The Business Technology blog over at WSJ reports on a recent study of more than 100 corporate social networks. Ed Moran, a Deloitte consultant, found that:

Thirty-five percent of the online communities studied have less than 100 members; less than 25% have more than 1,000 members – despite the fact that close to 60% of these businesses have spent over $1 million on their community projects.

Moran’s conclusion is that companies get seduced by the technologies involved without understanding the terrain. These sites fail, he believes, because companies don’t invest enough money or manpower in supporting them, and because the things the companies measure don’t really align with their professed business goals.

The title of the article - “Why Most Online Communities Fail” - is misleading, since Moran is talking specifically about corporate social networks, and the very premise of these sites is flawed if you ask me. I haven’t seen the list of companies he looked at, but I would guess that most of them actually have thriving online “communities” whose activities just happen to be distributed across the Internet. People are twittering. They’re posting about those 100 companies on their blogs and MySpace pages.

I understand the urge that companies have to contain this activity, but it’s a pipe dream. You can build the snazziest playground in the world, and most of your community still won’t show up. If you want to connect with them, you have to do it on their turf. If you want to quantify their effect on your brand perception or your sales numbers, you have to find tools that can do that.

That’s what we’re aiming to provide of course, and that’s why I believe in this product. Companies are willing to spend millions on the fantasy that they can bring their communities to them because they don’t have very good ways of tuning in to the communities that are already out there.

But that’s changing.

Two weeks ago, our family went to Disneyland – the first visit for my 5 year-old girl, Fiona, and 3 year-old boy, Rowan. The kids were appropriately dumbfounded. They are still talking about how cool it was to see REAL Tinkerbell fly from the Matterhorm to the castle to start the fireworks show. They are still talking bragging to the checkers at the grocery store that they went on Thunder Mountain Railroad and Splash Mountain. Fiona is still dreamily recalling how wonderful it was to hug and banter with Belle, Ariel, Snow White, Cinderella and others at our “Disney Princess Breakfast” (Of course, poor Rowan thought that we were going to eat Disney Princesses, which explained his terror as we headed out that morning).

But I’m still talking about the trip too. What an amazing “product”.

1. Brilliant vision. Walt Disney had a vision for a family entertainment park that was so extensive and so complete, that even 50 years later, nothing has even come close to it in the world. Like Steve Jobs – or Ghandi or Martin Luther King Jr., for that matter – Walt Disney was “all in”. He wasn’t doing a job. He found his “calling” and his work was an unconditional commitment. He worked tirelessly – obsessively – to bring his vision to life.

2. A complete experience. Disney has thought of everything. For example, when you order you tickets in advance, you receive a “welcome packet” for the family to open together around the dinner table. Pins, pictures, magical coins, an array of gleaming, beautifully-designed credit-card-like tickets, each one with a different character on them, plus a hand-written note from the person who prepared the packet for us: “I sprinkled extra fairy dust on this packet so that your trip will be the happiest of all. Jesse”. OK, if you don’t have kids that will sound incredibly corny, but to the rest of you – you know. They make it easy and fun to buy the product (Disney Vacation packages), they build excitement before you even get access to the product, and deliver an experience which is really beyond your family’s wildest dreams.

3. Execution with excruciating attention to detail. When we entered the park on the first day, we used our gleaming, credit-card-like tickets to enter the Main Gate. You scan your ticket under a barcode reader, but instead of hearing “BEEP” or “EH!!!”, we heard “Tinkle tinkle ting!!!” – the sound of Tinkerbell’s magic wand. How cool is that? The next day, we eager ly pushed though the Main Gate for day 2, and when we scanned our tickets this time we heard Jimeney Cricket’s laugh. OK, so Disney called the barcode scanner vendor and said, “I don’t want a beep sound. I want a catalog of sounds that we can upload and cycle through at different times on different days”. How much did that add to the cost of their entry system? Which brings me to…

4. An obsessive focus on product, not profitability. After exploring caves on Tom Sawyer’s island one afternoon, we headed back via raft to the dock at New Orleans Square. As we came off the raft, I noticed a man, dressed in swarthy coats leaning against a fence, playing a penny whistle. He wasn’t talking to anyone or doing much. But his presence – the lonely sound of his instrument and his old tarnished, (Disney) pocketwatch – transformed the place. In fact, Walt even invested in details that very few people ever even noticed. “Hidden Mickeys” are everywhere in Disneyland and their spotters form an elite community of fanatics. . A cost-cutting consultant would show up at Disneyland and have a field day. But they don’t show up at Disneyland, which is the point.

5. Operational excellence. Disneyland hosts 14.7 million guests per year. It is open every day of the year, some nights closing at midnight and opening at 8am. And at 8am, every morning, the place is immaculate. Everything is where it should be. Every piece of trash is picked up (I checked one day – that little ice cream wrapper in the corner of the castle moat was indeed gone at 8am the next morning). No paint is ever faded. And every cast member is “on”. Who cleans the moat at 2am? And when does Tinkerbell practice her zip-line “flight” from Matterhorn to castle? There must be a fake Disneyland / training ground somewhere where she can train? The scale, scope and level of quality is inspiring.

6. A team of people who live the vision every day. “Ahoy sailors! Looks like good weather for our voyage!” We are genuinely, honestly greeted this way by cast member Paul as we weave our way closer to the Finding Nemo Submarine Adventure. He is not tired, but downright jolly – not the way most people look at 3pm on a work day. This is the result of rigorous hiring and training practices as well as creative scheduling and staffing – cast members do only short shifts on any given ride to prevent monotony from setting in.

Obviously, modern Disneyland is the way it is because of the efforts of thousands of people, but Walt Disney started it all and grew a team with a similar quest for perfection. The following quotes from Walt Disney sum up his leadership style and approach to “product development”.

“Disneyland is a work of love. We didn’t go into Disneyland just with the idea of making money.”

“When we consider a project, we really study it–not just the surface idea, but everything about it. And when we go into that new project, we believe in it all the way. We have confidence in our ability to do it right. And we work hard to do the best possible job.”

“Whenever I go on a ride, I’m always thinking of what’s wrong with the thing and how it can be improved.”

“I have been up against tough competition all my life. I wouldn’t know how to get along without it.”

“Disneyland will never be completed. It will continue to grow as long as there is imagination left in the world.”

Kids or no kids, I think it’s time to plan a trip to Disneyland…

On my flight to LA last week, in Spirit (the Southwest Airlines’) Magazine, I read about Arthur Rosenfeld and his random act of kindness in a drive-through line at a Starbucks in Florida. For those of you who missed it, the guy in the car behind Rosenfeld got angry because Rosenfeld hadn’t moved his car forward enough to free up space at the microphone. The guy in back lost it – honking and yelling. Rather than reciprocating the insults, Rosenfeld, a Tai Chi master, calmly told the barista that he wanted to pay for the coffee of the guy behind him. He paid the tab for the honker, which actually set off a spontaneous chain reaction of people paying for the next car’s coffee that lasted throughout the day.

While it’s true that Starbucks promotes angel behavior by encouraging “cheer chains” during the holiday season, Arthur Rosenfeld said that he had never heard of such a promotion. He said he did it to steady himself – to quell his own anger. But it was the unexpectedness and the stark contrast of his action that moved the honker, and the car after and the car after and the car after…

The story made me think on the random acts of kindness that I have encountered, personally. Thank you to the “trail angels” who have left snacks and water out along hiking trails for me to find. Thank you to the man in the green shirt at the airport this weekend who bought us a bottle of water after overhearing my daughter complaining of thirst and me explaining we couldn’t get out of the boarding queue. And on and on…

But Arthur Rosenfeld’s story also made me think about the marketing world, in which we often face angry customers, ranting on their blogs or in emails to customer support. Instead of yelling back, or issuing a cease and desist, or even ignoring the whiners, what if the company did the unexpected? Invite a particularly angry customer to the company headquarters to meet with the product team so that they can properly express their frustrations. Even a personal note sent from a person who matters at the company is unexpected enough (in this day and age) as to potentially turn the angry tide.

That’s what Dell did. It asked the angry Jeff Jarvis to the Dell headquarters to meet with the CEO. And while it wasn’t the meeting by itself that turned Jeff around, but the series of proactive changes that Dell put in place afterward, Jeff Jarvis ended up pretty happy. So tell the lawyers to step down. Tell your own employees to step up and to connect. You never know what might come of it.

A few years ago, a friend of mine, Michael, who comes from an upscale family and who was studying the romance literature of Latin America, conducted a unique social experiment. He dressed in simple clothes and set out to panhandle in downtown San Francisco to see how much money he could raise in one day. It took him several hours just to find a free corner that no one kicked him off of (come to find out, most corners in big cities are already “taken” by local panhandlers). But then he began: “Can you spare some change?” People averted their eyes. They looked down. They looked at the sky. They squinted and leaned into their open books as if trying to make out a foreign word. Very few would acknowledge his existence. And because his early actions did not provoke reactions, Michael started to feel like he didn’t exist. He soon found himself lunging toward people, yelling, using profanity. And this was only after about 6 hours on the streets.

I thought of Michael last week when I read BusinessWeek’s article “Consumer Vigilantes”. In it, we hear from some ultra-disgruntled customers who are bashing companies everywhere they can—on existing sites (amazon.com), specially created new sites (comcastmustdie.com) and through more “direct” channels, like 76-year old Mona Shaw who smashed keyboards and phones with a hammer at the Comcast headquarters yelling, “HAVE i GOT your attention NOW?!”

These customers desperately need to be noticed. Their efforts to gain the attention of the companies they seek to connect with have produced no reaction. They’ve tried the phone tree. They’ve tried email. They’ve tried letters to management. They’ve waited patiently (for hours) at headquarters waiting for a manager to appear. All to no avail. And, like Michael during his panhandling experiment, their voices and actions become ever more extreme.

Run away?

In the face of such aggressive consumer vigilante-ism, it’s tempting for us marketers to be afraid—very afraid—and remain safely hidden behind our one-way mirrors. But if we acknowledge that our very own corporate “mass” practices (mass marketing, mass communications, mass-ive cost-cutting) have actually caused much of the anger, then the way forward should feel less scary. We created this problem and we can make it better.

In fact, what struck me in the BusinessWeek article, and in my own life experiences, is how easily people can turn from foe to friend. They rant and kick and scream, “but then someone reached out to me from the company, and now I’m very happy.” Or, “… but then they fixed it, and now my loyalty is very high.”

How could such a small gesture—a simple call or email from a company representative, an inexpensive new part sent out in the mail—result in such a radical about-face? The reason is because it’s SO RARE. It is rare that a customer ever talks to a real person at any of the product companies they give their money to. Think about all the products and you buy and use—your deodorant, your sofa, your cereal, your jacket—how many people have you talked to from these companies?

Go on, engage—it’s OK

It’s time for companies to start talking to customers again, to start building real relationships again, on a mass scale, with help from technology. Customers are out there, on their “corner”, talking away, hoping for some attention, hoping someone will notice. They’re endlessly discussing the products and features they care about, praising and complaining, panning some brands and applauding others (yes, they do this too). It’s OK to jump in to those conversations. Scout Labs conducted a survey (posted out across the blogosphere) and asked the following question:

Do you like it when…you are involved in a conversation with other consumers about a product or service (on a blog or in a forum) and a representative from that company joins in online?

The responses we got:

That’s 70% who say you are welcome, even encouraged, to jump in. But there’s a clear caveat: only real efforts to connect allowed. No spinning.

How to do it well

Marketers are going to have to practice a bit. Many of us are out of touch with real customers in the real world. At some point in our careers we mutated, and now speak marketing-ese, which doesn’t play where we’re going. In this new world, using your real name is essential (gasp!). Typos are just fine (double gasp!). In fact typos get you subliminal brownie points, because it signals to customers that your response was not pre-filtered or canned. Note: those of you who wrote down, “Include a typo” in your notebook page titled, “How to talk to customers”, keep practicing, ‘cause you still don’t quite get it Your customer communication goals should be to educate, explain, connect, ask, listen, and be yourself. If you strive to do these things in your direct communications with customers, you can’t go (far) wrong.

Google does a good job at having conversations. eBay, where I received a crash course in keeping it real, is a pioneer in interacting with its community. Dell’s getting really good. DirecTV does a great job of participating in its influential communities in a very real way, in both official and unofficial capacities. Here’s an older but illuminating exchange between a DirecTV employee and semi-hostile hockey fans complaining about the DirecTV options. In the thread, you see the hardest-core complainers turn into fans, responding to the employee’s openness and candor with statements like, “…thank you so very much for your post clearing up some of the many questions that us hockey fans have. It is great to know that DirecTV cares about us and is trying to improve its Center Ice package.” And of course, myriad startups and small companies are gaining on the big guys thanks to smart products and masterful participation in influential communities online.

You can’t afford not to

Customers just want to be heard. Don’t wait until they work themselves into a frenzy. The line between brand-basher and fanboy may be closer than you think. Look up, make eye contact and jump on in.

I received an email today from a friend at a large, publicly held company, begging for access to Scout Labs. His story was so “typical” that I just had to, with his permission, comment on it. It seems the company in question just launched a version of its web-based software that just didn’t work very well and broke a bunch of things that used to work. A scathing article about the flubbed launch was written on an influential blog in their space. The post was seen by a partner to the company and was forwarded to a channel manager which finally made it to the executive team. The last few days have been hectic for the team — the post has been circulating around the company via email, the marketing team is trying to put a response together, they hastily hired a guy to be responsible for managing a “blog strategy”, and so on. Days later, and the company still hasn’t jumped in to the conversation.

This series of events is all too common. Some lessons that this real-life parable suggests:

• Obviously — don’t launch broken stuff. But even if there is a reason that you need to get something into the market that is not quite baked, be ready for it. Make sure your whole team is ready for it. Be prepared to explain why things are the way they are and what will come next. And ideally, be the first to state the obvious — don’t let customers “reveal” something, as if you had no idea it would be an issue. If there’s a problem, they will find it. Deal with it early. Get your team, tools, processes and policies in place now - don’t wait for a crisis.
• Listen regularly, and be prepared to do something about it. Don’t think about customers as people to deal with after your products are in market. They should be involved every step of the way, on an ongoing basis. Many of the complaints aired in this specific negative blog post were not just related to the recent launch, but were nagging issues that this influential customer had endured for months (years?). He would have liked to have been listened to all along.
• Be part of the conversation when times are good, and things will be easier to manage when times are bad. When you are an engaged part of your own community, customers get to know you. If you do it right, you become a trusted resource and you are seen as a real person trying his best. When things go bad, you will have “social capital” to draw on and get you through.
• Know your influencers and what they are saying about you at all times. Make sure you don’t hear this stuff, after the fact, from a customer or partner. And fighting fires days after the event makes a tough situation even worse.

If you have any additional lessons for my friend at this unnamed big company or to share your own painful experiences and lessons, please jump in and comment.

We always enjoy a good data visualization, especially when it’s elucidating what we are doing here at Scout Labs! On Wired Magazine this weekend was a infographic of what happens after you hit “Publish” on your blog page. It’s called “The Life Cycle of a Blog Post, From Servers to Spiders to Suits - to You”. If you can figure out how to click and hold your mouse down to zoom it and scan around, you’ll see a category called “Data Miners” and I guess that’s partly us — the ones who analyze the blogosphere (and social networks and image-sharing sites and video sharing sites and user reviews) to make sense of it for clients overwhelmed by the sheer volume of it all. But we are also the “Corporations” (yes, “the Suits”), because real people at real companies are using our service to Scout what people love, hate, want, think and feel about their products, brands and services. What we are NOT: an ad network or aggregator trying to sell ads. We figure there are plenty of those out there desperately trying to get ads in front of eyeballs. Inspiring people to build better products and to build stronger relationships with customers sounds much more fun to us.

The other day an analyst asked me about the different ways companies use Scout Labs-why they start using it, and all the ways they end up using it. It got me thinking about the evolution I see when companies decide to use a service to help them tune in to customers across the Internet. In fact, it reminds me Maslow’s Hierarchy of Needs. In 1943, Abraham Maslow developed his Hierarchy of Needs, a theory to explain human behavior. Maslow suggested that psychological needs are hierarchical, and you can’t move up the pyramid until the underlying psychological needs are met. Many have since challenged his strict hierarchy, pointing out several exceptions to the rule. But as a pop-culture metaphor, it helps describe the various ways companies use Scout Labs.

Here is Scout Labs’ version of the Hierarchy of Needs:

1. Find and fight fires (or CYA)

Many organizations get interested in consumer-generated media ( CGM for short) because they want to find fires – exploding laptops, rants from prominent bloggers, a rumor leak, a copyright violation – and fight them as quickly as possible. This is an absolutely essential use of a service like Scout Labs, and the reason why whatever service you select needs to

• Be real-time (so you can find those fires as they happen).
• Find the fires for you, prioritizing what’s important / worth paying attention to right now.
• Have email alerts built in.
• Help you quickly act mobilize your response.

In this day of highly vocal customers who areconnected to each other real-time and whose seething blog posts about you can show up within the first few results on Google, companies worry about the sheer volume of CGM and their lack of visibility into it. There are huge dollars at stake. Finding and fighting fires is a fundamental reason to Scout the Internet, and one that your organization has to feel comfortable with. This means you need to have confidence not only in the tool you use, but in your team’s judgment and ability to take action in time of threat.

2. Seek out product and marketing feedback

Once an organization gets good at finding and fighting fires, we see them start to listen even more closely to what customers are saying. Rather than only monitoring a few, huge problems and trying to solve them, companies start listening every day for insight they can use to improve products and marketing. What do customers like? What don’t they like? Why don’t they like it? What do people wish we would do differently? Scout Labs makes it easy to answer these questions. When a company evolves to the point where it really listens to customers in this way, we typically see corporate communications /PR, brand managers, product managers, and marketing folks all using Scout Labs together to helpbuild better products, inspired by the voice of the people.

3. Build relationships with customers

Only after a company is a good listener can it jump in and start building relationships with customers. I think of it like a game of jump rope. The customer conversation has its rhythm, pattern and players, and you don’t want to barge right in before getting the lay of the land – you’ll just get all tangled up. (Scout Labs lore: at one point we toyed with the idea of naming the company Double Dutch!) Watch for a while. Learn who the key influencers are. Get a feel for the language, the concerns, the issues. And when you’re ready, jump in. Be part of the conversation. Answer questions, ask questions, inform the best you can.

And if you have a service like Scout Labs that helps you facilitate this engagement – communicate with each other about it. Keep a record of it so that you have organizational memory around it. Track the impact of these customer connections. At that point your organization will be able to build relationships with customers on a mass scale. It’s not easy to evolve to this place. You have to really understand your customers and their communities before you can be welcomed in. AND you have to trust your employees to have these conversations and build these relationships. But if you can get there, the rewards are great.

4. Be a customer-centric organization

The apex for an individual, according to Maslow, is self-actualization –making the most of your abilities and striving to be the best you can be. For an organization that wants to listen to customers, the pinnacle is being a truly customer-centric organization. For a company at this stage of evolution, customers are partners. Listening to customers and engaging with them to build better products and sell more is a strategic priority and part of a company’s culture. Everyone – from the CEO to customer service reps – is tuned in to what customers are talking about, coming up with new, customer-inspired ideas, jumping into conversations to build relationships, and truly innovating.

Being a customer-centric organization is more than a nice-sounding aspiration. We believe it’s a strategic competitive advantage. Whoever listens better, innovates faster, and builds personal relationships with customers wins.

Fred Shapiro,Editor for the Yale Book of Quotations has published his Top 10 Most Memorable Quotes of 2007. Ah, so many good ones. But “Don’t Tase Me, Bro”, a phrase that swept the nation after a U.S. college student used it seeking to stop campus police from throwing him out of a speech by Sen. John Kerry, made the top of the list.

This quote became pop culture in record time this year. Two days later, according to Wired:

• The term hovered between 9th and 11th place as the most searched for term on Google for Wednesday, according to Google Trends.
• The video has been the number 1 Viral Video for the past 24 hours. The Meyer arrest video has received 2.6 million views and almost 40,000 new comments since Monday.
• Many of the leading opinion shapers on both the left and the right, as well as newspaper blogs, offered their thoughts and insights on the incident.
• Television pundits across the dial offered their opinions, and those opinions were archived for posterity on YouTube.
• Several enterprising individuals have even snapped up variations of the spelling of the phrase as Web addresses. One of them points to a Wikipedia entry for the University of Florida.
• Mashups are proliferating on the Web.
• A couple of t-shirt designs, and bumper stickers have emerged.
• Dozens of people have felt compelled to record their own video responses in a YouTube forum discussion on the matter.

The other most memorable quotes of 2007:

2. The tortuous answer by Lauren Upton, the South Carolina contestant in the Miss Teen America contest, responding to the question of why one-fifth of Americans are unable to locate the United States on a map: “I personally believe that U.S. Americans are unable to do so because some people out there in our nation don’t have maps and I believe that our education like such as in South Africa and Iraq and everywhere like such as and I believe that they should our education over here in the U.S. should help the U.S. or should help South Africa and should help Iraq and the Asian countries so we will be able to build up our future for us.”

3. Iranian President Mahmoud Ahmadinejad’s October comment at Columbia University in New York, “In Iran we don’t have homosexuals like in your country.”

4. Shock jock Don Imus comments about the Rutgers University women’s basketball team: “That’s some nappy-headed hos there”.

5. “I don’t recall.” — Former U.S. Attorney General Alberto Gonzales‘ repeated response to questioning at a congressional hearing about the firing of U.S. attorneys.

6. “There’s only three things he (Republican presidential candidate and former New York City Mayor Rudy Giuliani) mentions in a sentence: a noun and a verb and 9/11.” — Sen. Joseph Biden, speaking at a Democratic presidential debate.

7. “I’m not going to get into a name-calling match with somebody (Vice President Dick Cheney) who has a 9 percent approval rating.” — Senate Majority Leader Harry Reid, a Democrat.

8. “(I have) a wide stance when going to the bathroom.” — Idaho Republican Sen. Larry Craig’s explanation of why his foot touched that of an undercover policeman in a men’s room.

9. “I mean, you got the first mainstream African-American who is articulate and bright and clean and a nice-looking guy. I mean, that’s a storybook, man.” — Biden describing rival Democratic presidential candidate Barack Obama.

10. “I think as far as the adverse impact on the nation around the world, this administration has been the worst in history.” — Former President Jimmy Carter in an interview in the Arkansas Democrat-Gazette newspaper.

I’ll have to do a 2007 Top Ten most painful moments for companies caused by regular old consumers and their new media, next…

Nielsen, the television ratings monopolist, finally made its way to my mom. She called me, THRILLED that she had been selected to be a Nielsen family! When I think Nielsen, i think set-top boxes that measure your every channel surf, so I asked if they were going to help her with the installation of the box. She said that she was supposed to just write down what she’s watching every minute of the day. WHAT? I assumed she was embroiled in some mail-in phishing operation, but when I got there and looked at her paperwork — it was legit. Nielsen sent her $15 and a little paper diary so that she could record what she watched, exactly when she changed the channel, when she channel-surfed, where she ended up and for how long, etc. I simply could not believe that that is what was behind the billion-dollar advertising decisions that marketers make.

I’ve since looked into it, and it’s true. Nielsen uses set-top boxes for national prime-time TV ratings, but for the thousands of local markets across the country, TV and radio, these hand-scored diaries have been used for nearly 20 years. (Some images on people’s Diary Packs on Flickr, in case, like me, you find this hard to believe). Recently, Nielsen has tried to move to a more automated collection methodology for local markets as well, but the ratings were SO drastically different from the hand-scored methodology of the past (no surprise, I’d say), that Nielsen has taken major flack from both advertising networks and audience groups (such as minorities) whose favorite shows’ ratings dropped drastically in the conversion. A good overview of the saga is in Wired magazine.

I asked my mom a week later how she did on her little assignment. Of course, she said she kept forgetting to write things down, so she had to back-fill — trying to remember at the end of the week the things that she had watched and when.

So, Nielsen has a few issues.

1. The accuracy of the data issue — my mom is trying to watch TV while she mosaics her whole house and puts (the golf kind) in her living room — she doesn’t have time to journal. Not even for $15.
2. The representative sample issue: is my mom — who is the only hard-core Republican in Santa Cruz county — truly a representative sample of the pot-smoking college town by the sea? Well, now that she’s a Nielsen family, maybe she does finally get her voice heard.

We at Scout Labs certainly believe in more listening to customer feedback that is already naturally occurring, and less contrived research scenarios and abstract and laborious user tasks. So good job, Nielsen, pushing to automate — better later than never!

I recently re-watched YouTube founders Chad Hurley & Steve Chen interviewed by Chris Anderson from Wired at the Commonwealth Club (5/23/07). Watch the Video. It’s fun to hear about the dinner party where the idea was born (once again, they had a personal need that wasn’t being met — to share home-made videos with friends). They also talk about the early days of the company and how the rapid growth of the site caught them completely off guard. My favorite is a story they tell about an early functionality planning meeting, when they rejected the idea of needing any search functionality on the site. They really could not imagine their little “YouTube” ever hosting more videos than could fit on the first page.

Now this may be just good story-telling. I’m sure if you ask the Sequoia Capital folks who funded YouTube, they certainly expected the site to need search! But I love this story because you can make guesses about how users will use new product, you can even ask them how they will use it, but you never really know until you get it in their hands. Scout Labs has been working with many companies since day one. They’ve told us what they need, they’ve reviewed wire-frames, they’ve prioritized functionality, and told us how they thought they would use it. But now that they have a real live application in their hands, they are using Scout Labs for all sorts of things that we (or they) never imagined. They are loving some things that they were mildly excited aboout before, and of course, now they have a million more feature requests. But this is the fun part of building new products and why it is so important to let your customers be your guide. We’ll be doing just that for the next several months, prior to launch.