July 7, 2011

The Economics of DAZZLE

THREES - Cut the CRAP
Take CARE of People
TRUST Your Frontline
A HUGE element of the BE DiFFERENT philosophy is to Serve people. To care for them. To Delight them. To Dazzle them by delivering GaSPWORTHY experiences when you engage with them. Why? The decision of whether or not I continue to do business with you is going to be based on how I FEEL when I interact with your organization. NOT on the fact that your product or service works the way you said it would. Return business is therefore a function of these Experience Drivers: Delight. Wow. Dazzle. Caring. Trust. ‘Closed for Business’ on the other hand is guaranteed by these: Anger. Insult. Disrespect. Suspicion. Distrust.

‘The Thank You Economy’ by Gary Vaynerchuck addresses the issue of Loyalty and Advocacy in the world of Social Media. Gary’s theme is that a Caring Culture is necessary for any organization to be successful today particularly when you consider how people can use Social Media to expose those that really don’t care about their customers.

More review to come on Gary’s work but a piece that I found particularly interesting related to the ROI of persistently Dazzling people and turning them into maniacal Fans (Gary calls them Advocates).
He quotes an IBM Study of online retail consumer buying patterns:
- Advocates’ share of wallet is 33% more than that of customers who aren’t advocates.
- Advocated spend about 30% more dollars with their favorite online retainers than non-advocates do.
- Advocates stick around longer, proving themselves less likely to switch to a competitor…
- Advocates have significantly higher lifetime value… they are more likely to keep spending…
Gary also presents the case of Amazon’s CEO Jeff Bezos buying Zappos for $1.2 Billion as evidence of a transaction that valued the market power of a culture of caring and a business whose sole purpose is to Dazzle their customers at every opportunity. Now THERE is a great example of monetizing Dazzle!

Pretty compelling conclusions on the Return on Dazzle. If so, why do we constantly run in to organizations that treat us like sub-humans? CEO’s are smart folks so it can’t be because of Leadership Myopia could it?

Cheers,
Roy


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Strategy Creation | Serving Customers | Permalink
Posted 7.7.11 at 06:00 am by Roy Osing | Read Comments (0) | Leave a Comment