How to make trust your competitive differentiator in AI

If you’re a big company, AI is the wind behind you and the waves going your way. Your positioning, competitive differentiation, and reputation are tied to the ground. Looks like it’s going well going forward.

If you’re an SMB or working in that marketplace, AI can feel like a maelstrom of Shakespearean proportions, shaking your space and the competition out of the woods.

“Sometimes the flood passes, and then there is wind;
Now one better, one better,
Both pull to be victorious, breast to breast,
However, no one has won or won.”

– William Shakespeare, Henry VI, Part 3Act 2, Scene 5

How to calm the water and find your way? Follow the only true north star — long-term profit. In an AI-driven market, make trust your competitive differentiator. Achieving safe harbor requires you to rely on your greatest strength: you.

Only you can build and nurture the human-to-human bond of trust that allows for long-term relationships. B2B is, and always has been, human. Use these new tools effectively and bring the human touch.

Creating happier customers who stay longer and buy more

A key metric for long-term profitability is customer lifetime value (CLV). It’s how you know from season to season, year to year, if you’re on the right track.

Here’s a simple way to understand CLV and a formula to get you going:

• First, calculate your customer lifetime value. The average number is the customer churn rate (which, in itself, indicates the success of your retention efforts).
• Divide 1 by this customer price level. Let’s say the churn rate is 5%. 1/0.05 = 20.
• Dividing the total sales by the number of customers gives the average sales per account. Let’s say gross sales are $1,000,000 and there are 500 customers. The average income per account is $2,000.
• Finally, multiply the average customer lifetime (20) by the average revenue per account ($2,000). So, CLV for this period = 20 x $2,000 = $40,000.

A strong CLV is a clear sign that your customers trust you with their future. Additional analysis that identifies which customers and customer groups have the highest CLV helps you zoom in on your ideal customer profile (ICP). You’ll find that customers with low CLV scores tend to leave sooner, require more maintenance, and generate less revenue. It pays to retool to focus on your ICP.

Get out, don’t come in

You are smart, beautiful, and funny, and your company is wonderful. No one cares. All your customers care about how you will help them succeed. “What’s wrong with me?”

Get out from behind the technology and show your commitment in person. Obviously walk the talk. Compassion and gratitude are concepts that are often discussed. Sending your note to Zooms you’re not going to is seamless.

Let compassion and gratitude guide you. Show your client your commitment to their success by showing up. It says, more than words, that you care about them, that they are your priority. These are the ways you earn trust. These are the steps to success. That human focus is becoming more important as AI takes on a bigger role in marketing.

Marketing is a logical AI application. However, most startups I’ve seen have no metrics or business plan, and some seem to be driven by FOMO. Although this experiment may yield success, the short term will bring great turmoil.

The number of touches to get a meaningful response increases gradually, from about 5-10 to 10-20. As the power of AI is poured into the 75% of the buying process that happens before negotiation, its speed and cost savings will be enhanced.

The level of communication is the most important. Prospects and customers want value. The real danger is that this pace of innovation will muddy rather than clarify competitive differences and consumer readiness to engage.

Trust is your human advantage in AI

B2B is personal. It was always, always will be. Trust in people.

Here is an example. Company A is new to its market. Provides supply chain management software as a service. It believes its product is as competitive, if not better than the competition. It believes that its staff, both subject matter experts and technical support, are superior.

Responded to the RFP and shortlisted candidates. There were five other companies, each larger and more established, with impressive track records. Company A won the bid.

I spoke to the head of the purchasing committee and asked, “Why did you choose Company A?” He said, “They were the only ones who wanted to know more about our challenges before they started the demo.

As Humphrey Bogart said to Claude Rains in Casablanca, “This is the beginning of a good relationship.”