1. Master Class Workshop
Designing for Conversation
SESSION LEADER
Paul Pangaro, CTO, CyberneticLifestyles.com

2. what!s all this about
“conversational marketing”?

3. what!s all this about
“conversational marketing”?

4. How do we design for conversation?
cybernetics of conversation
what is it?
so what?

5. the art of steering
w
in
d
or
tid
e
course set

6. the art of steering—heading toward a goal
w
in
d
or
tid
e
course set

7. the art of steering—getting blown off course
w
in
d
or
tid
e
course set

8. the art of steering—course correcting
w
in
d
or
tid
e
course set
correction of error

9. the art of steering
w
in
d
or
tid
e
course set
correction of error

10. the art of steering—constantly using feedback
w
in
d
or
tid
e
course set correction of error
correction of error

11. the art of steering
w
in
d
or
tid
e
course set correction of error
correction of error

12. the art of steering—achieving the goal
w
in
d
or
tid
e
course set correction of error
correction of error

13. How do we design for conversation?
applying cybernetics
science of “getting what you want”
helps to understand, navigate, and regulate complex systems
encompasses human, social, and technical components
includes a branch called “conversation theory”

14. How to design for conversation?
applying cybernetics—to design conversations
what are the goals?
how do we measure
if we’re on course?
what are the levers?

15. what is conversation?
goal
participant A participant B
14

16. a participant has a goal
goal
participant A participant B
15

17. chooses a context
goal
participant A participant B
context
16

18. chooses a language
shared
language
goal
interface
participant A participant B
context
17

19. begins an exchange
shared
language
goal
evaluating
learning
interface
participant A participant B
action
context
18

20. evokes a reaction...
shared
language
goal goal
yes!!
evaluating
learning
interface
participant A participant B
action
context
19

21. ...that evokes a reaction
shared
language
goal goal
evaluating
learning
interface
participant A participant B
action action
exchange
exchange
context
20

22. agreement may be reached
shared
language
goal goal
agreement
evaluating
learning
interface
participant A participant B
action action
exchange
exchange
context
21

23. a transaction may occur
shared
language
goal goal
agreement
evaluating
learning
interface
participant A participant B
action (trans)action
exchange
exchange
context
22

24. why conversation is important
brands want consumers to buy
consumers need to believe that buying will get them what they want
convincing consumers to buy = influencing what consumers believe
conversation is the most effective means to influence beliefs.
these fundamentals do not change—
even as technology and marketing evolves.
23

25. evolution of marketing
before after
conversational conversational
media media
Marketing Era Emergent Consolidation Reformation
Professional
Creating presence Selling features Marketing benefits Branding 360 Communications
Positioning
Direct (DM) Viral/Guerrilla marketing
Segmentation Personalization
Account planning
Google contextual ads
Long tail
Media Era Television Digital
Hi-speed printing Radio
Newspaper networks wield power Consolidation
National papers/color
TV networks wield power
Mass-circulation magazines Photo magazines Specialty magazines
Telephone Cable Customization
Computing
Time 1950 2000
1850 1900
Advertising methods respond to social and economic changes
and to opportunities afforded by changing media.
24
after Dubberly Design Office 2008

26. what changes
before after
conversational conversational
media media
mostly 1-to-many & 1-way easily any-to-any & all-way
slow feedback—few consumers fast feedback—many consumers
main metric = sales transactions possible metrics = every action
marketers talk to consumers, “consumers in control”,
control conversation overwhelm marketing messages
marketers are “brand stewards” marketers host brand conversations
25

27. marketing is changed forever
“consumers with voices” ignore at your peril
26

28. marketing is changed forever
26

29. what can we do?
join the conversation with consumers
understand which conversations can be influenced
facilitate productive conversations
27

30. shared
language
goal goal
agreement
evaluating
learning
interface
participant A participant B
action (trans)action
exchange
exchange
context
28

31. shared
language
goal goal
agreement
evaluating
learning
interface
I. Context
participant A participant B
action (trans)action
exchange
exchange
context
finding the right moment to open an exchange
consumer must be receptive
when and where is “reasonable”?
digital media has created an explosion of contexts
email
search engine results
cafe metro tweets
web page banners, contextual ads
mobile phones, geo-location, context-sensing
... plus, traditional media are “going digital”
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32. I. Context
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33. I. Context
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34. shared
language
goal goal
agreement
evaluating
learning
interface
II. Shared Language
participant A participant B
action (trans)action
exchange
exchange
context
defines what we can converse about
starts with vocabulary and ideas that resonate
speaks in customer terms
tunes into consumer need-states, wants, and desires
creates a “language system” that begins to build a connection
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35. II. Shared Language
32

36. II. Shared Language
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37. II. Shared Language
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38. shared
language
goal goal
agreement
evaluating
learning
interface
III. Exchange
participant A participant B
action (trans)action
exchange
exchange
context
2-way co-evolution of ideas
should be what we mean by “interactive”
must involve listening, offering, questioning
must offer some value to keep engagement going
may be broken off at any time (by either participant)
useful to both sides in learning about the other iPod colors
consumer learns what is possible
marketer learns what consumers think, feel, and want
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39. III. Exchange
34

40. III. Exchange
34

41. III. Exchange
34

42. III. Exchange
34

43. shared
language
goal goal
agreement
evaluating
learning
interface
IV. Agreement
participant A participant B
action (trans)action
exchange
exchange
context
shared understanding
common history is created
trust is built
beliefs are validated or changed
35

44. changing beliefs requires conversation
questions and testing understanding
conveying new ideas
brand consumer
36

45. a lot of conversation is internal
conversation & feedback
mostly internal
brand consumer
37

46. P2P conversation is more influential
change of belief
open connection
brand consumer
38

47. internal and P2P conversations
are needed to agree on shared beliefs
change of belief
open connection
brand consumer
39

48. shared
language
goal goal
agreement
evaluating
learning
interface
IV. Agreement
participant A participant B
action (trans)action
exchange
exchange
context
shared understanding
common history is created
trust is built
beliefs are validated or changed
trust is established (or not)
enough history to ensure compatible goals
sets expectations for future conversations
trust = lower risk and saving time
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49. IV. Agreement
41

50. IV. Agreement
41

51. IV. Agreement
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52. shared
language
goal goal
agreement
evaluating
learning
interface
participant A participant B
V. Actions or Transactions
action (trans)action
exchange
exchange
context
coordinate about shared beliefs and shared goals
stay connected, continue the conversation
participate in communities, social networks, real-world f2f
demonstrate commitment
BUY product or service
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53. V. Actions or Transactions
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54. V. Actions or Transactions
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55. V. Actions or Transactions
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56. CONVERSATION REDUX
shared
language
goal goal
agreement
evaluating
learning
interface
participant A participant B
action (trans)action
exchange
exchange
context
44

57. CONVERSATION REDUX
I. context
II. language
III. exchange
IV. agreement
V. transaction
context—language—exchange—agreement—transaction
cleat = conversational traction
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58. conversation is
the infrastructure LIFETIME
VALUE
of commerce
value
TRUST
HISTORY
RELATIONSHIP
CONVERSATION
time 46

59. Long-term business success LIFETIME
VALUE
requires
On-going transactions
need TRUST
On-going trust
HISTORY
is built through
On-going relationship
RELATIONSHIP
is possible only via
CONVERSATION
time 47

60. from...
C
CUSTOMER
R
RELATIONSHIP
M
MANAGEMENT
48

61. to...
CONVERSATION
C
RELATIONSHIP
R
MANAGEMENT
M
49

62. putting conversation to work
design for a campaign
context
language
exchange
agreement
transaction
50

63. putting conversation to work
DOVE Campaign for Real Beauty
2% of women think they’re beautiful
context
what is beauty? inner—natural—feeling so—feeling good about self
language
among women everywhere—”tick” campaign
exchange
the world would be a better place if women were allowed to feel
agreement
good about themselves
Dove sales increased by $500M in 3 years
transaction
51

64. putting conversation to work
your campaign here
context
language
exchange
agreement
transaction
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65. summary
conversation will always occur—you better be good at it.
changes in technology force us to evolve.
all successful evolution is co-evolution—
each participant must change in response to the other.
conversation is the most efficient means to co-evolution.
design for conversation = viability today and tomorrow.
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66. Master Class Workshop
Designing for Conversation
Paul Pangaro, Paul@CyberneticLifestyles.com
(c) 2009 Paul Pangaro.

67. Appendix
1. invest in understanding conversation
evaluate prior campaigns in terms of conversations
for C-L-E-A-T, how could the conversations have been improved?
look at each technology in terms of conversations
what does a given technology do better?
less well?
think in terms of conversations when developing new campaigns
what’s the goal?
what’s the best technology for each of conversation?
can we design directly to increase trust?
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68. Appendix
2. track trends, tools, and technologies
...that will change marketing conversations in the next 5 years
beyond social networks
beyond mobility
context-awareness
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69. Appendix
3. design for conversation
embrace every consumer as a participant
define specific goals for each exchange
for the brand
for the consumer
work such that conversation leads design
context...
language...
exchange...
agreement...
transaction...
58

70. Appendix
4. prototype the conversations you want
prototype conversations,
not web sites or marketing campaigns
instill continuous sensing and testing as a process for
understanding the market
defining and delivering the offering
increasing customer satisfaction.
remember that productive conversation is iterative.
it requires trial-and-error. it gets more efficient over time.
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71. Appendix
another model of consumer conversations
Hugh Dubberly & Shelley Levenson 2008
Connect & attract
The initial connection with
Compelling the person and using that
contact to make an effective
Captures the users’
and affective impression
imagination
Orientating
Reverberating
Advocate Orient
Help users navigate
“you just have
The person actively The overview or preview of
the world
to try this”
communicates their what’s available or possible,
satisfaction to others allowing exploration and
supporting the early stages
of learning
Generative Embedded
Extend & retain Interact
Promise more Become part of
good things users’ lives
The person comes back for more The person may begin to
as their expectations are raised— interact with or customize
at the same time a significant products after learning new
level of loyalty and leverageable options through promotions,
relationships are achieved by hearing other customers
order, and by sharing
preferences with friends.
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