Guest Blogger Liz Strauss: Speed, Trust, and the ROI of Relationships
"When trust goes up, speed goes up and costs will go down."
I met e-commerce and retailing expert Lauren Freedman for breakfast at the East Bank Club in Chicago recently. We met because of a 10 minute phone call in which I said that I see so many ways we should be working together. A guy named Jim Peake was the most likely reason she believed me. (More about him later.)
Our breakfast lasted all the way to lunch.
Lauren is smart, savvy, and a pioneer of e-commerce. She literally wrote the book on shopping. It's her firm's Mystery Shopper's Survey that E-commerce Guide cites in their article, "Survey Says: Customer Interaction Key to Online Sales."
Me? I'm a social web strategist. I translate the culture and help businesses use online tools to create communities. My own blog has 80,000 comments. I'm also the founder of a social-web business blogging conference called SOBCon.
Our strengths, our networks, our skill sets are complimentary. As we talked we found that we're both saturation learners. We don't just take on a subject. If we're going to do something, we learn it to our fingers.
We talked about how if you land on my blog and you don't like me, you click away in seconds and I never know. It's efficient. No hurt feelings. No social burden; no time wasted talking to me. If you stay, we're self-sorted. If I live up to what you expect, we've got a relationship. If I'm consistent and helpful, I become a trusted source.
I pointed out how smart people use social Web tools in a highly effective fashion, like a new sort of telephone: one to many to connect to the right people faster.
Until I called Lauren two days before that breakfast, she'd never heard of me and I'd never heard of her. We both live in Chicago, but I can't imagine how we might have met. If we had, I don't know how many months it might have taken us to get to where we were in that couple of hours.
Relationships start more quickly on the Web. They can move from a self-sorted online conversation to the telephone to introducing friends to a meeting at a breakfast table in the East Bank Club in Chicago in a fraction of the time it would take without that online interaction.
As the restaurant servers were setting the lunch tables, Lauren and I were planning. She could see ways that she could help my readers and the folks at my conference understand the realities and nuances of e-commerce. I'm all for helping her network see how we engage huge communities to come back and visit us daily bringing their friends and ideas. We're drawing forms and considering next steps.
No need to say how huge that was for both us. I'm sure you value your network as much as we value ours.
Now as to how I got to meet Lauren in the first place . . .
A few weeks ago I woke in the middle of a "3 a.m. something needs doing" night. About 4 a.m. when that particular something was polished and on its way, I opened Twitter and sent a message that said, "I'm working on sponsor kits for SOBCon09. Anyone want one?"
Soon, I was "talking" with an author/journalist from California, a potential sponsor from France, and a man who later invited me to participate in a podcast. The podcaster, Jim Peake, was interviewing high-profile social media experts for his upcoming book. We got acquainted, the relationship grew, and the conversation about the Internet, social media, publishing, and business relationships hasn't ended. We have core values, key people, and like experiences in common -- in essence, we were already friends. We just hadn't met.
Jim said to me, "There are two people you really must meet. One of them is in Chicago. The other is in New York." They were Lauren Freedman and 1to1's Ginger Conlon, who--as you may have guessed--read my work, told me about her customers, and then invited me to write a blog post about social media. So I wrote this one.
Jim trusted enough to introduce us. We trusted him. We "self-sorted" on his recommendation. Still it was a social tool that connected me to Jim. I never would have met Jim, Lauren, or Ginger without Twitter and a "3 a.m. something needs doing" night.
The ROI of the social Web is the value that relationships have always had multiplied by the reach and speed of the Internet. To find it on the P&L, it's in the results of the conversations and the relationships. Look at the efficiency and cost of business with vendors and customers you trust. Compare the numbers to those of the vendors and customers you don't. The answer really shouldn't be a surprise.
Relationships and trust are the ROI and they clearly impact the bottom line.
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Liz Strauss is a social web strategist and founder of the social-web business blogging conference SOBCon.
Related Entries
- Guest Blogger John K. Thompson: Think of Twitter as a Real-Time Search Engine to Discover Its True Value
- Guest Blogger Chris Brogan: The Next Wave in Social Media
- Tweeting in Real Real Time
Congratulations on having this post selected as part of the March Carnival of Trust.
The Carnival of Trust selects the Top Ten posts dealing with trust from around the blogosphere.
This month the Carnival is hosted by (and your post was selected by) Beth Robinson at her blog Inventing Elephants, and it can be found at
http://www.inventingelephants.com/blog/2009/3/2/march-2009-carnival-of-trust.html
I can see why she picked it, too; this is a great example of how social media is evolving beyond mere connectivity to relationships. My own view is that, while linking per se doesn't create connectivity, the repeated experience of linking can lead to greater confidence with connections, and hence to relationships. I am fascinated, as a student of trust, to watch this evolution.
The Carnival of Trust originated with Charles H. Green of Trusted Advisor Associates, and his blog TrustMatters:
www.trustedadvisor.com/TrustMatters
Congratulations again on this post's selection.
Superb post Liz
‘It's efficient. No hurt feelings. No social burden; no time wasted talking to me. If you stay, we're self-sorted. If I live up to what you expect, we've got a relationship. If I'm consistent and helpful, I become a trusted source.’
You have hit the nail right on the head. ‘No hang ups’ truly is the one of most important aspects of moving forward with a relationship through social media.
Liz,
Thanks so much for the insightful post. You've really captured the essence of how to harness the value of social media.
Thanks also to everyone who commented. Your thoughts have inspired several article ideas.
Liz, You have really made it clear in this post. Thank you. Relationships have always been the core of business success, but the new SM tools make it happen so much more quickly. In a sense, we're not doing anything new by building relationships through the web, but it sure is speeding up the process and, yes, it really does affect the bottom line. Thanks for introducing me to your new friends here. I look forward to seeing what you develop.
Thank you, Ginger, for the chance to share some time with you and your readers. It was a pleasure to be here.
Liz
This post really illustrates the power of social media through the lens of simple real world interactions.
Social media like many other tools, seems to function as a catalyst for meaningful interaction between individuals that live within the construct of the digital age. That said, social media allows it to happen at a much more rapid pace.
Great post, thank you.
Amanda
there are always multiple strategic approaches to creating customer value and brand profit
in your case, it appears that you believe in building programs that drive share of wallet
others choose a path that aims to build share of life.
At times it will be less efficient that the wallet practitioners...but in the longrun the brand will evolve to become more customer responsive, create stronger more valued innovation and essentially raise the bar for the rest of the category.
This doesn't mean 'wallet' brands cease to exist or that 'life' brands stop having to be competitively priced, but wallet brands will find it increasingly difficult to secure business on anything but a deep/deeper/deepening transactional basis.
There isn't the space or time to convince you to change your mind here, so I wish you well on your journey
cheers
Miro
I love hearing about connections made via social networking. I'm excited to say that I met Liz the old fashion way though... in person:-) But I think we would have found each other online if not.
Great guest post Liz!
Social Media is alive and well. We have recently launched 3D virtual platforms for meetings, events, exhibits, show rooms, etc. We have developed several key relationships through LinkedIn, Twitter and Facebook that we would have probably never made. Nick Wilson, from London, was our guest speaker at our event last week, who we met via LinkedIn and then hooked up at the MeetDifferent Conference in Atlanta. I actually had the privilege of meeting Jim Peake on an airplane, which is another great real world social media. Our business is taking off and social media has had a big role in allowing us to meet key people in the virtual space and network through them.
It's very interesting how you point out the use of social networking to expand your communications past your physical location. I am a huge fan of LinkedIn and it has allowed me to expand my business network far beyond Massachusetts. I have certainly met people I wouldn't have otherwise. I also note that networking has never been more important or exciting than it is during a bad economy. Some of the greatest companies have been started when smart people were underemployed and networking during these times is at its highest. Kate McDonough CEO MyRoar www.myroar.com
Great story, Liz. What you said about “The ROI of the social Web is the value that relationships have always had multiplied by the reach and speed of the Internet,” said it all for me.
I think the way people hire people, as well as the way people buy things, is changing. I’m more apt to hire a service provider I know from Twitter than I would be to hire one through a Google search. I’m also more likely to try a new product or service if a lot of people are raving about it in my online social circles. If I throw out a question while making a buying or hiring decision, the answers of my friends do influence me. If I ask a question about a product, and that company’s media representative reaches out and talks to me like a real person, that makes me think good things about the company. Even if I don’t end up buying their product, I remember them fondly, and I tell my friends. All of this has to do with trust and relationships.
I’m certainly no expert, but I foresee that companies with no social media presence will soon be seen as equal to companies with poor customer service. I recently dropped an account because I had to go through too many hoops to get a real person on the phone; soon we’ll want a real person on the social web. Right now, any company with a social media presence is seen as innovative. I think our perceptions will change before long. We’ll see the guys without Twitter as we see the guys without a website. Maybe the already established big brands will survive, but the little guys coming in? Their power will be in their relationships, and being reachable/available is the most important part of any relationship. The social web is cheaper to use, and the results happen faster. Yes, it can be time consuming, but so are conference calls and meetings.
I like your story, because it illustrates that real-world concrete things are happening here. Relationships are being formed that are expanding businesses and changing the ways people do business. The fact that they’re forming online is no different than if the networking began at a conference, except that the reach is wider online. Anyone not taking advantage of that is missing out, and I think they’ll find that out on their own soon enough.
Liz, as usual, great stuff! I just wish more companies would understand the importance of what you laid out here.
They should be made to memorize your mantra:
"Relationships and trust are the ROI and they clearly impact the bottom line."
Thanks!
I agree that it is about relationships, but I think it goes a little further, and I said this to Liz on twitter. It is about compassion. Relationships are great, but if there is not compassion, the relationships lose their strength, their juice- this includes the customer/client and business relationship. This market will rebound, but in a different way- no longer will companies get away treating people like statistics. The companies that last in this upcoming economy will have a real desire to help the client/customer- they will have compassion for their needs. The heart needs to lead the way now- the dollar has shown it's true colors, and it is not pretty. Great guest post Liz- you are a beacon for us all to follow.
I'm not one to be a blind cheerleader for "social media" the social web or whatever we want to call it, but when Liz talks about the relationships as she does here, while it sounds all soft and fuzzy, I can't help but know that it's real. I've seen first hand people come together to raise nearly 17k when I asked for help on the behalf of someone who needed it and it's made me a believer.
Right now most companies, businesses and brands are hyperfocused on selling stuff as their definitive measure of ROI. Yet we are fast moving into an economy that may change how people buy in the long run. It's possible that when the dust settles in a few years, people's attitude toward "stuff' may be changed. We may get comfortable living off less.
If that happens, then businesses need to depend not only on products but services. Which brings me back to some of the making connections like the ones Liz talks about here can actually be a service, a value add. This is where I see the potential for business. It may make customers more loyal to their brand, and choose to spend their precious dollars there vs. elsewhere.
It is all about relationship. People buy from people. Just becasue we are online that doesn't mean that the human factor goes away. In fact, I beleive in today's business. He or she who does the best job of showing their human side online will do the best online. Trust is the imporant thing when it comes to relationship, on or off line.
The thing I like about Web 2.0 is I get to work with some really great people, I feel lucky to have found Liz and am glad I can add value to good people like Liz and Ginger and hopefully the readers. ;-)
Thanks for this insightful post. It's a topic I've been turning over in my mind quite a bit lately.
One of the things I appreciate about Twitter is that it allows me to "meet" and interact with so many people who have things in common with me (freelancers, bloggers, politically liberal Christians, etc.). I also enjoy the connections with people who are different from me, who I might not otherwise know (people of other faiths, living in other cities and countries, doing different types of work). A day-to-day "ambient awareness" of certain people in my social media circle is very real in my life, and makes those people feel like a genuine, trusted part of my community.
But I still feel like I can't fully embrace and trust someone I've never met. I wonder if I will eventually grow out of that need, or if I will just have to make plans to meet as many of these friends and colleagues as possible.
The ROI of the social Web is the value that relationships have always had multiplied by the reach and speed of the Internet.
Perfect.
I owe so much of both my business success and my wonderful friendships to the social media platform.
@Vicky - The social proof that comes from consistency found over time builds trust, just as you point out. We learn to find that consistency off line in one way and online in another. Thanks for bringing that point to the discussion.
@Thom - I think that's the best part, meeting in person and already having so much to talk about. Trust is already started.
@Patrick - In the few days we've talking, we've sure found out a lot about each other. We even have a possible inside joke or two that we share. It would make a first face-to-face meeting so much easier than one that was totally cold.
Indeed Liz, these relationships are cultivated by trust, and I'd add to this how important it is in this medium to build trust with consistency.
If you post once a week or once a day, the community develops an expectation. If people begin to feel comfortable connecting with you on twitter, you need to maintain that pathway, just as you need to keep the sidewalk in front of your home clear of debris and litter. Being where people expect you to be, this a foundation for trust.
The higher levels of this are about content development and again, the issue of consistency plays a huge role...
Here's my favorite line: Relationships start more quickly on the Web.
Self-disclosure and recognition of relationship potential takes time in conventional social settings.
But on the web self-disclosure moves to the front if the interactive agenda.
I love this story Liz, the pattern of relational discovery and depth is energizing for me.
Keep creating...high potential relationships,
Mike
@Amanda - Warren Buffet built a fortune on strong thinking and strong relationships.
@Chris - Exactly. The speed at which we identify and meet the right people is the speed at which we develop the relationships that we need to move forward.
@Carole -Thanks!
@Amber - You say better than I did. We meet face to face more prepared and nimble.
For me, the most quotable line from your post, Liz, is this: "The ROI of the social Web is the value that relationships have always had multiplied by the reach and speed of the Internet." Well said. I recently posted about that myself, but you said it in a much better way.
www.documentmania.com
@pbarbanes
Liz....follow you on Twitter....and this is so right on. I walked into a TweetUP here in Atlanta, and saw a person I've followed. We BOTH called out each others names like we were long lost best friends. Social Media opens the door that would of taken weeks or months before. Now you have a common bond to carry forward with that person. I'll profess I need to make that happen more, but I know I am on the right track. There are so many people in my office that just laugh at Tweets and Twitter and all! I'll be laughing all the way to my success stories!
Thanks for such a great insight into the world of social media and how it CAN and REALLY DOES work!
Great post Liz.
Social media is unique in the fact that it's so interactive. It was designed to be interactive and because of this has many advantages in both business and personal relationships.
One thing I think that builds relationships so quickly is that the internet never forgets. Once something is put out there, it's available probably forever in some form. When you are involved in social media, most of us 'dive right in', so that means Twitter, Facebook, LinkedIn, Stumble Upon, blogging, ect. That is a whole lot of information about a person.
With Google and so many other tools, the information is at our fingertips. Specifically with the application LinkedIn since it is used for business, you are building a portfolio of your employment experience. It is like an intense resume with extra information and links. Most people willing to combine their 'real life' and their online life have nothing to hide.
Second, birds of a feather seem to flock together. Your naturally drawn to people who have the same interests.
Their is some connection right of the bat, from the shared interest. From there, not everyone becomes friends. You can choose to conversate, just read, or even choose not to have an individual as a friend/follower.
I disagree with Amanda Chapel's comment above that it's just a "feel good" thing. As in any relationship, it's not always about the good times. I've felt the pain in peoples words on the 9/11 anniversary when they have lost friends or family.
Friends who were getting out of town during the floods in Texas and some of them who came home to devastation. I've felt their pain when they were laid off and I've distributed through Social Media Job Links.
I've heard their happiness when they've gotten engaged or found out they were having a baby.
There is no ROI on relationships if you don't have and build relationships. Social media takes time, it's an investment of time, which most people only have a limited amount of.
I think that Amanda is incorrect about many people's motivations. Most of them have jobs, spouses, families to support and would do something else with their time if they wanted to 'feel good'.
I'm interested in hearing what other people's thoughts are that haven't commented.
One of the challenges in business development has always been the "vet" period, where time and money are spent assessing the potential of a relationship through traditional and time-consuming channels (like meetings).
The web has ushered in a faster, more nimble business development process that not only shortens the assessment cycle, but moves the relationship to an active stage far more quickly. We come to in-person meetings now better prepared and more likely to take action on something valuable.
Thanks for the great post, Liz.
GREAT post Liz. You nailed it.
What's described above is simple business development framed from the perspective of the new tools of the social web. It's no different than the process used in offline business development, except that it moves faster, has better gating, and requires a little less direct human intervention at the beginning.
It's actually an illustrative example of a specific business value of the social web: the ability to sort and confirm business potential faster through the online channel, while accelerating the motion from uncertain only ties to actual face-to-face meeting.
Great post, Liz.
In light of the severity of downturn, you'd think vacuous "feel-good" stuff like the article above would be appropriately stifled. Regrettably (ironically), due to the speed, low barrier to entry and efficiency of the Web, it's not. Think about it. The other day I asked a colleague on Facebook whether these Web2 evangelists would know the difference between a "meetup" and a bread line.
Bottom Line: Social Media isn't factored by ROI; it rises to ROP, Return on Prayer. And church is where you find the poor.
- Amanda Chapel