In the past, the phrase was Caveat Emptor or buyer beware. That meant you had to inspect the merchandise or the merchant would put one over on you. The Buyer had to watch out for their own interests.

The Networked Society has turned the phrase around. Today the Vendor must beware. Why should any company "beware" of customers? There are many reasons.

The realities of Internet have increased the risks and costs associated with a very bad customer experience. If they are so inclined, an irate customer can email everyone in their address book. In some instances, chat-rooms and blogs have taken up the issues and spread them even further.

The fury of an enraged Digital Customer has many more outlets for their frustration, and can spread their tale of woe farther than years ago when the local watering hole may have been the only audience. Today companies must deal with skilled and empowered Customers that have real publishing and distribution capabilities from their desktops.

If a product related fault or scandal is uncovered by a customer there are instant links to broadcast media, news letters and trade publications that can pick up the story and have it posted in a matter of minutes.

Access to the network and the transparency that accompanies massive amounts of information, has placed a good deal of power in the hands of the buyer. Other factors contribute to the power shift in favor of the customer:

1. Prospects remain anonymous until they wish to disclose their identity
2. Once initiated, the Digital Sales Cycle is controlled by the Prospect
3. Communicating with other buyers for recommendations is fast and easy and word of mouth - still the most
powerful buying influence - can spread like wildfire.
4. In most cases there are multiple vendors for a given class of products and shifting vendors is relatively easy.

Generally speaking, a product that is sub-standard is quickly discovered and known to the world. So the Vendor must take additional care in Engineering, Product Management and Quality Assurance. There really is no substitute for a policy of "0" Defects Manufacturing.

Other actions that can be taken to mitigate these risks have to do with an increased level of vigilance by Marketing, Product Management and Engineering. They can make it a habit to visit chat-rooms and blogs that are known to take an interest in a given class of products. Better still, providing a Customer Chat Room on your site brings valuable information into the company. Better to learn faults and gripes first hand, than have those conversations take place outside your company.

Companies must understand the realities of the Networked Society and the fact that the Digital Customer has real clout and an ability to communicate both satisfactory and unsatisfactory news with ease.
Terry and Lisa Wellman