increasing problems posed by spam blogs or splogs. Apparently spam bloggers have targeted 44 out of the top 100 brands.

This problem has vastly increased in severity since September/October 2005 when the blog spammers seemed to change their game. It is worth pointing out here that blog spam differs from email spam. Email spam is chiefly aimed at getting the recipient to visit a website, or engage in a transaction. Blog spam is partly about that, but to a greater measure it is about ensuring that the spam site appears in search results for a popular topic. It might also be useful, once it is has succeeded in gaining search engine authority on a particular topic, in lending that authority to a legitimate business which is trying to spoof its own way to greater search engine prominence. We will write more about this topic in our forthcoming white paper, a sequel to our “Measuring blogging influence”.

But back to the spam bloggers: previously they had tried to boost the traffic to their sites by posting direct links to gambling and poker sites. From mid-Autumn onwards we noticed increasingly that product names (cars, mobile phones, broadband suppliers) and common search terms were being systematically targeted, often in the context of material which might itself be returned in response to common searches.

This strategy suggests a return to the bad old days before Google, when search prominence could be (and was) spoofed. The retrospective results in Google are still reliable, but live results (and this business is all about live results) are polluted by junk returns.

The immediate problem from our perspective and the perspective of anyone in the corporate intelligence business was simple: how did we maintain the integrity of our live blog search results in the face of this issue? If you are searching on “product name” + keyword, and that product name is suddenly the target of spammers, you are screwed.

In the article the research group Umbria announces that it is pinning its hopes on a linguistic approach, hoping that the spammers will betray themselves by using characteristic patterns. It is an approach that is definitely worth trying. However, Market Sentinel’s researchers find that spam blogs are cunning at reusing genuine content, and that oftentimes you cannot identify that a blog is a spam blog until you have clicked through from the search return to the blog posting itself. This kind of disguise means that any algorithmic filtering is likely to be hard to implement. If a human being cannot spot a fake blog, what chance does a machine have?

For our customers the key question is: is this result important? Is it relevant to me? We have established that the best approach is to filter all our results by the writer’s relevance to a particular issue, using an algorithm developed by our partners at influence-specialists Onalytica to assess the writer’s influence on a particular issue, and then highlighting the most relevant returns in the results we provide the customer. This approach ensures that any spam-polluted result can be eliminated, saving time and server space. It also helps to create a more valuable monitoring service, since you are highlighting only those commentators who are authoritative.

I thought I’d wait until my return from Paris to write about the fantastic international two-day Les Blogs 2.0. (Though I have to admit that I’m feeling a bit inadequate here, having watched many of the other participants simultaneously blogging, chatting on irc and paying attention to the excellent speakers and panels.)

Highlights for me included the panel on Citizen Journalism and mainstream media. I particularly enjoyed hearing about Marcel Reichart’s experience at Hubert Burda Media. The visionary Burda apparently sees building and interacting with audiences as key to the future. The company uses blogs to support the online version of Focus, the popular German news magazine, which now has now has nearly a dozen blogs with daily and weekly contributions from staff and external contributors. Celebrity blogs also seemed a perfect match for entertainment mag Bunte.

Elizabeth Albrycht led a panel discussing RSS, and, it turns out, the panel’s anticipation of the imminent demise of RSS as an entity in itself, as it becomes accepted as mainstream and integral to the web.

The panel on which I sat, Tracking/Listening to the Online World, was a lively session. Guillaume du Gardier’s introduction referred to Market Sentinel’s new white paper, which for the first time sets out to prove the influence of blogging on corporations, using Jeff Jarvis’s Buzz Machine “Dell Hell” and Dell as a case study. While Jeff Jarvis’s status as a journalist would probably have assured that his poor experience would have given rise to some print exposure of Dell’s failings in this instance, the fact that he blogged it - and his cause was taken up by other bloggers with similar experiences - can now be shown to have a strong influence over Dell’s reputation for customer service.

Technorati’s David Sifry gave a powerful account of his vision for a ‘conversation stream’, up-ending the conventional analogy of the web as a ‘library’ with page ranks and indexes, and seeing hyperlinks not so much a link between documents, but as a form of social gesture. Yahoo! Europe’s Yan Motte also shared information about some of the innovative tools coming our way, including Yahoo! Mindset, a search tool which will allow us to determine the degree to which our search returns focus on transactional or research-based sites.

Ben Hammersley gave a fantastic talk about his ‘Eight ideas that will really revolutionise the 21st century’. Glad to have been there.

There are now around 3,500 photos tagged Les Blogs on Flickr. I’m told I’m the one looking poised and intellectual - see if you can spot me!

An article in the New York Times (requires free registration or use Bugmenot for a one-time password) profiles how Wal-Mart have taken on their detractors with a pro-active PR campaign, run by a number of ex political campaigners.

The PR campaign emphasises the Wal-Mart positives (good value, local employment) and looks to off-set a campaign of detraction from pressure groups like Wal-Mart Watch, run in part by trade unions who oppose the company’s employment practices and who cannot get recognition from the company. (Note their website’s heavy use of email newsletters, syndicated news, its blog and comment pages) The trigger is a new documentary entitled “Wal-Mart: The High Cost of Low Price” by Robert Greenwald. The documentary looks systematically at Wal-Mart negatives - the effect on smaller local businesses of a Wal-Mart opening up, their healthcare policies and employment policies.

Key quotes:

A confidential 2004 report prepared by McKinsey & Company for Wal-Mart, and made public by Wal-Mart Watch, found that 2 percent to 8 percent of Wal-Mart consumers surveyed have ceased shopping at the chain because of “negative press they have heard.”

To keep up with its critics, Wal-Mart “has to run a campaign,” said Robert McAdam, a former political strategist at the Tobacco Institute who now oversees Wal-Mart’s corporate communications. “It’s simply nonsense for us to let some of these attacks go without a response.”

The impact of the negative sentiment in slowing Wal-Mart’s growth is a classical demonstration of Frederick Reichheld’s net promoters theory. This theory maintains that as the proportion of your detractors grow, your growth is curtailed and that a decline in your net promoters index (the number of your promoters minus your detractors) is strongly predictive of a stock price decline.

It would be interesting to track the impact of Wal-Mart campaign, which is run by Edelman on Wal-Mart’s online net promoters index.

Thanks to Flemming Madsen of Onalytica who suggested we blogged this.

Forbes magazine has devoted a sensational cover story to bloggers who set out to damage people and brands. Since the piece itself is password-protected, here is how it kicks off:

Web logs are the prized platform of an online lynch mob spouting liberty but spewing lies, libel and invective. Their potent allies in this pursuit include Google and Yahoo.

Blogs started a few years ago as a simple way for people to keep online diaries. Suddenly they are the ultimate vehicle for brand-bashing, personal attacks, political extremism and smear campaigns. It’s not easy to fight back: Often a bashing victim can’t even figure out who his attacker is. No target is too mighty, or too obscure, for this new and virulent strain of oratory. Microsoft has been hammered by bloggers; so have CBS, CNN and ABC News, two research boutiques that criticized IBM’s Notes software, the maker of Kryptonite bike locks, a Virginia congressman outed as a homosexual and dozens of other victims–even a right-wing blogger who dared defend a blog-mob scapegoat.

Forbes’s writer Daniel Lyons point out that first amendment rights protect many writers who are simply out to settle scores, or in the case of “Pamela Jones” - the writer of Groklaw - take a partisan line on SCO’s case against IBM over Linux. Lyons suggests that Jones may be an IBM mouthpiece.

The article is written in a sensational flack versus counter-flack style, but both it and the indignant response from bloggers are worth a read.

(via Micropersuasion)

Dell used to have a reputation for quality, convenience and price, combined with peace of mind, thanks to their expensive, but reliable customer support. They made an emotional connection with the PC buyer.

Their recent woes are again highlighted by Business Week. This is more than a “PR” or even a “Customer Services” story. Dell have lost the emotional connection with their buyers due to their failure to deliver on their promises. Blogger Jeff Jarvis has been instrumental in bringing to wider notice a systematic and deep-seated malaise in Dell’s quality assurance and customer service. Plenty of people had issues before Jeff did, and continue to have them today. Read the comments at the bottom of the Business Week story for evidence. Jeff was simply responsible for bringing the issue in front of the mainstream media. Here at Market Sentinel we are quick to bang the drum for blog monitoring, web watching and encouraging companies to use the right tools to respond to PR issues, but in this case to reestablish the emotional connection they have lost Dell have to fix the problem of underdelivery first and then talk about it in the blogs and the forums.

It is significant to note that Dell’s stock price is down, due to stalled growth. The weight of negative commentary coming out of messageboards and blogs has yet again proved to be a reliable leading indicator of stock price. If you would like to benchmark your own company or someone else against its competitors contact us to hear about Market Sentinel’s “Net Promoters” index - based on the work of Frederick Reichheld - we can help you establish whose stock you should be buying, and whose you should be selling.

Mark Rogers is interviewed by Guillaume du Gardier of Blogging Planet in a podcast about online visibility, brand auditing and benchmarking, and brand response.

Ross Mayfield from Social Text organised London’s inaugural Wiki Wednesday last night.

It was a chance for enterprises using Wikis and specialists in blogging and corporate communication internal and external to get together over some cold drinks. Dresdner Kleinwort Wasserstein were the enlightened hosts. Ross Mayfield talked about how Social Text had parlayed their understanding of how enterprises needed to set up internal comms into a promising business and discussed how companies can be comfortable with open source technology solutions as long as they have enterprise-level support. Stuart Berwick from DrKW (a Social Text client and evangelist) talked about interesting applications of folksonomy in managing client relationships. We talked about TiddlyWikis, toasting Jeremy Ruston in his absence. Johnnie Moore talked about protecting brands from the impact of sustained negative blogging. Suw Charman talked about working with Danny O’Brien on her DRM initiative … and by that stage the evening was seriously but enjoyably off-topic.

The idea is to repeat the event on the first Wednesday of every month.

We launched our “Search is Brand” whitepaper at the end of June, discussing how customers experiences of brands was increasingly dictated by search - and pointing out that the search gives a lot of prominence to detractors. Our means of publicising the white paper was to blog it, and to email the key opinion-brokers such as Steve Rubel, Shel Holtz, Neville Hobson, Elizabeth Albrycht, Rok Hrastnik and Guilllaume du Gardier. We also talked to our good friends at New Media Knowledge, e-Consultancy and Net Imperative. The cash budget was zero (although it helped to know who the opinion-brokers were).

Prior to the publication of the white paper the “Search is Brand” search on Google turned up citations like “Yahoo search is brand new” in about 50-60 results. As of Thursday 11th August 2005 there are 846 results. 90% are references to our white paper. This process has taken six weeks. References are growing geometrically - when we checked on Monday the number of results was 737.

Our experience suggests that if you if you identify a unique idea or “meme” and decides you want to colonise it, blogging is a highly effective way to do so.

Conversely, although the white paper received coverage in PR week and Campaign, the influence of coverage in these publications was far weaker, partly because the journalist, writing in an offline format, didn’t link to us or use our exact terms, and when the article was published online, it tended to be cut and pasted, again without links or keywords.

To spell out our conclusions (at the risk of stating the obvious):

1) blogs offer you total control over your message and keywords;

2) blogs reward other bloggers for reusing your words and keywords because a) it is easier to link to something than copy or paraphrase it, and because b) linking offers a fellow blogger a chance to associate their comment with the original material and boost their own traffic;

3) off-line media tends to weaken your message because a) they paraphrase it, and b) they choose keywords reflecting their own agenda, and because they are off-line;

4) the combined effects of a number of different sites using the same keywords to link to your site powerfully impacts your Google algorithmic ranking on the message and keywords you have chosen.

via Noisefilter. Larissa Bannister reviews the threats to brands from bloggers in a Campaign article, mentioning Market Sentinel’s work to monitor this and to help companies deal with it.

Online PR gurus Shel Holtz and Steve Rubel have linked to our white paper Search is Brand dealing with the influence of online detractors and methodologies for coping.

Rubel suggests that one way forward is pointed by CommonCraft who deliberately targeted a #1 Google slot for “weblogs and business” and achieved it. Commentators on Micropersuasion suggest that this approach becomes more difficult the larger your brand is.

This is true, but Search is Brand shows that you can target smaller search phrases successfully, even if you are a big brand - like Madonna! The report shows how she could optimise her website if there were rumours of marital problems with Guy Ritchie, for example.

To take a theoretical example, Madonna might want to optimise her web site for the phrase ‘Madonna and Guy Ritchie divorce’, and point people to positive content on the site that emphasises how happy she and Guy are, having recently renewed their wedding vows. Then, should the marriage hit the rocks, and more people start making the search ‘Madonna and Guy Ritchie divorce’, the site content can be updated to give her side of the story ahead of the celebrity gossip sites which might not be so positive and promoted via the paid-for listings.