… they [companies like Microsoft] want students with the cred to make brands seem cool, in ways that a TV or magazine ad never could. – “On Campus, It’s One Big Commercial,” The New York Times, September 10, 2011

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Isn’t it interesting that top technology companies are going after the most tech-savvy, social media-dependent group on the planet in such an increasingly local, person-to-person manner. According to The New York Times these companies hired over 10,000 American college students on hundreds of college campuses this fall to be local brand advocates for the likes of Red Bull, H-P, and American Eagle Outfitters. For example, aided by information available on social media sites these corporate marketing organizations recruited student leaders who in turn recruited teams of upper classmen. These students teams clad in t-shirts promoting their corporate sponsors greeted incoming freshmen by giving them coupons and helping unload their cars on move-in day. They call it “marketing for the students, by the students.”

The strategy marries a series of old and new ways. It raises questions for all of us: How do high tech and social media enable and even demand new forms of high touch? How do mass advertising and central brands get personalized locally in this communication-enabled world?

The challenge of how to direct advertising dollars has never seemed quite so up in the air. Everyone recognizes that technology has changed everything and yet the more things change the more they stay the same. Advertising is demonstratively less powerful than ever and yet every day we see that it has crept into some new square inch of formerly unclaimed real estate.

Today, as my dentist of two decades tilted �me �horizontal, I was ready for that serene view of a white ceiling (think white noise) and instead was shocked to see a television screen anchored from the ceiling showing me business news mixed with a steady diet of advertisements. High tech and ubiquitous marketing conspired once again to invade a portion of what little white space that remains. How did a group of marketing types decide that dentist ceilings were the new, and perhaps among the last, frontiers of open, free space that needed to be claimed for media messages. Billboards, sky writers, airplane banners and even blimps claimed the outdoor sky long ago.

We are now in a new era that levers technology, mass distribution of marketing information and the dominance of social media to reach huge audiences almost instantly. Yet while technology has grabbed most of the headlines as the sexy new enabler, this era is really “relationship” driven. Relationship now plays an expanded role as gate keeper and thus gate opener for viral transmission, mass appeal and powerful influence. In the new model where “friends” are so powerfully connected and influential, relationships are really the 800 pound gorilla in charge.

Ironically the speed and power of the new technology only magnifies the consequences of relationships. The old adage was give customers a good experience and they will tell one or two people, but give them a really bad experience and they will tell seven or eight.

The new rule is the old rule times ten, or a hundred or more. We communicate so much more these days with such ease that when we are really blown away — positively or negatively — we can inform and influence the world. For those who are credible, have a large network, and are willing to share — the impact is unlike ever before. Sometimes it is even leads to revolution that crosses nations like the “Arab Spring.”

As a result astute companies have figured out that local, relationship building is more crucial than ever in this time of instant and unlimited relational communication. As usual this new world presents new opportunities and risks that have profound implications for our marketing strategies. It means we must become much more intentional about relationship building than anything we have done in the past. What does that mean?

First, it means being more committed to creating positive customer experiences and avoiding “newsworthy” negative ones that might lead to text messages or tweets. Poor customer service, pushy sales campaigns and flawed products can now become instantly known in the marketplace.

Even more it means targeting episodes where serving the needs of the customer creates strong impressions and lasting impact. For our customers, what is the equivalent of “move-in” day for college students? When and where might they feel most vulnerable or need a friendly face and a local helping hand — that would have lasting meaning? There is special value for anticipating the need ahead of time and proactively being there suited-up and ready to go serve when the need arises.

Second, it means really being committed to the business of building relationships. That requires using every interaction to grow and advance the relationship. There has been incredible progress in the past decade in collecting better customer information yet mostly as our information has gotten better our customer relationships have gotten worse. It is time to move beyond just collecting data or trying to chalk-up another transaction. It is time to build relationships. The cost of orphan customers who do business with us but report having no real relationship will steadily rise. Why? Because competitors who become known for building relationships will serve as a magnet pulling customers to them. As our friends and relationships become ever stronger sources of data about the performance of providers, mass advertising and other traditional means of influence will lose more traction.

I have always suspected that one of the reasons organizations became so excited about technology was the hope to reduce the need to deal with those difficult, hard-to-manage customer relationships. Yet, now we find ourselves in an environment where bad news about customer relations can go viral overnight and dramatically influence the brand. The power keeps shifting to the customer. It requires us to become more intentional about building customer relationships.

(Column appeared originally in ABA Bank Marketing magazine – November 2011)

By ROBERT E. HALL

Not to be reproduced without written permission. All rights reserved. © Copyright Robert E. Hall 2011