INDEX
Abercrombie & Fitch, as tribe, 66
accountability, and horror reduction, 175–176
“Acres of Diamonds” (Conwell), 253
Adams, Hoover, 33
addiction to new customers, 253
Air Miles program (Canada), 130–131
alarm customers, 207
alarm systems, for customer attrition, 217–219
Alexa, 256n
statistics, 256n
Amazon Prime, 142
commercials, 39
iPhone, 46
The Apprentice (TV), 155–156
archetypes, 111–118
communicating with, 118–124
“day in the life” of, 119–120
defining, 111–112
different rewards for each, 150
ideal, 116
loyalty levels, 145
understanding, 118–120
uses, 115–116
voice of, 120–121
attrition, 208
alarm systems, 217–219
categories, 208–211
and habits, 211
solving problems of, 212–215
see also lost customers
Authentic Happiness (Seligman), 203
authenticity
of community, 77
importance of, 176–179
automation software, for customer data collection, 186–187
average, 23
issues with, 109–110
average customer lifetime value, 19
B2C companies, information collection by, 189
back-end marketing, 228
Baldwin, Alec, 25
Barren quadrant, 98
Basch, Michael, 172–173
Customer Culture, 173
Bechara, Samar, 48
behavior
data collection on, 23
encouraging desired, 198–199
recognizing expected and unexpected, 242
tracking of customers’, 192–201
behavioral analytics, 110
Belle Tire, 100
Ben & Jerry’s, 112
Bentley, 93–94
Bezos, Jeff, 41
BlackBerry Ltd., 47
PlayBook, 45–46
Bowling Alone: The Collapse and Revival of American Community (Putnam), 33
brands, 106
differentiating, 76
loyalty to, 7
and storytelling, 42–44
Buffett, Warren, 33
business
archetypes, 112
vs. content, 89
as evergreen, 2
knowing focus of, 88
scrutinizing weak spots, 172–176
business models, 83
call centers, in foreign countries, 164
call to action, 223
Camp, Garrett, 85
car dealer, 197
Caregiver, 112
caricature, vs. character, 47–49
Cathedral Grove, 1
change, 252
in customer needs, 210–211
character, 4, 31, 32, 41–59, 155
building in organization, 44–47
vs. caricature, 47–49
development in story, 43
character quality, 44
charges, for loyalty program, 141
checklists, for new customer process, 240
Chipotle, 79–80
choice, vs. customer experience, 95
Christensen, Clayton M., The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail, 86
client, or customer, 4
closing sale, vs. opening relationship, 25
CLV model, see Customer Lifetime Value (CLV) model
communication
after the honeymoon, 238–242
with archetypes, 118–124
with customers, 120–121
frequency with customers, 215
methods, 122–124
community, 4, 31, 33–34, 61–77
benefits of building, 62–64
building, 72–77
cultivating, 76
letting go to grow, 76–77
structures, 150
tools for building, 74–75
vs. tribe, 64–68
companies
archetypes, 112
as evergreen, 2
knowing focus of, 88
scrutinizing weak spots, 172–176
company character creation
avatar of your character, 57–58
purpose for actions, 56–57
story of origin, 53–54
superhero definition, 54–56
competitive advantage, 81
complaints
avoiding discounts from invalid, 171
response to, 213
response to valid vs. invalid, 170–172
validity of, 168–170
connections, goal in creating, 53
constant contact, establishing, 215–217
consumption, education of, 240–241
contact, knowing how much is too much, 216–217
content, 4, 31, 35–36, 79–101, 250
vs. business, 89
context for, 83–84
defining, 80–82
hyperfocusing as pitfall, 87
importance of, 82–85
importance of choices, 93–94
knowing when more is better, 90–96
overwhelming customer with, 93
conversation, 191–192
Conwell, Russell, “Acres of Diamonds,” 253
corporate character, clarity in creating, 51–52
Costco, 199–201
costs
of losing customers, 165
of mistakes, 175
Crayola, 112
community, 68–72
daily workout, 70
Crossing the Chasm (Moore), 119
Culinary Institute of America, 79
culture, customer-focused, 64
customer acquisition, 138
see also new customers
customer attrition
alarm systems, 217–219
categories, 208–211
and habits, 211
solving problems of, 212–215
see also lost customers
customer avatar, 114
customer base, picture of segments, 113–114
Customer Culture (Basch), 173
customer database, 183–184
segmenting, 191–192
tools for data collection, 184–187
customer experience, 101
vs. choice, 95
evaluating new, 85–87
organizations and, 84–85
customer feedback, 75
Customer Lifetime Value (CLV) model, 107–111, 252
calculating, 108
creative use of data, 20–21
limitations of, 19–20
customer list, segmenting, 116–118, 184, 206–208
content and, 47
creating with first transaction, 231–238
modern definition, 134–135
Three Cs and, 38
customer loyalty action plan design, 144–153
construction, 151–152
determining focus of data, 148–149
metrics of success, 150–151
objectives, 147–148
surprises for customers, 152–153
customer reactivation, 204
customer reactivation (continued)
template for, 217
customer relationship management (CRM) systems, 183–184
customer relationships, see relationships
vs. new customers, 14
commonsense approach to, 164–172
customer tracking and, 218
excessive requests, 160
customer-centricity, 17–19, 158
of Amazon, 22
customers
calling inactive, 215–216
caring for existing, 247–248
character association with organization, 32
or client, 4
cost of losing, 165
emotional commitment of, 139
follow-up with, 196–197
guidelines for firing, 159–163
importance of, 22–23
information collection on, 187–192
least profitable, 163
low-value vs. high-value, 132
money left on table by, 182–184
not worth keeping, 157
permission to fire, 157–158
profile types and datasets, 110–111
segmenting, 116–118
thanking, 235
top-tier, increased involvement from, 153
true value of, 19–24
value of, 63
see also archetypes; lost customers; new customers
data collection
choosing tools, 184–187
incentives in, 190–191
from loyalty programs, 148–149
specificity in, 188–190
“day in the life” of archetype, 119–120
deciduous quadrant, 97–98
decision makers, 73
defecting customers, 206–207
Delivering Happiness (Hsieh), 156–157
Dell, 81
Delta Air Lines SkyMiles, 131
demographic profile, 110
discounts, 243–248
Disneys’ VIP Tour Services, 143
disruptive technologies, 86
Dorsey, Jack, 186
Drive: The Surprising Truth About What Motivates Us (Pink), 139
Dropbox, 95–96
Dunkin’ Donuts, vs. Starbucks, 65
Eades, Keith, The New Selling Solution, 114–115
education of consumption, 240–241
80/20 rule, 18–19
and customer problems, 158
Ells, Steve, 79
e-mail addresses, collecting, 187
emotional commitment of customer, 139
emotional impact of customer experience, 231
employee empowerment policy, 166
employee morale, rude customers and, 159
Evergreen
Barren quadrant, 98
Deciduous quadrant, 97–98
Evergreen quadrant, 99
Wilting quadrant, 98–99
Evergreen customers, 207
Evergreen diagnostic, 96–99
Evergreen ladder of loyalty, 146–147
Evergreen Marketing Equilibrium, 24–28, 181
Evergreen relationships, rekindling, 222
evergreen trees, 2
exclusionary attitude, 67
expectations
importance of managing, 167–168
for reactivation system, 225–226
expectations gap, 229–231
minimizing, 230–231
expense, see costs
external circumstances, and customer attrition, 209–210
Facebook, 47–49
Facebook for Business, 48
Fader, Peter, 17
FedEx, 172–173
feedback, 176
validity of, 169
firing customers
guidelines, 159–163
hungry hippos, 160–163
problem children, 159–160
focus, 106
on existing customers, 252
on growth, vs. value, 167
follow-up, 240
after mistake, 213
with customers, 196–197
Ford, Henry, 89
foreign countries, call centers in, 164
form letters, 178
Fortune 500, 106
Four Cs, 105–106
Four Ps, 105
frequency
of customer purchases, 195
determining optimal, 196–198
front-end marketing, 228
Galbraith, Jay, 17
girl-focused building toys, see GoldieBlox
Glassman, Greg, 61
Godin, Seth, 64
Three Cs and, 31
Google Pay-Per-Click (PPC), 20–21, 94–95
greased chute concept, 227
Gretzky, Wayne, 124
Groupon website, 12–13, 182, 243
Gulati, Ranjay, 17
habits
change in, 214–215
and customer attrition, 211
Haidt, Jonathan, Righteous Mind: Why Good People Are Divided by Politics and Religion (Haidt), 34
Harley-Davidson, 74
Harvard Business Review, 88
Heath, Chip and Dan, Made to Stick: Why Some Ideas Survive and Others Die, 43
The Hero and the Outlaw (Mark and Pearson), 112
Hierarchy of Horrors process, 172–173
examining roadmap, 175–176
listing worst screw-ups, 173–174
measurements over 30-day interval, 174–175
ordering results, 175
hotels, optimal frequency for customers, 197
Hsieh, Tony, Delivering Happiness, 156–157
inactive clients, calling, 215–216
indoctrination of new customer, 232
information, from loyalty programs, 148–149
information-based website, subscription to, 140
The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail (Christensen), 86
inquiry cards, for customer data collection, 185
instant gratification, 15
insurance companies, customer retention, 98
intelligence gathering, 181–201
Internet, 34
nasty comments on, 159
invalid complaints, avoiding discounts from, 171
Jamie Oliver: Fresh Retail Ventures Brand Guidelines, 51
Japan, 48
jargon, 70–71
Jeffries, Mike, 67
Jester, 112
Jobs, Steve, 43
Jung, Carl, Die Struktur der Seele, 111
Kalanick, Travis, 85
Kickstarter, 35
Kindle Owners’ Lending Library, 41
Kmart, 22
Kodak, 89
Kotler, Philip, Principles of Marketing, 105
Lauterborn, Robert, 105
Leaky Bucket Theory, 15–16
least profitable customers, 163
Lego, 112
Levitt, Theodore, 88
lifetime, defining, 108–109
Limited Brands, 67
long-term objectives, 73
loopholes, customers taking advantage of, 161
lost customers, 203–226
defining, 206
effort to bring back, 207
identifying, 205–208
reasons for leaving, 208–211
low-value customers, cultivating, 163
The Loyalty Effect (Reichheld), 129, 165
content and, 47
creating with first transaction, 231–238
modern definition, 134–135
Three Cs and, 38
loyalty program development, 135–144
fitting within big picture, 137–138
loyalty ladder in, 138–139
objectives, 136–137
prioritizing status over stuff, 139–141
selling loyalty, 142–144
showing customers what they can’t have, 141–142
loyalty programs, 127–153
failure, 129–135
LoyaltyOne Inc, 130
Macias Gini & O’Connell LLP, 56
Maddox, 166
Made in America; My Story (Walton), 249–250
Mark, Margaret, The Hero and the Outlaw, 112
marketing
aim of, 58
campaign format vs. content, 14–15
and expectations gap, 229–231
Four Ps, 4
natural synergy of thoughtful, 124–125
tactical vs. strategic, 106
and tribe, 66
tricks and tools, 228
marketing department, importance of, 106–107
marketing myopia, 88
marketing scenario, unsustainable, 26
McLaren, Stu, 235
Media General, 33
membership-based businesses, 141
message
crafting, 222–223
value of follow-up, 241
messy closet theory, 92–93
Microsoft, Autopilot, 225
mistakes
correcting, 212–213
costs of, 175
and customer attrition, 209
see also Hierarchy of Horrors process
mobile communications, 34
Model T, 89
monetary value, of customer purchases, 195
money on table, left by customers, 182–184
Moore, Geoffrey, Crossing the Chasm, 119
motivation, 140
Mug Club, 143
The Naked Chef, 50–51
names, correct spelling of, 188
Need a Cake (bakery), 11–13, 243
needs of customer, change in, 210–211
negative comments, Amazon accounts closed due to excessive, 161–162
negative post-purchase thoughts, avoiding, 236
net promoter score (NPS), 129
new customers, 181–182, 206, 227–248
addiction to, 253
being prepared for, 182
costs of focusing on, 16
vs. customer retention, 14
effective follow-up, 241–242
indoctrination of, 232
myth of business saved by, 11–28
next action steps from, 236–238
onboarding, 234–238
preparation to capture information, 245–246
treatment of, 239
new ideas, 5
The New Selling Solution (Eades), 114–115
newsletters, 237
newspapers, Buffett investment in, 33
NPS (net promoter score), 129
omote-ura, 48–49
one-size-fits-all approach, problem of, 117
opening relationship, vs. closing sale, 25
optimal frequency, determining, 196–198
optimization, 15
Orbitz, 166
Pareto principle, 18–19
and customer problems, 158
peanut butter, recall by Costco, 200
Pearson, Carol S., 111
The Hero and the Outlaw, 112
Pink, Daniel, Drive: The Surprising Truth About What Motivates Us, 139
pivot point, 232–233
point-of-sale (POS) systems, 185–186, 189
points cards, 130–131
Positioning: The Battle for Your Mind (Ries and Trout), 32
PPC (Google Pay-Per-Click), 20–21, 94–95
prioritizing
horrors, 175
status over stuff, 139–141
privacy of customers, 235
proactive representation of your brand, 49–52
products, quality of, 13
profits, maximizing, 84
promotion
broader context for, 244
end goal, 246–247
planning, 245
preparing staff for, 246
prospects, 206
publicity, 11
Pukie (CrossFit’s mascot), 68
purchase patterns, 194
alarm for missed time, 219
Putnam, Robert D., Bowling Alone: The Collapse and Revival of American Community (Putnam), 33
quality of products and services, 13
railroads, decline of, 88
reactivation system
expectations about, 225–226
implementing, 220–225
reactivation system, steps, 221
crafting message, 222–223
delivering system, 223–224
monitoring, 224–225
rekindling Evergreen relationships, 222
tracking results, 224
Recency, Frequency, and Monetary Value (RFM) model, 194–196
recency, of customer purchases, 195
referrals, 20–21
generating, 63
loss of, 165
Reichheld, Frederick, The Loyalty Effect, 129, 165
relationships
company absence of efforts to grow, 182
between company and customer, 2–3, 6
customer feelings about, 121
end of, 204
Evergreen diagnostic and, 96–99
opening, vs. closing sale, 25
rekindling Evergreen, 222
responsibility, for customer attrition, 209
restaurants, 197
retention, 15
see also customer retention
reviews, validity of, 169
rewards, intrinsic vs. tangible, 140
rhabdomyolysis, 68
Ries, Al, Positioning: The Battle for Your Mind, 32
Righteous Mind: Why Good People Are Divided by Politics and Religion (Haidt), 34
roach letter, 176–179
sales closing ratios, 25
sales transaction, 25
salmonella outbreak, 200
satisfaction, increasing, 128
search engine optimization, 94
segmenting customer list, 116–118, 184, 191–192, 206–208
Seligman, Martin, Authentic Happiness, 203
services, quality of, 13
shareholders, company duty to, 85
Sinek, Simon, Start with Why: How Great Leaders Inspire Everyone to Take Action, 44–45
social organizations, decline of participation in, 33
social proof, power of, 237
Soderquist, Don, 249–250
software, for customer data collection, 186–187
Southwest Airlines, 167
specificity, in data collection, 188–190
Sprint, 161
Square (reader for credit cards), 186
vs. Dunkin’ Donuts, 65
stars, customers as, 143
status, prioritizing over stuff, 139–141
stick letter, 233–234
storytelling, branding and, 42–44
strategy, definition, 72–74
straw man, 114
Die Struktur der Seele (Jung), 111
subscription, to information-based website, 140
sweet spot, for customer loyalty, 46–47
taxis, 85
telephone, nasty comments on, 159
thanking customers, 235
thebestpageintheuniverse.net, 166
Three Cs of Evergreen organization, 3–4, 30, 31–36, 106, 135, 251
community, 33–34
content, 35–36
in harmony, 36–39
pyramid, 83–84
time, true cost of, 28
time frame, for customer purchases, 197
tire companies, 99–101
to-do list, for new members, 236
Tom Cruise Effect, 217
top-tier customers, increased involvement from, 153
touch points, 223–224
tracking of customers, and customer service, 218
transaction, going beyond, 99–101
transparency, 49
tribe
vs. community, 64–68
leader’s mistake, 67–68
tactics of, 71–72
Tribe Lingo, CrossFit, 70–71
Trout, Jack, Positioning: The Battle for Your Mind, 32
Trump, Donald, 155–156
Trump Card Privileges Program, 190
trust, 45
Uber, 85–87
Uncle Rhabdo, 68
validity of complaints, 168–170
and response, 170–172
value
meaning of, 90
providing, 216
vision, translating to the voice of your customer, 58–59
voice
of archetypes, 120–121
of customer, 115
Walton, Sam, Made in America; My Story, 249–250
websites, subscription to information-based, 140
Weiss, Alan, 65
welcome messages, and customer privacy, 235
welcome package, 141
what, as product focus, 45–46
why, as startup strategy, 46
wilting quadrant, 98–99
WishList Member, 235
wow experience, and companies, 101
Wozniak, Steve, 43
zip codes, 188