An alien relying on TV for their knowledge of humanity might watch a few ads and assume our closest emotional relationships are with banks, utilities and retailers. After all, they all claim to be your best friend, look how many ads talk about “falling in love” with your service provider!
It is popular to talk about the relationship between customers and the businesses that serve them. Banks, airlines and utilities all seek to be best friends with their customers. This is probably understandable given that most of us are passionate about the businesses we work for and we want our customers to be as well.
In building such a relationship, marketers can point to great examples such as airline loyalty schemes, social media and even the account balance page of internet banking sites,. In each case, there are individuals who interact daily, even hourly, with these services and look forward to each touchpoint.
Such a strong relationship is hard for most businesses to maintain with the majority of their customers. After all, most people don’t get excited looking-up their electricity prices, mortgage rate or recent phone numbers they’ve called.
The common attribute of the businesses we care about seems to be the information they provide. Many people can’t imagine why they would care deeply about a bank, yet a small number of people check their bank account balances multiple times in a day. Anecdotally, those repeat checkers are dreaming of a saving goal which provides a halo effect for the bank.
Similarly, many travellers love to track their frequent flyer status which they see as a reward in its own right. The airlines create portals that engage their premium passengers and offer a regular sense of progress and engagement.
Uber has a fascinating screen on its app showing all the cars circling locally while eBay has nailed the search for a bargain. Some fintechs are attracting customers by creating a “fiddle factor”, letting them earn small rewards in different ways.
At the same time, it doesn’t seem that people care too much whether they love their basic services. Most people just want their savings to be safe, their lights to stay on and their phones to ring. The only problem is that in an environment where they can change providers easily, this lack of loyalty means that they are more likely to make a switch.
How can a brand that provides a capability that people need, but lacks passion, align with a brand that everyone cares about? This is the power of the API economy where it is easy for businesses to partner seamlessly.
Banks and airlines were pioneers in partnering, bringing together credit cards and air miles. Similarly, phone companies are partnering with music and movie streamers to dramatically increase engagement with their services. In coming years we can expect to see social media, fashion brands and travel businesses join with the everyday services that meet our basic needs.
To be successful, partners need to make sure they understand what elicits a strong affinity. To-date, brands have largely taken the same approach for all customers. For example, “daily-deal” style retailers are highly attractive to some customers and highly annoying to others. Basic services, such as insurance, who choose to partner with businesses like these need to be very targeted, otherwise they risk alienating as many customers as they delight. Too many marketers have made this mistake and have potentially damaged their brands.
The key to a meaningful relationship is tailoring the partnerships to offer the customer something they genuinely want to engage with. Talking to their customer community and offering them choice is a very good start, giving the winners in the race to pair more opportunities to generate genuine friendship, if not love!