REDMOND, Wash. – August 5, 2008 -- Nearly two years ago, much of the talk at the Association of National Advertisers conference was about how consumers “owned the brand” and why corporations should let them be a part of brand creation.

Although the marketing community generally agreed this was a splendid idea, consumer-driven participatory marketing is still rare among large corporations. For example, companies have an opportunity to bring consumers together and encourage interaction on their Web sites, especially given the growing popularity of online communities and social media. At most sites, however, consumers are conspicuous by their absence. Social computing commentators say these sites are too self-serving, and they have characterized them as artificial and irrelevant.

Some suggest that now is the time for companies to begin letting go. In other words, let customers play a more active, participatory role in creating Web site content, even if they do not always have positive things to say about the products or services. This concept is the driving force behind the revamped WindowsLive.com.

Building Trust: The Voice of the Customer

With the relaunch of this site, Microsoft Corp. is sharing control with those who best know its services — the people who use Windows Live to enrich their lives. Many of its pages will feature unedited multimedia stories, tips, advice and comments on using Windows Live services, how they might be improved, how they can work together, and so on. The purpose of the site is to empower people to gain more benefits from Windows Live and to give Microsoft access to a continuous stream of customer-generated information that it will use for improving its services.

“Listening is the pathway to learning for both us and our customers, which is why we are letting our customers speak for themselves through our site,” said Marty Collins, senior product manager for Windows Live. “The community members, not Microsoft, will decide which customer-generated content is most valuable. The site will showcase real-life experiences of people who discovered creative ways to use Windows Live, which will not only benefit site visitors but also help Microsoft continually improve our services.”

The marketing rationale for this strategy can be summed up in one word: trust. Marketing is based on relationships, and after a lifetime of 24x7 bombardment by advertising and marketing messages, jaded consumers no longer consider corporations the most trustworthy source for product information. Instead, they are turning to each other for news and opinions, and the Internet and social media have made this easy to do. Trust is in the network, and research shows that the highest degree of trust comes from groups of interconnected “people like me.” Other studies also show that, when it comes to trust, consumer-generated media — which will be integrated throughout WindowsLive.com — consistently outranks professional sources.

Aggregating Customers’ Real-Life Experiences

The new site differs from most corporate Web sites in the way its community aggregates customer-generated content. While many others require people to go on the site to create and contribute content, WindowsLive.com eliminates this step. Its community members post content on their Windows Live Spaces, which is where they’re already spending their time, and tag the post with specific tags provided by the Windows Live community. This tagged community content is then automatically aggregated by an RSS feed to WindowsLive.com.

Much of the site’s content will feature scenarios of how people are using various Windows Live services in situations that will be immediately familiar to most visitors. For example, a new mom may share how she used Windows Live Hotmail, Windows Live Messenger, Windows Live Writer and Windows Live Photo Gallery to stay connected with friends after having a baby. The coach of a grade-school basketball team can showcase how he or she used Windows Live Photo Gallery to create a slide show for the end-of-season party. A budding filmmaker might demonstrate how to embed or share videos and other rich content on a blog with Windows Live Writer or by online file sharing with Windows Live SkyDrive. Site visitors can rate the content, and the entries with the highest scores will be given greater prominence.

Other unusual features and aspects of the site include the following:

Engaging the Consumer

Marketers today are recognizing that consumers not only own the brand but also drive the discussion about products and services. Corporations cannot control such messages, but they can participate in the dialogue, if they give consumers a good reason to let them do so. Marketing has shifted its focus from doing things to reach consumers to finding more effective ways to engage them.

People want to engage with each other, especially those who are “like them” in terms of social relationships, lifestyles or interests. WindowsLive.com offers this opportunity through a community of people who want to share experiences and insights on how they are using Windows Live services to make their lives easier and more rewarding. By showing people what they can do with Windows Live services, the new site engages their interest, gains their trust and helps them get more value from the Windows Live integrated suite of services.

Contact Information (Press only)

Rapid Response Team, Waggener Edstrom Worldwide, (503) 443-7070, rrt@waggeneredstrom.com