Although I originally submitted a variation of post below as an entry for the Social Business Edge 4×4 Slam, I’m fairly certain the presenters for the event have been picked, and this particular entry wasn’t selected.

That’s okay. It just means I get to share it with you sooner:

Rethinking Product and Brand

Product has historically been branded as a combination of physical properties, supporting service, and symbolic value: the Lexus has leather seats, is covered by a substantial warranty, and perhaps above all else, is a symbol of status.

The commerce that’s followed has been built on quid pro quo transaction—a product made up of attributes, service, and symbol in exchange for capital. But in social business structures, it’s my prediction that this type of mechanistic exchange will no longer be the primary goal of business operation, but instead one intersection of shared time and meaning.

If connection to other people will replace our reliance on search to filter meaning, Bruce Sterling was right: networks will become engines of meaning.

But really, networks both online and off have always been engines of meaning—to be human is to be an agent of meaning. The creation and assignment of meaning is every bit as ubiquitous in the holy texts of the Torah, Bible, and Koran as it is in a fleeting exchange of a few tweets.

A cluetrain throwback

If markets are conversations, then meaning is the currency of social exchange.

The shift away from an economy based solely on the currency of products and dollars means that relationships companies have with their customers must transcend the industrial notion of customer relationship management (CRM). As a “management” tool, CRM exists in most cases to suck as much money from consumers as possible. This type of abuse will not be tolerated by social ecosystems.

The value of meaning exchange

As increasing connections facilitate streams of meaning flowing in and from social networks, we must stop pandering to the fickle attention spans of consumers.

Instead, acknowledging the non-transactional value of meaning exchange, we must rethink product creation all together. Our products will no longer be a judged on physical, service, and symbolic values alone.

Their value will also be determined by their ability to facilitate the creation and transfer of meaning.

Some may say this is an extension of a product’s symbolic value. I disagree. The fundamental question symbolic value asks is, “how do we leverage the interests or desires of some benefit segment in the market?” Nike doesn’t sell shoes. It leverages every teenager’s desire to fit in by selling cool.

The fundamental question social value asks is, “how and to what degree does my product enable my customers to come together, connect, and share meaning through some common task or conversation?”

Shifting focus

When we place our focus on increasing the social value of our products, transaction becomes secondary to enabling meaning transfer. Because the value of products will be communicated through every conversation they enable or support, the primary message to customers will no longer be “buy,” but “connect.”

The paradigm is shifting; conversations are already taking place. It’s our job now to create products that support them.

Your thoughts?

I’d love to know what you think about the economic consideration of meaning in the future of business.

-Andrew

Image credit: jhritz on Fickr; see original for copyright info

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keywords: Brand, product, social business

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