Managing Public Relations in a World That Links People, Places and Things

In 1776, economist Adam Smith spoke of the invisible hand of free markets. He told businesspeople to produce products that people want, act ethically, then sit back and reap the rewards.  He also warned of the flip side. Selling shabby, unsafe or uncompetitive products, would unleash this same invisible hand’s wrath, giving businesspeople the option to clean up their act or be eliminated.

Things haven’t changed much since Smith introduced the invisible hand and it’s natural abilities to manage free markets.  And ever since capitalism completed its first transaction, businesspeople have tirelessly sought an answer to the universal question: what do people want?   

But careful what you wish for.

In a new world, where humans are linked to a ubiquitous computing environment that continuously generates information about how we live and what we buy, the question “what do people want?” is fraught with new opportunities and risks.

Let me explain.

We’re living in an iPod world – and I’m not sure people realize the impact of inexpensive wireless-connected sensors, that are always on, always accessible. That react to event-driven software connected to cheap storage. They are trends that help marketers capture and analyze customer interactions into smaller and smaller pieces. It's a world that has perfect recall.

Remember the interactive ads in the film Minority Report? The department store Tom Cruise enters, not only recognizes him, but quickly analyzes his shopping history, directing him to items they know he’ll like, because they go with what he’s previously purchased (at their store, and others). They also know how many kids he has, what games they like to play, that his in-laws are arriving next week, and that he is getting over a cold.  Okay,  I made these last ones up, but in a world where everything is captured, anytime, anywhere – it’s a scenario that’s not far off.

In 2014, we won’t live in a world that separates virtual from physical. Little computers (or sensors) will live in your clothes, your TV and telephone.

They will reside in your automobile’s windshield or your kid’s bicycles.  Your things will integrate and communicate wherever you are, giving marketers information to make offers like never before. Networks will be at the heart of it all – and they will be active and smart. They’ll receive, store and broadcast information. They will communicate with each other. Sensor nodes, smaller and less expensive, will self-assemble into sensor networks. Connected objects will talk to each other in self-organizing systems.

If this is all sounding a bit like Hal, the out-of-control computer from the film, 2001: A Space Odyssey – let’s go back to Smith’s invisible hand.

It’s true, technology is changing our definition of privacy. Privacy used to suggest obscurity and anonymity -  and a state of being left alone. It used to mean we got to control “who knew what" about us.

No one is obscure in a world where no transaction is ever forgotten (remember: storage is cheap and cheaper). In this new world you don’t decide “who gets to know.”  Everybody does.

But, if you’re in business, it also means you need to exercise control about how you use your newly acquired abilities to gather information about your customers. You need to think carefully about how you will use it and under what circumstances.

When your customers, who share common interests, are connected with you (and each other) all the time, they will be able to form real time communities in response to an event. And these market segments, which can spring up in an instant, will act as allies or enemies.

Think about today’s Internet-based consumer reviews. Yesterday, if you didn’t like a product you told six friends. Today, you tell six million. If your business doesn’t understand this, you risk missing opportunities to work with your customers. In a connected world, where we are all network nodes, real time communication works both ways – and customers will be more powerful and more influential than ever.

So, before you go crazy with your newfound business, social, economic and political intelligence – realize that the invisible hand will punish enterprises that abuse this data. Enterprises that are unethical will lose the trust and business of their customers.

Companies must realize that the capabilities of the real time enterprise will also be available to customer communities that will yield significant influence. Your opportunity lies in harnessing the influence of your customers to your advantage. Find the networks your customers trust. Know their sources of information. Listen to them, learn from them. Figure out how to use the influence of those that already believe in you.

Work with Adam Smith’s invisible hand.