Extreme Trust Competitive Advantage Social Media Summit
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Don Peppers gave a presentation on "Extreme Trust: Honesty as a Competitive Advantage" at the 2013 SocialMedia.org Summit in Orlando. He argued that in today's socially connected world, where customers can share information freely online, trust has become even more important for businesses. To gain customers' trust, it is not enough for companies to simply avoid lying or cheating. They must proactively build "trustability" by acting with integrity, transparency and prioritizing customers' interests even if it means reducing short-term profits. Extreme trust will allow companies to attract more loyal customers and employees, gain a competitive edge, and become better, more profitable organizations overall.
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Extreme Trust Competitive Advantage Social Media Summit
- 1. SOCIALMEDIA.ORG/SUMMIT2013ORLANDO “Extreme Trust: Honesty as a Competitive Advantage” DON PEPPERS PEPPERS & ROGERS GROUP DECEMBER 9–11, 2013
- 2. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 1 Extreme Trust: How Honesty Can Actually Be a Competitive Advantage Orlando 10 December 2013 @DonPeppers
- 3. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 2 Competence Having customer trust has always been important Good Intentions Doing things right Doing the right thing
- 4. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 3 Moore’s Law Every 20 years, computers get a thousand times faster and cheaper
- 5. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 4 Every 20 years, we interact a thousand times more with others! Zuckerberg’s Law
- 6. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 5 And the more we interact, the more trust we demand Trust makes interactions more efficient Interaction generates transparency
- 7. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 6 A new standard: Extreme Trust Proactive trustworthiness To serve socially connected customers, it’s not enough simply to refrain from cheating or lying “Trustability”
- 8. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 7 Extreme Trust often requires reducing short-term profit to gain long-term value
- 9. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 8 Competence Good Intentions Doing things right Doing the right thing Proactively Extreme Trust “Trustability”
- 10. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 9 x Profiting from a customer’s error x Failing to notify x All “caveat emptor” policies! Trustability Previously acceptable marketing practices will soon become “untrustable” Because of rising customer expectations with respect to
- 11. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 10 70% of consumers trust the recommendations of their friends ~50% trust online recommendations from complete strangers Just 10% of consumers trust advertisers Is it any wonder why consumers no longer trust marketers? 2013 study of 58,000 consumers
- 12. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 1111 “Once the trust goes out of a relationship, it’s really no fun lying to them anymore.” Norm Peterson, on the TV show “Cheers,” accurately summarized the dilemma marketers now face
- 13. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 12 Linda Kaplan Thaler, CEO, Kaplan Thaler Group Screw up today, and the “news” will be permanent “You can’t un-GoogleYourself”
- 14. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 13 Grant Robertson, blog post, May 1, 2007 “Dude, you can't take something bad off the Internet. That's like trying to take pee out of a swimming pool.”
- 15. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 14 Thousands of bees constantly explore territory looking for blooming flowers When a bee finds a nectar-rich flower, it returns to the hive to do a “waggle dance” How Honeybees Find Food
- 16. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 15 Now suppose you were a food source for bees… In the absence of communication among your customers, advertising rules But when customers talk to each other, it’s the customer experience that counts
- 17. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 16 “Just because nobody complains doesn’t mean all your parachutes are perfect” Or, as Benny Hill said… Before customers interacted in social media, failures were just not as visible
- 18. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 17 Your employees want to work for a trustable company! At one US client we asked rank-and-file workers for suggestions on being more trustable We received ideas and suggestions from more than 3000 employees! Hundreds of ways they thought their company should be more honest with its customers!
- 19. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 18 And one more thing: Integrity is not elastic No one ever has just “some” integrity If you can earn and keep the Extreme Trust of its customers, then Workers will trust managers and each other Vendors, stakeholders, partners and investors will all trust your company more
- 20. Strategy. Execution. Results. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 19 won’t just make you a more profitable company… …it will make you a better company! Trustability
- 21. COPYRIGHT © 2013. ALL RIGHTS PROTECTED AND RESERVED. 20 Peppers & Rogers Group Customer strategy consultants with offices around the world 1to1 Media Magazines, newsletters, research white papers @DonPeppers www.lnkd.in/donpeppers See all Don Peppers’ posts on Linked In and follow him at: To subscribe to the “1to1 Weekly” email newsletter: dpeppers@1to1.com
- 22. SOCIALMEDIA.ORG/SUMMIT2013ORLANDO Learn more about past and upcoming events DECEMBER 9–11, 2013 SOCIALMEDIA.ORG/EVENTS