We are now living in a Trust Economy

We are now living in a Trust Economy

By Joel Nicholson – LemonTree Founder

We are now living in a Trust Economy. Thanks to today’s technology, digital and social media, we can quickly and easily connect with – and do business with – more and more people from all over the world. Forget Bitcoin. Trust has become the currency ‘du jour’.

But how ‘real’ are these connections?

How much do we really know – and trust – our 4.9 star-rated Uber driver?

Or the owners of the Airbnb house we’ve just booked?

Or the latest person to follow us on Instagram?

What do they really know about us?

With the growing number of connections, has come growing statistics on depression, disengagement and authenticity, along with a continuing decline in the World Trust Index, suggesting that we are suffering from a false sense of connection and belonging.

Winning and losing in the Trust Economy

As humans, we are social, communal beings at heart. We want to meaningfully connect with our communities. We want to belong to a tribe. We want more meaning, more fulfillment, more happiness.

In the Not-For-Profit industry specifically – where a common question from donors is: “Where does my money go?” – it is becoming increasingly important to focus on growing lasting, sustainable relationships vs. amassing unsubstantiated connections.

Fundraisers and charities that focus on relationships over transactional connections will be the winners in this new era.

Keeping our donors is more important than ever.

Those that don’t invest in getting to know and understand their donors and provide them with real value, will fall away in this trust economy and lose the chance to make a real difference to their cause.

Donor-Centric Life in the Trust Economy

In the trust economy, every donor is deeply understood and deeply valued.

We move from transactions (RFM) to motivations and preferences.

You are genuinely connected with your donors.

You collaborate with others to further your knowledge and understanding of your donors so you can truly care for and work in their best interests!

Those natural human chemicals of Oxytocin and Sertonin are flowing.

What do we need to thrive in the Trust Economy?

What if you knew your localised motivated donor?

What if you knew the exact time of year your donor prefers to support your cause?

What if you knew which donors shared the plight of YOUR cause and which donors are simply do-gooders?

How would you communicate with them?

How would you engage with them?

How would you attract and retain them?

The reality of the Trust Economy reality is now.

In 2018, 54 LemonTree members, leant in and embraced the Trust Economy.

They are now matching messages to motivation segments; testing multi channels across Direct Mail, eDM, SMS and phone; and tracking LTV vs. immediate response rates.

How are you adapting to the Trust Economy? (Share your comments below)

LemonTree discusses the subtle impacts of language

LemonTree discusses the subtle impacts of language

By Joel Nicholson – LemonTree Founder The questions… Do you find yourself in a similar challenging position to many marketing professionals that attended our recent industry luncheon event on “a new language to modern customer life cycle messaging”? The collective group of around 30 senior professionals in Sydney nominated key challenges in growing customer life cycle programs as:
  • Resourcing/financing projects
  • Data visibility and access
  • Relevance of communications vs personalisation
  • Measurement
  • Training internal teams
What else do you find getting in your way of growing your biggest competitive advantage of meaningful and sustainable customer relationships? The concepts… Firstly, relationships matter. Science is continually proving our health is closely linked to us holding meaningful connections with other people. Customer relationships is no different. NPS in organisations like Vodafone and Citi are proving to average higher for extended periods over a given customer life cycle. How? By simply changing the internal language from traditional segments like onboarding, nurturing, retaining, etc, to more customer-centric language like teach me, grow me, endear me, etc. Finally, accessing or gaining visibility of trustworthy customer behaviour data is more often a process of looking within your organisation rather than searching externally. Recently we helped a brand recover 20% of its customer base that it didn’t previously hold a dialogue with on a key channel. We find there are typically numerous pockets of opportunity that are not immediately visible. Actions to consider… Start putting customer relationships at the heart of strategy and decision making. Measurements like NPS, LTV, and engagement scores are a start towards gaining stakeholder buy-in on both short and long term ROI Create a customer journey framework that everyone can understand. The customer centric segment language described above is but one good example. Think about how to better capture customer interactions that map to the customer journey dialogue and ultimately their needs. A simple example is when a customer buys a car baby seat, what else does this tell you?! A special thanks to Kara Every for sharing her experiences on this topic.