Don Peppers: Customer Relationship Management and Marketing Expert, Keynote Speaker
Summary
TLDRThe speaker discusses the growing power of customers in the age of transparency and technology. As interactions increase, trust becomes crucial for businesses. Customers now expect not only competence but also proactive trustworthiness, where companies prioritize their interests. The speaker introduces the concept of 'Trustability,' emphasizing the need for businesses to act with empathy and transparency. Examples like Amazon, JetBlue, and USAA illustrate how proactive trust can foster customer loyalty. In the modern age, trust is essential for efficient interactions and business success, transforming traditional marketing practices.
Takeaways
- 🔑 Customers have increasing power to push back, but this shift offers new opportunities for businesses that adapt.
- 🤝 Trust has always been important, but it's now essential for companies to focus on competence and good intentions.
- ⚙️ Moore's Law has made technology much more powerful, leading to faster interactions and greater transparency.
- 📱 We interact a thousand times more today than 20 years ago, and this trend will continue, demanding more trust in these interactions.
- 🔍 Trust helps filter information and is critical in an age of transparency, where secrets are harder to keep.
- 👥 Consumers trust recommendations from friends and even strangers far more than advertisements, which they view as biased.
- 🕵️ Transparency rewards good products and punishes bad ones quickly, as shown by the rapid downfall of the movie *Bruno* due to negative reviews.
- 💡 Companies must move toward proactive trustworthiness, or 'trustability,' where they protect customers' interests even without being asked.
- 📚 Amazon and other companies like USAA and JetBlue demonstrate trustability by proactively helping customers avoid mistakes or compensating them for issues.
- 💬 Empathy, treating customers how you would want to be treated, is the ultimate form of customer insight and key to building extreme trust.
Q & A
What is the main message of the speaker in this transcript?
-The main message is that customer power is increasing, but this does not signal the end of marketing. Instead, it presents a new opportunity for businesses to adapt to a more transparent and trust-based environment. Companies that proactively protect customers' interests will thrive in this new era.
What are the two key components of trust according to the speaker?
-The two key components of trust are competence (the ability to do things right) and good intentions (doing the right thing). Trust is built when customers believe a company can deliver quality products and services while genuinely looking out for their interests.
How does Moore's Law relate to the increase in customer power?
-Moore's Law, which states that computing power doubles roughly every 18 to 24 months, has enabled more frequent and rapid customer interactions. This increase in interactions requires higher levels of trust and transparency from businesses, as customers now have more tools and platforms to share their experiences.
Why is trust so important in today's digital world?
-Trust is crucial because it helps filter the overwhelming amount of information customers receive. With transparency becoming the norm, trustworthy interactions are more efficient, and businesses that lack trustworthiness risk being exposed quickly by word of mouth or online reviews.
How does transparency impact businesses?
-Transparency acts like a disinfectant for businesses. It rewards companies that offer good products and punishes those that don't. In an age where information spreads rapidly, businesses can no longer hide behind traditional marketing tactics—they must be genuinely trustworthy to succeed.
Can you give an example of how transparency hurt a business in the transcript?
-The example of the movie 'Bruno' is provided, where negative feedback spread quickly via social media, causing a 40% drop in box office receipts the day after the movie's release. This demonstrates how transparency and rapid communication can significantly impact a business or product's success.
What is 'Trustability' according to the speaker?
-Trustability refers to proactive trustworthiness, where businesses not only avoid cheating or misleading customers but actively look out for their interests. It involves doing the right thing for customers even when it may not directly benefit the business.
How does Amazon demonstrate trustability?
-Amazon demonstrates trustability by reminding customers when they attempt to purchase a book they’ve already bought. This proactive approach helps customers avoid unnecessary purchases, even though Amazon could profit from selling the same product again.
What role does empathy play in building trust according to the speaker?
-Empathy is seen as the ultimate form of customer insight. It involves treating customers the way the business would want to be treated if it were in the customer's shoes. Companies like USAA have built strong trust by consistently applying this principle.
What does the speaker predict about the future of marketing practices?
-The speaker predicts that previously acceptable marketing practices will soon become 'untrustable' as customer expectations for trustability rise. Marketing will need to evolve to focus more on proactive, transparent, and trust-driven strategies to meet these new demands.
Outlines
💡 The Rise of Empowered Customers
This paragraph introduces the growing power of customers, who now push back against marketing. While some worry it's the end of marketing, the speaker views it as a new opportunity for first movers in a world of empowered consumers. Trust has always been essential, involving both competence (ability to do the job) and good intentions (doing the right thing). These elements are vital in today's increasingly interconnected world, where technology has amplified the speed and volume of interactions.
🔍 Transparency and Trust in a Connected World
As technology advances and interactions multiply, trust has become even more crucial. People filter information based on trust, making it essential for marketers. The paragraph highlights how transparency has grown, making it harder for businesses to hide negative actions. Consumers now rely on recommendations from friends and strangers more than they trust advertising, which they perceive as self-serving. Trustworthiness is becoming critical as information spreads rapidly in this age of transparency.
📉 The Power of Word of Mouth and Transparency
The speaker discusses how transparency can make or break a product or business. They use the example of the movie *Bruno*, which suffered a dramatic drop in box office receipts due to negative tweets and texts from viewers. Transparency rewards good products but punishes bad ones, with negative experiences quickly becoming permanent online. The expectation of trustworthiness is evolving, and consumers now expect businesses to actively protect their interests.
Mindmap
Keywords
💡Customer Empowerment
💡Trust
💡Moore's Law
💡Transparency
💡Word of Mouth
💡Proactive Trustworthiness
💡Competence
💡Good Intentions
💡Empathy
💡Extreme Trust
Highlights
Customers are increasingly empowered, pushing back more, but this creates opportunities rather than threats for first movers in the new environment.
Trust has always been important, involving two key elements: competence (ability to do the job) and good intentions (doing the right thing).
With the rapid growth of technology, interactions have skyrocketed, requiring businesses to build more trust as interactions become more frequent and transparent.
Trust makes interactions efficient by filtering out information that comes from untrustworthy sources, and transparency is becoming critical in today's world.
Transparency rewards good products and punishes bad ones. Bad products or practices can be exposed quickly, leading to significant consequences.
Word-of-mouth has gained new power through social media and technology, as seen with the example of the movie 'Bruno,' where box office receipts dropped dramatically due to negative reviews spreading fast.
The internet makes it nearly impossible to hide bad practices. Once negative information is out, it stays out, making it essential for businesses to prioritize trust.
Consumers now expect a new level of trustworthiness, where businesses must proactively watch out for their interests—referred to as 'Trustability.'
Amazon practices proactive trust by reminding customers if they are about to purchase something they have already bought, showing how they prioritize customer trust over short-term profit.
JetBlue's proactive approach to customer service, like issuing automatic refunds for delays without requiring extra steps from customers, exemplifies extreme trust.
USAA has built a brand around trust by treating customers the way the company would want to be treated, becoming the most trusted financial services company.
Empathy is the key to extreme trust and is the ultimate form of customer insight, enabling companies to treat customers fairly and build long-lasting relationships.
The principle of reciprocity, or treating customers as you would like to be treated, is becoming essential for businesses to maintain trust in an increasingly transparent world.
The age of big data allows businesses to gather deep customer insights, but trust and empathy are what truly strengthen customer relationships in a transparent market.
Previously acceptable marketing practices will soon become unacceptable and untrustworthy as customer expectations for proactive trustworthiness rise.
Transcripts
uh what I'm gonna talk about today is
the fact that we all we're all aware of
this we're all aware of this increasing
power that customers have the fact that
customers increasingly are able to push
back and they do and and and some of you
are probably worried about this a lot of
a lot of people think this is the
beginning of the end for marketing but I
don't think so I think it's the
beginning of a new beginning I think
there's a tremendous opportunity that
exists out here for first movers in a
new environment of empowered customers
and that's what I'm going to try to
explain that's what we try to explain in
our book extreme trust first start with
the fact that Trust has always been
important you know it's always been
important to have your customers trust
and if you if you really had to boil
down the elements of trust if you think
about what it really means well there
are a couple of elements first Trust
involves competence do you think that
somebody is competent to do their job to
deliver the product on time to you to
will it be a quality product is it at a
reasonable price those are all the
elements of competence but also the
second requirement is good intentions do
you think the person has good intentions
or here's a baby being thrown up by his
dad is the dad competent enough to catch
the baby and doesn't want to catch the
baby those are the two questions go
through the the babies mind right
competence and good intentions could be
thought of as doing things right and
doing the right thing so Trust is always
been important then along comes Moore's
Law every 20 years
computers get a thousand times faster
and more powerful there's more computer
power in your mobile phone than was
available to the entire NASA
organization in 1969 when they put a man
on the moon computers are incredibly
powerful today there and there's and
they're not slowing down they're getting
more and more powerful at a rate of
about twice as much every 18 to 24
months there's a coral
Reeta Moore's law sometimes known as
zuckerberg slaw every 20 years we
interact a thousand times as much with
other people now you think about your
life twenty years ago before cell phones
before Facebook before status updates
Twitter okay before LinkedIn a lot of
you didn't have email twenty years ago
you probably interact about a thousand
times as much today as you did twenty
years ago and your children will enact a
thousand times as much as you do twenty
years from now
now here's the thing here's the thing
one of the most important components of
any interaction is Trust trust the more
we interact the more trust we demand for
several reasons first trust makes
interactions efficient think about it
when you when you turn on your computer
in the morning and you see 50 inbound
messages in your inbox what's the first
thing you do delete a bunch right mostly
the ones that are coming in from people
not that you don't trust him so much but
that you know that they're trying to
sell you something it's in their
interests not in your interest right
they're not watching out for you they're
watching out for themselves they want to
get your attention please please wait do
you delete delete Li you filter
information with with trust you filter
that information that's how we decide
what to pay attention to
can we trust it and Trust generates
transparent interaction generates
transparency whether it's Arab Spring or
WikiLeaks the world is more trance it's
more expensive today to keep a secret
than it ever has been
anything anyone in the world can know
today everyone in the world can know
tomorrow so Trust is really really
critical because if you're not
trustworthy
word is going to get out words gonna get
out we are in the age of transparency a
Forrester study found that 83 percent of
consumers trust what their friends tell
them more than half of consumers trust
the recommendations and opinions of
total strangers whose reviews of
actually read online only about 14% of
people trust advertising why would that
be it's not because advertisers lie but
advertisers messages are biased in their
favor
the reason an advertiser or a direct
marketer or any business is willing to
pay money to put a message in front of
consumer is not in general not to
improve the consumers life but to
improve the advertisers bottom line
consumers aren't stupid they know this
that's why they don't they get
information from advertisers they get
information from marketers you know and
they expect that information to be true
but they don't trust them they don't
trust because advertising is in the
advertisers interest not in your
interests and we've all sort of grown up
with this but the situation is changing
situation is changing transparency is
like a disinfectant for business it's
going to clean things up
but first it's things like health
there's a lot of businesses gonna get
stung by Transparency I'll give you some
examples later in my talk
transparency rewards good products and
it mercilessly punishes bad ones do you
remember the movie Bruno anybody see
that movie
I love Sacha Baron Cohen's movie
generally okay but this was a bad movie
this was really a bad movie and in an
unprecedented action people left this
movie tweeting and texting their friends
to save their money box office receipts
were down 40% the day following the
release of the movie this never happened
before in Hollywood the day after the
release of the movie box office receipts
plummeted for the mouth word of mouth is
a is a vicious thing it was death by
tweet screw up today the news is gonna
be permanent as Linda Kaplan Thaler said
you can't undo GLE yourself once you're
there it's in a permanent record or as
somebody said a little more
picturesquely dude you can't take
something bad off the internet that's
like trying to take pee out of us
swimming pool once the pees in the pool
you can't get it out so Martha Rodgers
and I think that they that that because
of the rapid increase in technology for
interacting because people are
interacting so much more today than
before that there's a new standard of
trust that's going to be expected of
businesses consumers are going to hold
businesses to a new standard of
trustworthiness it's no longer enough
simply to refrain from stealing from
your customers or cheating them instead
consumers are going to expect you to
proactively watch out for their
interests they're gonna expect proactive
trustworthiness or what more than I call
Trust ability Trust ability proactive
trustworthiness
vattic that a business will go out of
its way to protect a customer's interest
there's lots of examples of this lots of
examples of it but if you had to boil
down the definition of trust ability it
is doing things right and doing the
right thing proactively let me give you
some examples Amazon great example ever
try to buy a book on Amazon that you
already bought from them one time before
they sell it to you they remind you hey
you already bought this book once you
sure you want to buy it again see they
could make a profit by selling you the
book it actually be more profitable than
just let you make them as your mistakes
not their mistake not cheating you if
they sell you the book that you're
buying by mistake
but they're using their database which
is probably better than your database to
remind you that you already have the
book iTunes does the same thing USAA the
direct writing insurance company they've
made a fortune as an insurance company
that has historically specialized in
serving military families and in in auto
property and health insurance okay and
and they constantly are watching out for
their members in any way USAA members
out here okay we'll see tell that
everybody else at the table what the
great company er JetBlue the other thing
I want a JetBlue flight it's
six hours late it's everybody is
terribly inconvenience on JetBlue it's
very very bad and we're all upset when
we get into the destination and as we're
leaving a plane we're handed in notice
the notice says we're terribly sorry
about the delay our fault it was
mechanical as part of our customer Bill
of Rights we're gonna give you a full
refund for your ticket either in true
blue points or in money and you do not
have to do anything to claim the refund
we will automatically either send you
the refund or put it in your flight bank
how many times have you been subject to
a refund in an airline and they say yeah
to claim this refund just go on our
website enter the ticket number of the
confirmation number you know wave a
chicken in a bag over your head three
times so JetBlue is being proactive
about protecting customers interests
extreme trust comes from empathy empathy
is a human impulse it's a natural human
instinct at USAA the way they became the
icon of customer service and by the way
USAA is the most trusted financial
services brand in the world and the next
one is like 10 or 15 points below it
okay so by far the most trusted
financial services brain USAA got there
by practicing a very simple thing for 40
years for 40 years the mantra at USAA is
we treat the customer the way you'd like
to be treated if you were the customer
that does not mean that we give products
away in a loss it doesn't mean that we
cut our throats to serve the customer it
means that we give the customer a fair
deal we treat the customer the way he'd
like to be treated if if if I were the
customer the way I like to be treated
that's USAA empathy is a deeply human
instinct it's deeply human probably the
most human and if you think about it for
a company empathy empathy is the
ultimate form of customer insight we're
at the Direct Marketing Association
we're all about customer insight in the
world of big data customer insight is
what you get from having all this
information the unstructured information
about social sentiments
that's all to develop customer insight
don't you want to know what it feels
like to be the customer well apply the
principle of reciprocity treat the
customer the way you'd like to be
treated if you really were the customer
because of rising customer expectations
with respect to trust ability previously
acceptable marketing marketing practices
will soon become untrustable
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