It appears that there are three interesting factors that are influencing the way brands create, develop and extend their relationship with consumers in the new age of digital engagement. And this in turn is forcing many brand owners to incorporate new behaviours into their customer engagement strategies and ways of thinking. (Just by way of definition, by 'digital' I refer collectively or individually to mobile, PC/notebook/netbook, iPads/e-readers etc as the interactive environments where consumers are spending more and more time and from where the new digitally influenced relationships between brand and consumer are being forged).

 

The first of these factors is technology which now makes the relationship between brand and consumers a direct, real time and measureable one, rather than an abstract and loosely defined one of the past. Companies now have the medium, via various digital devices to reach 100 per cent of the population, bringing new challenges and opportunities as the relationship develops. The second factor is the various pieces of consumer protection legislation that are finally appearing in the South African market and are being enforced (albeit imperfectly) to protect consumers' rights to their (digital) privacy. For me it is refreshing to see big brands finally coming of age and recognising that if they do not get a specific opt-in, or permission to do XYZ, that there are reputational as well as financial implications for violating these consumer laws. Finally, the third factor that is influencing the way brands and consumers interact is improved consumer knowledge and understanding of their rights and the ability to see and record these violations to personal privacy infractions as they happen. The consumer is able to express discontent via the company at hands websites or call centres or going via 3rd party locations (WASP, Facebook, HelloPeter and others) where they can vent their feelings.

 

As a result of these new influences, it is interesting to see how brands are being forced to pause and consider how they are collecting sales leads, what qualifies as an 'interested customer' and how do you deal with their digital foot print that consumers leave behind when they engage with the brand on whichever digital level they offer (e-mail, text and win, requesting a mobile voucher).

 

For me, the key word that seems to be emerging in this digitally defined relationship is trust. Trust, in the view of Stephen Covey Jnr. (son of the man made famous by the 7 Habits), is the one thing that changes everything. When trust is present, and trust is mutual, relationships flourish. When trust is absent or poorly developed, relationships stagnate. It sounds easy, but the reality is that many companies do not have the internal ability to build trusting relationship with their customers and to give and take in a mature way.

 

The second important consequence of the changing landscape between brand and consumer is the concept of reward. Loyalty and reward are well written about topics in the CRM world how to reward, when to reward, what to reward, vouchers and coupons; but for me the next logical step embedded in a trusting, transparent and open relationship, is that it must be of mutual benefit. If the consumer is going to take time to tell you about themselves, to share their views on the brand and to give you input on future product development, surely they should be rewarded in some way?

 

My view is that they should get something in return. Sure, rewards can take different formats (price discounts, added value benefits, free membership to specific groups, unique offerings) depending on the sector, margin for giveaway, or customer lifetime value, but the relationship needs to include a bit of give and take. Ask for engagement, ask for opinion, and seek input directly from your customers using whichever digital medium you prefer, but please give your loyal customer something back in return. Reward them, build trust, respect digital data and acknowledge your customer with something of value to them. History tells us that it takes longer to get new customers and costs more than you planned. Hanging onto existing customers though mature, trusting relationships is the way to keep your customers coming back.

 

Written by

Chris Rolfe