Those tactics win elections, but they do not seed loyalties among the voters.)
The American car industry learned the hard way the high cost of relying on manipulations to build a business when loyalty was what they really needed to nurture. While manipulations may be a viable strategy when times are good and money is flush, a change in market conditions made them too expensive. When the oil crisis of 2008 hit, the auto industry’s promotions and incentives became untenable (the same thing happened in the 1970s). In this case, how long the manipulations could produce short-term gains was defined by the length of time the economy could sustain the strategy. This is a fundamentally weak platform upon which to build a business, an assumption of never-ending boom. Though loyal customers are less tempted by other offers and incentives, in good times the free flow of business makes it hard to recognize their value. It’s in the tough times that loyal customers matter most.
Manipulations work, but they cost money. Lots of money. When the money is not as available to fund those tactics, not having a loyal following really hurts. After September 11, there were customers who sent checks to Southwest Airlines to show their support. One note that accompanied a check for $1,000 read, “You’ve been so good to me over the years, in these hard times I wanted to say thank you by helping you out.” The checks that Southwest Airlines received were certainly not enough to make any significant impact on the company’s bottom line, but they were symbolic of the feeling customers had for the brand. They had a sense of partnership. The loyal behavior of those who didn’t send money is almost impossible to measure, but its impact has been invaluable over the long term, helping Southwest to maintain its position as the most profitable airline in history.
Knowing you have a loyal customer and employee base not only reduces costs, it provides massive peace of mind. Like loyal friends, you know your customers and employees will be there for you when you need them most. It is the feeling of “we’re in this together,” shared between customer and company, voter and candidate, boss and employee, that defines great leaders.
In contrast, relying on manipulations creates massive stress for buyer and seller alike. For the buyer, it has become increasingly difficult to know which product, service, brand or company is best. I joke about the proliferation of toothpaste varieties and the difficulty of choosing the right one. But toothpaste is just a metaphor. Nearly every decision we’re asked to make every single day is like choosing toothpaste. Deciding what law firm to hire, college to attend, car to buy, company to work for, candidate to elect—there are just too many choices. All the advertising, promotions and pressure employed to tempt us one way or another, each attempting to push harder than the other to court us for our money or our support, ultimately yields one consistent result: stress.
For the companies too, whose obligation it is to help us decide, their ability to do so has gotten more and more difficult. Every day, the competition is doing something new, something better. To constantly have to come up with a new promotion, a new guerrilla marketing tactic, a new feature to add, is hard work. Combined with the long-term effects of years of short-term decisions that have eroded profit margins, this raises stress levels inside organizations as well. When manipulations are the norm, no one wins.
It’s not an accident that doing business today, and being in the workforce today, is more stressful than it used to be. Peter Whybrow, in his book American Mania: When More Is Not Enough , argues that many of the ills that we suffer from today have very little to do with the bad food we’re eating or the partially hydrogenated oils in our diet. Rather, Whybrow says, it’s the way that corporate America has developed that has increased our