Enduring loyalty ebook

21
Enduring Loyalty Building a lasting service culture with your team and your guests Louis S. Roden

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A short eBook by Louis Roden of Inspire Consulting Group about the importance of creating loyalty with employees and customers/guests.

Transcript of Enduring loyalty ebook

Page 1: Enduring loyalty ebook

EnduringLoyalty

Building a lasting service culture with your team and your guests

Louis S. Roden

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2©2014 Inspire Consulting Group. All rights reserved.

Why Does Loyalty Matter?People don’t quit companies - people quit people.

That phrase resonates with me every time I repeat it. When I first

heard the premise, it struck me hard. I first thought of every job I

had ever left, and soon realized that I never really quit a company; I

quit a boss. That’s not to say that I had a terrible boss at every job I

left. The absence of loyalty does not necessarily mean that one is in

a tyrannical situation. However, without a high degree of loyalty in

play, it was far easier to find the door.

In situations where I was very loyal to my leader and to my

teammates, I never left. Ever. I realized that I had endured difficult

times, inadequate resources, and even submarket compensation - all

in the name of loyalty. Now, I didn’t think in such terms then. I simply

“liked my job and my boss” so I stuck around. But in reflection, it was

the loyalty that was in play that made me WANT to stay – to work

harder, work smarter, and contribute all that I could to the team.

I soon realized that LOYALTY is the key. If a leader builds loyalty with

their team and fosters loyalty among its members, all the payoffs

that every organization wants to see are manifested –morale,

motivation, retention of talent, productivity, frugality, execution,

innovation – you name it. Every pain point that every business leader

– or any leader – has faced can be overcome, or at the very least

endured, in an environment rich with loyalty!

If a leader builds

loyalty with their team

and fosters loyalty

among its members,

all the payoffs that

every organization

wants to see are

manifested...

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3©2014 Inspire Consulting Group. All rights reserved.

Loyalty is Internal and ExternalThe same truism is in play with our guests. Before we go further, let

me first argue for my use of the term “guest” rather than “customer.”

By all means, this is rooted in my hospitality background. We would

no sooner call a guest in one of our hotels a “customer” as we would

call a visitor to our own homes a “customer” – and that puts it in

perspective. The term “customer” implies a transaction – a classic,

buyer-seller, pay then leave experience. The transaction needs to

occur, of course, but the transaction should be a COMPONENT of the

experience that our guests have, not the experience in of itself. In

fact, in an environment rich with guest loyalty, the actual transaction

is virtually incidental. If your guests are loyal, you’ll never “sell” a day

in your life.

So, the same rule applies. Guests don’t quit a company or a brand;

they quit a service provider, sales rep, server, account manager, and

the like. Now, as in the work environment, the right things need to

be in play – a quality product, a competent and efficient transaction,

and the right financial parameters. However, a high degree of

loyalty can often overcome deficiencies in these areas; conversely,

an environment absent loyalty may magnify even the smallest

deficiency – another reason why loyalty is so critical!

We would no sooner

call a guest in one

of our hotels a

“customer” as we

would call a visitor

to our own homes a

“customer”

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4©2014 Inspire Consulting Group. All rights reserved.

It’s All About RelationshipsMost of us understand the importance of positive and healthy

relationships. They simply make life richer. When most of us consider

relationships, we think of those of a personal nature; family and

friends are the first to come to mind. However, our professional

relationships are equally important. Not also important…not

secondarily important…but equally.

Why equal? Consider this. Full time professionals spend over 70% of

their waking hours at work – day in and day out – week after week

and year after year. I think it is a clear and easy argument to state

that the place where you spend 70% of your life should be a place

rich in positive, productive and healthy relationships. Unfortunately,

the old adage of “it’s business, it’s not personal” continues to

permeate many work places. That old adage, ladies and gentlemen,

is pure, unmitigated bull crap. Everything is personal.

Think about it. Do you want to spend 70% of your life in an

impersonal, uncaring place? No one does, yet many of us do. When

we find a workplace where people build relationships with us and

actually care – it transforms us. It isn’t the physical space that makes

this transformation happen, it is the people within it…and it is

always, always driven from leadership…or destroyed by leadership.

the place where

you spend 70% of

your life should be a

place rich in positive,

productive and healthy

relationships.

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5©2014 Inspire Consulting Group. All rights reserved.

It’s All About RelationshipsModern leaders at every level need to come out of the dark and

realize that the work place is a personal place, and it is the leader’s

job to build relationships at every opportunity. It isn’t only their

job either; it pays off for the organization and for the leader that

recognizes the importance!

Dr. Roger Pearman, one of the most respected scholars and

researchers in the field of leadership, conducted a meta-analysis

of the drivers of leadership success and leadership failure (or

derailment, as Pearman called it.) Pearman found in his study that

the single greatest driver of a leaders – any leaders – success was

their ability to build relationships with others. Interestingly enough,

the single greatest driver of a leaders failure (derailment) was the

exact opposite – their inability to build relationships. Plain and

simple, the single most important tool that any leader has, and that

any leader needs to work on, is their relationship-building ability.

The premise is clear, so why do so many leaders continue to struggle?

Many leaders continue to be stuck in the former mindset; a mindset

that is comfortable and quite easy to perpetuate – as a boss, I trade

money for work. You work and I pay. A simple, straightforward, tried-

and-true contract. One that provides no incentive beyond a paycheck,

builds no loyalty beyond the need for the paycheck, and certainly no

retention or performance expectations beyond “just enough not to

get fired.” The old mindset is simply prostitution without sex, and

organizations that want to be employers of choice for talent and

providers of choice for the consumer need to change – fast.

the single greatest

driver of a leaders –

any leaders – success

was their ability to

build relationships

with others.

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6©2014 Inspire Consulting Group. All rights reserved.

Relationships Matter to Our GuestsThe relationships that we foster and grow with our guests are quite

similar to those that we develop with our team, despite the fact

that we will spend far less time with them. The dynamics involved in

building both types of relationships are similar, and their importance

is equally vital.

Guest loyalty begins and grows when we marry positive relationships

with impeccable execution and/or product. Guest loyalty is NOT

fostered by seamless and efficient transactions. The transaction,

as mentioned earlier, is an important part of execution, to be sure;

it is necessary to build trust in our competence. However, no one

has every developed deep-seated loyalty because of an efficient

transaction. In fact, the very efficiency and accuracy of a transaction

is what makes it 100% forgettable.

Positive memories are created and loyalty begins to grow when we

make emotional connections with others, not when we execute

transactions. Time and again, a visit to any service provider will likely

be forgotten if all we received was an efficient transaction.

We will remember positive and negative emotional connections,

and we will also remember inefficient or incorrect transactions. We

forget “regular” or “correct” transactions since they are in our realm

of expectation.

Guest loyalty begins

and grows when

we marry positive

relationships with

impeccable execution

and/or product.

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7©2014 Inspire Consulting Group. All rights reserved.

Relationships Matter to Our GuestsFor example, say I visit a restaurant, order my food, eat my meal, pay

my bill, and leave. If my visit was efficient, accurate and absent any

negatives in regard to execution or treatment, it will be as I likely

expected…and will be forgotten within the hour. Add a significant

positive emotional connection within that experience, and I will

remember it and the person that predicated the interaction – and I

will not soon forget it. It bears to mention that I will also not readily

forget a negative emotional connection as well; they are equally

powerful to eroding loyalty as the former is to building loyalty.

Positive memories are

created and loyalty

begins to grow when

we make emotional

connections with

others, not when we

execute transactions.

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8©2014 Inspire Consulting Group. All rights reserved.

It All Begins With TrustSo we agree that positive relationships are critical to develop with

our team and with our guests. Relationships drive loyalty with our

guests and our co-workers. So how do we go about it? It starts with

trust. A relationship absent trust isn’t much of a relationship at all,

as most would agree. In fact, positive relationships cannot form

without trust first being established, and loyalty cannot grow in an

environment absent trust – both personally and professionally!

Are you loyal to your best friend? Your spouse? A certain co-worker

or boss? I bet you trust them! If you didn’t, your loyalty wouldn’t be

there. The same applies to our guests. They simply will not be loyal to

us if they don’t trust our products, our services or, most of all, trust

us as individuals.

Trust is the fertile soil where relationships grow, and building trust

begins with fundamental steps that may be simple in construct but

difficult in application. Difficult because it takes awareness, intent,

commitment and - most importantly - sincerity. Relationships based

on deceit, indifference, unilateral gain, or unilateral loss, are soon to

fail.

We start building trust and relationships by getting to know people

and making emotional connections. I often illustrated this in my

programs with this simple example:

We start building

trust…and building

relationships… by

getting to know people

and making emotional

connections.

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9©2014 Inspire Consulting Group. All rights reserved.

It All Begins With TrustIf I give my dear friend and colleague Ken my wallet and tell him I will be back for it in a few hours, I am 98.6% positive (usually elicits a chuckle!) that my wallet will be intact when I return for it. Why is that? Because I trust Ken. Why do I trust him? Because I KNOW him! The way he has engaged with me, and the way I have engaged him, has earned our mutual trust and helped us form a positive relationship.

Now, if I give my wallet to a stranger at work, or even someone I simply do not know well, will it be intact when I return for it? Perhaps. I may have just given it to the most trustworthy person alive, but I can’t and don’t know for certain at all. I have no reason to trust this person because they are unknown to me.

Some people you will NOT trust the more you get to know them; they will give you reasons based on how they interact with you, what they tell you, how they behave, whether they keep their word or tell the truth; but none of this awareness exists if people remain strangers.

Quite simply, you have to be KNOWN in order to build trust, and you have to build trust in order to develop positive relationships. Leaders must be know to their constituency – not from a bio on a website, group meetings, or posted manifestos; we need to share our hopes, desires, fears, mistakes, victories – and we need to demonstrate why we deserve the trust of others! We simply cannot introduce ourselves and say, “hello, my name is Louis and I am trustworthy.” We need to consider every day – how do I interact, engage and share

with this person that establishes trust?

Quite simply, you have

to be KNOWN in order

to build trust, and you

have to build trust

in order to develop

positive relationships.

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10©2014 Inspire Consulting Group. All rights reserved.

It All Begins With TrustThe same premise is in play with our guests. If we are known to them, personally and professionally, form rapport with them, know their wants and needs – we begin to build trust and establish lasting relationships. We learned that as children; don’t trust strangers. We need to recollect this as adults, and not allow any of our people – team members or guests – to be strangers.

I am not suggesting that we can gain deep knowledge of everyone; nor am I suggesting that we should forget appropriate boundaries between leader and team member or service provider and guest. I am talking about bringing forth an approach, demeanor and attitude that allows trust to build and relationships to flourish, and doing this with intent and even with structure. The leader, service provider or sales professional that sets out to build relationships as a primary directive will serve themselves and their organizations well.

People follow people - and do business with people - that they respect, like, understand…and trust.

The leader, service

provider or sales

professional that sets out

to build relationships as

a primary directive will

serve themselves and

their organizations well.

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11©2014 Inspire Consulting Group. All rights reserved.

Tools to Begin the BuildSome feel that you need to be highly extroverted to build relationships; that you need to “sell yourself” to others. I don’t believe either of those statements. Building relationships may come easier to some; but all have the ability to do it. It simply comes from sincerity and strength of purpose.

The strength of purpose? Well, we have already seen that relationships drive a leaders success and trusting, sincere relationships simply make life richer. When we are in the twilight of our lives, I truly doubt that any of us will look back and say, “Well, I wish I would have built fewer relationships.” Positive relationships pay off over and over again. Lets take a look at the tools to help drive our strength of purpose to build successful relationships.

Positive

relationships pay

off over and over

again.

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12©2014 Inspire Consulting Group. All rights reserved.

The Power of ObservationSome times the simplest of message hold great wisdom! The great Yogi Berra once said, “you can see a lot by looking.” One would think that simply opening our eyes and experiencing the world around us would make us capable observers. In reality, nothing could be further from the truth.

Interestingly, eyewitness accounts are often seen as the finest form of proof or evidence, when they actually are one of the less reliable forms of both. Scientific American reported in 2009 that 73 percent of 239 convictions overturned through DNA testing were based on eyewitness testimony!

Understanding Our Filters

When we experience anything through our five senses, those

experiences are filtered through the wonderful thing known as our

brain! The filters that reside within our brains can be very robust,

as they are made up of our experiences, likes, dislikes, preferences,

prejudices, and preconceived opinions and perspectives. As a result,

people can “see” the same thing, yet perceive it to be something

quite different. It is these very compelling and resilient filters

that leaders need to acknowledge…and transcend….in order to be

successful; for although these filters contribute a great deal to our

safety and success, they can also be the very things that keep us from

building relationships and growing loyalty with others, especially

those not like us!

you can see a lot

by looking.

-Yogi Berra

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13©2014 Inspire Consulting Group. All rights reserved.

Understanding Our FiltersAs leaders and team members, we need to understand that the law

of attraction exists and we need to make adjustments to our filters

to account for it! For example, if I am an extroverted leader, I will

be naturally drawn to extroverted peers and team members. I will

appreciate their desire to brainstorm, verbalize, share, and be quite

forthcoming. My ability to build relationships with them and foster

loyalty may come easy, as long as our goals and methods are in

general harmony. However, the introverted peers and team members

may be a different story! My filters may tell me that they are non-

participatory, disengaged, and “hard to read.” In the extreme, an

extroverted leader may see them as actually undermining efforts!

Whereas these filters are rooted in personality, others may be rooted

in experience. We may have had a positive or negative experience

with a person with any particular differentiator, such as where they

are from, where they went to school, what prior company they

may have worked, or the like. As a result, our filters may now type

anyone from that place, that school, or that company with the same

individual traits. Not fair by any means – but a common result from

our very compelling filters!

It is more difficult from the outset to build relationships with

people different from us; but it is the very first responsibility of

the successful leader to do just that. We need to accept that our

filters are there, see past them, and look for opportunities to build

relationships with others through the very same observations that

may have prevented us from building these relationships in the past!

It is more difficult from

the outset to build

relationships from

people different from

us; but it is the very

first responsibility of

the successful leader

to do just that.

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14©2014 Inspire Consulting Group. All rights reserved.

Looking for OpportunitiesOnce we wrestle with our filters and overcome the predetermined

outcomes that they lead us to, we can begin to see things in others

that allow us to begin to build relationships! These observations may

be simple, subtle, and quite basic – but make all the difference!

Leaders need to take the first step. Leaders need to accept that it is

their responsibility to establish relationships and be active in their

pursuit of them rather than passive; relationships may certainly

develop by accident rather than by design, but those accidental rela-

tionships are often impacted by our filters.

We naturally look for shared similarities in others to readily begin to

establish relationships. Similarities are always an effective starting

ground, but our interest in others needs to expand beyond what we

share in common. There are two “cue” categories to help put us on

that relationship road! Leaders need to

accept that it is their

responsibility to

establish relationships

and be active in their

pursuit of them rather

than passive

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15©2014 Inspire Consulting Group. All rights reserved.

Physical CuesPhysical cues usually provide the most readily available and

discernable information for us to begin to engage both team

members and guests! Engaging with this information is the first step

to building relationships, as it is founded simply on showing sincere

interest in others.

Of course, when we talk about physical cues, we are not referring

to physical characteristics such as height, weight, race, or the like

– these sensitive areas can be minefields, of course, and likely only

commented on far deeper into a relationship, if ever at all! We all

want to avoid the embarrassment and awkwardness of asking

when the suspected baby is due, only to discover that there is no

pregnancy. Ouch!

When we are talking about physical cues, we are referring to things

that we can see on or about others. Simple things. Things that they

have chosen to display or reflect; things that we can safely inquire or

engage about with the intent to begin a positive conversation! Those

simple, opening conversations gives us the incredible opportunity to

learn about that person. It’s the most important and necessary first

step that anyone takes in starting a relationship.

For example, someone wearing a conference badge, clearly

displaying their first name in bold print above their home city,

company name, or other information provides an obvious and easy

physical cue to engage! On many occasions I have observed these

badges while on elevators or at a reception in hotels or conference

When we are talking

about physical cues,

we are talking about

things that we can

observe on or about

others - something

that they have chosen

to display or reflect

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16©2014 Inspire Consulting Group. All rights reserved.

Physical Cuescenters and have easily began conversations by saying hello by using

their name, asking about their home city, and the like. The longer the

conversation continues, the more information you have to engage!

Conference badges, lapel pins, sports logos, rings, watches – the

list can go on and on. From airline pilots to traveling families, the

ability to observe and make positive, rapport-building comments and

conversations are everywhere!

Doing this without specific intent is one thing; meeting someone

on an airplane or at a conference may simply provide conversation

to pass the time, kindle a new friendship, or simply provide the

opportunity to be polite and make a positive emotional connection

with someone. With team members and guests/customers it is

something far more important. As discussed previously, it directly

contributes to our success to build relationships, so we should

look to this effort with team members and guests with intent –

conditioning our minds to look for these cues to begin, continue and/

or encourage engagement!

Greeting guests with questions such as “may I help you?” or “looking

for anything in particular?” is the surest possible way to elicit a

“no, thank you – just looking” response. In fact, those commonly

asked opening questions from salespeople the world over almost

instantaneously elicit some form of that same “no thanks” response.

the ability to observe

and make positive,

rapport-building

comments and

conversations are

everywhere!

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17©2014 Inspire Consulting Group. All rights reserved.

Tools to Begin the BuildSo why do sales people throughout the world continue to do it? It’s

easy, comfortable, risk-free and highly ineffective. Even if it does elicit

a “yes, you can help me” response because someone is on a particular

mission to find a certain item, it still does nothing to establish or

maintain a relationship! Simply because you executed a transaction

with me does not mean you’ve taken steps to build any type of

relationship with me – I may have bought from you out of need, but I

may never buy from you again. No relationship? No loyalty!

Emotional Cues

Emotional cues may be as quickly apparent as physical cues,

especially when we are being consciously aware of them. Observing

others and either responding to or acknowledging the emotional

cues that they display is a key part of building rapport and developing

relationships…all on the road to enduring loyalty!

For example, if a guest is clearly anxious, that should be a clear

emotional cue for any service provider! If we fail to acknowledge and

respond to whatever urgent need the guest has, we do not only fail

to serve, but we miss a key opportunity to build a relationship!

A guest in one of my focus groups once explained to me how

they had left their briefcase at a resort that they were visiting – it

contained their passport, wallet, and other important items!

Simply because

you executed a

transaction with

me does not mean

you’ve taken steps

to build any type of

relationship.

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18©2014 Inspire Consulting Group. All rights reserved.

Emotional CuesNeedless to say, they were anxious to recover it! Even when retelling

the story, I could feel the anxious nature this guest felt! They relayed

how they approached an associate and immediately explained

what had happened, clearly in a high degree of distress! They said

they were met with a pleasant smile and an automated “how can I

help you?” response! When I asked the guest what kind of response

they would have preferred, they responded, “I would have liked that

associate to drop their smile and show the same level of concern and

urgency that I had!”

Emotions are important information. If a guest is angry, sad, anxious,

worried, or frustrated… or happy, elated, excited, or contented…

our ability to read those emotions and respond appropriately and

accordingly is key. Great guest service is not about always being

some constantly smiling automaton – its about being what the

guest needs you to be at any given moment. We can “be” that way by

looking for emotional cues.

To be sure, the same emotional cues exist with the people we

work with! A leader, or co-worker, ignoring emotional cues of team

members not only do nothing to build relationships, but may even

serve to erode whatever relationship is there! I am not suggesting we

pry into peoples emotional lives…but if we agree that we spend 70%

of our lives at work, how can we expect to be emotion-less at work?

Time and again I’ve heard some form of “leave your personal life at

the door” from bosses. That adage belongs right next to “its business,

Great guest service

is not about

always being some

constantly smiling

automaton – its

about being what the

guest needs you to be

at any given moment.

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19©2014 Inspire Consulting Group. All rights reserved.

Tools to Begin the Buildits not personal”. Not only is it weak leadership, its absolutely

impossible. If my son is at home with a severe fever – I am supposed

to simply forget that when I get to work? How could I? In fact, if

I did, I think that would make me a poor father! A co-worker just

received great news that her husband got a huge promotion, and

is very excited…or conversely, received news that her husband was

just laid off, and now is worried about making ends meet...these

emotions, positive or negative, are supposed to be “left at the door”?

That’s just not going to happen. It would take medication or surgery

to make it so. It’s a simple reality that leaders and co-workers need

to acknowledge and deal with emotions at work, view emotions as

valuable information, and respond appropriately. Not only is it the

most critical way to build loyalty and grow relationships...its simply

the right thing to do.

I’m not saying give free reign to emotions at work! That can certainly

be disruptive. I am talking about being aware of clearly displayed

emotional cues with both guests and co-workers. If a front desk

agent is clearly sad, eyes welled with tears, it will be pretty difficult

for them to deliver engaging service! Their emotions are not “none of

your business”…they are your business.

It’s a simple reality

that leaders and

co-workers need

to acknowledge

and deal with

emotions at work,

view emotions as

valuable information,

and respond

appropriately.

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20©2014 Inspire Consulting Group. All rights reserved.

In ClosingTaking the first step in building enduring loyalty is the hardest, as

it requires a shift in attitude and perspective, followed by a shift

in behavior and approach! Both, to be sure, are far easier said then

done. The alternative, however, is to remain in a world of “can I help

you?” customer service and “its lonely at the top” management

that builds no loyalty, provides no personal development and, quite

frankly, makes our lives pretty mundane. One of my favorite sayings

is a Native American proverb – “A journey of a thousand miles starts

with a single step.” Take the first step – and enduring loyalty will soon

follow!

Taking the first step in building enduring loyalty is the hardest, as it requires a shift

in attitude and perspective, followed by a shift in behavior

and approach!

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