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I was chatting recently with Sam Decker, chief marketing officer at Bazaarvoice, about his company’s somewhat counterintuitive business. Its customers use Bazaarvoice to enable their customers to post product reviews and ratings right on their own websites.

I asked why would a company invite visitors to publicly criticize its products this way.  He told the story of one importer who sells a large and eclectic collection of overseas goods.  Customer ratings revealed that about one third of its inventory of more than 600 products would never sell well because of aesthetics, utility or other reasons.  The company used this feedback to quickly overhaul its inventory. Had it waited for customer objections to show up in sales figures, the process would have taken months longer.

Fear of Failure

If you have ever worked for a large company, you know that failure isn’t considered a good thing.  Losing products or business initiatives are usually killed off only after long and expensive efforts to save them. Powerful people stick with pet projects even in the face of overwhelming customer indifference.  People who fail are reprimanded.  People who fail repeatedly get fired.

Social media offers unprecedented ways to avert this syndrome, or at least to cut it short. By listening to customers, we can identify and fix shortcomings much earlier in the product lifecycle. By engaging in continuous dialogue, we are more likely to hit the market head on with new products. If we don’t let failure become some kind of referendum on our self-worth, then we are much freer to experiment.

I look at Google as being the most visible practitioner of the philosophy.  Spend a little time with the company’s line of applications and you’ll soon discover its amusing portfolio of error messages. “Whoa! Google Chrome just crashed!” says one. Another moans “We know this is lame, but consider that Gmail didn’t even have folders in its first version.”  Google is a company that doesn’t mind admitting its shortcomings because it knows customers would rather see that it working to get things right than pretending that everything’s okay when it clearly isn’t.

Google also isn’t afraid to cut its losses. The company has shut down more than a half-dozen products and services in the last year, including Lively, it’s virtual world (left). It has also closed a couple of high-profile business ventures. Google makes no attempt to hide these business decisions but rather explains its reasoning on employee blogs. That’s because Google sees itself as an innovator, and innovative companies don’t mind getting things wrong now and then.  In fact, a company that doesn’t make mistakes isn’t trying hard enough.

Shoot the Losers

Unfortunately, few corporate cultures are confident enough to work this way. One of the most common questions I am still asked by audiences is how to avoid negativity in social media. My honest answer is why would you want to avoid it?  The faster you correct problems, the less damage is done. It might have been possible to ignore mistakes a few years ago, but that’s no longer an option. We can talk with our customers about our shortcomings or they will simply talk amongst themselves.  Which would you rather do?

It’s often been said that the reason Silicon Valley became such a foundry of technology innovation is that the culture accepts and even celebrates failure as a consequence of risk-taking.  In today’s media landscape, failure is no longer a private matter. Social media tools enable us to minimize the risks and consequences of our mistakes if we simply own up to them. It turns out that’s not nearly as difficult as we used to think it was.

I had to laugh last week when I heard the keynote speaker at a public relations conference refer to the conventional wisdom that blogs are “so yesterday.” Maybe it’s because I spend two to three hours daily tending to my own blogs and others, or maybe it’s just general frustration with trend-chasing, but blogs are more relevant today than they’ve ever been, and they’re growing more useful as options proliferate.

The blog is the Swiss army knife of social media. Simple to use and easy to update, it accommodates every type of media: words, images, video and sound. Blog entries can be of Twitter-like brevity or can go on for thousands of words. Content can be displayed in a wide variety of formats and designs. Visitors don’t have to register to read.

Blog content is automatically syndicated via RSS feeds, making it simple for the owner to republish information through other outlets. A blog can also act as a catch-basin for the owner’s other social media activities. All of a person’s tweets, Yelps, Flickr PhotoStreams and YouTube creations can be aggregated and displayed in one place.

Content can be automatically reformatted for display on devices ranging from text readers to mobile devices. A countless variety of useful widgets can be added to entertain and inform visitors. Web analytics can show detailed information about where visitors originated, what they read, how long they stayed and where they went next. Blogs can even incorporate order forms. Last but not least, blogs rock on search engine performance.

Not Perfect

It’s true that there are a few things blogs don’t do well. They’re not as quick and easy to update as Twitter or the Facebook status message. And they lack interactivity. While visitors can comment on individual entries, they can’t comment on the overall theme of the blog, and even threaded comment strings can be difficult to follow. There are also limits to what you can do with the simple reverse chronological format, although innovators like Brian Gardner are managing to make WordPress do things I never thought possible.

For businesses, blogs provide a critical element of control. They’re the social media equivalent of speaking to an audience. The author retains control over subject matter, tone and direction while offering interaction around subjects of his or her choosing. Businesses that shrink from the unpredictability of unmediated discussion can take comfort in the fact that blogs give them a healthy dose of control.

For business-to-business applications, blogs are the overwhelming tool of choice. That’s because b-to-b professionals often don’t have the time or patience to fill out profile forms, answer friend requests or join groups. Blogs are simply a fast and easy way to share information with very little overhead.

Blogs are the building block of nearly every form of social media. They are the tool you need to master in order to understand the rich nuances of other media that are available to you.