Weird Magic 04: A Man & His Pants

Hi Pals,

Thank you to the 20+ (!!!!!) new faces and those of you who gave feedback on last weeks' episode. If you're new here, there is a considerable amount of call and response for a one-way email; play the game with me, it's really fun. I promise. And, if you'd like to read last weeks' episode, hit that reply button and I'll send it your way!

Let's dive right in. Today's episode is about a man and his pants.

Back in my early Seattle days, I went on a few dates with someone who had just moved to Seattle from Brooklyn. I didn't know it at the time, but the best time to date someone is when they FIRST move to Seattle. You want to get to them before the seasonal depression does.

It was glorious, the obligation-free type of dating. He told great stories (a category of dating usually win - not that it's a competition) and edited my proposal for a promotion at work. It was extremely advantageous for me, I assume it was fun for him too. Wait, this is my story, he had a blast. He probably has his own newsletter about me.

On one of our date nights (every other Thursday at 6:30), he was really grumbling about how Seattle is not New York. I asked for more information, wondering how this was surprising for someone who was smart enough to get poached by Amazon (he was the director of a team that did something with optimization and efficiency). I tend to date really logical humans, because my Ms. Frizzle energy loves someone who thinks differently than me and is relatively unfazed by lighthearted (and omnipresent) nonsense.

Back to the story. He was frustrated and in shock that he took 8 pairs of pants in for alterations and the tailor didn't let him barter for a bulk discount. I learned how inconvenient it would be for him to not have a pants guy because he, “has to wear a new pair of pants (or suit) to every party or wedding."

Please imagine how hard it was to keep a straight face in this moment. I'm sure I was desperately looking for our server to signal for another drink.]

“Oh” I said nodding my head in agreement. Baffled that he was griping about the loss of a 10-15% discount when there were other incredibly realistic cost savings options available. 

I am happy to report that I actively went against every fiber of my being that was begging me to ask if he had ever heard of rewearing pants. Instead, I asked what he usually needed altered (I owned a sewing machine, have access to Youtube, and was willing to undercut the tailor). It turns out Party Pants had a very specific (and elaborate) standard of how pants should fit his frame and it was best not to get involved.
 

While he was distraught without his pants guy back home, from what I could gather from my very cautious questions, was that the loyalty and attachment seemed to be purely based on the bulk discount.

Let's Pivot.

Hear me out (I have nothing remotely negative to say about Party Pants or his pants guy), but if you're only loyal to a brand or service provider for the discounts, you're probably not that into them.

In fact (steps onto soapbox), discounts might be the least effective way to build customer loyalty for long term retention. To put it simply, the best case scenario for any business is repeat buyers after only making one sale. This means you only need to be persuaded (sold to) once and you continue to purchase with little to no effort from the business. We're a consumer driven society (thanks, capitalism) but fundamentally we are extremely habitual creatures. 

We (businesses) want brand loyalty because it is associated with retention and referrals. Imagine if you worked with me on a website, then we came back together every 2 years for updates and upgrades? Amazing! But then, it gets even juicer, you also refer 3-5 other people to me over the course of our time together. That is what brand loyalty and retention can look like. I sold you once, and I got 6+ projects out of it. That's how businesses can thrive in the long term. 

Alternatively, if you only came to work with me because I was running a promo, I'm likely to lose you on those 5+ other projects unless I can match that promo. After all, we hate paying more for things - I bet you miss how much eggs used to cost.

Champion your beloved service providers like you champion your favorite big brands. 

But how? I've got a list and examples for you.

Ways That Brands Build Loyalty:

1- Value - perceived best price amongst competition.
Spirit Airlines, anyone? I just explained why I think this is the least effective way to maintain your audience. No one brags about flying Spirit…and as soon as you have Alaska Airlines money you'll never see Spirit (except in the news) again.

2- Trust - confidence that price/effort will be worth it, dependable. 

You always know what you're getting at Starbucks, even if it's not the cheapest or best option. We're pretty emotionally driven consumers: you know when you need to find a new hair person and get nervous or put it off? When someone you know recommends someone they love… you're choosing a trusted provider. 

3- Quality - better service or products than the alternative. 

Nordstrom was the king of this in the 2000s, now Patagonia and other outdoor brands have risen to the top because they repair their gear for further use. 

[Sidebar: It might seem counterintuitive but Patagonia and other outdoor brands have built cult-like followings based on quality and trust. Patagonia built brand loyalty by making you need to buy less things (and producing less waste) which aligns with many of their consumers' values. They built a community of believers that are willing to pay above market.]
 

4- Culture - the buyer feels connected to the product/service and the community they're a part of.
I bet you know every single person in your life with an android aka green texts. Apple products not only work together seamlessly, they also create a feeling of inclusion (and exclusion). Also, even though Apple isn't the only innovative brand on the market, they do an amazing job of telling the story of the level of innovation that exists within the company.

Back to my date.

Now, maybe if you are a Director at Amazon for the Efficiency and Streamlining Dept (not a real title), then you would be swayed into loyalty by a bulk discount. I trust he made a spreadsheet and ran the numbers of what a lifetime of bulk discounts at the tailor could afford him. But let's not get carried away believing that he's the average consumer. I'm arguing that quality, trust and culture are more effective tactics to build long-term customer retention, because they are more likely to withstand the test of time (aka recessions, inflation and competitive markets). 

There's good news for businesses relying on value, there are ways to leverage value to attract and retain. Party Pants had the money to not only buy 8 pairs of special occasion pants, but also to tailor them. 

Imagine being competitively priced but being the most convenient tailor shop in the neighborhood? What if you should schedule your 15 min fitting online to reduce wait times? What if there was a self check-in feature to avoid a line and drop off your clothes? A stamp card where your 9th item received 30% off? Most tailors use a text message feature, but you could also send a follow up text asking for a review after the items are picked up - building up your brand credibility. Trust is built incredibly well with social proof like reviews and testimonials. 

In Party Pants' defense, everyone loves a discount and feeling like they got a great deal. However, in a competitive market, there are other factors that beg to be considered. Tailors especially are incredibly specific to their location, most people don't go out of their way to go get something cleaned or altered. Further, alterations are a bit of a sunk cost, as they have already bought the article “worth” putting more work into. I don't have an MBA but I'm going to say the best way to stay on top is to have a competitive advantage and master it for the long term (steps off soapbox).

Where Is This Going?

Time to wrap things ups. I want you to know that Party Pants is happy because he moved back to Brooklyn. He was right about a lot of things, including Seattle not being New York. When I asked about his beloved tailor he said, “my mans retired to the good life.” We wish them both the best and thank them for their service.

Before I ask a question in hopes you take action; I want to call out that there will be dating stories. I'm going to do my best to walk the fine line of oversharing (my natural state) while keeping it comfy for everyone (my parents' are subscribed via their shared hotmail account).

If you think to yourself “wow she has a lot of dating stories” I want you to keep these things in mind (it'll make me feel better):

1. My retention rate is absolutely stellar

2. Going out to dinner and telling stories are two of my favorite things

3. I began managing my own sales portfolio at 23 (with success, obviously)
4. I've lived a lot of my life “for the plot” 

5. I wholeheartedly believe that relationships (romantic or otherwise) are amazing tools for learning

Like I told my 70 year old landlord, Don Jose, “they're just compadres until you see something on my finger” as i hopped into a SUV in our driveway. So, unless you are the hotmail account I referenced, you don't have to worry, Just sit back and enjoy; it's all fun or lessons - both usually make great stories.

Okay now that I've cleared the air, one thing I would love for you to do this week is take 5 minutes to review your 3 favorite businesses on Yelp or Google. Or reach out to your favorite service provider and ask them where you can drop them a testimonial. Those small actions are worth their weight in gold. 

Idea list: restaurants, a mechanic you trust, coffee shops, doctor's offices, the FedEx/post office you go out of the way for, your go-to flower shop etc. Still blanking? Ask your fav work friends if you can endorse them on LinkedIn.

Here's to wearing pants you love (as many times as you want),

President of Weird Magic

P.S. Replies to my newsletter totally make my day. I'll always respond, and love knowing your reactions and reflections. If you want to forward this to a friend, they can subscribe to the list here.