The Focus On Customers In Web 2.0
Posted by Goody on 06/27/08 in Computers and Technology
In the first phase of the evolution of the internet, customer input, such as reporting bugs and glitches, enhancement requests, and complaints were an important part of software development that was largely ignored. The Service and Support Professionals Association (SSPA) commented on this trend, calling consumer input “just lines of code” that were “easily ignored.” However, with customer frustration at an all time high and brand loyalty at an all time low, for-profit companies have a new focus on customer loyalty.
Labeled as Web 2.0, this trend to actually listen to the consumer’s desires is helping to boost falling sales and satisfaction levels. Companies, such as SAP, are trying to create user communities and ecosystems to make collaboration easier and more efficient. When consensus about a product glitch occurs in an online forum among many users, it will be much more difficult for companies to simply ignore their users’ requests, the standard mode of operation in Web 1.0.
SAP is specifically trying to learn from and borrow trends in the open-source market. Open-source companies and communities organize around specific projects, engaging their customers and partners in a mutually beneficial relationship. SAP created what it calls the “Customer Focused Ecosystem.” In this arrangement, mentors guide new users through learning how to use the software. As this occurs and users become more skilled in the software, they come up with ideas for enhancements, plug-ins, and templates which can be added back into the software, improving the experience for all involved.
This new market model of SAP differs in several ways from their old mode of operation. Not only are partners engaged in the process of software development and use, but customers and peripheral companies are also included. Additionally, SAP encourages relationships among its stakeholders, thereby building a stronger network for all involved, rather than isolated, professional relationships. If the old business model was “build it and they will come,” then new motto is “the customer is king.” After this change of attitude, SAP experienced positive customer reviews and increased customer activity.
The importance of the paradigm shift SAP adopted from open-source software, with its focus on the user, cannot be overstated. For businesses to succeed in Web 2.0, it is important that they listen to their customer rather than ignore the complaints and requests of the people who use their software. If you are interested in learning more, this website about open-source nonprofit software can provide helpful information about the free software business model.
Joseph Devine
Tags: free software, open-source, OSS, Web 2.0
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