Progressive Distributor - It's not about e-commerce, it's about r-commerce

It's not about e-commerce, it's about r-commerce

by Terry Brock

We live in an e-crazed world. But no matter how sophisticated technology becomes, we still are working with human beings. Wise and successful businesspeople know this. Technology of 100 years ago was amazing at its time but still required the human connection. One hundred years from today we’ll use technology that will make MP3 files and miniature chips in cell phones look like 12th century crossbows.

In spite of e-commerce, real success comes from r-commerce, relationship commerce. The relationship you have with customers is what matters most (yes, even more important than price). Price can bring in a transaction. It can work for a short time but long-term relationships keep customers coming back. If you base your business on price alone, you’ll be blown out of the water when the next new business comes along that can undercut you (and they will eventually).

Case in point: Amazon.com is viewed as the poster child of e-commerce. Jeff Bezos was Time magazine’s Man of the Year because of the changes he brought to our way of life. The company has focused on helping customers feel comfortable purchasing not only books, but CDs, videos, gifts and many other items of importance to their customers.

Is Amazon.com successful because it has the lowest prices? Anyone who can click to one of Amazon.com’s competitors knows you can often buy the same product cheaper elsewhere. In the age of clicking to competitors, why doesn’t everyone just leave Amazon.com in a mouse click and go to the competition? With sophisticated price shopping robots (like www.mysimon.com and www.priceworld.com) how can Amazon.com stay in business if it doesn’t have the cheapest prices?

How can Dell computer stay in business if it built its business around the Web? Dell computers are not always the cheapest computers. You can even get reliable computers from their competition at good prices. How is it Dell keeps its customers in light of lower-priced competitors?

The answer is that price alone is not enough. Amazon.com and Dell both provide several things that are critical for success in r-commerce.

Reliability. Make sure your customers can rely on you. This means having technology that works and good, old-fashioned customer service that works. Dell computers are good and consistently hold up well in reviews and real world experience.

Passion. A passion to satisfy customers can build loyalty. My friend Jeffrey Gitomer says customer satisfaction is worthless but customer loyalty is priceless. When you talk with the people at Amazon.com or Dell you hear it in their voices and see it in their eyes. They love their customers and want to do what they can to make customers come back again and again. They focus on the fourth or fifth sale, not just the first.

Consistency. Both Amazon.com and Dell make it a point to be consistent in their approach to technology and customers. Note how simple their Web sites are, yet rich in content. Notice they provide this familiarity over and over.

Adaptability. Amazon.com started with books and expanded to other areas that customers like. Is Amazon.com in the book business? No way. It’s in the “making customers giddy with glee” business. What kind of business are you in? If you answer that question by naming a product or service, reframe your perspective. Think of areas where your customers need help and aren’t getting what they want now. Adapt to the new opportunities that await you.

“Sam Drucker” Approach. I grew up watching programs like “Petticoat Junction” and “Green Acres” on television. Both shows featured a character named Sam Drucker who ran the General Store. He was kind, funny and a bit goofy at times. However, he knew his customers and their needs by name. He was part of the family. Your customers want someone who can help them with their specific requests and make technology personable. Use data mining, customer relationship management (CRM) software and data collection technology to get to know your customer. Then use that information for their good. Think like Sam Drucker.

E-commerce is the buzz word today. Yes, having the right technology is not only a good idea but imperative for success in today’s business world. But don’t lose sight of the fact that it is always about r-commerce, relationship commerce. Building and enhancing relationships through technology, personal contact and meeting customers’ needs is what it is all about. It was before, it is now and it will be that way for the next 100 years.

Terry Brock is a marketing coach who helps business owners market more effectively leveraging technology. Reach him at (407) 363-0505, by e-mail at terry@terrybrock.com or at www.terrybrock.com.