Q&A / Creating Ideal Customer Relationships

Steve Yastrow is the author of We: The Ideal Customer Relationship and founder of Yastrow & Company, a Chicago-based consulting firm. Steve helps companies of all sizes reinvent how they connect with customers and pinpoint the make-or-break ideas that will unleash the full potential of their businesses. Clients include McDonald's Corporation, Wyndham Hotels & Resorts, the Cayman Islands Department of Tourism, Agilent Technologies and Jenny Craig International. Much Shelist spoke with Steve recently about the power of creating ideal customer relationships.

Much Shelist: How do you define an ideal customer relationship?

Steve Yastrow: An ideal customer relationship is an ongoing conversation in which the customer never thinks of you—the provider of a product or service—without thinking of both of you. It's the creation of a "we" relationship, rather than an "us vs. them" scenario.

MS: "Customer service" is a mantra of most businesses today. In what ways do customer relationships differ?

SY: Good customer service is certainly a component of an ideal customer relationship. But customer service alone is insufficient to create the type of relationships that can really differentiate you from the competition.

This is particularly true in an environment where customers can't always tell which product or service is better than the next based simply on a sales pitch, an advertising campaign or even a detailed list of product features. In other words, there are just too many products and too many providers for any single one to distinguish itself from the competition on data or slogans alone. Relationships have become the best differentiators.

What's more, what we often think of as good customer service—for example, implementing new technology solutions—sometimes has the unforeseen effect of actually distancing us from our customers. As businesspeople, we may admire the efficiencies of an automated reservation system or an enterprise-level purchasing program. But from the customer's perspective, these processes frequently turn interactions into impersonal transactions.

Interestingly, companies with a high number of hourly employees find that their people understand this principle well, often better than management. On the front lines, employees quickly learn what it takes to create an ideal customer relationship. But whether we're talking about an individual consumer who buys two airline tickets per year or a Fortune 500 company with massive purchasing power, the best way to retain our existing customers and attract new ones is by creating high-quality, "we" relationships.

MS: What are the key elements of an ideal customer relationship?

SY: Let's return to that original definition: an ongoing conversation in which the customer never thinks of you without thinking of both of you. An ideal relationship is built on a series of encounters. In order for an encounter to transcend the level of a transaction and become a true relationship-builder, it must include three elements:

• First, both parties must be fully engaged in the moment. In other words, both parties are present, attentive and alert to each other.
• Second, the encounter must be an actual conversation. More than just a series of monologues, it is dependent on a fluid, interactive exchange of ideas. For example, I encourage people to try limiting themselves to speaking in single paragraphs or less when they are interacting with a customer. Make your sentences meaningful and informative, and then give your partner a chance to speak while you listen.
• The third element is uniqueness. True encounters are never scripted. They are fresh and original, involving two distinct people and never-before-seen, never-to-be-replicated circumstances. As a result, they are memorable.

With these three elements in place, even the simplest interaction becomes a lasting encounter—the building block of a "we" relationship.

MS: How do these unique encounters become a relationship?

SY: Continuity is key. A series of high-quality encounters becomes an ongoing conversation. As that conversation continues, momentum builds. Mutual successes occur and milestones are reached, all of which help build bridges between you and your customer. At the same time, your customer forms memories that connect each of these unique encounters, and he or she begins to think of how the two of you have, together, achieved mutual goals.

With consistent effort over time—you, reaching out to your customer—a complementary understanding will arise between the two of you in which you recognize mutual goals and acknowledge that what is good for one is good for the other. Both parties benefit from each other's successes. Both parties look forward to a shared, positive future.

MS: That makes sense at the individual, person-to-person level. How does the concept translate to an entire organization?

SY: Organizational relationships are built upon individual ones. Businesses, associations and any other types of institutions can start creating successful inter-organizational relationships by first teaching their employees how to create their own "we" relationships. Through a range of incentives, the organization can reinforce the importance of these principles and, over time, create a corporate culture that embraces ideal customer relationships. The net effect will be the creation of positive, lasting organizational relationships between provider companies and their business customers.

For more information on Yastrow & Company and We: The Ideal Customer Relationship, contact Steve Yastrow at 847.686.0400 or visit www.yastrow.com.