steve yastrow subway franchisee conference 7 22 08
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© Steve Yastrow, 2008© Steve Yastrow, 2008
Creating Profitable Customer Relationships
Brand Harmony & We Relationships
Steve YastrowJuly 22, 2008
SubwayAnnual Convention
© Steve Yastrow, 2008
The connection between employees, customers and profits
Slides available at www.yastrow.com
© Steve Yastrow, 2008
$$$$CustomerAction
“Latent Profit”
?“Visit More”
“Buy More”
“Rave More”
© Steve Yastrow, 2008
$$$$CustomerAction
The Customer Action Gap What % of your customers visit your store as often as
they reasonably could?
What % of your customers are buying as much on each visit as they reasonably could?
What % of your customers are raving about your store as much as they could?
© Steve Yastrow, 2008
CustomerBeliefs?
“Brand” = “The image we project to the world.”
$$$$CustomerAction
© Steve Yastrow, 2008
The average American is exposed to
5000 branding messages each day
© Steve Yastrow, 2008
CustomerBeliefs
BrandImpression
“Brand” = X“The image we project to the world.”
“Brand” = What customers believe about you
$$$$CustomerAction
© Steve Yastrow, 2008
“You don’t brand your customers …
180 degree flip:
CustomerBeliefs $$$$Customer
Action
… They brand you.”
BrandImpression
© Steve Yastrow, 2008
CustomerBeliefs $$$$Customer
Action
Clear
BrandImpression
Compelling Differentiating
Your challenge/opportunity: Enrich one of the strongest brands in the world, in your store
© Steve Yastrow, 2008
CustomerBeliefs $$$$Customer
Action?
Clear Compelling Differentiating
Your challenge/opportunity: Enrich one of the strongest brands in the world, in your store
© Steve Yastrow, 2008
Think of all of the experiences a customer has with your Subway store …
How do these experiences blend together?
Harm
ony?
Dis
sona
nce?
© Steve Yastrow, 2008
Are these experiences mutually reinforcing?
How do these interactions blend together?
Harm
ony?
Dis
sona
nce?
© Steve Yastrow, 2008
Are these experiences mutually reinforcing?
Are you creating a cumulative story?
Harm
ony?
Dis
sona
nce?
© Steve Yastrow, 2008
Are these experiences mutually reinforcing?
Or is your story jumbled and confusing?
Harm
ony?
Dis
sona
nce?
© Steve Yastrow, 2008
Brand Harmony
Blending - not brute force
© Steve Yastrow, 2008
Brand Harmony
How your customers evaluate you - now
© Steve Yastrow, 2008
CustomerBeliefs
Brand = what customers
believe about youCustomer
Action
$$$Your
Results$$$All i
nteractions t
he
custo
mer has w
ith
Subway ?Brand Harmony
© Steve Yastrow, 2008Georges Seurat, A Sunday Afternoon on La Grande Jatte, 1884-1886
© Steve Yastrow, 2008
Be the Brand!Be the Brand!“Brand Artists”“Brand Artists”
© Steve Yastrow, 2008
CustomerBeliefs
Brand = what customers
believe about youCustomer
Action
$$$Your
Results$$$
Employee
Actions All interacti
ons the
custo
mer has w
ith
Subway Brand Harm
ony
?Be the Brand!Be the Brand!
“Brand Artists”“Brand Artists”
© Steve Yastrow, 2008
CustomerBeliefs
Brand = what customers
believe about you
CustomerAction
$$$Your
Results$$$
Employee
Actions
Employee Beliefs
All interacti
ons the
custo
mer has w
ith
SubwayBrand Harm
ony
The Internal Brand
“Brand Habits”
Be the Brand!Be the Brand!“Brand Artists”“Brand Artists”
© Steve Yastrow, 2008
Ask an employee this
question:“What is your
job?”So … what do we want Subway employees to
believe and do?What is our cathedral?
What do you find clear, compelling and differentiating?
Relationships are the most powerful differentiators
© Steve Yastrow, 2008
© Steve Yastrow, 2008
Q: Are you in a relationship with this company?
Do you give them more business because of that relationship?
Kimpton Hotels: “Yes” = 92%
Cold Stone Creamery: “Yes” = 84%
Kimpton Hotels: 74%
Cold Stone Creamery: 40%
Relationships are the most powerful differentiators
© Steve Yastrow, 2008
“Customer Relationship”
An ongoing conversation …
In which your customer never thinks of you, without thinking of both of you.
“Not two”
“We”
The building blocks of customer relationships
© Steve Yastrow, 2008
Our relationship gets better
Our relationship stays the same
Our relationship gets worse
“Encounter”
“Transaction”
Customerinteraction
Every time we interact with a customer, three things can happen …
© Steve Yastrow, 2008
Encounters vs. TransactionsEngagement in the moment
Conversation
Uniqueness
© Steve Yastrow, 2008
“Customer Relationship”
An ongoing conversation …
In which your customer never thinks of you, without thinking of both of you.
© Steve Yastrow, 2008
Model
Teach
Reinforce
Nurture
The Window and the Mirror
Invent your future now!
© Steve Yastrow, 2008 © Steve Yastrow, 2008
Creating Profitable Customer Relationships
Brand Harmony & We Relationships
Steve YastrowJuly 22, 2008
SubwayAnnual Convention
Extra research slides from We
© Steve Yastrow, 2008
Would you rather buy from a business that …
89%
11%
Relationships are powerful differentiators
You have a relationship with
Simply provides the best product or service when you need it
© Steve Yastrow, 2008
Which are you more likely to buy from …
Businesses that have the best prices
Businesses you have a relationship with
21%
79%
Relationships are powerful differentiators
© Steve Yastrow, 2008
Which are you more likely to recommend to others …
Businesses that have the best prices
Businesses you have a relationship with
14%
86%
Relationships are powerful differentiators