Evergreen summary

Someone should be able to describe your company in pretty much the same way they would describe a friend. That’s why you should define the firm’s character in a simple and vivid way. Be as clear as possible, because that’ll make it easy for your customers to trust your company and feel loyalty toward it.

To start building your firm’s character, don’t simply try to describe what you do. Instead, ask yourself why you do what you do.

When you hang out with your closest friends, you’re connecting on a deep level. Compare that to going to the supermarket, which is about participating in simple, mercantile exchanges – like exchanging money for a pound of coffee. The difference is, you and your friends belong to a community.

And actually that’s something companies should strive for as well, because community can help a business build its brand through word of mouth.

What’s the first thing you notice when you go into a restaurant? Probably not the food. And that’s curious, since most restaurants would probably say they’re in the food business.

That’s how it goes for many companies: Too often, we focus on what we do – our products and services – and not how we do it. But a company’s content – the third C – isn’t just about its products, it’s also about the experience.

How would you describe your ten closest friends? As 37.3-year-olds with 2.5 children and 1.2 cars? Probably not. Unfortunately, that’s exactly how most companies think about their customers.

But instead of thinking in terms of averages, segmentation and archetypes are a better way of getting to know your customers. And this is best done by combining demographics and behavioral data, which explains who customers are and what they do. As author Keith Eade put it, you’re basically trying to create a customer straw man.

Your wallet is probably crammed full of membership cards from various businesses. Most of these are attached to loyalty programs that give rewards for spending. But do these kinds of promotions actually make customers more loyal?

The most effective loyalty programs focus on customers who could potentially become more loyal, and less on those who are already devoted.

Everyone has that one friend that’s never happy, no matter how much time you spend with them. Maybe you feel it’s a relationship that takes way too much energy, but doesn’t give you anything back. Well, customer relationships can often work the same way.

In other words, problem customers use up more time and resources than they actually bring in. And since they will never be profitable, these customers should be fired.

Imagine sitting down at a restaurant and waiting 20 minutes just to get a menu. You’d probably leave, right? Losing customers is a risk for any business, of course – but you can minimize it.

More specifically, there are two types of attrition you can avoid: Business losses related to 1) company screw ups and 2) changes in customer habits.

Imagine you’re trying to fill up a bucket and you discover it has holes in it. What’s best, plugging the holes or adding more water?

You should think about your business the same way: Your company is the bucket and customers are the water. And placing too much focus on new customer acquisition can actually be detrimental.