Trust Capital Is the New Marketing Gold Standard

Now, more than ever, trust capital may become the new marketing gold standard, joining brand equity as a key metric for valuing a company’s relationship with its customers and prospects.

My father used to caution not to believe everything one heard or read. He was not a cynic but an optimistic realist. Nonetheless, like the majority of his generation, his basic intuition urged him to trust existing institutions and assume (that most dangerous word), that what they were saying or doing was for the common good. “Fake news” had not morphed from the lingua franca to become the lingua twitter.

That’s not always the case anymore. MediaPost shared the following on Mar. 19:

“The news business is battling public distrust. Nearly half of respondents to a new Axios/Ipsos poll said they do not trust traditional media ‘very much or at all” to accurately deliver information about the COVID-19 virus.’”

That distrust should inform how marketers must rethink their approach to customers and prospects as we plunge into a new and uncertain era.

On Jan. 19, the 2020 Edelman Trust Barometer published this worrisome finding:

“… despite a strong global economy and near full employment, none of the four societal institutions that the study measures — government, business, NGOs and media — is trusted. The cause of this paradox can be found in people’s fears about the future and their role in it, which are a wake-up call for our institutions to embrace a new way of effectively building trust: balancing competence with ethical behavior.”

If “disbelief” is the new normal gut reaction to our foundation institutions, it goes without saying that our commercial messages, however well wrapped in engaging narratives are likely to need the “suspension of disbelief” to be effective. That almost certainly means stepping back a little (or a lot) from our “act now” knee-jerk impulses and asking ourselves what we need to do to achieve that “suspension,” to establish the critical trust that my father suggested might be missing.

Building Trust With Customers and Prospects

If we look at the Amazon ethos, building credibility item by item, on-time delivery by on-time delivery, rapid refund by rapid refund, trust impacts each transaction more than efficiency. Not surprisingly, that same Edelman study found “ethical drivers such as integrity, dependability, and purpose drive 76% of the trust capital of business, while competence accounts for only 24%.”

Trust capital may become the new marketing gold standard, joining brand equity as a key metric for valuing a company’s relationship with its customers and prospects.

But how can we measure integrity, dependability and purpose? It may be easier said than done. Perhaps a good starting point is looking backwards.

How much feedback have you had from your customers, especially negative feedback? (We all love compliments but we seldom learn from them.)

One of my first jobs was to read complaint letters, research what had (or had not) gone wrong, and then write for the signature of the CEO, a truly personal answer. The number of “thank you” notes we received was the best lesson you could have in the value of real personalization.

If you don’t have a strong culture of responding to every complaint, not with a form letter or email but with a thoughtful and helpful personal communication, you should put one in place, now. If I can’t talk to a knowledgeable and helpful human being instead of an algorithm, like many others, I’m gone and your trust capital has tanked, or at best, taken a hit.

A recent blog post from Yes Marketing put it this way:

“In a world driven by access to options, an emotional connection with a brand can be the tipping point for consumers when deciding where to spend their dollars.”

You certainly want it to tip your way, and that means doing whatever is necessary to establish and retain that emotional connection and trust.

Whatever we do to build trust capital during these uncertain times, even if not immediately measurable, is certain to pay big dividends when the crisis is past.

 

5 Data-Driven Strategies to Feed Your Customer Obsession

The digitization of our culture and marketplace has made it even more important for marketers to be customer advocates. Every bit of content we create, every retargeting campaign we develop and every customer journey we attempt to map … all this must be tied to superior and engaging customer experiences. It’s the only reason marketing exists.

The digitization of our culture and marketplace has made it even more important for marketers to be customer advocates. Every bit of content we create, every retargeting campaign we develop and every customer journey we attempt to map … all this must be tied to superior and engaging customer experiences. It’s the only reason marketing exists.

This Forrester Research recently claimed that companies obsessed with customer experience are more profitable and see higher growth. Consider Amazon, Nike or Mercedes Benz, where innovation is part of the culture. Consider how an obsession with innovation at Apple and Google translates to customer delight in their products. For the rest of us, it may be harder without that kind of a culture behind us, but frankly, there is no longer a choice for marketers: Each of us must adopt an attitude of obsession with customer satisfaction. Then, we need to employ a systematic approach to optimizing everything we do toward customer value. The key question to ask at every point in your day, “Is what I’m doing adding real value to a large number of high-value customers?” If not, change it or dump it.

Like any change, in life or business, it starts with attitude. If you don’t work for a customer-obsessed company, can you successfully meet the demands of your market and rise above the competition? At a minimum, companies must embrace that digital and customer experience is everyone’s business—great ideas and the seeds of change can come from anywhere, regardless of title, but do need to be cross-functional and valued to blossom.

It’s time to make this transformation personal. Consider how you can use the technology you have to adapt the customer experiences that you do control, and demonstrate success to the rest of the organization. This proof of concept approach is a great way to get more budget, too. Incremental change is great—improvements to a campaign for next time or an adjustment to the timing for a triggered message are good starting points. However, more is needed.

We must re-think the customer experience across an ecosystem, and not just a set of interactions with owned media or branded touchpoints. Collaborate with other suppliers and influencers to focus on digital efficiency so that you can react in “right time.” Right time is an alternate to “real time” that recognizes that immediacy is not the most effective reaction in all situations. This is especially true since the customer journey is non-linear.

Thinking differently can be difficult inside an organization—especially if you are successful. Often, good ideas are limited because of the way we ask questions about our customers or our marketing programs. A research experiment with third graders provides some proof of why creativity goes beyond tactical application of cleverness or humor. (The video is about two minutes long.)

The project gave two groups of third graders the same assignment—to make a picture out of a triangle. When the assignment was narrowly defined, the pictures came out nicely, but not that different from each other. When the assignment was not defined, the pictures came out wildly different—and much more creative!

Don’t just wait for disruption to come to your industry—learn to disrupt your own business. Truly aim to understand whatever is blocking your path to innovation and customer connection. Consider some of these strategic elements that can help you break free of legacy patterns and test new ideas.

1. Use the Data You Have to Zero-in on Key Segments. Use microtargeting to really get to know your customers. Dig deep into customization and personalization opportunities to find the small, yet potentially profitable subsets of your market and niche offerings.

2. Separate the Signal From the Noise. Being able to do so is a powerful intoxicant: If I can just repeatedly do that one perfect thing that will really drive our business forward, I’d dominate our market and be a hero. Problem is, identifying that one perfect thing is very hard. Marketing analytic models may be more accessible than you think—and perhaps are no longer a luxury, but an imperative for understanding the customer needs—and predicting future behavior. Bring these practices closer to the campaign management and segmentation strategy—and give your analytics teams a seat at the table. Consider some of these key questions that analytics models can answer:

a. What dynamic forces are affecting my customer and how effectively am I changing to meet these changes?
b. Are there new market opportunities developing that I can take advantage of and become the industry leader?
c. Would this new product be interesting to our current customers? What must be true for customers to feel pain? Who are our most valuable customers, and over time? What outside factors impact customer loyalty and retention?
d. What are the characteristics of our best prospects?
e. Which marketing messages and campaigns are contributing, and when do they contribute during the lifecycle?

3. Marketing Automation Tools Are Slowly Evolving to Help You Manage These Changes, but you may need to bolt together point solutions in the meantime (especially if a big upgrade is not in your budget this year). Look to consolidate applications into a platform with data and process level integration to improve efficiency and effectiveness; work to integrate marketing technology with the enterprise infrastructure to reveal deeper insights into customers, partners and market opportunities. Here is a good reason to establish inter-disciplinary teams with IT and sales and customer service and legal to improve marketing contribution, vendor management, due diligence and governance practices.

4. Paid Placements (Native Advertising) Are Here to Stay. Spend your money on the right content and platform and understand which digital properties are performing best. Build budgets and relationships around content placement, sponsorship opportunities, syndication services and content recommendation platforms. Content marketing can’t be limited to owned and earned media if you need to reach larger and broader audiences.

5. Focus on Quality Content; we are all publishers now. Mobile will continue to dominate, so master its impact on your content and targeting. All our writing has to be compelling and adaptable across platforms, and written to the tastes of narrowly targeted personas. Automation tools help to make sure your content is repurposed with panache and context.

Clearly there’s lots of opportunity for growth in many areas of marketing success, particularly as we align our investments in areas where vendors have incentives to innovate. Scouring your budget for “past success” might be a good place to start: Given the advances in technology, will what worked in 2010 or even in 2014 work now in 2015? Please share your own tips and challenges for creating a customer-obsessed culture in your organization in the comments section below.