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1-Page Summary of Groundswell

Join the groundswell or get drowned in it. On YouTube, you can watch videos of Blendtec CEO Tom Dickson dressed in a lab coat and using the company’s blender to pulverize mangos, cypress (wood), hockey discs and other items. He even liquefied an iPhone, which he called “iHumo!” People have watched those popular videos more than 60 million times; they’ve gone viral. Sales at Blendtec have increased 20% since George Wright came up with the concept for the video on YouTube.

Lego, a company that makes plastic toys for children, also makes good money from “AFOL: adult fans of Lego”. This loyal customer group represents 5% – 10% of their sales. The adults who like Lego gather and network online via LUGNET, the Lego fan club network. Fanatical members of this Lego universe buy lots of these products. Legos, Blendtec and many other companies are taking advantage of social media online. These constitute the groundswell force which has immense power and an enormous impact on how companies operate, market their products and relate to customers. Companies used to control their own brands. Now consumers who are active in social media define brands and products through connections, conversations, criticism, blogs, videos… etc. Businesses analyze this traffic to see how people use social media to connect up and interact in order to get the information they need so that better decisions can be made. Of course it includes data about what offers really help them out.

The groundswell effect is a social trend in which people use technology to get what they need from each other, instead of going through traditional institutions like corporations. Some examples of the groundswell effect are YouTube, MySpace, Helium, Facebook and all the other social networking sites, tools and applications that link up and empower people in amazing new ways. The groundswell world gives companies unique opportunities to develop rewarding relationships. However, some companies don’t take advantage of them because they’re afraid of losing control over their customers. The sooner businesses adapt to the reality that Web puts consumers at the forefront, it will be better for them. Those who don’t adapt won’t survive.”

Companies should take advantage of groundswell. How can your company leverage this effect in all kinds of activities, including business-to-business companies? First, focus on the relationships that produce it instead of its mechanics. Create a following by connecting with people through conversations that evolve. Notice how they use “groundswell” technologies, including:

  • People who create: blogs, user-generated content and podcasts—There are many tools that people can use to publish their own content. They can start a blog, upload videos to YouTube or similar sites, or distribute their audio or video programs through iTunes by Apple or other similar sites. To take advantage of these new tools, read blogs, watch videos and listen to podcasts so you know what people say about your company. Then begin commenting and publishing your own content on the Internet.

  • The best way to learn about social networking is to join one. Once you understand how they work, create a network for your company or clients.

  • People who collaborate: wikis and open content are the main examples of this type of tool. Some companies use wikis to internally collaborate on group projects with employees.

  • “The People Who React to Others: Online Forums, Opinions and Reviews” – Online forums and product reviews are everywhere. The feedback is useful because it tells you what people think of your company and its products.

Groundswell Book Summary, by Charlene Li, Josh Bernoff