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Invest in infrastructure not doggy bowls

Interesting times in the UK retail banking industry.  The public consider the banks to be pariahs; cue a number of new entrants to the market.  Virgin, Tesco, the Post Office, Metro Bank, the one thing they all share is the focus upon the customer experience that is perceived to be broken with the established players.

At Metro Bank, the customer is king and our goal is to reinvent British banking by building fans, not customers.”

The concept of a bank seeking ‘fans’ rather than customers is very ‘of the moment’, it speaks to the marketing buzz on all things social, to a world where ‘Facebook will rule the Web during the Next decade‘ (indeed where once all journeys started with google, now they are just as likely to start on Facebook with Facebook now surpassing google in daily traffic).

So what does it mean to strive for fans rather than customers?

Let’s leave aside the dictionary definition of a fan “an enthusiastic devotee, follower, or admirer of a sport, pastime, celebrity, etc.:” (an enthusiastic devotee of a bank? Now that’s a stretch goal) Or the fact that it’s origin is a shortened term for fanatic (what are the consequences for having customers with unquestionable loyalty when you evolve and want to do things different? Will MetroBank one day have a Glazer Manchester United moment?!)

Placing the customer at the heart of everything you do is more than just the shiny stuff at the front of house.   “A friendly welcome to dogs and their owners, with water bowls and dog biscuits on hand for man’s best friend – dogs rule at Metro Bank!” said the bank’s announcement.   It is more than paying lip service to a social media strategy (Rentokil thought they could get all social without taking their traditional PR along on the ride – see what happened).  It is about having the right infrastructure in place; robust systems and flexible processes.  It is about investing in the unsexy stuff that rarely sees the light of day, because if you don’t do this things will inevitably go wrong.  When the bank upsets a customer because the systems don’t allow the customer to do what they want, or make a mistake, perceived or otherwise, no amount of doggy bowls and seven day opening hours are going to get around that one.  Metrobank and the new entrants are well placed to avoid too many of the issues that the incumbents face when trying to be truly customer centric, but they will be doing themselves no favours if they don’t place as much emphasis on the back end systems that the marketing team don’t see or understand as much as the shiny stuff in the branches.

Twitter will be bigger than porn

I started using the internet in 1991, I returned home from my first term at university buzzing about this thing that allowed me to talk to people the other side of the world in open conversations and to send ‘electronic’ mail to folk who were also connected. And it was all free. My friends back home weren’t convinced or impressed, “Yeah but someone’s got to pay for it… I don’t see the point of it… whatever”. So I buzzed on Usenet news and ELM and Gopher in my university bubble and the nascent growth of the internet largely passed these guys by. Until 1998 when I returned home from Ghana and a particular friend had got a computer, and the internet, and he was hooked. The internet had finally reached him. And for him the internet was porn.

If the internet was briefly kidnapped by ‘eCommerce’, it is finally reclaiming it’s roots as tool for connecting people. This is the social age and this is where I return to the above mentioned friend. Email and mySpace and Facebook have largely passed him by. He recently connected with me, but not by any of the more established social networking tools, but by Twitter. And I think that is significant. People who have “not seen the point” will start to get it, the traditional media right now is full of Twitter. Facebook have realised this and have opened up their status as a challenge. Maybe not bigger than porn, but this year will certainly be the year of Twitter.

Enterprise twittering

I’ve been interested in Twitter for a while now – it is probably one of the flagship web 2.0 innovations, (and its Ruby on Rails). But I’ve had a problem with it; I can’t answer the question “what’s in it for me“. What is the point of Twitter? I signed up a while ago and invited a few friends, but the responses were generally along the lines of “what’s wrong with FaceBook status” (one tweet read, “[name] doesnt understand how this is any different from his IM or facebook status). This is a good question. Instant messenger can change the way an enterprise communicates – what’s wrong with IM? Why not put your status alongside your IM ID? Staying with the enterprise theme, you can’t walk into an investment bank without seeing someone scanning their blackberry. Why would an enterprise need Twitter when eyes are glued to the ‘berry?JP Rangaswami has been blogging a series of articles on Twitter – I commented on one post asking these sorts of questions. In a follow up blog, he has answered my questions. I’m beginning to see the point of Twitter – more to the point, when I’m talking to clients about enterprise 2.0, I’ve got a more compelling Twitter story to tell. So (borrowing from JP), why Twitter?

1. Publish – subscribe. Unlike email where an author publishes a note to a group of people she feels will be interested in it, with Twitter people can choose whether to subscribe to what the author writes. If they like what they read they can continue to consume the ‘tweets’. But how is this different to subscribing to a newsgroup? With a newsgroup you can only select to subscribe to the topic, not the author. Unless you use some clever filtering, you can’t choose whose words you read. And filtering takes time and is rarely straight forward; bringing on the second point for Twitter…

2. It is easy.

3. It is multi-device. Not only do I choose who I receive tweets from, I choose how I will receive them – via SMS, email, rss etc.

4. It is succint – 140 characters is not a lot of words to write with

Anyway, an enterprise example…

Today:

Jack Fiction knows something – he’s learned a great insight about a potential client. He sends a mail to people he thinks might be interested in this insight. He includes a copy to the Business Development email interest group that was set up by IS
– It is a closed circle. People not on the cc list will never learn of the insight.
– It doesn’t mean anything to them at that time. They delete the mail. It has no history.
– Many interested people are not on the IS email list
– People who are no longer interested still get sent mails to the group.

Twitter:

Jack knows something – he’s learned a great insight about a potential client. He tweets about it.

– It is public
– It has history

Jack doesn’t need to think who will be interested in what he writes; people who value what he does subscribe to his Twitter. They can see an archive of his previous tweets on his Twitter space. If they no longer want to listen to what Jack says they unsubscribe – the UI is elegant and simple.

This model assumes thats people interested in the insight know Jack in the first place, but that is generally the way that social interactions work. Let people communicate between themselves – it is far easier to choose who you want to listen to, to who you want to talk to. And in doing this it is far easier to cut out the noise.