How to build trust and win your customer's attention
You can't shrink your way to greatness: Seth Godin
The two scarce elements of our economy are trust and attention: Seth Godin
Seth Godin, renowned marketing expert and author, discusses the importance of trust and attention in today's business landscape. He emphasizes the need for companies to focus on long-term value creation rather than short-term profit maximization.
Key Takeaways from Seth’s recent conversation with Eric Ries (founder of lean startup movement):
The Scarcity of Trust and Attention
Trust and attention are increasingly valuable resources in today's economy. As more people compete for attention and engage in short-term hustles, organizations that can earn and maintain trust gain a significant competitive advantage. Building trust is a long-term investment that few brands can achieve, making it a powerful asset.
Trust as an asset is often undervalued in the short term but becomes highly valuable over time. Organizations should focus on earning attention and the benefit of the doubt from customers, gradually building trust through consistent, ethical behavior.
The Shift from Traditional Marketing
Traditional marketing, which relied on reaching a mass audience through advertising, has become less effective due to the fragmentation of media and the rise of niche markets. Godin redefines marketing as anything that touches the market, emphasizing the importance of solving customer problems and telling compelling stories.
Marketing is no longer just about advertising but about creating value and building relationships with customers. Companies need to focus on understanding their customers' needs and delivering solutions that resonate with them.
The False Proxy Trap
Many organizations fall into the trap of using false proxies to measure success. These are metrics that are easy to measure but don't necessarily reflect true value creation. For example, focusing solely on cost reduction in manufacturing without considering value improvement can lead to short-term gains but long-term decline.
Companies should instead focus on metrics that reflect true value creation and customer satisfaction. This might involve developing more nuanced, qualitative measures of success that align with long-term goals.
Building Trust Through Transparency
Transparency can be a powerful tool for building trust. Godin gives an example of a construction company that sets up cameras at job sites, allowing clients to monitor progress 24/7. This level of transparency changes how the team behaves and builds client trust.
Companies should look for ways to increase transparency in their operations, even if it initially feels uncomfortable. This openness can lead to improved performance and stronger client relationships.
The Power of Continuous Improvement
While many companies focus on sporadic, large-scale improvements, there's power in continuous, incremental improvements. This approach, common in software development, can be applied to other areas of business to create ongoing value.
Organizations should create systems that encourage and facilitate continuous improvement, rather than relying solely on big, infrequent changes.