Thursday, May 31, 2012

The Grateful Dead, and the definition of customer loyalty

In the book "Start with Why" it defines customer loyalty in this way, "loyalty is when someone is willing to to suffer some inconvenience or pay a premium to do business with you." Do you have customers that fit this description? Are you a customer of someone with this type of loyal relationship?

The Grateful Dead understood loyalty. As they roamed the country from coast to coast legions of fans would follow them faithfully. 7 shows in 9 nights. Song selections changing on a night by night basis. Rabid fans wanted to be there when their favorite song was played. A long strange trip indeed. The flock became known as Deadheads...a tribute to the cult-like followers. Driving hundreds of miles from city to city while living out of a van represents the inconvenience. Buying tickets, and a steady supply of a mind-altering substance represents the premium. The "Dead" didn't have customers, they had a loyal, dedicated tribe.

The Grateful Dead didn't compete on price, product or service. You shouldn't either.

Loyal customers buy from you because of a connection they have made with you and your beliefs. One-time customers, or tire kickers don't feel that connection.

Your product or service isn't likely to resemble that of the Grateful Dead. Their ability to establish loyal followers should be a lesson for all who aspire to turn more than one-time transactions.




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