Impact of Gaming Content

INSIGHTS

• The Relationship Economy focuses on customer satisfaction, requiring companies to shift focus from pricing and products to customers' individual needs
• In the Relationship Economy, companies assess customers' needs using data from social media, online reviews, etc., and then apply the results to marketing and product development.
• Research indicates a general awareness of the concept of the Relationship Economy, as well as many sources to help companies navigate the transition into it.

OVERVIEW

The concept of the "Relationship Economy" begins with building rapport and trust with customers by working to understand what they need and want through direct and indirect engagement and social media. Once the relationship and trust are established, businesses aim to give customers "what they want, when they want it." Historically, businesses have focused on costs, assuming that saving money was the primary driver for customers; with the Relationship Economy, "customer service and loyalty" are the primary factors. Current technological advances make it easier for companies to evaluate customers' wants and needs remotely, evaluating product and business reviews, social media posts, etc. Online presence has changed how businesses operate, and "business relationships previously not possible are now probable."

RESEARCH FINDINGS

Our research results indicate that information is readily available on the Relationship Economy concept. CIO provided an in-depth description of the concept (summarized above) and how it has changed businesses operations and plan ning: "For those that truly thrive in the relationship economy, the spotlight is on connections: how to make them and how to make them stronger." Technology provides insight into customers' lives, including their interests, likes, dislikes, and overall views. The Relationship Economy requires businesses to look for this information and use it to build long-term relationships in order to be successful.

Two sources provide tips for businesses navigating the economy: Forbes and Bullhorn. Forbes addresses the downfall of the "consumer economy," which preceeded the Relationship Economy. The article indicates that the basic human need for relationships and connection was a partial driver, but the biggest changes were a result of the fading lines between home and work. The need for relationships has flowed from personal life to work life, in part due to social media and other tools that make connection faster and more intuitive. As a result, "expectations are higher than ever." As in any relationship, explicit trust is vital to succeed in the Relationship Economy. Furthermore, this economy returns firms to earlier times when relationships determined whether a company would succeed or fail: "[R]elationships with partners, customers and employees are the only constant and a key area of investment when it comes to fueling growth."

 Bullhorn explains that one of the most significant changes required to be competitive is for all leaders to get involved and "nurture real, long-term relationships with the people they serve and employ." Bullhorn created an annual event called "Engage," where leaders can learn from companies have successfully navigated the Relationship Economy. Suggested strategies to ensure success include:

•  Authenticity, including sharing examples of personal "humanness" at work to further develop and maintain relationships with co-workers.
• "Make it personal" (or individualize), catering to customers' preferences to increase customer satisfaction. 
• Remember your company's mission, vision, and values, and live them out each day.

Bullhorn also provides a free e-book based on their Engage event to help companies with these changes.

A YourStory article outlines the challenges that businesses face in the Relationship Economy, including "the growing pains of customer service." It explains that while technology enables businesses to gain a deeper understanding of customers, it also tends to reduce the direct face-to-face interactions, making it more challenging for companies to catch and keep customers' attention. Another essential factor to consider is artificial intelligence, which is data-driven. For companies who do not already use AI in operations, it may be difficult (and cost-prohibitive) to make the transition. For more visual learners, LinkedIn provides graphs illustrating the changes in thought-process and how to gain customer loyalty.

Sources identify Amazon Web Services and Salesforce as industry leaders in this new economy; both have made their business offerings fluid to individualize customer service. The source indicates that these companies "truly understand the modern B2B customer" and offer solutions for different market segments. They are already active in the AI segment, which made their success virtually guaranteed, and their flexibility in pricing and upselling are designed to reach each customer on an individual level.

AWARENESS

Our research, as detailed above, indicates that there is an overall awareness of the transition, as indicated by the successful businesses discussing it. Examples from included sources:

-Chargebee and Chargify provide subscription management services to "digital media, e-commerce and Internet-of-Things industries." Chargebee re venue: $5.5 million. Chargify revenue: $5 million. 

-Amazon Web Services, described above, collected $17.46 billion in revenue in 2017.

-Salesforce and Bullhorn are top "customer relations marketing" (CRM) platforms. Salesforce revenue: $3.01 billion. Bullhorn revenue: $75 million.

CONCLUSION

The Relationship Economy is a big transition for many companies; as such, there is a significant stream of information available to educate, instruct, and guide businesses. There appears to be a general awareness of the concept, and concrete explanations are readily available.