Of Tribes and Touchpoints

Book: Tribes: We Need You To Lead Us

Author: Seth Godin

Summary: Tribes: We Need You to Lead Us explores the idea that humans have always joined tribes, and the Internet now makes tribe assembly easier than ever. The business application here is that by providing opportunities for your customers to engage with your product or service, while giving employees the freedom to accomplish amazing things, you potentially set up a platform for a conversation – even a tribe – to form around your organization.

You’ll love this book if: You are open to encouraging employees and customers to openly and passionately dialogue about your organization – and learning from this experience.

You’ll hate this book if: You are not interested in creating a customer experience worth talking about, and you think it’s OK for your employees to be bored with their jobs.

Words of Wisdom:

The business world has a long history of conservatives tribes, of groups of people who relish the status quo. The big news is that this has changes. People yearn for change, they relish being part of a movement, and they talk about things that are remarkable, not boring.

Why we think this book is important: Engaged employees translate into engaged (and profitable) customers.

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Tribes: We Need You to Lead Us is another scrumptious Seth Godin nugget, easily consumed in one sitting (or curl-up). In tribe-driven world, anyone can be a leader and thanks to the Internet, it is easier than ever for tribes to assemble.

So what is a “tribe”?

A clear definition of tribe is right there on the inside flap of the book jacket. So clear, so compelling – you are practically dared not to open the book and learn more.

A tribe is any group of people, large or small, who are connected to one another, a leader, and an idea. For millions of years, humans have joined tribes, be they religious, ethnic, political, or even musical (think of the Deadheads).

What does this idea of a tribe have to do with business?

Um, everything.

You see, your customers are bored. They’re not listening to you. Why should they? If you’re like most organizations, you’re more interested in maintaining the same old, same old than creating something exceptional – something your customers will want to talk about.

Something that will compel your customers to form a tribe around your product or service.

The business world has a long history of conservative tribes, of groups of people who relish the status quo. The big news is that this has changed. People yearn for change, they relish being part of a movement, and they talk about things that remarkable, not boring.

And guess what – if your employees are bored, your customers are bored, too.

How sheepwalking damages the customer relationship lifecycle

Godin defines sheepwalking as

The outcome of hiring people who have been raised to be obedient and giving them brain-dead jobs and enough fear to keep them in line.

If it is common knowledge these days that engaged employees translate into engaged (and profitable) customers, why do organizations continue the practice of sheepwalking?

And many organizations go out of their way to hire people who color inside the lines, who demonstrate consistency and compliance. And then these organizations give these people jobs where they are managed via fear. Which leads to sheepwalking (“I might get fired!”).

Here is what it’s like for your customers when sheepwalking and touchpoints collide:

• That’s not my job
• I’m off work in 5 minutes; you’ll have to call back tomorrow
• I can’t go out of my way to help you without my boss’s permission

OK, you get it. But what are you going to do about it?

When you hire amazing people and give them freedom, they do amazing stuff. And the sheepwalkers and their bosses watch and shake their heads, certain that this is an exception and that it is way too risky for their industry or their customer base.

Which tribe are you leading?

As you consider the relationship of your employees, your customers and the touchpoints along the customer relationship lifecycle, stop and ask yourself: “Do I want to continue as a leader of sheepwalking or do I want to lead the way for my company to do something remarkable?”

Leading a tribe? Share your experience with us – we’d love to hear from you!

Will Dunder Mifflin win?

In the most recent episode of NBC’s The Office, Michael offers to gather intelligence on a neighboring competitor by posing as a potential client.

Michael happily schemes to annihilate Prince Family Paper, but then finds himself in a moral dilemma when the rival turns out to be a family-owned Mom and Pop business. And they couldn’t have been nicer to Michael, who is posing as an interested prospect.

The owner of the business even gives Michael their client list.

After the “meeting”, Michael ends up having a problem with his car, and “Pop” fixes his car. While he waits, “Mom” brings him a cup of coffee.

Getting Personal

Now that there is a very human face on the competition, Michael doesn’t want to hurt these people by turning the client list over to his boss. Unfortunately, Dwight manages to take the list away from Michael after an amusing foot chase around the office and parking lot, which forces Michael to turn the list over to his boss.

Armed with the Prince Family Paper’s client list, the conventional thinking is that Dunder Mifflin can now put Prince Family Paper out of business.

Or could they?

It’s pretty easy to take a closer “look” at this situation for the customer experience perspective. It is highly likely that the companies on the Prince Family Paper client list are already aware of the larger company, Dunder Mifflin. Let’s say it’s common knowledge that the larger company’s prices are lower than the Mom and Pop operation.

So why would these companies authorize paying more to work with Prince Family Paper?

“People who need people”

Based on what we saw in the episode, my guess is that Prince Family Paper has a loyal following that values customer service over lowest prices. Like many small businesses that have a loyal following, highly personalized service is the cornerstone of their brand. Prince Family Paper understands that people do business with people. And as long as they adhere to this principle, their clients are unlikely to stray merely in pursuit of lower prices.

As we go about our sales activities, let’s keep this classic quote from American Business woman Mary Kay Ash in mind:

Pretend that every single person you meet has a sign around his or her neck that says, ”Make me feel important.” Not only will you succeed in sales, you will succeed in life.

What do you think – can a “Dunder Mifflin” win? Could your customers be lured away by lower prices? What are you doing to make sure your customers want to stay with you?

And, if you were armed with your competitor’s client list, what would you do?

Vanilla latte with all the fat left in it

Something really cool happened on my latest visit to my neighborhood Peet’s Coffee.

I was handed a card that entitles me to receive “any coffee drink” free. Any coffee drink!

I received a similar offer before (from another coffee place) – but it limited me to receiving only a “free small coffee.”

If I wanted a small coffee, I’ll just make it at home. It’s not enough to get my attention. I mean, I recognize they are making some sort of effort – but it’s the cheapest thing on the menu. I never order the cheapest thing on the menu.

Back to my Peet’s visit. You know why they gave me the free coffee drink card? Because they kept me “waiting” while they made my coffee. (A medium vanilla latte with “all the fat left in it, please.” This means replacing the milk with half and half.)

I didn’t even wait a long time. I waited a normal amount of time. It was a pleasant surprise to know I could come back to Peet’s anytime (before 12/31/2009) and get a free coffee drink of my choosing.

Beneath all this warm fuzziness, the marketer in me is pretty sure that everyone who “waited” for their drink that day got one of these cards. But I don’t even care! I’m just looking forward to my next medium vanilla latte with all the fat left in it.

What’s the true cost of Customer Lifetime Value?

How often have you heard the phrase Customer Lifetime Value (CLV)? According to Wikipedia, the free encyclopedia with over 1.7 million articles, it’s “a metric that projects the value of a customer over the entire history of that customer’s relationship with a company.”

But even if you’re unfamiliar with this phrase, don’t ignore the dynamics of marketing to your base. Politicians do this especially well. But no one does it better than the TV networks.
A few years ago, ABC was in last place among the big three. But now, by giving its base what it wants, Disney’s network has runaway hits like Lost, Desperate Housewives, Dancing With The Stars, Ugly Betty and Grey’s Anatomy.

In fact, many companies totally ignore the impact that loyal customers can have, when the benefits of increasing it are so dramatic:

> A 5% increase in retention can create an 85% increase in profits;

> A 10% increase can translate to a 20% increase in sales;

> Extending customer lifecycles by three years can triple profits per
customer.

As you’ve no doubt heard, it’s difficult to improve what we cannot measure. So it’s even more difficult to accurately project how much you should spend to acquire, service and keep your customers if you actually don’t know their value.

But it’s ALWAYS far less expensive to reach out and market to your current customers than to your prospective customers. That’s why tracking your CLV will help you –– and your organization –– find, keep and profit from the right customers.