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August 17, 2009

What's our secret sauce?

We were recently in negotiations to be acquired. Talks lasted about five minutes, but during that time, the VP of Business Development from the prospective acquirer kept warning us not to divulge any of the ingredients in our "secret sauce", lest the deal fall apart (which it did) and we ended up suing them for stealing all our invaluable intellectual property (which hasn't happened... yet).

Every time he used the phrase (which was often) I found myself becoming more and more amused. What the heck is a secret sauce? I assumed he meant competitive edge, or intellectual property, but being a marketing type, he liked using that buzzword instead. Wikipedia tells me that it means any component of a product that is closely guarded from public disclosure for competitive advantage.

So, what is our secret sauce? Do we even have one? We certainly do, and the primary ingredient is the knowledge regarding how to design and build a social game (and its underlying virtual economy) that is both engaging and monetizes well. That certainly constitutes a fair portion of our secret sauce.

But our special sauce (i.e., our sauce that is not a secret to any of our competitors) is our commitment to customer service. Anyone can steal that, but it takes a huge commitment.

When we first started with Scratch and Win on Facebook, I handled all of the customer service. I felt the job was too important to be trusted to anyone else in the organization. Unlike a lot of CEOs who pay lip service to how important customer service is, I put my money where my mouth is and actually put in the hours to respond to posts on the discussion boards and answer every single email from our growing customer base. Given the viral nature of social networks, I figured the investment in building a loyal fan-base and branding Backstage as a company that cared about its user community would ultimately pay off. And it did.

I remained in charge of customer service until it reached a point (almost a year later) where I could no longer devote the time and attention required to do the job justice. I still make the occasional appearance on the discussion boards, but my Community Managers are happy to relegate me to pseudo-mythical status (see Figure 1).

Sve_russOur competitors built their business on monetization.  We built ours on customer service. Here is a typical post to the discussion board for Scratch and Win that illustrates the point.

Efrain Rivera Junior wrote 5 hours ago

I've been playing Facebook applications for a while now. I usually participate in all the games forums at one point or another. And I have to say that the ONLY application in which I ALWAYS receive an answer from a game developer has been in S&W. Not only that, but most of my ideas have been implemented in the game, and the rest have at least been listened to. Not only have I NEVER received an answer from any other application dev, but also I was once banned from a game for making a simple suggestion (needless to say, that app is no longer on Facebook). Therefore, I want to thank the devs of Scratch & Win for being so active and nice. As always, Thanks for listening.

No, Efrain... thank you for playing.
Russ

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Comments

Deb

I have been playing Scratch & Win for a short while on fb and I'm "stuck!" Can someone help?
I have all the prizes for Stage2 and I go to Stage3 to purchase more prizes and it won't let me claiming that I don't have all the prizes in Stage2. So back & forth I go... HELP! What am I doing wrong??
Thanks for your moment to help me!

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