The Road to Dell: Part One

Unlike Jarvis, my journey on the road to Dell didn't start as a customer—it started as a blogger.  On February 27, 2007 I received the following comment on this post from "RichardatDell"

"Hi David Enjoyed reading the dialogue here about keeping up with the real world versus the omnipresent school demands. Thought your talk at Loyola sounded like a good one. As you point out Jeff Jarvis and Dell are certainly integral case studies to be learned from....in the same way that we at Dell learned. Not sure there is any specific roadmap. Certainly we learn everyday from our conversations at Direct2dell; around the blogosphere; at StudioDell; in SecondLife;Michael Dell's meeting with bloggers at the Consumer Electronics show and at Dell's IdeaStorm...and all of that is leading to exciting new chapters for us as we engage direct with customers using various digital media. Should you ever want more detailed information about our journey beyond Dell hell, please let us know."

At the time, I was working with Digitas (full disclosure, Dell is a Critical Mass client).  Like many other participants in social media, I was taken back by Richard's willingness to engage and even acknowledge things I was saying in my post.  Months later, I featured several of Dell's initiatives in a Webinar I did for Marketing Profs. Out of all the mega companies of the world, it was pretty amazing to see one tapping into several "2.0" initiatives all at once, including Direct2Dell, Ideastorm, and Studio Dell to name a few.  Not to mention their presence in Second Life and Twitter.  So intrigued was I with Dell's initiatives and willingness to engage folks online that I included their efforts as a pillar in my BusinessWeek article titled "It's The Conversation Economy Stupid"

So what am I doing in Austin?  To be honest, I really don't know exactly.  I've been invited here at the co-request of Richard Binhammer and our Dell client.   I've disguised my Mac (see picture) as it's been made clear to me that the safety of a non Dell laptop cannot be guaranteed down here at Dell HQ.  And yes—I really did buy that cowboy hat.  I'm wearing it now in fact (sorry, no boots).  But you can see me in the hat over at Richard's place.

Tomorrow I'm going to be involved in several meetings that will last most of the day.  I'm not really sure what to expect.  But after having dinner I can tell you this.  The folks at Dell aren't satisfied and want to do even better.  They're hungry.  And here's something else I want you to chew on (pun not intended).  I spoke with the head of their communications group—they guy responsible for many of the community initiatives and it was clear that Dell has been nearly obsessively engrossed in this space since early '06.  What stood out to me the most was this one statement (this is not the exact quote, but fairly close to it)

"It's painful to sit down with agencies and listen to them talk about social media etc.  We're so far ahead of them it's not even funny"

Did you hear that?  I believe the statement was in reference to both advertising and even PR agencies.  In the conversation that followed we talked about how some agencies still viewed digital as a "channel" to push their Ads through.  Clearly Dell has moved past this in how they engage with customers as initiatives such as Idea Storm illustrate.  We also discussed some challenges that lie ahead for Dell—I think Dell may be one of the early case studies of a large company who has to deal not only with the experience across multiple digital and non digital channels, but also having multiple "social channels" to contend with as part of the total customer experience.  I have a feeling we'll be discussing some of these challenges tomorrow.  And I'm hoping to get a sneak peak into their design lab! (no pictures allowed on that one)

Oh and one last thing.  I think Dell has a huge opportunity as a brand.  Here's a personal opinion and one that I am sharing freely with them.  I think Dell needs to be the opposite of Apple—not a carbon copy.  The "anti-Apple" if you will.  The "I'm a Mac and I'm a PC" Ads capture one thing perfectly.  Apple is the cool kid.  Microsoft is the nerd. (we're talking perception here).  But I don't think anyone owns what I call "Geek Chic".  It's that sweet spot when you are actually so geeky—so unbelievably geeky and into the mechanics of digital that it's actually downright cool.  This doesn't mean their products can't be sleek and desirable—they can, just in a "Geek Chic" kind of way.  I think their Devo spot is on to something—maybe it's the start of the Dell to come?  Anyway, it's just a thought—I'm looking forward to tomorrow.  And speaking of "Geek Chic" check out this video featuring John and Richard from Dell with a special appearance from Connie Reece. :-)

Comments

[Mack Collier]

David glad you are enjoying your time in Austin. I can agree with everything you've said about Dell, they are very proactive about using social media to better understand and communicate with their customers. In fact, I think that in many respects, Dell's experience in this space should be the blueprint for every other major corporation. They made some mistakes early on, but instead of quitting, they learned from those mistakes, and forged on.

Hopefully more companies can learn from Dell's example.

[DA]

Tell you what Mack—they take this stuff pretty seriously. I'm looking forward to tomorrow.

[Len Edgerly]

Another example of Dell's proactive strategy in social networks is the Dell guy who contacted Joseph Jaffe and pleaded with him NOT to accept a MacBook Pro in his latest sponsorship experiment for Across the Sound. The Dell guy argued that Apple doesn't get it in terms of engaging with customers (not sure I agree, but that's another matter), so Joseph should not be using their product. This led to Jaffe getting a spanking new Dell laptop and getting more involved in their program. Very smart. Here's the link to Jaffe's podcast episode that includes the Dell story: http://www.acrossthesound.net/2007/10/ats-92---catchi.html

[Connie Reece]

David -- good to see you again and enjoyed shooting the video last night. Must get a picture of me in the pink boa using my Dell laptop so I can be the poster girl for "geek chic." :)

Seriously, in all my contacts with the folks at Dell it has become clear that they have a deep commitment to conversations in the marketplace. I frequently hear companies say that while this approach might be worthwhile, they just don't have the manpower to do it. Nonsense. Dell is a huge company (88,000 employees worldwide, if I remember correctly) but only about 4-5 key employees here at Dell HQ handle all the blogging/responding -- in addition to other job responsibilities. It can be done, just takes the willingness to get out there and join the conversation.

[Lewis Green]

David,

I have been following closely Dell's use of social media, and am impressed with how smart it has been. Like you, I am not a Dell customer, but damn, with all the positive communications I have seen in the past six months, I may become one. Their use of social media is an example for all businesses to follow.

[Kelley Burrus]

As is universally known from each of our own high school experience, "the cool group" is limited and a rather small percentage of the total. As the (very proud) mother of a self-described uber-geek teen (and current consumer via my checkbook), I speak from experience (with a hint of cliche) when I say the way to influence/change a culture is through youth. Not only is he the up and coming direct consumer, he also highly influences the way I spend. Little do his fellow World of Warcraft compatriots know but they've been led by a 13 and 14 year old for over a year. Posted comments tell me that most of them would be more than a little surprised! There's something more than mildly amusing about this and I'm inclined to nurture this avenue, at whatever cost!

Instead of doing head-to-head battle with Mac, I suggest backing up a bit and fostering empowerment (geek or not) at the early stages...they'll be a customer for life if you show them SPECIFIC potential.

Know your "Geek Chic" is alive and well and in my house (on a daily basis)... and they run in packs!

Oh yeah, did I mention I'm a die-hard Mac user who's household is outnumbered Dell to Mac 2:1? I won't say I'm on the fence....but I'm finally listening.

[Phil]

No amount of branding will convince legit geeks that a machine of Dell's quality is chic. I just graduated from college, the non-techies came in with Dells and by junior year the machine had died, along with a lot of important things. The experience was painful for all, and they bought Mac's next time around. They'd spent enough time "engaging" with Dell on the customer service line.
I'm not sure what punch y'all are drinking, but most people don't buy a computer b/c of the parent corporation's activity in the "social media." User experience, yes, but this is largely a product of experience using the machine. So for example, geeks, or anyone remotely technical, don't like bloatware. So maybe let's not pre-configure these ridiculous machines with the terrible products of our corporate bedfellows. Or maybe we'll focus more on a making a machine that people love to use rather than "engaging with customers" to convince them they like us. Chances are, if I bought a Dell it's b/c a computer is a commodity to me, so "engaging" with a Dell is not something I do without duress.

And does anyone really think engaging with a corporate blog tickles? I have never heard anyone exclaim,"gee frank, I ran into Dell in Second Life, what a great experience that was." I haven't even heard, "wow, I really learned a lot on that Direct2Dell blog." I have heard, however, "I would be embarrassed to walk around with a Dell." And I've also heard, "everyone with a Dell is having issues right now, not sure why."

As far as "geek chic," Dell bought Alienware, quite possibly the best hardware maker in the business and one that gamers--the geeks I think you're talking about-- love. Alienware is geek chic. How about maintaining that quality and brand and making sure no one knows it's owned by Dell. This is a simple task; keep their hands off it. Then Dell can return to business as usual leading the corporations with innovative adventures in this social media all the kid's are doing.

Aside from buying Alienware, Dell did move towards Linux. That's a "geek chic" thing to do, and it might sell a few computers if people learn of how to switch and operate. See, maybe that's a place to spend the marketing budget. Then maybe Dell can go crazy and generously fund linux development.

[CK]

Thanks for this video and enjoy Austin.

"I think Dell needs to be the opposite of Apple—not a carbon copy."

Is Dell really looking to be a carbon copy of Apple? Say it ain't so. I'd be concerned too if this is their strategy.

Also, Phil's feedback up there is quite good. I love that co's are getting into social media but, unless the product is solid, no amount of talk is going to engage. My problems with Dell were so very severe (and way before Jarvis's issues) that it would take a lot for me to trust again. My cousin's problems were so severe just 2 years ago she sent the machine back...2 weeks after using it. And trust is what it's all about (most co's don't know how important trust is--until they lose it).

Wishing all you guys a productive weekend--Austin's a cool place (and not at all like the rest of TX).

PS: please give Connie a HUGE hug for me, eh?

[Mack Collier]

"And does anyone really think engaging with a corporate blog tickles? I have never heard anyone exclaim,"gee frank, I ran into Dell in Second Life, what a great experience that was." I haven't even heard, "wow, I really learned a lot on that Direct2Dell blog." I have heard, however, "I would be embarrassed to walk around with a Dell." And I've also heard, "everyone with a Dell is having issues right now, not sure why."

But what have you heard from people that read blogs, and that have seen the efforts that people like Richard and John and Lionel are making in this space to better understand and reach its customers? Seems that there's a changing of the culture at Dell, and it appears to be a change for the good.

[RichardatDELL]

Some really great comments here and we really value the feedback.

First a very BIG thanks to David for spending a day chatting with us about where we have been, where we are at and thoughts about directions we are headed. That could be a response in itself, But David it was great to take our online conversations and connections into the real world and spend time together. Thank you.

David, Im sure your readers will enjoy your vlog on direct2dell when it gets posted....with you in that great hat!

Lewis thanks for the affirmation...we hope you will be too :-). Connie, what can I say? Len, glad you enjoyed "richardatdell's" intervention at "across the sound." Joseph is coming to visit at end of month to get his new laptop and spend time with our teams too. Will be great to get his perspective.

Kelly, wow....some great thoughts and thank you for the feedback. Positive also helps as does the negative and constructive. I hope you dont sit on that fence too long :-)

Mack on your second comment (your first is appreciated because its lonely out here sometimes although the listening teaches us every day, so its not a bad thing), CK and Phil, I understand that we have had issues and we are not perfect. The problems you cite or have heard about are not the experiences or product quality we can be proud of, obviously. And, my saying that is not likely to change your mind, either. We understand the customers' experience and product quality have to meet or even better exceed people's expectations and demands. We can only earn your respect and consideration, I hope with changes that are underway as we transform our business

As you my know, we have admitted dropping the ball on technical support (Michael Dell spoke about it at CES and with Fortune magazine late last year and this year) and we have openly sought input about that at Ideastorm, and from blogs and numerous other sources.

In the last few quarters we invested significantly (additional $150 million) in our people and processes/new tools and more. Are we where we want to be? NO WAY. But we are focused and making huge progress.

Dell is a 20 year old company. Every time we have hit a bump in the road (and no company follows perfectly linear growth), we have learned and improved and come on stronger and better.

I believe as we transform our business this time (with the help of communities and social media) our track record of listening learning and improving will be proven....and really thats what you want when a 20 year old makes mistakes, I think.

Appreciate the perspectives and feedback and thank you to each of you!

[DA]

Phil,

I read portions of your comment directly to some of the folks at Dell right after you made it. In fact (and you can ask them) I pointed to one of their older laptops in the room and said, "Phil's right—that is a commodity PC". The product and customer experience has to come first.

But products like the M1330 seem to hint that the future of the company may be a bit different from the past. Personally, I think if Dell embraces good design, good engineering and continues to improve customer service—then their proactive community initiatives will give them a huge competitive advantage. That's just a personal opinion.

[Phil]

Ironically, my expression questioning the value of social media, via blog, is evidence that it might in fact be of value.

In response to Mack, my friends do read blogs, I think most younger people do. But the thing about blogs is that there's a critical element of trust. It's not that there's no value to efforts like Direct2Dell, I think there is. I just know that the blog is paid by Dell, so I treat it as such. I'm sure there are some people who can benefit, but I haven't met them. So the blog is really more a help to Dell finding out what the customers are thinking. It's kind of a free focus group.

But David got my point right, I think the user experience and product are the only way to really make it work. If you really really have a great product I feel social media gets legs. This is especially true of niche products. I love Friday Night Lights, and after the premier last night I was really cool and watched (or read, whatever) the live blog with Jeff Reiner. It was great, but it didn't bring me to the show or change my mind. I also love ESPN's College Gameday, and they have some good interactive features that are fun. But with both, I love the product first and from this I go to them.

Speaking of College Gameday, I think it's noteworthy to point out that the whole show is based on elements of interactivity, and ESPN keeps adding features to this framework. It's these features that make it more than just another pre-game show. Google probably has a blog somewhere but I haven't communicated with them in that kind of way. But I get the feeling that they're always looking to bring great products that are shaped entirely around my needs, and I see this as a kind of interaction as well. This goes back to the point of making goods products, but it also extends to how they operate; they don't do things that piss me off and they do things that make me feel it's my company.

As a hardware company I'm sure it's harder to bring in the elements and interactive personality that ESPN or Google can. I think embracing Linux and open source as much as possible and bringing these ideas to non-technical people would be a step in that direction. There's no more interactive movement than open-source. In anycase.

[Toby]

Great story, not only of what Dell is doing in the social media space but also how venturing into the conversation, leaving a 'safe' company blog to talk to people where they live can benefit as much .. or more. This will def find its way into my workshops and presentations on social media. One more viral swirl for Dell and David.

Recently I heard 2 marketers responsible for social media at 2 different F-100s talk about how they were trying to figure out how to do just that .. talk to people in their worlds on their blogs. Can you give us some insights on how Dell took that leap?

By the way, I currently own 2 Dells; other than a horrid experience with their finance co., tech and sales have always been just fine.

[Mack Collier]

"In response to Mack, my friends do read blogs, I think most younger people do. But the thing about blogs is that there's a critical element of trust. It's not that there's no value to efforts like Direct2Dell, I think there is. I just know that the blog is paid by Dell, so I treat it as such. I'm sure there are some people who can benefit, but I haven't met them. So the blog is really more a help to Dell finding out what the customers are thinking. It's kind of a free focus group."

Yes but Dell's blog is only part of it. What really impresses me is how Richard and others at Dell have made a point to monitor the blogosphere and have made a point to interact with bloggers. That effort helps establish not only trust in the brand, but it makes me more likely to evangelize the company to others. As this comment thread proves.

I think that any decent blogging effort by a company STARTS with the blog. The real progress is made OFF the blog.