The Power of Relationships

Much of the world just celebrated Valentine’s Day. This holiday provides a unique opportunity for people to think of their loved ones. Of course, gifts of flowers and chocolates are tried and true, but for some it may simply be making a FaceTime or Viber call to a parent or child. Whatever the case may be, relationships are at the center of Valentine’s Day.

I confess that when I reflect on relationships I can’t help but think of business. I grew up near Kobe, Japan and I have fond memories of walking through the markets as a kid. Many of the old markets are still there, but now they have the big chain supermarkets to compete with. The truth is, the supermarkets are almost always cheaper. So, how do the small merchants in these markets stay in business? Relationships! This is the key advantage the small merchants still have, while the closest thing the supermarkets get to building a relationship is a loyalty program.

Common wisdom tells us that price is king, but the fish markets of Kobe tell me that relationships have an important role to play. With long-term relationships come trust and when you trust someone you are more likely to take their advice. In fact, you might even be willing to pay more for a product because you trust the merchant and the information they provide. Knowing what information to trust online is getting increasingly difficult so the value of trust and relationships is going to be more important than ever.

At Rakuten, we have always tried to put our merchants front and center so they can represent their brands their way and can own the relationships with their customers. This truth has been a guiding force in Rakuten’s e-commerce business.

• One of the biggest goals of any e-commerce business should be to create and maintain a relationship.
• Rakuten encourages communication between merchants and consumers. We put the human element back into e-commerce by enabling personal connections.
• Rakuten wants consumers to know the merchants on a human level. We encourage storytelling. We don’t simply want transactions; we want consumers to know the stories and the people behind the products they’re buying. For example, some of our merchants go so far as to tell their customers from which chicken they’re getting their eggs.
• Other e-commerce companies deliver a “vending machine” experience, which treats the merchant as simply a supplier, whereas Rakuten delivers personal and meaningful experiences.

When given a choice, customers may sometimes seek out a “deal.” But they will never give up on good relationships.

Read more at Rakuten Today.

Read my book on revitalizing Japan in the global economy, The Power to Compete. (Find it on Kobo, Amazon, Barnes & Noble, and Google Play).