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Hi guys!

Some thoughts from Sweden. I can see companies focusing on seven C:s in dealing with the financial tsunami hitting the planet.

Costs. Operational and structural. Cuts everything nice to have.

Customers. Value. Communication. "We can´t afford to loose one single customer".

Colleagues. The ones that are left, how do we get them to give everything they have? Strengthening people, like management team.

Concepts. Looking over offer and prices. How can we adapt to a new situation without loosing are core values.

Collaborators. Finding nw value-creating partners.

Cash. Forget LRP and budgets, do we have money the next month?

(If there is a lot of cash, ther is one more..)

Creating. The future. There are always a bunch of opportunities in times like theese. Tough times never last, tough people do).

Some thoughts from a Swede, talking to business leaders every day. Stay great over there! Jan

Posted by Jan at November 25, 2008 10:43 AM

Steve,

Good food for thought.

Truly loyal customers will even try to help a company (when SW Airlines was having problems, people were actually sending them checks).

However, many companies think of "loyalty" as a marketing pitch (and that free smoothie card. Oh boy!) And when hard times hit, they talk even more about that loyalty. But, true loyalty isn't something you talk about or "get" - it's something you deserve. And, that takes time and effort, like responding to emails, answering the phone, treating customers with respect - and not like walking wallets.

As for how to foster loyalty in hard times - give a little here and there; act like we're all in this together, because we are. Indeed, it's the "we" factor.

(Wacky idea: What if the top execs at the auto companies announced they weren't taking salaries until the company was profitable. That they were putting those dollars into a fund to help their employees pay their mortgages. Wow. I bet people would take another look at those cars. Of course,this would never happen. They'd have to be - gasp - actually accountable for results.)

Posted by Mary Schmidt at November 25, 2008 11:44 AM

To Mary's point ... a customer can tell if you think of her as a walking wallet ... True Loyalty is a two-way street ... and it has no black-out dates.

Posted by Steve Yastrow at November 25, 2008 11:56 AM

Steve ....

There has never been a better time to build a new customer base and thus a new business. What you are recommending is what most businesses are doing anyway - most have seen the bottom drop out of their sales. There is no "we"... Recession or Depression is a time to build anew not cling desperately to the old. The last asset bubble deflation was the "tech wreck" and out of it came Google et al. They did not have a "we". They had a great idea and exception value for users - they had a new notion of pricing (give search away free) and they had a new revenue model. I truly hope people out there (in business who have to make it work to feed their families) are not buying this "we" stuff you continue to peddle even though their world has dramatically changed...

Sure it is nice to have "we" relationships in a 15 year growth spurt but today it does not exist because the customers are bailing out of old fashioned relationships. This is precisely why there is no loyalty to the big three car makers in America - not even on Capital Hill. If "we" worked it would work in cars - if does work in cars it works for Toyota... Problem is Toyota is not about "we" or "brand" it is about offering use value to customers.

Anyone out there who wants to survive this recession or depression without applying for a "bailout" needs to look at what they offer to their customers. See this as the perfect opportunity to deliver a new value proposition.

There is one "we"proposition that does work - that is if you invite the customer (I prefer to call him or her the consumer) into your business as an actual part of the production and/or delivery process. Use their talent to help them and you build a true "we" business.

You are flogging the bleeding obvious here as you have time and time again on TPC... Where is the beef Steve? Where is some new insight for these new and demanding times? Surely even you will understand that merely continuing to do what "we" have been doing is not going to be enough anymore...

As De Bono says "you can't dig a new hole by making the current one deeper"...

But on the up side you make me laugh not cry and that is a good thing!

Richard.

Posted by Richard Lipscombe at November 25, 2008 3:44 PM

Stevie - once you and your giant ego come up for air - we all wait breathlessly for your "True" endeavors.

Posted by Paras at November 25, 2008 5:20 PM

And - guess in times of hanging on to a career as Plan A - B - C ----- that seems to be the focus rather than a loyalty theory - thanks for indulging me.

Posted by Paras at November 25, 2008 5:25 PM

Hi to the haters! You guys don't seem to get it, but fortunately you are few in number. Ad hominem attacks aside, here's how I see True Loyalty.

An environmentally conscious friend of mine bought a hybrid Prius. She loves this car for how it helps the environment, for the "cute and cuddly" form factor and the scientific reporting of up-to-the-second mpg. She has also had great experiences at the dealership. Now, she can't wait to buy Toyota stock and refers everyone to the dealership. That's True Loyalty.

Question for discussion: If you can inspire true loyalty in your customers, how could that possibly be bad?

Posted by Amanda Cullen at November 25, 2008 6:54 PM

Richard ... hmmm, thanks for commenting, but I often get the feeling you and I are looking at a different planet. What I am recommending is exactly what most businesses are not doing, and it is not obvious. I actually do this stuff for a living, through consulting and seeing thousands of people every year in speeches and workshops, and virtually everyone I see admits that they aren't focused nearly enough on developing their existing customer relationships.

I'm a little lost trying to follow what your beef is, so please feel free to get in touch if you want to talk/correspond one on one. And, I'd be happy to share with you "where the beef" is, if you'd like to hear.

Also ... question for you ... why only consumers? Do you consider B to B customers consumers? What about other types of customers, e.g., referral sources, strategic partners, vendors (yes, they are customers), etc. Do you call them consumers?

Posted by Steve Yastrow at November 25, 2008 7:41 PM

Good post, Steve. True loyalty doesn't only apply to customers. It also applies to the people who work for you.

Posted by Wally Bock at November 25, 2008 7:41 PM

Paras - are you suggesting that we should all hunker down and just try to hang out to our jobs, without focusing on creating true customer loyalty? Not sure what you're trying to say.

Posted by Steve Yastrow at November 25, 2008 7:44 PM

Steve - I read your book. I loved it and can relate entirely to your ideas.

‘We’ will ALWAYS be sweeter, warmer and richer than ‘I’

Posted by Trevor Gay at November 25, 2008 7:55 PM

Amanda - how much of your friend's loyalty was built from the experience at the dealership?

Wally - great point. When I spoke at the 2008 Loyalty Expo a few weeks ago, a number of people approached me with the same observation, saying that the idea of True Loyalty made them rethink the way they interact with the people who work for them. True Loyalty is a two-way street.

Posted by Steve Yastrow at November 25, 2008 7:55 PM

Hi Steve...

I thank you for your kind offer of help with my problems but I will pass.

Clearly, I do live on a different planet to you and I am thankful for it. As a result I am interested in solving very different problems to the ones you get paid to solve.

I truly believed we had solved these problems a long time ago and were only getting better and better at doing business with existing and new customers. I am delighted by just how good customer service is down here in Australia - perhaps we are still the lucky country.

But you tell me that is not true for you. You actually make a living telling people this stuff.

All I know is that I certainly would not ask people for money to tell them about this type of trivial stuff. I honestly do not know of one client who would pay me for it... They would simply laugh at me. As we tend to say down here - only in America....

Seeya....

Richard.

Posted by Richard Lipscombe at November 25, 2008 8:37 PM

Trevor - be sure to keep us updated on your training!

Posted by Steve Yastrow at November 26, 2008 12:48 AM

I've been thinking a lot all day about Mary's comment: "true loyalty isn't something you talk about or "get" - it's something you deserve."

It's a great point ... you earn loyalty ... you can't buy it. Thanks Mary.

Posted by Steve Yastrow at November 26, 2008 12:50 AM

Thanks Steve - 5.2 miles every morning now.

30 successive 6.30 a.m. runs since start of training programme. It felt like a good idea 30 days ago to enter the London Marathon - I'm now realising the meaning of the expression ‘no pain no gain’ and ‘if it ain’t hurtin’ it ain’t workin'

Seriously it’s a great challenge and one that will keep me focussed for the next five months till that glorious day on April 26th.

Life is good my friend

Posted by Trevor Gay at November 26, 2008 3:29 AM

Actually, my friend's loyalty to the car and company is almost entirely due to the product itself. She feels very "We" about her car. The dealership could have harmed her feelings about the car, but instead it reinforced them.

Posted by Amanda Cullen at November 26, 2008 4:23 PM

Being an old foggey, it seems like I remember a passage in "In Search of Excellance" where a certain hero of mine talked about driving past several stores selling liquor to go to one particular store. Why? Because of superior customer service that built true loyalty.

Lets face it. It seems that true loyalty is the thing that keeps the mom and pop stores open against the competition of the huge stores. It is an attention to the customer that goes well beyond what the huge chain stores are willing to do. Things like customer respect, listening to the customer, and, horror of all horror, "the customer is always right."

I am not saying that true loyalty cannot be achieved by a large chain operation. It is just that there is a feeling that to much attention will cut into the profit and that is all important. My opinion is that the opposite is true. Look at Tom's writings from the very first.

Posted by Al True at November 26, 2008 4:32 PM

While your pursuit if true loyalty makes sense and is worthwhile, what if many of us as consumers have long ago decided we are perfectly fine with transactional loyalty?

Posted by Jeffrey at November 26, 2008 5:41 PM

Steve,
You are absolutely right! However, I despise the tepid phrase "customer service" that most view as the key to loyalty.

As a language teacher, I suppose I'm extra sensitive re: word choice. I believe the words we use carry enormous emotional power... or can have the opposite effect of sucking away all passion and vitality.

Unfortunately, most businesspeople seem to be addicted to limp, lifeless language (Tom excluded, of course!!)

So.. rather than talk about "customer loyalty", let's talk about "love". We want to love and be loved-- passionately. Let's not talk about "customer service" (zzzzzz..), let's talk about "passionate connection", "emotional partnerships", and "heartfelt inspiration".

In my opinion, the ultimate competitive advantage is Humanity. Deep, sincere, personal, blemished, extremely emotional Humanity-- that is the ultimate ass-kicking "competitive advantage"... because so few businesses have it.

That kind of humanity is also the ultimate creator of not only "customer loyalty".. but passionate, fierce, inspired customer love.

Posted by AJ Hoge at November 30, 2008 6:59 PM

One more note on loyalty: You've got to be loyal to your customers too.

That means being true to the values and principles of your company's tribe.

To do that, its sometimes necessary to fire customers who are disloyal.

For example, we promise a positive, enthusiastic, supportive, high-energy learning community to our customers. We promise to inspire and embolden them... and they promise to do the same with each other.

When a customer breaks that promise, we fire them. As Tom's blog has repeatedly shown, online communities are very fragile. They always attract a tiny minority of contrary, negative, attention-seeking jerks.

Tom & Steve choose to tolerate these guys and give them a voice (the main reason I'm no longer a regular reader). We don't. We have a strict policy of immediately firing any customer who engages in personal insults or similarly negative behavior (instant refund and a polite "goodbye and good luck").

As a result, our online community is full of energy and passion-- a place where our members know they will always be encouraged, supported, and inspired. That, in turn, has created extraordinary levels of "loyalty".

As businesses, it is not our obligation to give a voice to every rude jerk who wants a thrill or a little attention. It is not our duty to give service to such people.

Our duty is to remain true to our core values and keep our promise to our fanatically loyal customer tribe. We also have a duty to ensure that all customers keep their promise to us.

Fire the jerks. Attract the Passionate Ones. Attract the Outstanding. Serve Your All-Stars. Protect and Nurture the Love & Humanity in your community.

That's how you build true loyalty.

Posted by AJ Hoge at November 30, 2008 7:27 PM

AJ - You say some nice things. Thank you. The only problem is that what one might consider to be protection and nurturing may indeed be coddling. The love and humanity given may not be exactly of those who offer brilliant insight or edgy intelligence. It takes a far greater leader to deal with jerks and perceived jerks than to fire them. It takes a far greater leader to build a team including these types. Now, if the jerks are offering nothing to the team or discussion, perhaps this is time for group or singular admonishment.

Someone reminded me very succinctly the other day that everyone is on a different path and that we all have different battles to fight on any given day. I, for one, am determined to remember this. Loyalty need not be blase, though sometimes more than not commitment engenders a kind of lethargy, a kind of expectation within normalcy and not the search of an excellent continuum. I would not like to be in an environment where there is no edginess or sparkle, though rudeness need not be present.

Posted by Judith Ellis at November 30, 2008 8:54 PM

discount online viagra generic Hi AJ - Hope you are well. I miss your astute comments. I agree with you as usual. Actually I learn from jerks - usually how not to do things. We definitely need people who push the edges in every team but there is a line not to be crossed that Judith describes very well. Your description of the power of the words we use is brilliant AJ. Just a thought - the word 'love' has never appeared in any business meeting minutes I've read in over 35 years - I know that is a fact ‘cos I sure as hell would have remembered it!!

Posted by Trevor Gay at December 1, 2008 12:48 PM

AJ, I have to disagree. I believe what you are describing too easily creates an unfruitful closed loop of back-slapping and self-admiration. While I sometimes wish some participants here were a bit less rude, and reflected in their language the fact that they do not hold any monopoly on wisdom, the clash of views is what brings this forum to life. I tend to find the opposite situation - a sort of cloying clubby cosiness - much more disagreeable, and tend to disappear myself when that gets too much.

Posted by Rob at December 2, 2008 1:57 AM

Hi Rob – I think you open up a fascinating discussion. I love the agreement and like mindedness I find in so many contributors on TP Blog and indeed on my own Blog. I also love the fact I learn from people who disagree with me, I think the issue is whether the person is well mannered and civil – if they are then I learn. Also of course I actually learn a lot from the ‘less polite’ – I learn how not to do stuff. I rarely find TP Blog to have that ‘clubby cosyness’ you mention because people like you Rob will always pull that sort of thing up short by making powerful and constructive points. You are always civil and polite and so are 99% of the folks who contribute here. By the way – there’s nothing wrong with coyness :-)

Posted by Trevor Gay at December 2, 2008 5:22 AM

Wisdom is most certainly the principle thing.

Posted by Judith Ellis at December 2, 2008 8:05 AM

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canada viagra mastercard Sorry Rob- I meant of course to say 'nothing wrong with cosyness' :-)

Posted by Trevor Gay at December 2, 2008 8:11 AM

I learn a lot from you guys. Your thoughts and ideas are so original. I would really like to be part of you.As a rookie customer service consultant, i meet service providers like AJ Hodge. The other day the owner of a petrol station asked if my services(customer service training) would protect them from rude and ill mannered customers. I said to him that i could only teach his employees to better handle irate and difficult customers.I reasoned that its more like a school teacher who has to deal with all sorts of personalities and still be expected to produce better results. Just as you cant blame the students for failing (you blame the teacher), you cannot expel customers.
As for customer loyalty, you could still have a business offering the worst service being patronised.A lot has been made the last few years to approach customer service as a multi-faceted discipline. Perhaps more research needs to be done on why this businesses that are perceived to offer poor service thrive.

Posted by Brink Ramoleele at December 2, 2008 8:56 AM

buy canadian pfizer viagra “Perhaps more research needs to be done on why this businesses that are perceived to offer poor service thrive.”

Great observation Brink – I learn a lot from you as well. If I am the ‘customer’ on the operating table I frankly don’t care if the surgeon has the manners of Hannibal Lecter if his brilliance as the service provider saves my life (Actually good bedside manner and its relationship to excellent clinical outcomes is a whole other discussion I would love to have at some point on Tom’s Blog). Most customer care services are of course not quite so dramatic. One reason businesses with poor customer care thrive may be because of limited choices for customers. That is thankfully changing. Customers in the virtual world will hopefully force standards up in the real world because those customers will expect the same sort of excellence we now take for granted in the virtual world. Most of our Christmas shopping has been done – 95% of it purchased online and everything comes to my door as promised. Virtual customer service is superb – quite simply it does what it says on the tin. Some businesses with poor customer service may thrive now but I suspect it will not last.

Posted by Trevor Gay at December 2, 2008 9:40 AM

A hearty hello to you in Africa brink. TP, Cathy, and Erik have developed a great forum. For this, we are happy. From comments here on other posts I have learned from you. We are all forever becoming...

Posted by Judith Ellis at December 2, 2008 10:36 AM

Trevor, somewhere (may even be somewhere here on TP!) there is some narrative evidence that patients' and their relatives' approval of their healthcare experience has very little to do actual rates of mortality or cure, and LOTS to do with whether the doctor/nurse/specialist appeared to be listening and caring. Ie treating the patient as a person.

BTW, I notice that even TP is using asterisks these days! Is this the end of civilisation as we know it? Thin end of the wedge? Or have I just not noticed this tendency before?

Posted by Rob at December 3, 2008 2:09 AM

Hello to you Judy and the team.You guys are fantastic. TP has always been my mentor and you never know what he is gonna say.He is unpredictable.The guy is simply brilliant!
Trevor my father used to run a transport business that to my observation was not doing well in terms of customer service. His guys seldom delivered on time and worst, they lost some items along the way. He had a way with customers that despite all these hiccups customers still lined up to him. Talk of customer loyalty. I soon realised that the way he related with his customers was the key. He is a friendly guy who would make friends easily and people trusted him. Even when his guys didnt deliver, customers would give excuses on his behalf! They wouldnt just think of going away. When customers have made up their minds about something, you just cant change them.They will defend it if need be however inconvience it may cause them.

Posted by Brink Ramoleele at December 3, 2008 3:18 AM

Customer loyalty is why I do everything that I do in my business. As you can imagine, the majority of our clients are in a spot, finding themselves out of work and needing an excellent resume in order to get back on their feet. What I find is that they also want someone to listen to them and empathize. A good resume writer is part therapist. At the end of the transaction, clients should not only feel they have a product that works, but that you have taken the time to truly understand their past, their new goal, and their emotions during a troubling time. More than 50% of our business is from referrals because of the personalized attention given to the client.

Posted by Resume Writer at December 12, 2008 7:38 PM