By Jerry Nettuno, Schedulicity
These days we really do live in a world of contradictions. On one hand we have lightning fast technology that connects us to everything all the time. But in a lot of ways, it seems like the opposite is true. In terms of human interaction we are more disconnected now than ever.
We text people miles away instead of talking to the person sitting next to us. We buy things online without exchanging a word with the vendor. Sure it’s efficient, but it’s kinda soulless. People love new technology, but they also long for old-fashioned relationships.
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That’s why the Relational Economy is so special. What’s that you may ask?
The Relational Economy is made up of service-based businesses at the local level. Professionals in your community — for example, massage therapists, personal trainers and chiropractors. These entrepreneurs instinctively build long-term, trust-based relationships. These small business owners must build social capital because for them it’s not just about a single interaction. Yes, you want the benefits of their training and experience, but for them trust and relationships mean repeat business.
Built On Trust
There are people I deal with regularly that I trust with things as personal as my sense of style. My hair stylist not only knows how I like my hair, she also knows everything about my daughters. She asks me how they’re doing. She knows what’s going on in my life. I may not invite her over for dinner, but I feel a bond with her. And judging by how busy she is, a lot of her customers must feel the same.
What creates that tight local relationship? I think that bond happens the moment someone touches us. Whether they are hair stylists, cosmetologists or personal trainers, how we interact with them causes a natural intimacy and trust. Dog groomers, accountants, and mechanics are also professionals who enjoy a special and unique relationship with their customers. For them, it’s not solely about commerce, but meaningful connections.
It’s a relationship many retailers used to have with their customers too, one that has increasingly been lost. Now, price point is king. Offer it cheaper and you get the sale. But it’s not too late to rekindle the kinds of bonds the relational economy relies on.
Knowledge Is Power
Take the time to know and understand your customers and what makes them tick. It’s what service providers intuitively do because their survival relies on it — loyalty-based repeat business.
Unlike in retail, price is not the only the differentiator. I wouldn’t leave my hairstylist for a place that cuts my hair a bit cheaper. The challenge for retailers is to identify what touch points exist to forge that bond.
Remind your staff that they are brand ambassadors and reward them when they go above and beyond to provide exceptional service.
In my town there are 15 coffee shops downtown to choose from. But I go to the same one everyday because the girl there, Kara, knows me. She knows what my daughter Lauren is up to and without saying a word she hands me my latte just the way I like it.
Stories Sell
It’s not just people we become attached to; sometimes it’s the retail brand story that makes people loyal.
The hardware store I go to is owned by a local family. What makes me relate to them even more is that they’ve been in the community for 130 years. When I shop at Owenhouse Ace Hardware, I feel connected to history. I imagine the settlers, miners and prospectors in Bozeman, Montana must have trusted the folks there to provide them with everything from buggies to wagons and plows. Retailers today have to figure out a way to rekindle that old time trust — those old time bonds — that provide the bread and butter for entrepreneurs in the Relational Economy.
Jerry Nettuno is founder and CEO at Schedulicity, the leading online appointment scheduling system. Schedulicity also powers Relate (www.therelationahleconomy.com), a resource for service-oriented local businesses that make up the ‘Relational Economy.’ Schedulicity has direct access to 15 million consumers and businesses in 7,500 cities. To date, 70 million transactions have been facilitated through appointment booking services provided by Schedulicity — representing $4.5 billion in commercial activity.
