Doc Searls talk at Berkman Center on Vendor Relationship Management

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http://cyber.law.harvard.edu/events/luncheon/2009/03/searls

Loyalty cards

The green stamps of our time.

Green stamps started in 1800s, peaked in 1950s. Every store had them.

They had to have them.

The bad thing about loyalty cards is they leverage something that's broken about E-commerce: "sign in" and "log in"

They are stupid about the most essential data

point is increasing switching costs.

Got tired of paying +10% for not belonging.

Joining any loyalty program is a pain.

CRM is really about

it's still a $12B business that doesn't work-- at least not for you.

The default in big business: the best customer is a captive one. "acquire" "manage" "control" "own"

what do you call "owning" a human being?

A "free market" is still "your choice of captor."

My position on the net– in addition to being in favor of it [laughter]
is that we are 3 minutes into the big bang- we have a lot of heat and a little light.

We have to prove that a free customer is more valuable than a captive one.

[This is all music to Agaric's ears– that's how we

Vendor Relationship Management = VRM.

VRM is how customers, anywhere in the long tail, can creat and manage

[This had better be heading toward collectively dealing with vendors.]

Complement to CRM.

With VRM

Project VRM: in progress

Open source, at its heart.

Half a million open source code bases to work with.

Lots of cool people.

I want to be able to issue a "personal RFP" to whole markets.

[Speaking as a provider, I hate Requests For Proposal– I want a way of responding and answering that is as lightweight

Instead of the ridiculous terms of service that gives all power to the company that we have to sign

Create a new business model for free media. One that isn't advertising. This is close to home for me.

Free media
Non-commercial
Blog, music, news, everything.

The model is called PayChoice.

Pay as much as they want, for whatever they want, whenever they want, wherever they want.

Public radio tuner is something we are all involved with.

[This also is a place where collective organization would help, though it is not as totally essential as balancing the power of corporation vendors with the people buying from -- or, ahem, working for -- them. But it would still help a great deal for people to be in on voluntarily giving money collectively-- assign a percentage of income to ]

The r, relate or relationship button.
Symbol of two magnets facing each other.

The problem with advertising: it still has guesswork. It still has waste.

[Doc, if you can destroy advertising I will sign up.]

I think the advertising bubble will burst. It will always be there, but it won't be the first thing used or the final

And cluetrain will finally be right.

Questions.

Doesn't e-bay embody some of this? Yes, it's a start.

The data should belong to the user. It shouldn't be with anyone else.
Problem is, where to put it.

"Third party."
It's still pretty early. Many services will arrive.

RSS model.

Advertise your own needs.

Companies should know when someone stops
Fact-checking.

More intelligence and more goodwill in the marketplace will benefit everyone.

It is not true that everyone wants to shop on price. People want to relate.

David Weinberger: Situate VRM in micropayments, tip jars, identity management.

Doc: We want to do micro-accounting. Keep track of what the user is listening to, and when they reach some threshhold decide to pay something. At their discretion.

One of the dreams that I have is that

Micropayments haven't worked for anyone but phone companies, and they abused the privilege.

As soon as I saw the net come along, I thought it would enable the demand side as much as the supply side.

Andrei Duran [sp?] involved with jabber, open source instant messaging, says we have to get identity sorted out. Our identities are handed to us by other organizations, DMV, corporations, library.

Now I think that's a separate challenge to that of VRM. Not even a prerequisite. Some overlap. But VRM is a different thing.

When e-commerce came along, my wife said: why can't I take my shopping cart ... to another online store?

[Semantic web! RDF!!]

She also said: I want less identity, not more. Like in a real store.

Mind project in UK supposed to work independent of identity systems.

Q: "Lifestyles gathering."
A: That will continue. Amazon does recommendations better than anyone. But it's still broken. Someone else uses your computer, get wrong stuff. Or it gets one interest right, and veers off.
(I take a lot of pictures out of airplanes, but don't want travel books.)
They don't know what only you know. And they only know their space.

Cable TV broken.
I see this breaking down

20MB symmetrical megabits-- but I want as much as possible.
We don't watch TV-- in the course of canceling, I learned the real price. They were ready to give HBO, Starz, DVR box, waive fees, 100 HD channels, for $47.99/mo

I said: give me a la carte.

The NCAA has it free on the internet. That's the only thing I wanted to see.

But they are in the great position of having a relationship already.

Needs to be very simple, easy.

David went to ask my question from IRC:

Wow, after his discussion on using "rss with tags" to be able to send information out there for a response (e.g., wants to buy something and take in offers)... i *really* have to ask if they've looked at Linked Data / RDF stuff for a decentralized way to put the information you want out there for responses, matching up on multiple attributes

I said, I could ask myself.

Short answer is no, longer answer is sure. We have not been directly in touch-- our approach has been not chumming the waters with publicity

have some people who have jumped in
XDI-DCIA
it's similar

like the semantic web, that's not finished either

it's still wide open to that.

We can do it any way we want. Still early.

I was so close to putting Scor on the spot– here's your expert.

We've wanted a set of core principles. At least one is problematic-- "owning" ones own data. Ownership? Control?

Richard: The health people have this notion of the data being created by both patient and doctor.

Stéphane: Data portability group, you should look at them.

Doc: We have a lot of overlap with that group. Open web foundation too.

Behind the scenes selling of data?

I want to be able to assert all the different variables that I want. As more customers can advertise their specific needs

It will reduce the mostly useless profligate sharing of information, generally inferences of why people showed up.

Q: If people got what they wanted, branding would become less important.

Used to work in advertising, branding. Branding was created in the early 1930s, with the name borrowed from the cattle industry.

One soap in 8 different boxes and sing about the differences.

I have aggressively taken my head out of that space.

Car industry is very interesting right now-- huge number of unsold cars. We actually want something that is less standard.

Local Motors. Robin Chase will be here later (ZipCar).

We all want different things.

We would like the "let companies bid on what you want" to be a replaceable service.

We focus on getting advertising out of the room-- where customers know exactly what they want.

[me:
Let's take an example of vendors we don't like much

http://projectvrm.org

I avoided collective

we want to start with the personal and move to the collective.

First, we need the scaling

common set of tools everyon has

we need a lot of people doing whatever it's going to be

hooking people up together, we see downstream

the main thing I've tried to avoid is that we have no power

that form of supplication is defeat
we have a form of victory that will also be a victory for the Verizons of the world.

A lot

Our vector is anchored in the personal, but it is not against the collective.

Q: It seems more likely that companies, instead of getting out of the customer as captive

There will

There will be a lot of leopards that don't change their stripes. [I have no idea if that was intentional or not but it was wonderful.]

Once they see how much intelligence they

Money left on the table.

What will make the difference is money. People want a la carte.

[And it would be SOOO much healthier for society. You have to think and pay, not just sit and stupor (because you already paid).]

Q: The cultural domain, NGOs?

A: I think it will be huge.

Brit Blazer, government relationship management.

Obama campaign, there was corporatized parts "we know how to make you a supporter" but a lot of personal things too.

MySociety.org -- fixmystreet.com -- people take pictures of their potholes and put them up

You can put any letter in front of "RM", Relationship Management.

[Excellent speaker and setup.]

"Avoid both individual empowerment right and collective left approaches/people."

[Not sure I conveyed, anyone got the larger point that we need to fluidly define our own marketplaces, that doing anything worthwhile requires working with others, and that all of this should be part of breaking down the friction for self-organizing a farm or designing and providing a product or anything.]