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Pondemonium by Greg Wittstock
June 17, 2008
It's All About the Relationships
Posted at 11:31 AM
I just finished reading a great book called "Sway: The Irresistible Pull of Irrational Behavior." Finally, I thought, when I first read the title, a book to explain why the rest of the world that doesn't agree with my thinking is so messed up! I snatched it from the shelf and eagerly delved into its pages, looking for the explanations my logical brain craved. Well, as you may have guessed, the answers I got were a little different from the ones I thought I'd find.
Newsflash: People, even when given a choice of thinking logically and getting beneficial results, will often act emotionally despite the consequences. The effects of this irrational behavior on businesses can be far reaching. And it has many causes. Here's one: A person's internal barometer for "fairness," the researchers point out, is a powerful emotion that "sways" even the most straight forward of business decisions. One case study in particular struck a chord with me:
A nationwide survey of car dealers revealed that when it comes to buying cars from manufacturers, the dealers didn't focus on the results of these transactions -- did I overpay? did I receive high quality inventory? Instead, the dealers cared more about how manufacturers behaved toward them. According to the research, what mattered to the dealers wasn't just whether they felt they got a good deal; they evaluated their transactions on such seemingly insignificant details as whether the manufacturer took "pains to learn the local conditions under which dealers operate," whether the manufacturer acted in a "polite and well mannered" fashion, and whether the manufacturer "treated dealers with respect." Indeed "fairness" factors mattered more to dealers than bottom-line profitability. To me, if there was ever a way to quantify the power of relationships in business, this dealer case study demonstrates it!
The authors point out one final take-away that struck close to home with me. "The researchers concluded that business owners place too great importance on margins and outcomes. They recommended that all managers -- regardless of industry -- put greater "effort, energy, investment, and patience" into nurturing the relationship. In the end, "the fairness of the procedure has as much to do with our satisfaction as the ultimate outcome."
Here, in this case study, I found the rationale to explain the irrationality of past business relationships gone sour. Far too often I, and I imagine other business owners, fight emotions with logical facts -- which in the end rarely results in swaying someone who simply feels you somehow done 'em wrong. It's a classic case of being so right you're wrong. How irrational is that?!
So the next time you're logically stating your case, just remember that those ears you're hell bent on convincing just might be wired with a little emotional baggage of their own. In the end, it's only through the development of relationships that you can truly hear what the customer is thinking, irrationality and all!
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Great blog Greg! The concept is so simple yet we too often forget the importance of the relationship.
So you finally found out what makes me & so many others tick. Remember Nicky & 'triggers' words?
Respect is what makes many people tick, acknowledge problems we are dealing with head on, treat us fair, don't tell us that it shouldn't matter, (Because to us it does)& deal with us because in the end we are your most loyal customers - when we are treated with respect and our concerns are addressed straight foreward. And remember - we all don't think like you, but most of us do have an open mind & will listen. It's not always about costs.
You must have thought you found the Mother Lode of answers with this book. This is an area I'm very familar with (PG asking why?) and not understanding the logic behind the situation. Respect and Communication are the two key elements to maintaing good relations, and logics only factor in when the consequences jepordize our directions.
I guess I'll have to read the book!
We treat our clients as partners — and because of that, have held onto them for years, through the good and the bad. A good customer/client relationship is like a marriage - you have to work on it and, when it's rocky, you have to do everything you can to salvage the relationship. It requires fierce conversations and, sometimes, conflict. I think too many times, if a relationship goes through a rough patch, we eagerly throw up our hands and say, "I'm finished" as if you're the one breaking up first...just to be the one breaking up first. Like the car dealers, people buy people and emotions, trust, and respect. Regardless of our egos as business owners, we have to always remember relationships are the drivers of our bottom lines.
Relationships.
Relationships change when one party or another changes focus, breaks a promise, walks away, or draws closer, listens to the other parties and regards their input...even if - for one reason or another - ignores the offered criticism or angst expressed or the praise or encouragement delivered...
Relationships can range from:
a situation of mutual detriment to one or both parties...like staying married to an abusive spouse or continuing to work at a job that offers no promise or delight ... either constituting a hopeless situation...
OR: a situation filled with mutual or unilateral dlight and support!
How many times we 'buck up' and keep walking through a field of broken promises or failed initiatives while carrying the water for our business partners will be different for each individual...
See y'all at PC...with a one gallon bucket...left the 5 gallon version behind...
And I quote:
"According to the research, what mattered to the dealers wasn't just whether they felt they got a good deal; they evaluated their transactions on such seemingly insignificant details as whether the manufacturer "treated dealers with respect." ... To me, if there was ever a way to quantify the power of relationships in business, this dealer case study demonstrates it!"
Right-oh Pond Guy!
Aquascape has chosen to "change the relationship vectors" that propelled the company from a garage based operation to a North American industry leader in the world of water gardening.
Some of those contractors (the initial primary customer base) are upset with the change. Some have left over the perceived change in the relationship.
Most remain loyal to the Aquascape Brand of "plastic boxes" [that's right, folks...it's basically just plastic boxes...it sure hasn't been the pumps! :)] because of the relational history and the service they have received in the past. Loyal,yes... but with some trepidation regarding the recent changes as well as those currently in progress and those that will surely continue to come.
A few of us remain blindly loyal to the brand. We intend to "go home with the one who brought us to the dance". Aquascape, Inc.
Whether Aquascape retains - or even builds - it's loyal contractor customer base will depend on the (vicarious) service we receive through the new distributor model.
If we are well served by the new model (as we were well served by our direct relationship with Aquascape Designs, Inc.' in the 'beginning')...we will remain loyal ‘contractor customers’.
But...
The longevity and loyalty of the relationship (now with the distributor - not the manufacturer) will depend on the service received from the distributor...and not so much as directly from Aquascape in those earlier days...[Remember the flag at half mast?]
As a contractor that was "brought to the dance" by Aquascape Designs (before Nursery Pro, before the loss of so many important contacts in the company structure: Tara, Tamara, Sara, Somer, Gared, Tony, Cody, etc., etc. …before MSRP, before WGE, before the first and second change in distributor models, before the CAC program, before there was a sanction [even considered] on 'havin' a beer' with an Aquascape employee, at a BAP or at PC, etc.) I am interested to see how the relationship will grow/change.
[The Aquascape 'company culture continues to undergo considerable reformations, no?]
If my distributor continues to serve my business needs, I will continue to be loyal to the AI brand...as long as that distributor continues their “relationship” with Aquascape!
Aquascape is playing a 'high stakes game with this particular change...If Ewing went with another brand of 'plastic box' tomorrow...I would be forced to follow with them as they are the ones with whom I have the closest relationship at this point. But...nothing ventured...nothing gained, right?
So far - so good. Ewing (Auburn, WA) has exceeded my expectations on all counts! These guys rock! (Kudos to Cory, Jason, Tyler, and Reuben!)
Therefore, should things change, my business must change. Just as Aquascape found a need to change its relationships[with the advent of a new distributor model]; Blue Creek will need to do the same...no matter who "brought Blue Creek to the dance"
It IS all about relationships!
We do business with people we like! Right?
No worries, PG…I still like you…even when you yell at me…as long as I can yell back
By the way…when can I expect my royalty check on the Atlantis deal???
Cheers!
AMEN SCOTT. Oh and PG said you can pick up your 1st check at his house during the dinner. And if by chance he don't have it you can toss him in the pond ;-))) if it would make you feel better.
See ya there!
Thanks for the check! (or pickin' it up, I mean...)
You are back PG! And so are we...
The Extreme Build was just that! Extreme!
Thanks for the vision, the encouragement, and the strategy!
Aquascape and the Aquascape "family" absolutely ROCKS!
Wonderful read!
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