Summary: The Relationship Economy: Building Stronger Customer Connections in the Digital Age by John DiJulius

• In this article, we will review The Relationship Economy: Building Stronger Customer Connections in the Digital Age by John DiJulius, a book that teaches how to build authentic and lasting relationships with customers in a world where technology is taking over.
• If you want to learn more about the relationship economy and how it can help you grow your business and your personal life, read on to find out what this book has to offer.

The more digitalized our lives become, the more we risk losing the ability to maintain genuine human connections. The proliferation of robotic and remote online interactions makes the capacity to form human relationships an essential business skill.

This book summary explains how businesses can forge an impregnable competitive advantage by putting relationships at the center of their business strategy.

What’s inside?

Relationship-centric businesses gain a unique, competitive advantage in a technology-based world.

Recommendation

Don’t confuse digital connectivity with human connection, cautions business consultant John DiJulius. The proliferation of robotic and remote online interactions makes the capacity to form human relationships an essential business skill. Master that ability and deliver exceptional customer service to forge an impregnable competitive advantage. According to DiJulius, putting relationships at the center of your business strategy is the formula for success in the digital age.

Take-Aways

• Technological advances have forever changed how people communicate and interact.
• Companies must concentrate on customer service and building relationships to survive and thrive.
• Technology improves many aspects of business, but often at the expense of customer service.
• FORD – “family, occupation, recreation, dreams” – provides a conversational template for getting to know other people.
• Few leaders develop strategies or implement programs to teach employees how to build and improve relationships.
• Become a trusted adviser to defend against losing a client to a competitor.
• When customers know, trust and like you, they are more forgiving of mistakes.
• Everyone yearns for validation, acknowledgment and the chance to contribute to something meaningful.
• The more effort people put into interacting with your business, the greater the likelihood that they will leave the minute they find a more convenient option.

Summary

Technological advances have forever changed how people communicate and interact.

Connecting digitally through computers, smartphones and tablets has led to the rapid erosion of social skills. E-commerce means people shop at fewer physical locations and communicate digitally when considering or making a purchase. Feeling isolated, they yearn for personal acknowledgment. Competitors can replicate innovations before you establish an advantage and technological breakthroughs may disrupt long-standing industries. Customer relationships are the ultimate differentiator and defense. Improve your relationship-building skills by:

• Being authentic – Genuine interest in others always engages.
• Being obsessively curious – Curiosity about other people is irresistible.
• Being a great listener – Focus, ask questions, make eye contact and don’t interrupt.
• Practicing “incredible empathy” – Take someone else’s perspective to better understand their experiences.
• Choosing to “love people” – Love helps you serve and cherish your fellow human beings.

“Those who understand that human touch is the most important part of a great customer experience will flourish. Success is increasingly about creating and building human connections.”

Build a culture of trust and connection between customers, employees and other company stakeholders. Smart businesses recognize the value of each individual and include them in a supportive, empowering community.

Companies must concentrate on customer service and building relationships to survive and thrive.

The World Economic Forum predicts that machines will outnumber humans in the workforce by 2025, and an Oxford University study concludes that artificial intelligence (AI) will replace almost half of white-collar jobs in the United States. AI bots handle customer service requests more cheaply, quickly and efficiently than humans. The one thing computers and AI cannot do is engage and empathize with customers.

“It is imperative that every person in your company understands that your biggest expense is dissatisfied customers.”

Nurture the “service aptitude” of every employee in your organization. Companies lose more money through poor customer service than through any other issue. For example, when United Airlines workers dragged a passenger off a plane in 2017, a video of the skirmish gained international attention, forcing the airline to issue a public apology.

Make customer service the responsibility of every employee on every team. To become a first-rate customers service organization, appoint a CXO – Chief Experience Officer – or CCO – Chief Customer Officer – to “own” and sponsor the commitment.

Technology improves many aspects of business, but often at the expense of customer service.

Emphasis on technological advances sends the message to employees that customer service is a secondary priority. Basic human interaction is in decline. The generations weaned on digital interaction lack the people skills of previous generations. Consequently, businesses must work to develop the traits in employees that facilitate superior customer service. These skills include “compassion, empathy, engagement and warmth,” giving others the benefit of the doubt, and a drive to serve and excel.

“The most memorable customer experiences are the ones where an emotional connection was made, where both customer and employee felt something.”

Digital devices launched society into the “Touch-Screen Age.” People connect easily through social media, but the connection lacks depth and authenticity. You may have hundreds of Facebook friends, and your Instagram posts may garner dozens of likes, yet you feel lonely and isolated. Addiction to social media damages mental health. Heavy users may suffer “digital dementia”: cognitive and memory deterioration that mimics a brain injury. Young people are particularly susceptible to the lure of social media and “mental stimulation addiction” (MSA) is widespread. Social media junkies suffer shorter attention spans and cognitive decline.

“Downtime and a relaxed mental state are the best environments for our mind to veer off from mainstream thought patterns and venture into the unknown.”

Technology overuse suppresses creativity. When you’re always on your smartphone or other digital devices, you brain doesn’t have the quiet time to work on ideas and solve nagging problems. A USC study showed that heavy social media users displayed less creativity and imagination in finding solutions to big problems. Detox from digital technology by using screen-time apps to set daily limits, switching off devices for a set time each day or committing to technology quiet times, such as before breakfast or bedtime.

FORD – “family, occupation, recreation, dreams” – provides a conversational template for getting to know other people.

Forge connections by giving others the gift of your undivided attention. Use the acronym FORD – “family, occupation, recreation, dreams” – to maintain focus on your conversational partner, ask questions and build a relationship. Collect “customer intelligence” by going beyond personal information to learn what makes customers tick. Create FORD files on customers – a record of information that humanizes transactions. For example, if a customer reschedules an appointment due to a conflict with her daughter’s soccer championship, ask about the game the next time she comes in.

“When we truly empathize with others, we come as close to reading minds as humans can get.”

Superior listeners participate in the conversation by asking relevant questions, conveying empathy, being accountable, offering suggestions and sharing their own stories. Approaching each interaction as an opportunity to build a relationship promotes productive conversation.

Few leaders develop strategies or implement programs to teach employees how to build and improve relationships.

Strong, authentic relationships are crucial to company success. FORD systems are a great first step in the process. Design the system so it’s relatively inexpensive, easy to execute, does not burden productivity, and surprises and delights customers. Track, record and reward the results of FORD initiatives to motivate and engage employees. For example, the Canadian insurance company Benson Kearley offered an incentive to encourage account executives to follow up on what they learned about customers through FORD. Each participant received a $25 monthly allowance. If a customer mentioned an upcoming birthday, for instance, the account executive would use the allowance to send champagne or flowers.

“Highly empathic people have an insatiable curiosity about strangers. They will talk to the person sitting next to them on the bus.”

Never assume employees know how to engage positively with customers. To teach them how, introduce the “Five Es” approach. The Five Es are: “eye contact, ear-to-ear smile, enthusiastic greeting, engage” and “educate.” The “3-2-1” strategy maintains relationships. Every week send clients three emails, two cards and make one client phone call.

Become a trusted adviser to defend against losing a client to a competitor.

Vendors, advisers and consultants, and independent contractors in the business-to-business (B2B) sector must know as much as possible about their clients’ businesses and industries. Remember, another company can always outbid you. Your only defense against losing an account is becoming indispensable to your client.

“The more people feel like they cannot live without your brand, the closer you are to making price irrelevant.”

Consistently demonstrate that you care, are knowledgeable and will always help your clients, without demanding something in return. Earn your client’s trust in the following ways:

• Show clients you love your job and that your passion for the work is genuine.
• Build a relationship that goes beyond the transaction into the personal.
• Make client success your top priority.
• Gain a complete understanding of client goals and the challenges they face.
• Become expert in your field and never stop learning.
• When the inevitable screw-up happens, be honest and transparent.
• Share your resources and help clients make connections beneficial to their businesses.

“Falling in love with your brand is not possible until the customer feels that they are the most important person in the relationship, and that it is all about them.”

Only through consistent, long-term effort will you gain “social capital” – an invaluable asset. Unlike networking, which is transactional, social capital results from relationships that seek no quid pro quo. View yourself as a “connector”: someone who brings people together with their objectives in mind. Offer service and provide value without expecting payback. Once clients like and trust you, you no longer compete solely on price. They stay with you because of the experience and expertise they rely on and enjoy with your company.

When customers know, trust and like you, they are more forgiving of mistakes.

Although it may feel counterintuitive, problems are opportunities to strengthen relationships. For example, a hairdresser inadvertently spilled hair dye on a customer’s blazer. When the woman complained, the owner reimbursed her $250 for the suit and gave her a gift certificate. This so impressed the woman that she referred 18 new customers to the salon over the next year.

“The one area you can get a distinct competitive advantage is by out-loving the businesses you compete against.”

Make “everything is our problem” part of your customer service philosophy. Rather than placing blame, focus on solving the problem so it doesn’t negatively affect customer expectations or experience. For example, a father and son waited for almost an hour in line for a Disney ride, only to discover that the boy was too short to safely take the ride. When the boy started to cry, a young Disney employee gave him a certificate that enabled him to cut the line when he was tall enough. This became the highlight of his trip and the certificate remained on the refrigerator until the child put it to use. The employee took it upon himself to make the customer feel better.

Everyone yearns for validation, acknowledgment and the chance to contribute to something meaningful.

One mantra of the US navy is “Ship, Shipmate, Self.” This motto functions as a measurement of a leader’s success subordinating his or her own interests in the service of the company and its employees. Millennials understand this concept; they seek a higher purpose than simply collecting a paycheck.

Herb Kelleher, the late co-founder and CEO of Southwest Airlines, kindled his employees’ admiration, devotion and respect. Forbes writers Kevin and Jackie Freiberg attribute this legacy to Kelleher’s active listening and motivational skills.

The more effort people put into interacting with your business, the greater the likelihood that they will leave the minute they find a more convenient option.

Transferring customers from one customer service representative to another, making them repeat information or wait doesn’t engender a positive customer service experience. People expect and demand quick responses to emails and phone calls, and speedy resolutions to issues.

“They say you can’t buy time, but today’s consumers are using their disposable income to do just that.”

To attract customers, for example, Best Buy offers areas where children can play the newest games. Starbucks recently opened Starbucks Reserve: a high-end coffee shop for tastings and limited offerings.

“At the end of the day, ask yourself one simple question: ‘How many people had a better day as a result of coming in contact with me?’”

Delivering the expected is not enough to create customer loyalty. Retaining customers results from providing repeat, helpful “micro experiences”: small, positive interactions with the business or brand. Train employees that they’re “always on stage,” to raise awareness about how they influence customers during every interaction.

About the author

Founder of the salon chain John Robert’s Spa and the DiJulius Group, John DiJulius also wrote Secret Service: Hidden Systems That Deliver Unforgettable Customer Service and What’s the Secret? To Providing a World-Class Customer Experience.

Genres

Business, Money, Industries, Self-Help, Non-fiction, Sociology, Careers, Marketing, Sales, Customer Service, Public Relations, Customer relations, Management, Interpersonal relations, Economic aspects, Relationship marketing

Table of Contents

1. WELCOME TO THE RELATIONSHIP ECONOMY,
2. STATE OF SERVICE,
3. HUMANIZING OUR FUTURE,
4. THE TOUCH-SCREEN AGE,
5. MEET AS STRANGERS, LEAVE AS FRIENDS,
6. THE RELATIONSHIP ECONOMY IN ACTION,
7. BE THE BRAND CUSTOMERS CANNOT LIVE WITHOUT,
8. BE THE BRAND EMPLOYEES CANNOT LIVE WITHOUT,
9. ARE YOU BEING DISRUPTED OR ARE YOU THE DISRUPTOR?,
10. CARPE MOMENTO,
11. GIVE MORE,
NOTES,
INDEX,
ABOUT THE AUTHOR,

Review

The Relationship Economy: Building Stronger Customer Connections in the Digital Age by John DiJulius is a book that explores the importance of human relationships in a world that is increasingly dominated by technology. The author argues that as we become more dependent on digital devices and platforms, we lose the ability to connect with others on a personal and emotional level. He warns that this can have negative consequences for both individuals and businesses, as we miss out on the opportunities and benefits that come from building authentic and lasting relationships.

The book provides a framework and a set of strategies for developing and maintaining strong customer connections in the digital age. The author draws from his own experience as a customer service expert and a business owner, as well as from the best practices of leading companies that excel at creating loyal and engaged customers. He shows how to create a culture of relationship building within an organization, how to train and empower employees to deliver exceptional customer experiences, and how to leverage technology to enhance rather than replace human interactions.

The book is divided into four parts: Part One explains the concept and the value of the relationship economy, Part Two outlines the principles and the skills of relationship building, Part Three describes the process and the tools of creating customer connections, and Part Four offers some case studies and examples of successful companies that have mastered the relationship economy. Each chapter ends with a summary of key points and action steps for readers to apply the lessons learned.

The book is written in a clear and engaging style, with plenty of anecdotes, stories, and statistics to illustrate the author’s points. The book is also full of practical advice and tips that can be easily implemented by anyone who wants to improve their customer service skills and their relationships with others. The book is suitable for business leaders, managers, entrepreneurs, salespeople, marketers, customer service representatives, and anyone who wants to learn how to create more meaningful and profitable customer connections in the digital age.