Croudsourcing

Croudsourcing has become a common new phrase in the business world. A company croudsources when they leave a task to an unpaid third party, often their own customers. Businusses such as Dell, Starbucks, IBM and ebay have taken advantage of social media and used it as a means to interact with customers and other publics. Through these interactions they get ideas and learn about potential business opportunities.

Starbucks, for expample, launched a website called "MyStarbucksIdea" which allows users to communicate, share, discuss and vote on ideas for business. Some of these ideas are even considered by top executives in Starbucks' company.

I think this is a great idea for a couple reasons. First, outsiders have insight into the common, everyday lifestyles and can therefore give input as to what business strategies would be successful. Second, customers don't want to engage with unfamiliar companies. They want relationships with the company. Richard Brewer-Hay, chief blogger at eBay, said, “Consumers are no longer buying from a faceless company. They’ve got a relationship with that brand. The companies that are most successful right now are selling a lifestyle, not a product.” (http://www.prnewsonline.com/features/Crowd-Control-Crowdsourcing-Puts-Brands-in-Consumers-Hands_13168.html)
Crowdsourcing/social media allows outsiders to take part in the companys' activities and build relationships. If the relationship between the company and the outsider is good, then the outsider will keep coming back and give them business.