Economics is just as exciting as technology or medicine because it is subject to constant changes. Georg Franck, a freelance architect and software developer, put forward an interesting thesis when he published an enlightening book titled "Economics of Attention" in 1998. At that time, he did not yet realize that he had almost predicted the future with his observations. Once, power was considered the strongest drug, from which those affected almost never recovered. Over time, fame and attention, thanks to digital media, dethroned power. Cryptocurrencies are on the verge of replacing cash, as they are considered a new and more efficient payment method. Attention now also functions as a currency in the economy, whose value is constantly increasing.
Reasons for the Perpetual Rise of the Attention Economy
According to Franck, the increasing popularity of the attention economy is attributed to digital, especially social media. These platforms target users' attention, providing them with free content that users only need to pay for with their attention. Therefore, Franck describes user attention as a currency. He also emphasizes how successful large corporations are that have discovered the value of attention. They have marketed the need for recognition, which lies dormant in every human being, and converted it into money. YouTube and Facebook laid the foundation for this development. Instagram and WhatsApp have proven that social media platforms based on high levels of attention even reward financially those who constantly put themselves in the spotlight with money and expensive gifts. Furthermore, a new term emerged that is directly related to the attention economy. Influencers are individuals who now make a good living from the paid attention of their users. Numerous young people even drop out of their education because it is no longer financially worthwhile to pursue a profession. Permanent employees quit their jobs to focus on blogging.
Attention is a Need Craving Satisfaction
According to Franck, the existence of the attention economy is not something new but an innate survival instinct. Newborns attract their parents' attention to their needs with different sounds. Therefore, the successful author calls for a rethink regarding the classical theories taught in the field of economics. Economic subjects strive to satisfy their needs. Maslow's hierarchy of needs, which includes the need for recognition and self-actualization at the top, has shown that classical economic theory should include an economic theory of prestige, attention, and prominence. Georg Franck also emphasizes the importance of post-industrial development, which is closely linked to the attention economy.
Georg Franck provides solid evidence for comparing attention to a monetary currency. Money and attention share two similarities: they are both desired and indifferent. Currencies are indifferent regarding the timing of the trade, the parties involved, and the goods acquired. The same rule applies to attention, although most people initially disagree. Additionally, both money and attention can be capitalized. Prominent individuals often owe their high income to attention. They usually earn more than lawyers, economists, or doctors. Prominence, like a loan, yields interest. The rule is: the higher the prominence, the higher the interest. The same rule also applies to a loan.
The Power of Customer Loyalty
Employees and executives of a company represent the most valuable resource of a for-profit as well as a nonprofit organization. But what is the second most important asset of a business? - Repeat customers and potential new customers represent another indispensable corporate resource. If these two components were to be put in relation to each other, the distribution would be as follows: employees account for 51 percent, while the customer share in terms of the importance for a successful business is 49 percent. Furthermore, the members of the organization and the customer base form a symbiosis that is mutually dependent. Successful entrepreneur and Amazon CEO Jeff Bezos emphasizes in all interviews that the secret of his success lies in meeting and adapting to the constantly growing customer needs. He also highlights that Amazon will fail without complaint on the day it no longer meets customer demands. For this reason, the saying "The customer is king" has its well-deserved justification. However, executives must never overlook the importance of their employees.
Definition of the Term Customer Loyalty
Entrepreneurs and employees can only successfully retain their customers if they understand the meaning of customer loyalty. Customer loyalty implies a long-term business relationship between providers and their customers. Entrepreneurs primarily aim to successfully sell their service or product and further maximize their profits. Moreover, companies aim to enhance their image through successful customer loyalty. Therefore, satisfaction in terms of successful relationship building takes precedence. Satisfied customers gradually evolve into repeat customers over time. With their presence, they ensure the continued existence of the company. Furthermore, they write positive reviews on the internet, which also encourage other potential customers to use the respective service or product.
Customer Loyalty is Essential for the Long-Term Existence of an Organization
Both companies that have successfully established themselves in the market for several years and startups consider long-term customer loyalty an indispensable mission. Due to the immense competition, it is definitely no longer sufficient to offer a top-notch product or a unique service. Customer loyalty involves regular contact with customers.
Successful Measures for Long-Term Customer Loyalty
Feedback is an efficient measure for customer loyalty. Customer service representatives should request and implement feedback via email or phone interviews. Criticism plays an important role in driving those responsible to better performance, which can benefit both existing and potential new customers.
Social networks have brought online communities to life. These not only engage customers but also promote revenue-generating expansion. However, companies should always ensure they are available for individual customer concerns. Negative customer experiences spread like wildfire in a large community. Therefore, social media managers must respond cautiously and empathetically to dissatisfied and negative customer comments.
Exceeding customer expectations is also a promising measure for success. This is partly due to the love people have for surprises. Longer opening hours are always well-received by customers. Moreover, people like to return to companies that offer excellent online service and have outstanding advisors. Over time, these customers become loyal repeat customers.
Discount promotions for premium customers act as a reward to the human brain. Furthermore, they definitely increase sales. If a product costs 10.00 euros and a company offers it for 8.99 euros, every customer thinks they saved one euro. Thanks to this price reduction, customers do not realize they spent 8.99 euros. Tempting offers will never go out of style.
The word "thank you" has always acted as a sales-promoting magic word. Samuel Johnson already made the effect of this word clear with his quote: "Gratitude is the fruit of refined education. It is not found in ordinary people." A "heartfelt thank you" signals the customer's appreciation. It is an effective gesture of attention, which almost every person has craved since birth. "Thank you" messages are best delivered in the form of emails or personal cards, but they must always include a direct address to the customer. Companies that say "thank you" stand out from their competition.
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