Creating Loyalty Only Occurs When There's Value, and Value is in the Eye of the Customer

by John P. Hayes, Ph.D.

Giving customers what they really want isn't as simple as selling them the products or services that they're buying. Because quite often, customers don't know what they want until it shows up! And until you discover what the customer really want, you'll struggle to keep customers, and their money, coming back to your business time after time. Once they know what they want, however, and that you can provide it, customers will pay more, and even inconvenience themselves, to buy from you!

The Famous Haircut Story

While getting my hair cut today-and noting that the franchised salon was empty, and the stylists were complaining about the scarcity of customers these days-it occurred to me that getting my haircut is the perfect metaphor to explain customer loyalty.

Some years ago, while looking for a good stylist, I realized that it wasn't the haircut that I most wanted to buy. But that wasn't immediately obvious to me. No matter which barbershop or salon I patronized, and regardless of the stylist-the one that's up next is just fine-I almost always got a good haircut. Fortunately, I'm blessed with a good head of hair!

Haircuts Didn't Mean Much To Me

The problem was equating value to the haircuts. Whether I paid $9.99 or $29.99, the look was always about the same. Yea, every so often I'd go home and my wife would say: "Hey, they forgot to trim one of your eyebrows," or "They trimmed the left side of your beard, but not the right," and we'd have a good laugh about that (which actually made that haircut even more valuable, because laughing has a value). But the result was always about the same.

Ultimately, speed became the real value for me. If I had to wait for a haircut, even if it only cost $9.99, it wasn't worth it. Nix the waiting. Around the corner there's another shop or salon where a barber or stylist is just waiting for me to show up!

Customers Don't Want To Work

Make an appointment in advance? Too much work on my part. Now maybe if someone had offered to call me every 4 or 5 weeks and set the appointment for me-that would have been a value I would have been willing to pay for-but to this day no one has ever offered to do that. (Nor does anyone offer to call to remind me to change the filters in the HVAC units in my house, or the batteries in my alarms, or any one of many other things that might prompt loyalty and more sales. Apparently it's too much work for everyone).

So one day, much to my surprise, I found something more valuable even than time. I entered the shop, immediately got into a chair, explained how I wanted my hair cut (a #4 on the sides and a #1 on my beard) and the stylist went to work.

Suddenly Value Was In My Face

About 20 minutes later, having said nothing to me all that time-which is perfectly fine with me, I'm not in to small talk with strangers-I saw the stylist holding a rolled up wash cloth in front of me.

I looked surprised. As if to say, "What do you want me to do with that?"

"For your face," is all she said.

Ah! I grabbed the wash cloth-delightedly surprised that it was warm-unfolded it and wiped my face, then my neck, then my ears . . . wow! The sensation was greater than anything I had felt all day.

"Thank you!" I said enthusiastically, handing the wash cloth back to the unenthusiastic, but at least smiling, stylist.

Here Comes The Money Making Point

Now pay attention because this is the important point, the point that can make you a lot more money! It wasn't until I used that warm wash cloth that value was created, and more importantly, that loyalty became a reality. Once there was value, there could be loyalty.

Never more would I get a haircut just because I needed one, or for a neater look. Not at all. Now I would get a haircut-pay more for it, and in fact might even wait for it!-just for the warm wash cloth! It wasn't the haircut that I wanted (even if I needed it), or the barber or stylist that won my loyalty; I wanted- no, needed-the sensation that came with the warm wash cloth!

Customers Will Trade Inconvenience For Value

Yes, I could pay less for a haircut, and I would if that's all I was buying. But I'll pay more for what I really want. I'll even inconvenience myself, if I have to.

Won't you?

Let me assure you, your customers will! And they'll return loyally to your shop, your store, your Web site, your business.

But first you'll have to figure out what they really want. Get busy!

John P. Hayes, Ph.D., author and speaker, has written the Franchise Pre-Investment Checklist to help you thoroughly research franchise opportunities. A 30-year franchise veteran who has owned franchises and was the CEO of a major franchise company, John is perfectly suited to help you with your franchise decisions. He offers a variety of free reports, teleconferences and seminars to help you decide if you should buy a franchise and if so, which franchise to buy. Subscribe to his free newsletter at http://www.howtobuyafranchise.com

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