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PERFORMANCELOYALTYAttracting LoyaltyFrom all the new customers.by Chip R. Bell and John R. PattersonTODAY’S CUSTOMERS GET TERRIFIC SERvicein pockets of their life, and usethose experiences to judge everyoneelse. When the UPS or FedEx deliveryperson walks with a sense of urgency,we expect the mail carrier to do likewise.Customers also have choices.Shop for a loaf of bread, and you’reconfronted with 16 brands and 23 varietiespackaged 12 different ways.Today’s customers are smarter buyers.Considering Sleepwell Hotel foryour next vacation trip? You can getweb-based information complete withevaluations from 40 previous guests.Everyone is everyone’s ConsumersReport. Watchdog websites can giveyou the lowdown on why one companyis better than another. It meanscompanies must monitor all the details(now transparent to customers) and getearly warning on emerging glitches.Figuring out how to attract and retainloyal customers today is not easy.Five Loyalty DriversFive loyalty drivers fit most customersmost of the time about most services.1. Include me. Customers’ loyaltysoars when they discover they can beactive participants in the service experience.Harley-Davidson created theHarley Owners Group (HOG) as aforum to bring Harley loyaliststogether for education and recreation.Membership comes with the purchaseof a Harley. Managers often join in thefun and fellowship as HOG membersreunite around a barbeque or motorcadeon a Sunday afternoon.Dealers for BMW’s Mini-brandautomobile mail to buyers a “birth certificate”once the customer pays adeposit. The customer then receives alink to go on line and follow their car’sproduction. Build-A-Bear Workshopwith their interactive build-a-stuff-toyexperience has grown to 200 storesworldwide in 10 years. If customersknow they have a chance to be included,the impact is almost as powerful asif they actually put “skin in the game.”2. Protect me. A value proposition isthe complete package of offerings aseller proposes to a customer inexchange for the customer’s funds. Itincludes the product (or outcome), theprice, and the process (or experience)involved in getting the product or outcome.There are certain qualities orfeatures all buyers assume will typifythat value proposition—the productsthey buy will be as promised, the pricefair, and the process comfortable.These are “givens”—taken for grantedunless removed—but theydo not make us happycampers. If the commercialplane we board lands inthe right city, we do notcheer; but, if it lands in thewrong city, we’re upset. Weassume banks will be safe,hotels comfortable, andhospitals clean. Customersare loyal to organizationsthat make sure the basicsare always done perfectly.3. Understand me. Service goesdeeper than just meeting a customer’sneed. All needs are derived from aproblem to be solved. Great serviceproviders are great listeners. Theyknow that unearthing the essence ofthe problem will point to a solutionthat goes beyond the superficial transaction.It takes building rapport withcustomers to engender trust. It entailsstanding in the customers shoes to getsense their hopes and aspirations.Understanding customers takesmore than surveys and focus groups.It means viewing every person whocomes in contact with the customer asa vital listening post—a scout whogathers intelligence about the customer’schanging requirements andprovides early warning about issuesand concerns. It involves gatheringcustomer intelligence and mining theintelligence from front-line contacts.4. Surprise me. Today’s customerswant sparkle and glitter; a cherry ontop of everything. They want all theirsenses stimulated, not just those linkedto the buyer-seller exchange. Featureshave become far more titillating thanfunction; extras more valued than thecore offering. Attracting customer loyaltytoday requires thinking of serviceas an attraction. Examine how Cabelasand Bass Pro Shops decorate the serviceexperience. If your enterprise was“choreographed” by Walt DisneyWorld, a Lexus dealership, MTV orStarbucks, how would it change?Think of the service experience like abox of Cracker Jacks. What can be your“free prize inside?” The power of surpriselies in its capacity to enchant, notjust entertain; to be value-unique, notjust value-added. Service innovationworks best when it is simple and unexpected.Hotel Monaco puts a live goldfishin your room; Sewell Infinitidealership programs in your radio stationsfrom your trade-in; servers atMacaroni Grill introduce themselves bywriting their name with a crayonupside down (right side up to the customer)on the butcher paper table cloth.5. Inspire me.Customers are tired ofplain-vanilla service. Itattracts their loyalty if itreflects a deeper purposeor destiny, befitting of theorganization’s values—not just its strategy. Servicewith character meansa sense of innocence, naturalness,purity—a solidgrounding. We like beingcharmed by what we don’t understand;we do not enjoy being hoodwinked bywhat we should have understood.Such service need not be obvious tocustomers in its design, but it mustnever feel devious in its execution.What makes service inspirational? Itmoves us when it comes from peoplewho are passionate about their work.We are stirred by professionalism andpride when it reflects a zeal to “do theright thing.” It leaves customers wantingto return when they’ve had anencounter with goodness and purity.Loyal customers act as a volunteersales force, championing you to othersat home, work, social circles, blogs,bulletin boards, and web sites. Becausethey feel committed to you and seeboth emotional and business value inthe relationship, they’ll often pay morefor what they get from you.The formula for creating and sustainingloyalty comes through inclusion,trust, understanding, joy, andcharacter. Put these in your customers’experience, and watch their admirationsoar along with your bottom line! LEChip Bell is senior partner of The Chip Bell Group. JohnPatterson is president of Progressive Insights, a CBG alliancecompany. Their new book is Customer Loyalty Guaranteed!Visit www.loyaltycreators.com.ACTION: Earn customer loyalty.Leadership Excellence May 2008 7