Don Peppers: Customer Relationship Management and Marketing Expert, Keynote Speaker

Summary

The 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.