Readers of our book and blog know that we define the younger generation as Generation C - the Community Generation.
The Generation that is networked, participatory, and co-creative.
In the The Customer is the Company an in-depth look at the company Threadless - one can see the 4C's principals - [1] Commerce [2] Culture [3] Community [4] Connectivity
the lesson
of Threadless is more basic. Its success demonstrates what happens when you allow your company to become what your customers want it to be, when you make something as basic and quaint as "trust" a core competency. Threadless succeeds by asking more than any modern retail company has ever asked of its customers -- to design the products, to serve as the sales force, to become the employees. Nickell has pioneered a new kind of innovation. It doesn't require huge research budgets or creative brilliance -- just a willingness to keep looking outward.
And one of the principals that I work to is Trust
Trustworthiness is especially important at Threadless because the company's most important asset -- its vast online community -- is managed collectively. Threadless employs no moderators, and no single person or group is charged with keeping the community happy. Nor, technologically speaking, is the social network itself especially advanced. It lacks many of the features found on MySpace or Facebook. There are no virtual friends, no messaging features, and no status messages. Users' profiles are made up of their blog postings and their submissions.
And dedication to authenticity
But what Threadless lacks in flashy features, it makes up for in steadfast dedication to staying close to its customers. Both Nickell and Kalmikoff spend much of their time cruising Threadless.com -- posting comments on blogs, inspecting designs, and tweaking the website. They publish their instant-message addresses and regularly query the public about changes to design or contest policies. "If someone changes something on Facebook, there's no expectation that some random 14-year-old from the middle of Idaho is going to be able to get in touch with Mark Zuckerberg," Kalmikoff says. "On Threadless, if people see something they don't like and want to talk to Jake, they get Jake."
And what does ENGAGEMENT give you?
This rabid engagement propelled the company through four years of phenomenal growth, beginning around 2004. The user base grew tenfold, from 70,000 members at the end of 2004 to more than 700,000 today. Sales in 2006 hit $18 million -- with profits of roughly $6 million. In 2007, growth continued at more than 200 percent, with similar margins.
'Nuff said, 'cept I love it.
