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SignonSanDiego.com,
May, 2005

Companies tap into trendsetters

Input from cutting-edge customers finds way into products

BY KATHRYN BALINT

High-tech companies are looking beyond consultants and focus groups for advice on their products.

They’re turning to their loyal and often tech-savvy customers for suggestions on how to make their software or gadgets better. These customers are considered “influencers” because they’re trendsetters who are sought by friends and family members for advice.

“People are looking to people they know for information,” said Deirdre Davi, senior vice president of strategy for Sterling Brands, a marketing consulting company. “They always have one friend that’s the techie, one friend that’s the fashion geek. They’re looking to these people as their influencers. Every company can find these influencers and utilize the information from them.”

And, increasingly, companies are heeding the advice of these cutting-edge customers.

Software giant Microsoft scours books, message boards on the Internet and Web sites for individuals who are exceptionally well-versed and helpful to others in answering technical questions about the company’s products. In addition, the company accepts nominations for its elite group of insiders known as MVPs, which in Microsoft’s parlance means “Most Valuable Professionals.”

Each year, a new group of MVPs is recognized. This year, there are 2,600 MVPs in 81 countries, each with an expertise in one of Microsoft’s 75 products or technologies.

“These individuals are recognized as very important or heroic, in some cases, to many customers out there,” said Sean O’Driscoll, director of Microsoft’s MVP program and technical communities.

The MVPs are flown to Microsoft’s headquarters in Redmond, Wash., where in closed-door meetings they get peeks at products in the works and are asked for their thoughts.

MVP Scott Mitchell, a Pacific Beach consultant, trainer and writer whose expertise is Microsoft’s Web development tools, said many of his colleagues don’t mince words.

“In one sense, the people that are MVPs are very vocal and are not afraid to say what they’re thinking,” Mitchell said. “If there’s something Microsoft is not doing right, they’ll call Microsoft on it.”

Last year, when Microsoft set out to release an update that allowed its software for Tablet PCs to be used in foreign languages, MVPs chided the company for sending the update only to retailers. The MVPs complained that customers who already have Tablet PCs would be limited to English only. In response, Microsoft made the software available to everyone on its Web site.

Microsoft also credits MVPs for improving its search folders and junk mail features in its Outlook e-mail program.

“There are many examples of situations where suggestions from the MVPs end up being learning opportunities that really do change Microsoft’s products,” O’Driscoll said.

Much like Microsoft’s MVPs, Intuit has the TurboTax Inner Circle.

Scott Gulbransen, spokesman for Intuit’s San Diego office where the popular tax-preparation software TurboTax is made, describes the Inner Circle as “an internal roundtable of customers.”

“We have ongoing dialogues with them and they are in constant contact ith us,” he said. “They’re influencers, and they have a wide net of people they communicate with. We use them to really find out what’s going on out there.”

Mark Lindsey, a businessman from Encinitas, has used TurboTax for 15 years. As a member of the Inner Circle, he has answered e-mail questionnaires from the company and has beta-tested TurboTax software.

Aside from a T-shirt and coffee mug, Inner Circle members receive no remuneration.

It sometimes takes some effort for companies to identify the kind of savvy customers they need to offer valuable pointers about products.

Kyocera Wireless, a San Diego maker of cell phones, hired Sterling Brands to help.

Sterling interviewed 600 cell phone users to pick out the influencers from the rest. It used a series of questions, such as “Do your friends or colleagues ask you about wireless phone purchases?”

Specifically, the company looked for people who are inquisitive and open to new experiences, who are seen as experts by others and who stay on top of trends.

“It’s more about finding what people in your own group perceive you to be an influencer,” said Davi, Sterling’s senior vice president of strategy.

In the past three years, Davi said, the nature of the influencer has changed. No longer are they necessarily celebrities or trendsetters who frequent chic clubs in New York or London. Advertisement.

“Increasingly, it’s someone you know through a friend,” she said.

Today’s influencers also gain status through expertise in a specific area.

“The reason they’re an influencer is that they care about that category, they find it entertaining and they have done their homework,” Davi said. “They’re using the products and are leading the way. But they probably aren’t on the leading edge in other areas. The definition of the all-around influencer or all-around trendsetter doesn’t apply.”

Mad Catz Interactive, a San Diego maker of video game accessories, sought experts when it was designing its new line of controllers.

It needed advice on what to do with one of the controller buttons. Should the button be a “macro” button, in which game players can program a specific set of commands, such as run, jump, shoot or run? Or should it be a “turbo” button, which boosts the players’ speed?

The company sought avid game players (and Mad Catz customers) who frequent the company’s GameShark.com Web site.

“We don’t work with, say, a traditional focus group,” said Randy Lee, senior manager of online for Mad Catz. “One of the nice things about having GameShark.com is that a lot of our customers are on there. It’s a really good way for us to get feedback from them. Most of the people on there are hardcore gamers, and they’re very anxious to give us feedback anytime we ask for it.”

In the case of the controller button, 97 percent of the experts wanted a turbo button.

As a result, all of Mad Catz’s new controllers now come with a turbo button instead of a macro button, Lee said. And for Mad Catz, having the right button on a controller can translate into more sales.