"Errett added that communities are affinity groups, but that successful social network communities must be authentic, and authenticity only exists where there is an emotional connection. MySpace's Gold finished by stating that those consumers attracted to social networking engage because they are seeking a sense of community. Therefore, the key to a successful social networking community is appreciation (a platform for belonging), recognition, confidence building, access and discovering knowledge."

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The New Customer Dynamic: Collaborative Innovation.

Many have written about 'bottom-up' innovation and the role of the customer in the diffusion of those innovations. The new customer dynamic invites the customer into the process: Forging a collaborative relationship with your most valued customers is critical to the efficacy of your brand. The most successful brands engage their customers in a collaborative relationship to understand how to respond to changes in behaviors and market trends without giving up control. It�s not about 'letting go', it's about getting a handle on where things are moving.

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"Passenger is an extension of our marketing," said Ravi Parmeswar, Sara Lee's vp-business insights. "Because they are out there, we are constantly coming up with ideas that we can bounce off our consumers. It's about [consumers] feeling their opinion counts."

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Most forward thinking marketers would agree that the advertising and marketing landscape has changed dramatically over the past few years with the dawn of web 2.0 and the powerful influences of social media. As more and more consumers embrace social media as a way to communicate with each other, marketers are clamoring to tap into this relatively new medium and its vast influence.

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Building Communities Around Content Thursday, April 12 3:00-4:14p.m.

Media has always been a social phenomenon. Yet novel tools such as weblogs, social networks, podcasting, tagging, reviews, instant messaging, peer-to-peer sharing, and syndication feeds can create vibrant communal experiences around content in ways never before possible. In today's interactive world, users will increasingly expect such opportunities. Although content producers, distributors, and advertisers may initially resist ceding control to users, they too can benefit from the intense engagement that communities promote.

Los Angeles Business Journal April 2-8, 2007

By Anne Riley-Katz
Staff Reporter

Remember focus groups?
Well, this is the digital age, so it’s no surprise that there are groups gathering virtually on the Internet rather than in boardrooms to discuss brands and products.

What’s surprising is that participation in these groups increasingly is by invitation, and only for fans or customer already gung-ho for a particular brand of electronics, TV show or baked goods.

A major advocate of this updated version of the focus group “ called “customer collaboration” “ is Passenger Inc., a Los Angeles firm founded last year by Justin Cooper and Andrew Leary. Passenger officially launched in February and already has a database of about 80,000 users.

The Coca-Cola Co., Sara Lee Corp. and the Walt Disney Co.’s ABC network are some of the companies working with the firm.

“These folks at Sara Lee, and other companies, think the next big idea is very likely to come from customers,” Cooper said, noting that the intent is to turn brand loyalists into brand advocates.

“We’re trying to create a social currency,” Cooper said. “We’re finding out what people like; People are not interested in banner ads, it’s like screaming at consumers. This way we create a recruitment network.”

The invite-only online communities are made up of consumers that the companies have identified through market research or other means as passionate about a brand. It enables companies to engage their most valued customers, learn their likes and dislikes and be more attuned to emerging market trends.

“It’s a self-selecting process.” Cooper said of participation in the communities. “We’re not forcing anyone to do it, and it’s not as though we’re spying. People are participating because they love these brands.”

Once a consumer qualifies and is in, they’re required to contribute. The chosen few brand loyalists invited to participate (the communities usually average 2,000 users) have to be active or face getting booted.

In return, the consumers get to glimpse their favorite product’s future. The insight gleaned from looking over users’ digital shoulders and noting their formal opinions is funneled directly to show producers for creative decisions.

The company has 26 full time employees, most in Passenger’s L.A. headquarters; the engineering group is based in Northern California.