DSES Keynote: The Loyalty Loop: How Small Things Add Up to Big Business with Andrew Davis8 min read
As the 2017 DrivingSales Executive Summit was drawing to a close, it was time for the last keynote of the conference — and what a keynote it was. The last session was presented by best selling author, marketing expert & Internationally acclaimed Keynote speaker, Andrew Davis. In his presentation, Andrew talks candidly to dealers about how critical it is to prove your value by creating experiences that exceed consumer expectations — and of course, leveraging the power of the “Loyalty Loop.”
Here were my 4 primary takeaways from DSES’s final keynote presentation,”The Loyalty Loop: How Small Things Add Up to Big Business”…
1. The Automotive Industry Currently Looks Like A Commodity
Andrew starts off his presentation stating the dealerships are really, really, REALLY good at packing a ton of information into their homepage banners and direct mail — everything from inventory, to special offers to contests. Although this doesn’t necessarily seem like a bad thing, the problem is that this is basically every dealership out there.
Dealerships can scream from the proverbial rooftops that they’re offering consumers the best deal and the best experience, but there’s a big difference between SAYING you’re different and SHOWING that you’re different.
If you’re not doing anything to differentiate yourself from your competitors, you’re just another dealership. You’re like the rest. You’re a place that sells cars. There are lots of places just like you. You’re a commodity.
2. Great Experiences Must Actually Possess Higher Value
The last thing your dealership (or any dealership) wants to be is a commodity. In order to succeed this immensely competitive industry, it’s important for dealers to differentiate themselves from one another. What better way to do this than to provide experiences to consumers that offer legitimate value? And don’t just offer value in regards to “great customer service” or “the best deal,” — really differentiate yourself from the rest!
To really bring his point home, Andrew regaled us with the tale of two demolition companies: Clauss Construction of Lakeside, California and Diversified Demolition, the company responsible for imploding the Boardwalk Hotel (Las Vegas, NV) in 2006. When the Boardwalk Hotel was scheduled to be demolished (to make way for the Mandarin Oriental at the City Center), people came out to watch the spectacle of a building literally being destroyed before their eyes. There’s no doubt that it was an exhilarating moment — but was it the event that was exhilarating or was it just the demolition itself?
A year later, Clauss Construction was contracted to demolish the Frontier Hotel. Although any implosion is a big deal in and of itself, Clauss managed to turn the event into a major spectacle that folks would remember for years to come. On the night of the demolition, there were fireworks, there was music and yes, there was a countdown to the explosion (using fireworks, naturally). They built suspense, they raised anticipation and they engaged an audience the way no other demolition company ever could. They offered something different!
3. Own the Loyalty Loop: Use the Customers you Have to Generate the Customers & Clients You Want!
What is the “Loyalty Loop,” you ask? As Andrew defines it, the “Loyalty Loop” is a series ofpost-purchaseencounters designed to deliver intense and eager enjoyment, interest and approval.” Basically, it means your organization is continuing to deliver extremely valuable experiences to paying customers who are currently leveraging your products or services.
As you continue to WOW them with unique, worthwhile experiences, that satisfaction turns paying customers into advocates — and those advocates then encourage their friends, family and industry pals to become paying customers as well.
As an example, Andrew referenced an organization called Tulsa Renew; an Oklahoma based home installation company. So, what makes them different? Tulsa Renew understands that homeowners are very picky about any and all changes that are happening to their home — and rightfully so.
To alleviate stress and create transparency, Tulsa Renew send customers consistent installation updates via unlisted YouTube videos (here’s a great example of one.) that literally pinpoint every single thing that was done to your house. How cool is that? And the best part is that all their staff uses is a simple app called “Coach’s Eye,” which allows the create strategy videos similar to the ones you see in Football games on TV. They spent a “whopping $4.99” to create experiences that helped loyal customers refer Tulsa Renew to new customers. This is a company that totally “owns” the Loyalty Loop.
4. Harness Consumer Momentum and Avoid Hedonic Decline
The last major takeaway from Andrew’s presentation involves harnessing consumer momentum and avoiding hedonic decline. In a nutshell, hedonic decline is when “happiness dissipates.” Hedonic decline is commonly found by folks who are going on vacation. Leading up to departure, people are full of excitement as they picture everything they’re going to see and do on their vacation. Unfortunately, when the moment finally comes, sometimes the experience really isn’t as great as they had expected — and this is the worst type of situation you want your consumers to be in.
Y’see, if there’s so much excitement built up (by the consumer) leading up to the moment they’ve been waiting for and it isn’t what they expected, the disappointment becomes all the more intense. Often times, the thought or desire for something makes consumers far happier than when they finally get the thing they desire. As a business owner, it’s your job to keep your consumer’s excitement up from the very beginning of their shopping journey to very end.
Experiences are incredibly powerful — far more powerful and impactful than many businesses lead you to believe. They’re what make businesses stand out among their competition, and they’re what capture the hearts of consumers from the beginning of their shopping journey to the end. By doing things the same way and doing them like everyone else, you’re not doing yourself any favors. Be different and continue to generate excitement with your dealership consumers!