What is Loyalty?

I got an email last week from a friend/client asking for my thoughts on loyalty. It said something like this: "If you have 5 minutes can you reply with your opinion on what makes a customer “loyal”? Curious as to what you thoughts are…"  At my friend's suggestion, I've made our topic into a blog post. Loyalty certainly is situation specific - meaning if we are talking about product loyalty vs friend loyalty, we might have different definitions.

Age can affect one's opinion about product loyalty, in my view. People will often say - "No one is loyal anymore." I'm not sure that is true, people are loyal, but what makes them loyal, the elements that need to be engaged may be different from before. Today, product loyalty is largely based on customer experience, and to a much lesser extent price.

I define product loyalty like this: Given other compelling choices, the customer stays with a product/company because they so appreciate the entire experience that is provided - the product itself, the customer service, and any other value related or benefit related offering that is connected to the product/company.

Certainly every person has a different benefit-to-price/value ratio. Some only value price, so their ratio favors price above all - mostly they are not considered loyal in this type of conversation. The challenge in our world today is finding what level each customer's benefit-to-price/value ratio is - and trying to have their experience match their loyalty expectation.

Any of your thoughts are welcome, as this is an ongoing debate.

Replace search for silver bullet with hard work

The story is the same. Everyone is looking for a silver bullet. The perfect recipe, or that one-hit to make the money flow in and their job easier. While the truth is that most success is earned through struggle, hard work, adjustment and perseverance. This is true in many areas of life and marketing is no exception.  Marketing folks are tempted just like everyone to run to the hot new and shiny item of the day/month/year. Every 'traditional' or 'old school' method of marketing was at one point a shiny new toy.

The quiver of arrows just gets bigger, and the customer's ability to shield themselves grows as well. But the temptations that remain are: A) use them all or B) find the one or two 'that work' and use them exclusively.

Neither of these options are correct for everyone, and to suggest otherwise would overly simplify customers. Humans are complex and their buying decisions are immensely diverse. However, the one thing they want is to feel a connection with a company or brand. Yet, how that feels and is translated is different for everyone.

We often say this is a relationship or experience we want the customer to have with our company. Most of the time it is a human connection and at other times it is a feeling or sense of understanding that defies definition. But with any relationship, asking for permission is almost always welcome and further builds the bond.

Work hard with building relationship with customers by getting their permission to serve them. Your efforts will pay off for both of you.

How to make people care.

Many have written about this topic and the issue is not solved evidenced by an example I witnessed while traveling recently. Here's the short version: Flight was oversold in an airport full of people who had been delayed by weather, so there is a standby list. Gate agent continually begs people to give up their seat, so they can get down to the number. I'm not sure if anyone bit or not. Regardless, boarding goes on as normal.

An adult son of one of the standby passengers is on the plane. He calls Mom and says they are about to close the door and there are 5 seats available. Mom goes to gate agent saying, "Hey, please get me on that plane. My son on the plane says there are 5 open seats." Agent was about to close the door says, let me check. Turns out there were 6 seats available, so most of the stand by passengers got to go - thanks to the son.

I understand that in this situation there are MANY moving parts. Stress is huge for all involved. The airline wants to be 'on time.' However, I was struck by how little the airline staff seemed to care. They had 6 open seats on a plane leaving an airport PACKED with people and they didn't appear to be acting to fill them. Wow!

Again, I realize it is crazy for airline staff in situations like this, but what a perfect time to really care about the people standing there waiting to go - wherever they planned to go.

This situation caused a discussion among our traveling party about how to make people care. Of course, there are no quick fixes and even caring people can have a bad hour or two.

So what can you do to instill caring as part of your company culture? Here are some things to consider.

     1. If you have the chance, hire to this skill. Make it one of the skills you MUST have. Department doesn't matter.

     2. Make sure you model caring to your staff. Help people. Show compassion. Let them know this is who you are as a company.

     3. Make your expectations clear and give them permission to fix a problem. You might need limits, but keep them general.

     4. Reward employees who consider customer experience - before or during a problem.

Regardless of your industry, caring employees matter. Your company will thrive because of them while others wilt.

What are your favorite ways to make employees care?