Are you concerned about customer loyalty? Are your customers so loyal that they will stick with you through hell and high water? And if not, you really need to question how you can create a customer relationship that’s so gluey, that you never go bluey in face. Funnily you don’t have to go far. Reach for your Webster’s dictionary and you’ll discover a hidden secret to customer loyalty. Do you find it amusing? Giggle if you must, but stick with me and I will show you simplicity and longevity of this sane advice that will change your marketing strategies and tactics forever.
======================== But First, Let’s Look At Nasty Hurricane Andrew ======================== In August 1992, Hurricane Andrew went bananas. Like a drunk on one too many Tequilas, he tore into South Florida with wind gusts of 175mph, redrawing landscape as he stomped onwards. Approximately 600,000 homes and businesses bore brunt of his menace.
By time Andrew left, he had run up a tab of $26 billion dollars and curses of some very, very angry insurance companies. Andrew had single handedly run up highest insurance recorded payout in history – if you don’t count September 11.
Many an insurance company looked gloomily into their crystal balls and decided future was too dicey. So while they grudgingly forked out costs required to cover claims, they refused to renew customer policies.
======================== State Farm Insurance Had a Different Opinion ========================
The biggest reason Hurricane Andrew blew roofs off houses was because contractors had not anchored them to frames. State Farm not only happily forked out policy claims but also paid its customers more to bring houses up to code.
Amazingly, this insurance company was willing to overpay just to make sure their customers have peace of mind should Andrew or one of his family come visiting.
======================== State Farm Wasn’t Too Far From Leo Burnett Advertising Agency ======================== Agencies are like turnstiles. Clients come, clients go and it’s same mantra for employees. Not if you look at Chicago-based agency called Leo Burnett. At Leo Burnett, over a four-year period from 1986 to 1989, 98 per cent of business came bounding back from repeat clients. No other agency even came close.
Furthermore, this Houdini of advertising has had an almost zero client defection rate for decades. In an almost boring, old fashioned way, they adopt a loyalty based management that keeps clients superglued to them. And it continues to amaze and fascinate roller coaster advertising industry that can only watch in awe and extreme fascination.
======================== Which Brings Us Back to Webster’s, Doesn’t It? ========================
Now let’s look at how Webster’s Dictionary defines word Client. It says: A client is one who comes under your care, guidance and protection.
======================== See those words? ========================
It doesn’t say someone you need to get money or make profits from. It asks, even beseeches you to care, protect and guide your clients, like you would with your own child. Everything you do, you do unselfishly for that child. You put your heart and soul into creating a safe, educated environment. You become guide and protector. You create a bubble as secure as you can to make absolutely sure they get very best.
Scary, isn’t it? Especially when you look out there at so many companies, whose single motive is to simply get sale and move on.
======================== Hurricane Andrew Moved On, State Farm Moved Up ========================
As soon as brouhaha of Andrew’s visit died down, up came vultures from other insurance companies. They tried to woo State Farm policy holders with discounts and other incentives. Most of them found doors slammed in their face. Their customers were staying loyal no matter what bait was being dangled in front of them. When chips were down, State Farm pitched in to help like family. There was no way customers were going to let down their own family.
Adhering strictly to Webster’s, State Farm had cared, guided and protected its clients. And clients were repaying that with rock solid loyalty.
======================== Leo Burnett Did The Same With This Hidden Clause… ========================
The same principles apply to Leo Burnett. Like mother hens, they fuss over their clients, doing acts of guiding and protecting that other agencies would never even consider. Its first client, Green Giant, is still a customer some sixty years later. Even back then, founder, Leo Burnett, put in an additional clause that enlarged standard vendor agreement of buying space, producing ads and maintaining confidentiality.
It read: Counselling with you in regard to your advertising and sales efforts, seeking new ways to improve your advertising, make it more productive, and in every way within our power, working with you to advance your business.