While at Newark Liberty International Airport recently, on the lookout for a quick snack and drink before my flight, an unexpected encounter left me pondering the evolving dynamics of customer relationships. After selecting my items and approaching the self-service checkout, it struck me that I had unwittingly become a certified supermarket cashier and bagger. This transformation was a result of a recent retail trend—an empowerment or, should I say, an outsourcing—of cashiering tasks to customers.
As I scanned my items and prepared to pay, a new screen popped up, asking me what tip amount I wanted to leave. I glanced around, realizing there wasn’t a single employee in sight. Who would be receiving this tip, I wondered? It was a stark reminder of the current state of customers: We’re now the ones running the show.
I am now an expert in almost everything
When I graduated with my MBA, focusing on strategy and marketing, my plan was to become an expert in my field, deferring to professionals outside my area of expertise. From doctors and bankers to insurance agents and travel advisers, my life depended on their guidance in navigating unfamiliar territories. However, the digital transformation sweeping across industries has upended this assumption. Slowly but inevitably, I found myself gaining expertise in numerous areas I had never expected.
Now, I’ve mastered the roles of gate agent, luggage handler, banker, insurance assessor, travel expert, fashion consultant, and more—all thrust upon me by the companies themselves. Thanks to the challenges posed by COVID-19, I even found myself capable of conducting disease tests and interpreting the results. I’ve officially joined the ranks of the medical profession.
Amidst this newfound empowerment, I’ve been told that my life is worth broadcasting, and I now manage several broadcasting channels where viewers, known and unknown, seek to glean insights into my life and opinions on various matters. In this evolving landscape, I’ve transitioned from being merely a customer to becoming a brand in my own right.
The ramifications of digital transformation and the rise of social media have given birth to a new breed of customer—one who is no longer passive and accepting but rather opinionated and demanding in unprecedented ways. This customer no longer seeks a better experience; they demand their unique, personalized experience. With the ascent of artificial intelligence (AI), which promises to elevate empowerment to new heights by enabling individuals to create art and literature, the emergence of the customer as an independent brand is nearing completion.
The emergence of the cocreator
Historically, the Industrial Revolution heralded the era of customers. Products were produced en masse and then marketed to convince consumers that they needed these standardized offerings. It was an innovation of its time. The subsequent rise of mass customization began treating customers differently, providing choices and a degree of personalization. It appeared to be a significant leap from the days of “you can have it in any color as long as it’s black.”
However, the advent of digital transformation, coupled with the emergence of social media, has elevated our customers’ status. They are no longer passive marketing message recipients but are now creators themselves. They no longer blindly trust their doctors; instead, they turn to Google and seek second opinions.
This new generation of customers has become cocreators, and their focus isn’t on your brand; it’s on their own. They act and communicate like brands, and many now proudly label themselves as influencers, on a macro or micro scale. Some even expect payment for using your products. AI will only further catalyze this trend, bringing us to the era of the one and only customer—the newest evolution in the vendor-customer relationship.
The one and only customer is a stand-alone brand who expects to be treated as if they are the sole focus of your business, at least for the duration of your interaction with them. They anticipate your products or services to seamlessly align with their lives, not the other way around. This transformation necessitates a radical redefinition of the value your products or services create for your customers.
From products to platforms
In the traditional paradigm, vendors held the power while customers held their purses. The struggle revolved around extracting as much money as possible from the customer in exchange for your product. In the era of the one and only customer, the battleground shifts to creativity and innovation. Customers demand participation in the creative process and a share in the outcome.
Consider Damien Hirst, the renowned British contemporary artist, who initiated a 10-day campaign where anyone could create a unique spin art creation, signed by the artist, and sold to the customer. At price points potentially reaching $6,000, there were skeptics aplenty. Yet, in just 10 days, Hirst amassed over $20 million. Numerous creators eagerly collaborated with him and were willing to pay for the experience. This is a new world where customers are entrusted with the creative reins, and businesses transition into platforms. They are the brand, and you, the enabler.
When Coca-Cola introduced the Freestyle service, they recognized that their over 100-year-old formula was no longer the destination—it had become just another ingredient in a customer-created soft drink. Every customer now crafts their own unique concoction. Fanatics, the sports fans’ platform for sports teams, extends its services to college athletes and leverages NIL (name, image, and likeness) to create new business opportunities. They operate as a platform, not a product. The emerging brands are the young, up-and-coming athletes, and Fanatics merely equips them with the necessary tools.
Embrace humility and recognize the role reversal
Humility is perhaps the most crucial step in acknowledging the customer role reversal. The rise of influencers and the further empowerment brought about by AI, which we are only beginning to comprehend fully, all point in the same direction. Customers today are less passive and more proactive about their identity and presence. They view established brands quite differently than their predecessors did. They no longer see these brands as aspirational destinations; instead, they consider them helpful components in their own brand vision. It is high time we embrace this radical change and lead the way.
The era of the one and only customer is upon us—a customer who demands a personalized and unique experience asserts creative authority, and seeks to be treated as if they are the sole focus of your business. This customer isn’t just a buyer, they are a brand in their own right. The future belongs to those who recognize this transformation and adapt to it, recognizing that customers have now become the brands they interact with. Humility is the bridge to this new era where customers have the power, and businesses become enablers of their creativity and individuality.
Lior Arussy is CEO of Otentu
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