David Knowles - Weblogs

David Knowles

With all the buzz around Web 2.0, is a user-generated internet really the way forward in forming customer connections, or is it simply too fraught with risk?

Where marketers jump up and down at its potential for reaching new customers via weblogs, social networking, podcasts, RSS feeds etc., some technology experts question whether the term 'Web 2.0' can be used in any meaningful way since many of the technological aspects of Web 2.0 have existed since the earliest days of the web.

Wikipedia defines it as "a social phenomenon embracing an approach to generating and distributing Web content itself, characterised by open communication, decentralisation of authority, freedom to share and re-use, and 'the market as a conversation'."

More simply - genuine interactivity, because people can upload as well as download.

Even if it's not a fully realised phenomenon, there can be no doubt that Web 2.0 has entered everyday web usage: 71% of office workers aged 18 to 29 access social networking and content sharing websites "several times a week" according to new research from Clearswift. Two out of five of these employees access social networking sites several times a day.

Businesses are getting behind Web 2.0 fast, because of the its interactive nature.  Marketers are making use of customer input to drive the provision of more relevant content, while increasing the value of customer relationships and revenue.

Blogs and bulletin boards cost little to set up, and even if the link between the traffic increase and any new revenue generated is unclear, the content itself provides valuable insights.

For some, it's a double edged sword; when Dell launched its blog in July 2006, almost half the comments made were negative; on the other hand, Dell could be seen to be addressing issues head on.

Certainly, web content requires policing and quality control. How can you tell if information posted is always accurate, trustworthy and up to date? Set alongside the fact that content can be enormously influential just because it's increasingly user generated.

While business struggle with how to create competitive advantage from customer input, they must also wrestle with the fact that the everyday consumer can have has much influence over a buying decision as a multi-million pound advertising campaign.

Some argue that the success of Web 2.0 is dependent upon its remaining within the confines of non-commercial arenas such as social networking sites - where engagement is not coloured by an attempt to sell something to the user. And that both the security and negative postings aspects create too many issues for those trying to gain a commercial foothold.

The lack of control over postings has already led to many security breaches, with pages of legitimate websites being hacked every day, and malicious software implanted. With the risk of employees routinely adding confidential data about their employer, companies are at risk. With social networking sites now rich in valuable personal information, individuals are now exposed for personalised attacks.

It's a conundrum for business; on the one hand, Web 2.0 can't be ignored because of its potential to get closer to customers and develop relationships. On the other, the security risk and potential for negative blogging create headaches until greater control is exercised over access.

While web-based interaction has become crucial in understanding customer behaviour, it seems over-enthsiastic early adopters of Web 2.0 can get their fingers burnt. Handle with care.

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