The economy of gratitude

Review
Marketing consultant Gary Vaynerchuck maintains that his great-grandparents
knew the value of cultivating personal relationships with customers, but their
wisdom disappeared when large corporations emerged and managers found it
more profitable to ignore customers' concerns. Social media changed that and
offered marketers the opportunity to connect with potential and current customers
in a way that has not been seen in many generations. If your customers like you,
they will use social media to praise you. If not, they will spread that news just as
quickly. This book may not be revolutionary, but it is a thought-provoking addition
to the discourse on social media and a light, entertaining and well-argued read, full
of real-world examples. getAbstract recommends it to managers, employees,
clients, and everyone who expects open, honest, and caring relationships in their
business dealings.

Fundamental ideas
 Your great-grandparents knew a world where relationships with customers were
important to the life of a business.
 But the relentless pursuit of profits by corporations has led to the elimination of all
unnecessary niceties in order to reduce costs.
 Social media has given power back to customers, made companies more
educated, and created the “gratitude economy.”
 The culture of care must start at the top and cascade throughout the organization.
 If you want your culture of service to reach all customers, your employees must
share your philosophy. Take care of them more than you take care of your
customers or your competition.
 Your interactions with your customers should be sincere, visceral, and authentic.
 If your forays into social media haven't worked, you're probably doing something
wrong.
 Quality is more important than quantity when it comes to social media initiatives.
Use shock and awe to spark your customers' imaginations and encourage them to
talk.
 Despite technological advances, marketing is more difficult than ever.
 Social media is likely to change in the future, with new technologies and platforms,
but the online community is here to stay.
Summary
Good manners are back in fashion

Most octogenarians and nonagenarians can remember living in a world where they
knew the owner of their local grocery store their entire lives and where good
customer relations were important. Courtesy and respect prevailed in those days
and word spread if someone was rude. If customers were pleased, they told their
family and friends. If they weren't, they told even more people. Companies lived
and died by their reputation. The development of large corporations and the pursuit
of profits changed these values. Companies economized and manners declined
considerably. Companies stopped building trust and loyalty through the countless
small, personal interactions that are vital to good relationships; Instead, they tried
to improve their profits by eliminating all the unnecessary niceties.

“The world we live and work in today… is strikingly similar to the one our great-
grandparents knew.”
The Internet changed the face of business drastically. At first, its electronic
remoteness and large size increased individuals' feelings of isolation; People
experienced fewer human interactions when they shopped online for anything they
wanted and never had to leave the house. But since the debut of Web 2.0 (now
known as social media) in 2003, the Internet has become personal and revealing.
People started talking to each other again. Social networking sites provide a way to
reconnect and regain social satisfaction from business transactions. Word of mouth
is back. The development of social media has led to the rise of the gratitude
economy, in which business leaders return to their ideals, and which rewards
companies that have learned to pay attention to their online and offline manners.
Companies must join online conversations. Clients want to know that they care. If
they suspect that this is not the case, they will report it on their social networks.
Happy customers become your advocates. Dissatisfied customers are your best
guardians.

Eleven excuses that are unsustainable

If you're tempted to downplay the potential of social media, make sure you're not
supporting short-sighted justifications. Ignore these 11 criticisms:

1. There is no return on investment – A customer's trust is essential to

making the sale.

2. Metrics are not reliable – Advances in collecting and interpreting data on

social media initiatives are already more accurate and will continue to be so.

3. Social media is still too young – Early adopters have a clear and proven
advantage. Don't wait and see. Do it now, making up ground is no fun.
 4. Social media is just another trend that will go out of style – If Facebook
and Twitter lose popularity, users will move to the next new platform. Smart
companies will move along with them.

5. We need to control our messages – Smart companies are not afraid that
angry customers may post unflattering comments. If you're concerned,
examine your business practices.

6. I don't have time to follow what all the Juanes and Marías are doing –
Ignoring the importance of customer feedback is business suicide.

7. We're doing just fine without them – If that's your attitude, you clearly
don't care about your customers. Competitive companies are proactive and
always on the offensive.

8. We tried and it didn't work – Using social media is a long-term

commitment. If it hasn't worked yet, reconsider your corporate culture and
the way you value your customers.

9. Legal issues are too thorny – Company leaders must guide the legal
department to serve the company's goals, including the company's new
embrace of social media.

10. They take a long time to become profitable – The benefits of social
media far exceed those of traditional marketing at a tiny fraction of the cost.

11. Social media only works for new brands and lifestyle or technology
brands – This is not true.

Use social media to succeed in the gratitude economy

Efficient use of social media in a business context involves more than just setting
up a Facebook page or sending out a weekly tweet . To succeed in the gratitude
economy, you must care obsessively about your customer service. The culture of
care must start at the top level and resonate throughout the organization. If you
want your culture of care to reach customers and spread by word of mouth, your
messengers (your employees) must share your philosophy. Take more care of
your employees than you do of your customers or your competition. Treat them like
adults and make sure they feel like their needs have been met. Employ the six
basic pillars of employee-centric culture development:

1. Start with yourself – As the leader of your organization, exude your

company culture. Don't try to create a modern workplace if your company is
not. A self-aware leader doesn't waste a lot of time and money trying to be
something he or she is not.
 2. Commit Deeply – Mental commitment to improving social media marketing
is more vital than financial commitment. Once you've decided to pursue a
social media initiative, reallocate your budget to find the money you need.

3. Set the tone – Take a personal interest in your customers. Don't just tell
your employees how to interact with your customer base; show them how to
do it.

4. Invest in your employees – Identify employees who want to start your

corporation's Facebook or Twitter account, or those who have other ideas
about how to navigate social media. Give them credit for their ideas and
suggestions and the support they deserve and need.

5. Trust your employees – Allow your employees to express themselves

uncensored about the company in their tweets and blogs. Give them the
freedom they need to provide top-quality customer service, open
communication and transparency.

6. Be authentic – In this day and age, good and bad news travels fast. If you
make a mistake that receives public attention, publicly accept responsibility
and apologize publicly immediately. Authenticity brings long-term benefits.

“It used to make some financial sense for big companies to simply ignore people
they considered whiners and complainers. “Now, dissatisfied and disillusioned
consumers have the power to cause companies to struggle.”
When you find a special employee who cares enough about your company and its
products or services to take a sense of ownership and identification with your
customers, do everything in your power to keep that person with you.

Intent: quality versus quantity

While passion is vital to any personal or business success, the single biggest
differentiator in the gratitude economy is good intention. Customers will recognize
when your intentions are good and will come to you. On the other hand, if you don't
have good intentions, people will expose you immediately, and now you have the
tools to do it on a large scale and very quickly. If your only reason for using social
media is to sell at any cost, get customers, or direct people to your store, you're
lost.

“We have entered a new era in which developing strong relationships with
consumers is essential to the success of a brand or company.”
Having a lot of followers means you have a lot of contacts, not connections. If you
stay distant from the emotional center in your interactions, customers will also
distance themselves from the emotional center and become less valuable
customers to you. Social media campaigns should be based on authentic
 engagement. Two practical mantras that should define your daily intentions are
“water as many plants as possible” and “put out all fires.”

Shock and awe

Every now and then, surprise people with something so extravagant that they will
not only be impressed on a personal level, but spread it to the world. This type of
campaign is difficult to execute, but it is effective. To respond to a blistering
criticism from a disgruntled fan who posted a video claiming 50 Cent was a traitor
for advertising Vitamin Water and other products, 50 Cent sent him on a flight to
New York and posted a video of them having fun together.

“The gratitude economy has radically altered our consumers' expectations, and
companies are going to have to get creative and personal to meet them.”
What can companies learn from this example? What if, say, a big-box electronics
store spent $4 million to tweet out to everyone who turns 21 on April 21 a 50% off
coupon for an iPhone 4? Or what if chocolate giant Hershey offered some of the
people it often interacts with online all-expenses family tours to its amusement
park? These customers would speak positively about companies, spread valuable
word-of-mouth advertising, and develop far more value than a Facebook ad or
even a search engine manager's salary. You don't need to spend a lot to create
shock and awe. Even sending a handwritten thank you letter and a rose to your top
20 or 30 followers will create a positive effect.

The gratitude economy in action

The following case studies illustrate how companies can use the basic principles of
social media to great advantage:

 Avaya: Go where people go – Known for its high-performance communication

and service systems, Avaya demonstrates that even companies engaged in
business-to-business business can use social networks to great advantage.
Although Avaya uses Twitter for customer questions and complaints, a marketing
director noticed a laconic tweet that said “shoretel or avaya need a new phone
system very soon.” Avaya signed a US$250,000 contract with the tweeter 13 days
later.
 AJ Bombers: Communicating with the Community – Angie and Joe Sorge
opened their restaurant in 2009 and have been speaking to their market since day
one. They use social media to accept opinions about the menu, prices,
decorations, promotions and more.
 Joie de Vivre Hotels: Taking Care of Matters Big and Small – Aiming to perfect
the art of personalization, California's largest boutique hotel company seeks to
provide its guests with the “joie de vivre.” Each month, employees vote to award
 the Best Dream Maker Award to the colleague who finds the most thoughtful way
to deliver the highest level of experience expected by both their customers and the
company.
 Irena Vaksman, DDS: Small business sharpens its teeth on social media – A
pioneer among medical professionals, Dr. Vaksman uses Facebook, Twitter,
YouTube and LinkedIn to educate the public, share information and interact with
her patients, and to differentiate yourself from thousands of other dentists in San
Francisco.
 Hank Heyming: A Brief Example of Well-Executed Culture and Intent –
Visionary Virginia attorney Hank Heyming uses social media to connect with his
clientele and offer affordable advice to new entrepreneurs.

It's not your imagination; Marketing has really gotten harder.

Despite – and because of – technological advances, marketing is now more

difficult. Markets are shifting and dividing into new niches, customers are locating
in the least likely places, and the online world is constantly changing.

“The marketing initiatives we put out there that might get a 'bravo!' now might get a
'bah!' in the long run.”
Companies must be willing to learn and adopt social media strategies. Companies
must unconditionally adhere to the principles of the gratitude economy; By
rearranging your budget priorities and determining how you can best use social
media, you will realize the incredible return on any investment you make. If you're
waiting for social media concepts to become mainstream and produce Wall Street-
style metrics before committing, you'll be left behind. Customer expectations and
behaviors have changed, and companies must take drastic and creative steps to
meet them. Social media will change as new technologies emerge for new ideas
and platforms, but the online community is here to stay. To be successful, invest
the time and energy needed now.

About the Author

Marketing consultant and speaker Gary Vaynerchuck is the founder of
WineLibrary, co-founder of VaynerMedia, and author of Crush It .