Three Ways to Boost Customer Loyalty

On October 21, 2009

Three Ways to Boost Customer Loyalty

The ability to fall back on a loyal and dependable customer base has undoubtedly helped many businesses weather the economic storm, but how do you go about establishing and then maintaining the loyalty of your customers? The legendary US business guru and public speaker, Jeffrey Gitomer said: "Customer satisfaction is worthless, customer loyalty is priceless" and "You don't earn loyalty in a day, you earn it day-by-day". The first comment may be provocative and the second blindingly obvious, but it's surprising how many businesses have a confused view of their customers and how to keep them. The notion that customer loyalty takes time to cultivate stresses the long-term investment needed to achieve it might be hard to accept, when a quick-fix solution to your business is might be more...


On October 21, 2009

Report: Solar Costs Are Falling

Costs for solar installations for houses and large buildings are falling, and the trend is expected to continue. Lawrence Berkeley National Laboratory has a new report out this morning detailing the reduction between 2007 and 2008, as well as providing some interesting and sometimes surprising data points. The drop in cost, which LBNL measured as a not-insignificant 30 percent between 1998 and 2008, was driven by just about everything except for solar cells, meaning mostly labor and installation. Nothing surprising there; installation companies that were once inefficient startups are growing up and learning to be more cost effective. But the process stalled out recently, with little change happening between 2005 and 2007. Take a look at the graph below. Costs...


On October 21, 2009

The Upside of Turbulence: How Innovation Saved Nokia

Don Sull teaches "International and Strategic Management" at the London Business School.  His new book is The Upside of Turbulence: Seizing Opportunities in an Uncertain World.  In the first part of our discussion last week, we discussed what "turbulence" is and how some firms have taken advantage of it to become industry leaders. This week, we'll hear about how Nokia and others have survived turbulent times through a willingness to reconsider even their core business. BNET: You've mentioned "active inertia" [the tendency for companies to intensify the activities that worked well for them in the past] as something that has led to great problems in the face of turbulence and different types of competitive threats. Could you give us an...


On October 21, 2009

Tips for the Journey of Choosing a Business Name

It’s a long, arduous road, coming up with a brandable business name. Here are my tips for your road trip to reaching your desired destination, a memorable and trusted brand name. Plan your destination (plan for the unplanned) - Before you even start the journey of finding the perfect name for your startup you [...]


On October 20, 2009

Yahoo Improvement Nothing for Yodeling About

The general tenor for coverage of Yahoo's earnings announcement seems to be that the company topped analyst estimates. However, the numbers aren't as encouraging for the company as many seem to want to believe.


On October 20, 2009

SEO Link Building Using Delicious

Wil Reynolds explains four link building strategies that take advantage the special strengths of the Delicious social bookmarking tool. He explains how to develop 'smart queries' that yield linking opportunities, then how to categorize them on Delicious. He also explains how Delicous can spark article ideas, alert you to promising sites, and help you find 'librarians' and bloggers.


On October 20, 2009

Sun Going Down for the Third Time

Just a couple of weeks ago I noted that Sun was sinking under the weight of Oracle, with the acquisition looking more like punishment than salvation of the former. But now things are looking even grimmer. Sun is about to lay off another 3,000 employees. The longer it is before the deal with Oracle takes hold, the less Sun could actually bring to the table.


On October 20, 2009

Asking Questions about Transparency

It often feels like Obama is in the room with us at RISD these days, raising our collective awareness about a new way of leading marked by transparency. Already we've seen his government publishing the appropriations requested, stimulus money granted, and visitors to the White House on the web for all to see. In general, the web has also raised all of our expectations about the availability of information. Transparency now is so much easier to accomplish.

John has taken this to heart, and we've seen the mantra of transparency raise all sorts of questions here at RISD. Like many organizations, we seem to be wrestling with transparency's boundaries. This year, amidst complex budget cuts, we learned about the difference between transparency and clarity — access to all the financial facts versus access to understanding the essential facts that affect us all. In a community of artists and designers, this often means communicating visually. We seem to understand that transparency means a commitment to revealing who makes the decisions, and providing understanding about the basic facts that affect all people in the organization.

But does it stop there? For instance:

Does transparency mean the information shared can't change? As John has set high expectations for greater transparency, people have come to expect that they will remain informed, even as things change rapidly. So what happens when you go out with "the facts" as they exist at a certain moment in time, and then the facts change? I'm sure we at RISD were not alone in facing this challenge as last year's financial crisis unfolded. Throughout the process, it became clear that higher expectations for transparency and real-time information must come part and parcel with setting expectations that the information will likely change. In other words, sharing information early and often means all the answers won't be worked out at the outset. In a creative community where people are accustomed to experiencing shifts in their own work, perhaps this message was more easily received.

Does transparency mean you need to be critiqued? Especially when it comes to decisions in the creative sphere, like whether to push forward with a new experimental initiative or which visual treatment works best, decisions can be made in intuitive leaps rather than incremental steps. They can be based on a feeling. To those of us who bear witness to this type of decision-making, the decisions can seem more abrupt, less predictable, or less "transparent" than decisions where the facts are laid out and logical reasoning is explained. Certainly transparency doesn't rob decision-makers of their power to make decisions. But just as art students in a critique learn to explain their work and where it came from, transparent leaders do well by revealing their rationale.

In business, many leaders invite "the tough questions," but in my own experience, there is nowhere leaders are more thoroughly questioned than in academia. The "critical thinking" skills taken from my own liberal arts education, leading me to question how and why decisions are made, are never too far away in this academic environment. Sometimes we call it "critical leading" at RISD: a living, working critique on leadership. Many of the questions we ask don't yet have answers — which in the "?" environment of academia (versus the action-oriented "!" corporate environment) — feels completely appropriate. Our interest in transparency is collectively piqued; but it's not yet clear whether transparency will break — or merely bend — the way we're used to doing things.