Over the years, we have followed shifting customer values that help to differentiate brands.
As we follow these developing trends we often gain clarity in interesting areas.  Clarity in the past couple of years came in a better understanding of certain segments of customer loyalty.

Raving loyalists are not only important because they are loyal and drive additional business, but are also part of the “innovators” and “early adopter” set in the market.  It is they, who control access to the mainstream market (see the Law of Diffussion of Innovation – beautifully explained by Simon Sinek here).

In looking at these raving loyalists we find they have the following characteristics:

1. Raving loyalists believe they perceive the company’s purpose or mission (It doesn’t matter if they are right or not.  In this case perception is reality.)
2. Based on their consistent experience with a company or brand, a raving loyalist perceives the company or brand to be authentic to its purpose or mission.  Simply put, the customer thinks the company walks the talk.
3. The raving loyalist perceives an alignment between the company’s values (the source of the authenticity) and their own personal values.

When they see this alignment of values, the customer feels personally represented by the company or brand. In turn, becoming an agent of the brand that represents him or her.  This turns into an emotional bond of reciprocal kinship.

We see these types of relationships between fans and sports teams, within certain ethnic or socio-economic strata, in nationalism and regionalism, religious groups, and more specifically to our discussion, between customers and certain brands such as Harley Davidson, Apple and Corvette among many.

So, the raving loyalist who will promote, defend and represent your brand has only two overriding requirements.  They must perceive authenticity in your brand and they must feel the brand is aligned with their own core values.

Here then, are the obvious questions:

1. Do we understand our customer’s values?
2. Is our mission or purpose aligned with them?
3. Are our customer experiences across the company demonstrating consistent authenticity?

If the answer to any of these is no, raving loyalty is not possible and we have lost major ground in the battle for differentiation.

Our deepest quest as marketers and brand strategists must be authenticity.
However, authenticity is not found in an advertisement or in engaging creative production.  Authenticity is found in the operations of the company as it relates to a higher overriding purpose.  It is found in a company’s policies, processes and delivery mechanisms as experienced by the customer.

Without authenticity we cannot create deep rooted loyalty with our customers.

Rudy Vidal
Committed to XCL

There was a time when having consistently satisfied customers kept us ahead of the competition.  Those were the days when the differentiating power in the market was in products and services.  Now, as we become more and more accustomed to our EXPERIENCE economy, we begin to accept that the quality of our products and services rarely differentiate our brand.  Quality products and services are now common, expected, minimum business requirements – table stakes.  Brand differentiation and loyalty now come by way of our experience while consuming the product, service or brand.

I often ask in my seminars: “what does Barnes & Nobles sell?”  The reply is usually: “books”.
The truth is that I could do research for my next book at B&N for the next year, using their tables, sitting on their chairs, with clear access to all the books in the store, and never have to buy a book.  If B&N were really selling books, after a couple of days, they would ask me to buy something or leave.  But they don’t.  In fact, they are not selling books at all.  In stead, they are selling experiences and hoping that while we are consuming their experience (nice chairs while we read, a coffee shop, poetry readings, a children’s reading area, etc.) we will see a book we like and buy it.  Statistics show we do.

If we know our customers now value and are willing to pay more for experiences, but we continue to offer them marginally differentiated products, we should not act surprised when they ask us for a lower price.  Over 50% of the CEOs I speak with, actually believe customers DEMAND lower prices.  In most cases these CEOs are the source of unnecessary commoditization and failing businesses.   If we offer someone what they no longer value why would we expect them to pay a premium.  As long as we continue to try to differentiate our brands by the feature/price ratios,  we will always be “me too” brands.

Let’s get to know our customers and their values more intimately.  Then let’s create experiences for them that result in emotional bonds with our brand.  I know the temptation to simply lower the price is great since no one ever says no to a lower price,  but I also know if we are willing to think about our customers, talk to them, ask probing questions with humility and a sense of service, we can get to understand their values, those things that really matter to them; those things that will engage them emotionally and make them loyal.

Aligning our companies to our customers’ values is the only way we can gain sustainable differentiation in a commoditized market.
Alignments require the management of only a couple of key components: Customer Values, Corporate Purpose and Corporate Goals.  Align these three and magic will happen.

Customer loyalty is never an accident.

Rudy Vidal
Committed to XCL

In today’s commoditized markets customer loyalty is the result of consistency in customer experiences across an entire organization, from shipping and receiving to accounts payable.  Such consistency across divisional lines can not be managed effectively without considering culture.  For this reason, the topic of customer centric cultures seems to arise more and more in customer loyalty discussions.

The right culture holds the company together, committed to a common, high level purpose that inspires a certain “way of being”.  Management’s ability to effectively communicate this higher purpose and to show authenticity to it, determines the degree of cultural adoption and level of sustainability.

Clarity in communication of the higher purpose is helped greatly by a well thought out, well written statement of purpose (vision and/or mission type statements.)

There are some in management who strongly oppose the use of such statements, thinking of them as meaningless words no one ever reads.  I disagree.  An effective statement of purpose, when used and supported by authenticity in our management intentions, beliefs and behaviors can become a source of inspiration, employee cohesiveness, and clarity amidst the din of day to day business.

Below is an example of a mission statement we worked on a few years ago (shown with permission.)

MISSION
We believe an individual’s health is more important than money.
We are committed to providing optimum family healthcare where the best interest of the patient is the only consideration.
No patient will ever be turned away for the inability to pay.

- They are concise and easy to digest.
- It gives a sense of what the company does.
- It makes me want to join the club (as an employee and as a customer.)
- It provides an idea of why the company might feel this way.
- It tends to inspire others to follow suit.
- It can provide the basis for day to day decision making.
- It compels us to make more and more decisions at the customer level.

An aligned culture is the result of general employee engagement to a common purpose.

How we make that purpose clear to the organization is up to us.  Good statements of purpose are an important part of a culture management communications plan.

Rudy Vidal
Committed to XCL

When we create new paradigms we often create amalgamations between product and experiences that change the rules, equalize the playing field for all except the leader, and develop brands beyond the current capacity of common methodologies.

Coca-Cola Bottle, the Model T, the Boeing 747, Kellogg’s Corn Flakes, Apollo, little round glasses glasses on a rock star, Mickey, smiley face, Apple, Technics 1200 turntables, IKEA, iPods . . . . . . Virgin Galactic.

Here is a perfect example of paradigm just shifted.  Thanks to Dave Oldham (a bright marketing light himself) for the link.

Take a look:

This new paradigm can reset the rules for Governments, NGOs, cross cultural assimilation, ecology and so much more.

The most profound changes occur, not when people see us differently, but when we see ourselves in a new light !

Brilliant !

Rudy Vidal
committed to XCL

GM has been considering selling Hummer to the Chinese, while also playing with the possibility of euthenizing the SAAB brand if they cannot sell it.  Although I am tempted to ask “how did we get here?” I’m sure many have already asked this question, so I will refrain.

What I would like to discuss however, is that we have reached a point  in the evolution of value where the obvious should no longer surprise us.  Business is about people first, then about money.  At the end of the day, people make cars, people sell cars and people buy cars. Many make the mistake of believing that the car business must, then, be about cars.  But it isn’t.  The car is, in fact, the most commoditized part of the equation (especially American made cars).  Although we would rather deal with cars than people, this approach is powerless in an experience economy.  People are the source and receptors of experiences, the judges of value and the determinants of our success.  They are empowered with information and are therefore no longer victims to our tactics.

The good news is that loyalty also is about people, and that it can be created at very little or even at no cost.  Simply by finding ways of making our customers emotional about our brand, what we stand for, what we’re committed to, and what we do to be authentic to this claim.

Which brings me to an article I read about Mr. Sewell and his long-term attention to customer service as a way of adding value to his dealership.  Mr. Sewell’s approach to business has left him and his brand perhaps more stable and certainly more loved than the brands of the products he sells.

“I asked a neighbor what she will do with her Saab now, and she said she just plans to buy another Sewell,” Campbell said. “That’s brand power.”

Mr. Sewell seems to have known what many overlook . . .”We couldn’t control the product,” said Sewell, “But we could control the customer experience.”

Now, as the Chinese auto manufacturers are considering entrance into the US market, they are looking for high brand loyalty dealerships to carry new unknown brands under their wings.  When such dealers invest their hard earned brand equity to good business use, I’m sure there will be those among us who may consider them as “selling out” to yet another wave of importers.  But just remember, they did the right thing all these years in building their brands, It is the auto brands that have failed them.

Is it too late to put our attention on the customer?  No.
But many of the large dealerships I speak with still believe they are selling cars (the most undifferentiated aspect of their business), as if it was still 1970.  Let’s sell trust, convenience, respect, guaranteed transportation to work, safety, anything but cars.  It isn’t about the product anymore.  The experience is what differentiates brands.  The product is just the vehicle we use to carry our mind-set and commitment to serving people.

Here is the link to the article.

related postings

Thank you Mr. Sewell for your example.

Rudy Vidal
Committed to XCL

This past week I had the privilege of speaking with friends at CLG Consulting, the leading firm and true masters in creating positive business change through behavioral management.  We spoke briefly about the importance leadership behavior in bringing out the greatness in employees and thereby in our organizations.

We know that leadership is important, but what is the difference between good and great leadership?

• Great leader facilitate the behaviors necessary to reach our goals.
• Great leaders create clarity of purpose.
• Great leaders keeps us aligned to the purpose and the customer values.
• Great leaders encourage behaviors that drives success while discouraging behaviors that get in the way of our success.
• Great leaders urge us to believe in ourselves and the value we bring.
• Great Leaders empower, guide and get out of the way of our individual and collective magic.

As I thought about these traits I was reminded of a video that showed so many of the characteristic and results of great leadership, in action.
Please Note: you will need audio turned up to hear the audience participation.

Take a look:

Are we striving to create clarity and cohesiveness?  Are we facilitating the right behaviors?

Great Leaders can make things happen that we never thought were possible.

Rudy Vidal
Committed to XCL

• A well known product, already experienced by the entire market.
• It’s had many re-introductions in different forms, packages, and industry verticals.
• Fully commoditized.
• The market may be emotionally attached to the original version so the new version may be potentially undesirable.

We must agree that under such a scenario new value-add, demand and certainly loyalty would be difficult to achieve.

However, if we are willing to look beyond our paradigms, and if we know our customers well enough to offer them something they never knew they wanted,
then, maybe we have a chance to lead.

Take a look:

What is special about this video?
Knowing your customer is the key to adding unforeseen value.

Rudy Vidal
Committed to XCL

Brilliant !
Here is a good example of the overwhelmingly powerful effect of experiences in creating customer behavior and loyalty.
The new product is clearly less effective than the alternative, yet customers prefer it 66% after the addition of the experiential component.

Suggestion:  Reduce your costs by dropping features and re-invest in adding experience.  The results are evident.
take a look:

Thank you  Volkswagen for the vision to undertake this project.

Rudy Vidal
Committed to XCL

A couple of days ago, I answered a question on a linkedin group that I thought was interesting:

Should we Send Client Holiday Gifts?

Answer: Yes, but having the right motivation and choosing the right gift is key.

Here are some thoughts:

1. If you need to – don’t:
If we feel not sending a holiday gift would hurt our relationship with the customer, then it’s probably too late. The gift should not be seen as a way to improve the relationship, it will not. Ironically, holiday gifts are most effective when they are not needed.

2. The purpose:
the purpose of the gift is to remind the customer we are thankful for their patronage and are thinking of them at this special time.  But the power of the gift is in the opportunity to underscore what our customers should already know and feel about us; that we are aligned with their values; that we care for their success and for them as people. After all, they value us because we add value.

3. The right gift:
Choosing the right gift is not always easy; it should address the purpose above.  If the person in charge of maintaining the customer relationship has not thought carefully about what the gift should be then a card is probably best.

4. Personal gifts:
If we’ve developed a personal relationship with our customer then we shouldmake a personal gift in addition to the corporate gesture, where appropriate.

5. No self serving gifts:
Don’t send gifts that are boldly logo-ed, can be seen as advertising or mild reminders of our presence in the market.  Save those for the trade show. The customer should remember who sent the gift simply by knowing no-one else would have thought, would know or would care enough to send it.  Special offers, pricing are not gifts.  Send them at some other time.

6. Make it fun:
We rarely take the time to choose the right gift for a customer if the process is not fun.  Encourage relationship managers to think out of the box and to know that choosing the gift is important.  Small brainstorm groups for similar customer segments can save time.

7. The same gift?:
There is nothing wrong with sending the same gift to multiple or even all our clients, as long as it hits the mark.  In fact, if we can figure out that one gift that shows the essence of what we stand for as a brand, then sending them to every customer, maybe the best thing we could do.

8. A gift for every customer?
Depending on the business, a gift to every customer may or may not be a reasonable undertaking.  We should also consider than all customers are not created equal.  Some are more strategic and may warrant special attention, while others may suffice with a more generic or less costly approach.  I remember sending Christmas cards to 800 customers, where every employee wrote the card’s greeting for two customers and then asked five other colleagues to add their signature and role they played in providing great service.

Regardless of what we choose to do, our token should be true to our purpose and the essence as our company.  The customer should remember the gift fondly and after the second year of receiving such a gift, should suspect a potential theme or trend in our effort or choice.

The best business gift I ever received was a research project reviewing the best project management programs along with an independent assessment of which would be best for my company.  Beautiful ! – How did you know ?

Happy Holidays !

Committed to XCL
Rudy Vidal

We prefer to find good examples of customer centricity to make our point.
However, sometimes examples of poor alignment with customer values can serve as helpful warning beacons.

First, I must say that I love BlackBerry products, they are reliable and do the job.

Today I was delighted to see BlackBerry had corrected their lack of a Desktop Manager for Mac, which has caused me countless hours of grief in trying to sync my PDA and Entourage on my Mac. I was excited, so I followed the link and downloaded the software.

Here is my experience:

1.  The download did not include a pdf of the instructions. I went to the website to find the instructions and also found release notes – Cool.
2.  Oops, the release notes say that when synchronizing with Entourage there are several unresolved issues with data integrity, the same ones that were giving me grief with the third party software.
3.  I decided to call the contact center to ask if the release notes were still current and/or to get advice on whether I should make the switch.  No phone number listed for customer support.  They have self help and forums, I spent 15 minutes looking for an answer then gave up.
4.  Decided to send an email to the support desk with my question – I received a reply saying the email was not delivered, we have self-help options or payed-for-support.

• Why would a device come without necessary software to synch to well known computers?
• Why would they deliver software without operating instructions?
• Why would they deliver software that does not work, and not let you know before you download?
• Why would they lead customers to believe there is a support email address when there is not?
• Why would they consider reliable customer support for business people something beyond their responsibility?

The answer could be simple, and it can happen to any company in the blink of an eye:
Sometimes we may not consider the effects of our business decisions on the customer experience.
Perhaps even less if our products are leading the market.

Well, it’s not about the product, its about the customer and the company’s alignment to their values.

My 7 years of BlackBerry usage mean nothing if I don’t feel the company is ready to support me when I need them.

The point here is that great companies can quickly loose their footing simply by forgetting that we are no longer in a product economy.
Products are great, but no longer brand differentiators.  The differentiator is now the customer experience due to the company’s integrity of purpose.

My partner Donna Root, said it perfectly yesterday :  ” A company’s alignment to their purpose is critical because in an experience economy customers care about “HOW” companies win.”

Your customers have evolved.  Their criteria for loyalty has shifted to a more holistic view.  They care about what company’s stand for and about their authenticity in that purpose.

What does your company stand for?

Rudy Vidal
Committed to XCL