The Big Picture
Influence – Power exerted over the minds, behaviors and actions of others; it can be received unconsciously or consciously.
Customer Relationships – The value that customers derive from interactions with a company rather than the utility of their products, and the value the company derives from this influence.
Web 2.0 World – The Internet has evolved FROM being websites displaying information about a company and its products…
TO a content rich network of information and people that enables much more participation by customers. Customers now generate content, share experiences, engage in discussions. When they search for information and guidance they are influenced by one another.
A Growing Buyer-Seller Disconnect – Changing business dynamics are contributing to a growing disconnection between what business practices are serving-up and what today’s customers’ value. The net result—businesses are losing influence with customers and their products are more rapidly becoming commoditized.
Two powerful examples of this disconnect:
Eighty percent of business executives believe they are doing a good job in serving customers. Only 8% of customers agree! Bain & Co., 2006.
Consumers rank companies, their executives, employees, marketing and products in the bottom third of trust scales. They rank peers near the top.
2006 Edelman Trust Barometer.
Communities of Interest & Influence – Customers are increasingly relying on social networking and social media to establish interactive relationships. “Social” is used here as a relational connection that motivates customers to participate and contribute. These relationships help customers extract more value from present experiences and provide guidance in dealing with a fast-changing and increasingly complex world. These networks and communities have lasting influence in customers’ lives.
Shifting the Focus of Customer Relationships – Companies that focus on shifting the focus of the relationships with customers can regain influence. The shift needs to be from selling and servicing “things” to building trust and credibility with customers. These are the interactions that help customers extract greater experiential value and predispose them to meaningful relationships.
Online and Offline Strategies – Companies that embrace the interactive, networked nature of a Web 2.0 world can regain influence with customers and online and in physical world interactions.
Click the link to get our full white paper on this topic: Customer Relationships in a Web 2.0 World
