Why canalising the collective intelligence turns us into leaders
I have recently finished reading the book 'The Wisdom of Crowds: Why the Many Are Smarter Than the Few' by James Surowiecki and I can strongly recommend it to anyone that is interested in how opinions are conformed, and why self-organisation might be the key to success.
One of the core messages in this book, that groups don’t have to be dominated by exceptionally intelligent people to be smart, sparked a vast line of thoughts in my mind and I’ll try to serve some of the more uncluttered ones here.
Much of our thinking, intelligence and decisions are a bi-product of the impressions and thoughts served to us by the environment, if you surround yourself with people that challenge your thinking norms, you will develop your thinking skills. Experience tells me that there is such a thing as thinking skills, which isn’t connected to the formal definition of intelligence or even communication skills, but simply a way of prioritising, filtering and maximizing the use of our thoughts and every day impressions.
Our human core isn’t designed to make fast and smart decisions based solely on ‘intelligence’. To be able to make good, timley and effective decision in our everyday life we seek the help of our peers.
This is not something that we may even be aware of as we dont make an active decision to seek, but its simply something that we do – some better than others – by simulating social and collective intelligence, or what we perceive to be intelligence, from the people around us. None of us are as smart or as dumb as we think, however the human race has developed the deep skill of survival by canalising the collective intelligence from the people around us. Its what Kevin Kelly called the 5th dimension of "no one is as smart as everyone." Its possibly the same reason a herd of wildebeest bolts on the suspicion of one wildebeest that there is a preditor in the long grass.The fact is that there is a level of collective alertness that makes the herd react and survive. If there wasent this level the herd will exaust itself very fast as ther react to every possible movement in the grass.
However, collective intelligence is also in fact what behavioral merchandising is all about, applying the collective intelligence used everyday and turning it into e-commerce sales. We all live our lives under the assumption that the more information we have, the better decisions we will make. This combined with the fact that human beings are lazy by nature, is part of what make recommendations so successful – the more ingestable information we get in the shortest amount of time, the better the decisions we make.
So for eCom merchants, the way to success within this field often lies in handling big data in an efficient and insightful way, that makes use of the collective intelligence yet still take the diversity of the input into consideration. In order to create business in a future orientated way, you need to listen to what is NOT working as well as what IS working. With that data you can figure out which collective guess will be the most accurate and produce recommendations that will make both your customers and their consumers happy and all by tapping into the collective intelligence of the other people using your site.
Good software in this area is based on avoiding putting forward irrelevant products. An aspect which from an outside perspective can easily be forgotten. However, when you present a irrelevant product for a consumer you aren’t just hurting your direct conversion and sales, you are also strongly communicating that the customer’s needs come second to your sales one of the most fatal messages you can put out there.
Consequently, Analysing less successful products is as important as putting forward the successful ones, as it is ultimately the less lucrative products that will define the notion of ‘success’.
CHAMPION IN FOCUS
Company: Avail Intelligence
Position: Merchandising Professional
Frida Sandin is a frequent speaker on the intersection between digital strategies and business development, and is currently working as a Merchandising specialist at Avail Intelligence. Her main focus is multi-channel commerce and consumer behavior Read Frida's full bio
Latest Articles by Frida
February 7 | Why it's time to step up and take control of your segmentation strategy
October 14 | Why I'm apparently always wearing my pink colored glasses
September 26 | Why brand managers can exhale and e-commerce managers need to inhale
30 Days: 0 articles, 0 views
All time: 0 articles, 0 views
ABOUT FRIDA'S COMPANY
Turn BROWSERS into BUYERS.Automatically recommend the right products at the right time with Avail. More info & Contact Details
Internet of Things World Europe, the only IoT event to engage enterprises across Industrial and Consumer IoT, is returning as part of London Tech Week's headline event TechXLR8.
Q Ltd owns a group of specialist interactive advertising and digital marketing communication companies that help businesses identify, target and communicate effectively with their target market.
Providing Strategic Web Solutions. We specialise in website design and website development, web applications and a range of e-marketing services.
A leading full service digital marketing agency with hubs in Auckland and Sydney. Marrying digital design, technology and marketing, as a multi-disciplinary digital agency we deliver campaigns and creative that targets, captures, engages, convinces
First Rate is a leading online marketing agency and are specialists in search engine optimisation (SEO), search engine marketing (SEM), email marketing and banner advertising.
Australia's favourite domain name provider and webhost, Netregistry provides a complete suite of products and services to assist Australian small businesses online.