Five Emotional Experiences to Build Customer Loyalty

Out of curiosity, I'd like to know which philosophy do you subscribe to? Your best customers should get bonuses, perks, and rewards? Or we should reward the not-so-great customers so they keep coming back? What is this thing that they call loyalty anyway? And that's coming up next Welcome back to Marc Haine Live, where small business owners and entrepreneurs pick up core skill sets to help them work on their business, not just in their business. I am your host, Service Expert and Master of Experiences Marc Haine. And today, I'd like to spend some time with you discussing customer loyalty. It seems so simple. But time And time again, I see an expectation from business owners as to what they expect from their customers when it comes to their loyalty. So today, I am going to share 5 emotional experiences you must ensure that you provide if you want to build brand loyalty. And we'll get to that in just a second. You know, I have to say that I am so glad that you chose to spend some time with me here today. If you subscribe to my channel, thank you so much for supporting me. If you haven't yet subscribed, okay, that's okay. Maybe I haven't built up enough trust with you to gain your loyalty. But you know what? If you do subscribe, you will get notifications when I bring you some fresh content. So, feel free to drop a thumbs up and ring the bell And I will make sure to take good care of you. I will ask you though, do let people know about this episode. You know, one of the things that we come across lots of information time and time again, we'll come across information that really resonates with us. And we think, oh, somebody needs to hear this. Somebody we know needs this information. And so, go ahead and make sure that at the very least, if you don't follow it, if you don't that's okay. But at the very least, if you know somebody who could use this information, why don't you go ahead and share it? You know, last week we had the impeachment proceedings. And I've been questioning quite a lot about what loyalty is and where allegiances should be. Cicero said, nothing is more noble, nothing more venerable than loyalty. Google the word and you will find all sorts of quotes about loyalty. The only people I owe my loyalty to are those who never made me question theirs. Don't let your loyalty become slavery. If they don't appreciate what you bring to the table, let them eat alone. And finally, A person who deserves my loyalty receives it. So that brings us to our Question of the Day. So, where do you stand? You designed your business in a way that fulfills your customers' expectations. Do you expect that your customers become loyal to you? Or does it take more than that? Why don't you put your comments in the comment box below? I'm excited to get this conversation started. I'm really interested in how everybody perceives the aspect of loyalty. You know, I live in a very small town outside of Edmonton, Alberta. We have just over 6,500 people. And since we are 25 minutes from West Edmonton Mall and 25 minutes from South Edmonton, you could say our local businesses' biggest competition is everyone. They have a really tough time. And so, speaking to some of the business owners, I get a sense that their expectation is that since they are local, residents should be choosing their businesses to shop out. For the main, the only reason is because they're local and let's shop local. It takes nothing into account about the services they provide, the culture they create, or the loyalty that they entice. And as much as you might agree with that theory about because I'm local, you have to support me, the expectation makes me think of an old Dick Van Patten quote years and years ago. He said, the only honest reaction and true loyalty we get is from our animals. If you have a dog, you know what I'm talking about. Once they're your friends, you can do no wrong. But is that what we expect of our customers? It kind of takes a nod to once a customer is your customer, then they should be loyal. But I hate to say it. People will always be singing in their heads that Janet Jackson song, What have you done for me lately? Right? Because that's what they want. They want to know that you're there doing something for them. So, I'd like to dig a little deeper into this whole idea of loyalty. And we'll get to that right after this.

When the spotlight shines on your business, are customers applauding or yawning? In other words, how is your business performing? Make your business a star with a new book, Lights! Camera! Action!, Business Operational Excellence through the lens of live theater by Marc Haine. Marc uses his business and acting experience to help you see your business like a live show so you can create a performance your customers will never forget. Buy Lights! Camera! Action! today at your favorite online retailer or directly at marchaine.com.

You know, in my presentation Engagealytics, I talk about how tenuous your active participation And your ambassadors are when it comes to loyalty. If they feel slighted in any sense, they can drop off. Your customers, your staff, and your members will process the various experiences that they get from you as signals of whether or not you are being loyal to them. That's something we haven't talked about, is it? That you might have to be loyal to them. And if you're not, then what? In his book, The 7 Habits of Highly Successful People. Excuse me. In his book, The 7 Habits of Highly Successful People, Stephen Covey talks about something called a trust bank account. He says that when you build trust, you make deposits into the bank account. And when you take away, when you create a situation of distrust or you disappoint people, then you are actually taking withdrawals out of the bank account. And I've seen this time and time again in small businesses. Somebody comes into your business. They have a great time. They have a great experience. They deposit. You've deposited that amount of trust in the bank account. Then, they come back again and they have an okay time. It doesn't do anything to the bank account. They have an okay time. But then, they come back and something happens and they're like, oh, that's a big withdrawal. Now, they don't automatically not become your customers again. But if they come back again and have another negative experience, that withdrawal happens and people say, I don't know what happened to that business. It used to be good. But now, not so much. And they stop coming. And then, you see things on review sites. Then, you see things on social media about your business. And it's like, I've just been trying to do the best I can. And so, it's always this idea. And I like Stephen Covey's framework about this because it's always this idea of every time a customer walks in your door, you have to be making a deposit into that trust bank account. Ultimately, loyalty comes down to earning the trust and respect of your customers, whether they are your purchasing public, whether they're your employees, or your members of your association. So, for the duration of this podcast, I will refer to the word customers as being Your employees as well because you have to build trust with your employees, or your members if you're a member of an association. This all applies. So, I'd like to share 5 emotional experiences you need to create in order to build loyalty. But before I do that, I'd love it if you would give me a thumbs up and ring the bell. By subscribing to this channel, you let me know that the information I bring you this week is valuable to you and to your team. So, why don't you go ahead and do that? You can do that right now. It's okay. I'll wait. Here, let me give you some extra time. We'll get back to the 5 emotional experiences right after this. Or not. Okay. Well, we'll just skip over that. You know, we've been talking about building brand loyalty, something every business operator needs to do to be successful in the long run. I created an acronym to help you remember and I will put I will put the acronym in the show notes for you to refer back to. But the acronym is ADORE. ADORE. And it stands for Attentive, Devoted, On Fire, Relatedness, and Established Trust. That's Attentive, Devoted, On Fire, Relatedness, and Established Trust. So, let me dig a little bit deeper for you. Your customers on the very first one, The customers need to know that you are interested in them, not just interested in their business. Being attentive means you are communicating with them authentically. Being attentive means that you are not throwing the, this is our policy, at them. The second one is devoted. Your customers need to know that you like them as people first, not as customers, Not as guests but as people first. And a lot of this happens when you have a problem. A perfect example of this was when I went to a hardware store and I went to buy a piece of plumbing to do a repair. And I literally went out and I had my note in the car of what size I needed. And I didn't go back to the car when I was in the shop. I should have. But I went to the shop and I thought, oh, I know what part I need. And I took the part. When I got back to the car, I literally looked at the at the part and looked at the note, I went, ah! And so, I had to go back in and I had to return the part and change it out. Now, it was just a different size, same price. Everything was the same. And I went to the cashier. I go, oh, I made a mistake. I have to switch this one for a different size. And they said, okay, you have to go back to the customer service desk in the back. Okay, so I went back to the customer service desk. And I said to them, oh, I need to— I just bought this like literally 2 and a half minutes ago. But it's the wrong size. I need to exchange it. And they go, oh, okay. And then, they gave me a form to fill out. And they said, fill out this form. And then, he disappeared to go and do something while I filled in my name, my address, my telephone number, the reason for the return. Okay. So then, he takes off a tab off that piece of paper when he comes back. And he says, okay, now just go to the cash. And they'll give you your money back. I said, but I want to do an exchange. He goes, oh well, our policy is that we have to give you your money back. And then, you can go and purchase the next one. So, I went trudging back to the cash. I gave them the slip. They gave me the money back. I went and bought the part I needed. Went back, processed the sale, and walked out of the store. And I thought, really? To me, this is not somebody who's devoted to me. This is not somebody who cares. About my time, my energy, and so on. At the end of the day, when I think about the part, the part was $2.49. When I think about that value, I thought the time it took me to deal with $2.49, I should have just sucked it up and gone and bought another one, right? Forget the whole thing because $2.49 for that much hassle took— it cost me 10 minutes. And I just thought, that's really strange. I would even argue in all our businesses, if we didn't have people, we wouldn't have this business. So, I think it's really important that we commit to our customers. The first 2, being attentive and being devoted, this is the way that you open the door to your customers' hearts. The next one is on fire, is being on fire. You have to be excited and get your customers excited to the prospect of being with you. I was going to upload a whole bunch of videos from different brands. But everybody knows Apple. Everybody knows Nike. In the States, Chick-fil-A is doing really well. These are brands that really have outshined their competition and really showed this idea that they are on fire for their customers, for their customers' experience. You know, open up a box from a new iPhone. And just that experience of getting that white box and pulling off the white box and everything is done in layers. You know, how cool is that? What an experience that is. And you know, so every time you open up an iPhone box, it's like Christmas time, right? And you just kind of just judge by the box, the quality of the cardboard that they're using and so on that this Purchase means something. But you know, bigger than that, brands need to create a sense of relatedness. They create a sense of connectedness to the brand. So, when we go out there, we are actually creating a sense of the community. We are helping people connect with our brand That they are able to then turn around and tell everybody else about because it feels like, I belong here. And last episode, we talked about the power of yes and to connect with people. And it's really interesting because once you start going into the yes and thing, had I gone into that particular hardware store and said, oh, I need to return that. And the response was, yes, we'll take good care of you. As opposed to, oh, our policy is you have to go to the customer service desk and you have to go talk to them and you have to fill out copious amounts of paperwork.

Right?

We have to also understand that people don't connect with things. They connect with other people. So, what are you doing to make your customers a part of your community? How do you train your staff to encourage That community-mindedness. Working in restaurants and hotels, one of the things we're trying to do all the time is we're trying to create that relationship with the guest to make them a part of our community. And the last one out of the ADORE is establish trust. The minute you turn to your guest in your restaurant and treat them like they want a discount, you're, oh, the only reason why you're complaining is because you want free food. Or you turn to your customer who is returning merchandise, exactly what I said with the hardware store, and saying to them, all sales are final. How many retail boutiques have that? You know, when I talk to sales clerks who come and apply with me in working in hospitality, I'll say, what's the most difficult situation you've had with customers? And bar none, if they were ever in retail, it was always, Oh, you know, a lady came back. She bought something. I'm not allowed to return it. And they get mad at me. And I said, well, why wouldn't you return? Well, because it's our policy. And the challenge with that is the minute you create a conflict with your customer, you ultimately lose that customer. A recent study pegs that a lack of trust costs U.S. brands $756 billion per year. $756 billion per year because they don't trust their customers. Another episode that we had, I was talking with Rani Pawar and he was talking about eating at a restaurant with his fiancée. And they had a problem with the food. And the manager came and made concessions with them and said, I'm not going to charge you for this. And I'm going to give you a discount on this. I'm terribly sorry about the inconvenience. When the owner came in, the owner treated them like they were pariahs. Oh, you just want everything for free. I'm not going to give you free food. Don't you know the food costs me? And right then and there, they lost that couple for eternity. They're gone, never to go back again for $6, $7, whatever that was. The online shoe retailer Zappos made a name for themselves with a 365-day no-hassle return policy. You could buy your shoes. You could even wear them. And then, within 365 days, send them back and Zappos is not going to question it. My wife and I were just discussing how Costco will take back any item they sell whenever. We were talking about how she was standing in line one day to return something that was actually just Defective. And there was a lady with a baby mattress that she had bought 2 years ago for a baby crib. And Costco just took it back without any fuss, without any muss. It was over. Both these companies take on the belief that most people are honest and trustworthy. And as the saying goes, if you hold people to a higher standard, most people will strive to match it. So, they realize that the negative people, the people who are dishonest, who are going to try to rip off the system are a minority. And really, if you think about the 80/20 rule, I think that applies. That doesn't mean that as a business owner, you can't fire your customers. If you have people who— customers who cost you time, energy, and money in your business consistently, Then, it's entirely up to you to turn around and say, you know what? I prefer that you not be my customer any longer. But that is the choice that you make because of the situation. Not because you're angry. Not because you're frustrated. But because you have some facts and you have some conditions that create that for you. So, there you have it. The 5 emotional experiences you need to build and create brand loyalty. I hope this is working for you. And again, I really would appreciate a thumbs up. Or some comments. Drop some comments. Challenge me on some of this. I'd really love to hear your perception as well. Don't get me wrong. There are other conditions to help build loyalty. But these 5 are a great starting point. I will caution you though. Don't try to establish the ADORE framework as a band-aid. Don't all of a sudden go to your team and say, okay, here's a checklist. It's not a checklist. It's a way to be. You cannot build loyalty if it's just a quick fix. Or even worse, if it's inauthentic. Nothing is worse than people trying to build loyalty through inauthentic means. I think it was Mahatma Gandhi said something to the effect of, you can't do right in one area of life without doing— while doing wrong in something else. Right? So, this is not about being inauthentic, or a checklist, or manipulation. This is something that has to come from the top. It really cannot be something that you go to your customer-facing service agents and say, okay, from now on, I want you to be, you know, here's the 5 steps. I want you to execute them. I want you to build trust. It's what you must do with your managers. It's what your managers must do with your team leads. It's what your team leads must do with your customer service staff before they ever start building loyalty for your customers. And then, and only then will your customers be ready to show loyalty to you. I have an organizational loyalty checklist that I am developing. If you would like a copy, why don't you drop me an email at Marc Haine. Sorry, that's M-Haine, M-H-A-I-N-E, And I'll send you the checklist so you can review it with your team. And again, you'll go through it and you go, how can we change our culture? What do we need to start, stop, or change? Folks, that's all the time that we have today. A very short episode today. Why don't you give me a thumbs up if this was of value to you? And please do share it to somebody that you know might be able to use the information. If you'd like to see more videos on this topic, or if you have a topic you'd like me to cover in this podcast, please why don't you drop me a line. Again, you can email me, drop it in the comments. I'm always looking for new content to bring you to be of service to you. And as always, my offer stands. If you would like 30 minutes of my time to brainstorm your business with you and your team, please feel free to book yourself on my online calendar. The link is down below. It's the one that's marked meetme.so/MarcHaine. And as always, I am at your service. And I'm going to nag you one more time. If you haven't done so yet, why don't you hit the subscribe button and ring the bell? That'll give you first dibs whenever I bring—

When the spotlight shines on your business, are customers applauding or yawning? In other words, how is your business performing? Make your business a star With a new book, Lights! Camera! Action!, Business Operational Excellence Through the Lens of Live Theater by Marc Haine. Marc uses his business and acting experience to help you see your business like a live show so you can create a performance your customers will never forget. Buy Lights! Camera! Action! today at your favorite online retailer or directly at marchaine.com.

And again, why don't you hit the subscribe button and ring the bell? That'll give you first dibs whenever I bring you the content that will help you work on your business, not just in your business. My name is Marc Haine. I hope you stay safe, stay healthy, and dare to be the exception.