See Why new approaches to customer attrition and building brand equity are needed. This presentation explores how word of mouth and regional context may be costing you more money to stay in business. It also illuminates the role and evolution of "personal boycotts".

1. Could your customer attrition problem be a
symptom of larger issues?
A publication of

2. We've heard about Main Street struggles in many local economies.
The assumptions about it in most media coverage go unnoticed. It is a
generally accepted barometer for local economic health.
Many towns have expanded and seen old downtown districts evolve. While
others have made stepping backwards economically viable.
This may be fine for older or even old style businesses. Newer businesses, in
particular, have special vulnerabilities that make survival past the fifth
anniversary seem unlikely.
This gives gravity and weight to issues of customer attrition and brand equity.
Main Street struggles

3. If you know that. What does this mean?
There were over a half-million new business owners
last year:
•25% will fail in their first year of business.
•Of those remaining, 36% will fold in their second
year.
•Of those still standing, 44% will fail in their 4th
year.
•And of those remaining, HALF will fail in their 5th
year.
Source: mashable.com
1
2 A report from SheEconomy indicated women influence over 80%
of purchases. What does diversity mean in specific terms when
each has different perspectives based on different experiences?

4. Customer Attrition Empowers Individuals
Recent events made me wonder about ways that might play out
as a ripple effect (as in #wordofmouthmarketing) after something
happened that combined with recent conversations to make me
consider the title question.
3
Three of the top casual dining restaurants that have,
according to Black Box Intelligence, had a decline in
nine of the past thirteen years. Industry wide,
restaurants open at least a year, saw a 2% decline in
sales.
Source: http://finance.yahoo.com/blogs/michael-
santoli/casual-dining-chains-struggle-to-adapt-to-changing-
consumer-tastes-203955971.html
Three of the top casual dining restaurants that have,
according to Black Box Intelligence, had a decline in
nine of the past thirteen years. Industry wide,
restaurants open at least a year, saw a 2% decline in
sales.
Source: http://finance.yahoo.com/blogs/michael-
santoli/casual-dining-chains-struggle-to-adapt-to-changing-
consumer-tastes-203955971.html

5. Consider
Moving beyond human capital frameworks is an important step in seeing
human development in a broader context.
This is a problem when everything happens in relation to the rate of social
innovation that can support or facilitate other forms of progress or hinder it.
At the same time that there is great interest in
technologically innovative industries bringing new jobs to
a region or town, there is not the same interest in social
innovation.

6. 5
Shaping Customer Experience
Limited mental models can conceal
devastating assumptions and cultural
norms.
Generally I prefer to meet up with friends
when we go out of town.
The data may show few customers served
but not understanding the problems can
increase what will be spent by your business
attempting to compensate for it.
Generally I prefer to meet up with friends
when we go out of town.
The data may show few customers served
but not understanding the problems can
increase what will be spent by your business
attempting to compensate for it.

7. A Personal Experience
Ooooh! Here’s a
new object that just
“appeared” on
the right!
Ooooh! Here’s a
new object that just
“appeared” on
the right!
… And another, on
the left!
… And another, on
the left!
BRAND ENCOUNTER
But last weekend we had a bout of nostalgia. We were reconnecting with an old friend
passing through. It led us to downtown, recently rebranded as uptown to promote a new
vision, it seems to me, of what neosegregation could be.
The new downtown designation marked by Martin Luther King Drive on the other end with
a demolished (rather than revitalized) business district and no open restaurants at around
6:30pm on a Saturday night.
BRAND ENCOUNTER
But last weekend we had a bout of nostalgia. We were reconnecting with an old friend
passing through. It led us to downtown, recently rebranded as uptown to promote a new
vision, it seems to me, of what neosegregation could be.
The new downtown designation marked by Martin Luther King Drive on the other end with
a demolished (rather than revitalized) business district and no open restaurants at around
6:30pm on a Saturday night.
The problem has been that when we give a local place a chance its rarely an
experience worth repeating.
Often I remember while I had not visited in awhile. When service is friendly
food is typically mediocre. Sometimes that's enough and it's repeated.

8. Point missed
Uptown indicating the part of the street that retained
its previous name and old business district. The
"rebranding" was part of the recent revitalization.
The point of honoring Dr. King was missed and failed
to broadly inspire visions of a community expressing
this dream of unity and shared respect for a new
vision of the nation (specifically the south).
As it was implemented it wasn't an honor.
• What is the uptown brand?
As a public relations strategy what was the goal?

9. A Personal Experience
BRAND ENCOUNTER
Imagine us sitting at a table being ignored by the server standing a few inches from my left
shoulder. I notice she is moving in between our tables and turning her back to us. I didn't get
upset until she had done it twice and it seemed deliberate.
The next time she approached turning her back, I said time to go as I logged on to the
TripAdvisor website. See blog post for review about our experience at this local pub in the
uptown district. As we walked out the door, while my husband called our the friend we were
meeting to inform him of the change in plans.
BRAND ENCOUNTER
Imagine us sitting at a table being ignored by the server standing a few inches from my left
shoulder. I notice she is moving in between our tables and turning her back to us. I didn't get
upset until she had done it twice and it seemed deliberate.
The next time she approached turning her back, I said time to go as I logged on to the
TripAdvisor website. See blog post for review about our experience at this local pub in the
uptown district. As we walked out the door, while my husband called our the friend we were
meeting to inform him of the change in plans.
Nothing about the place echoed the "We are building an inclusive community" sign
upon entering the town, but our friend wanted to meet up where we used to gather
and my husband and I had had our first date 26 years prior.
The most recent restaurant to open there was out of business so we went tried the
place next to it, before leaving without being served.
The place where we ended up on the other side of town didn't feel hostile and was
rewarded with the business of a diverse community. It was packed with a thirty
minute wait.

10. Impacting brand reputation
As we filled our friend in at the place where we ended
up eating, the server inquired about where it had
happened as she delivered a round of drinks and
appetizers.
I watched her retell the story to a co worker as she put
orders for our entrees a couple of feet away. The two
shook their heads in disbelief.
Since then I've thought about several
people who have mentioned their
personal boycotts to me, Not just local
small businesses, but big corporate
brands like Amazon for violations of
workers rights.
Since then I've thought about several
people who have mentioned their
personal boycotts to me, Not just local
small businesses, but big corporate
brands like Amazon for violations of
workers rights.
This is #wordofmouthmarketing

11. Unrecognized threats
This influences people when making client
recommendations, planning events, small
and large, because regional contexts presents
an often unspoken hurdle for newer socially
responsible businesses that are able to move
towards diversity inclusion.
•It means some brands have to do more to distinguish themselves from neighboring
businesses with a negative reputation.
•That may translate into higher marketing, customer acquisition and retention costs. .
•The same could be true of businesses that don't realize the ways that they deter women
customers.
•What would bring this kind of problem to their attention if no one was asking those sorts of
questions?
A major obstacle and a fantastic opportunity
Does this kind of situation give an edge to
franchises and corporate chains that have
a good reputation for enforcing policies
related to product quality, discrimination
or harassment?
This can add up to another set of factors
that lesser known are ill prepared to
address.
Does this kind of situation give an edge to
franchises and corporate chains that have
a good reputation for enforcing policies
related to product quality, discrimination
or harassment?
This can add up to another set of factors
that lesser known are ill prepared to
address.

12. Personal Boycott Evolution
It is generally accepted that boycotts are a
public scandal problem that disrupts sales
and investor earnings with protests marches,
yelling and floods of emails.
However it is also true that quiet personal
boycotts become expressions of collective
loyalty to shared values.
And businesses have been caught without an
effective defense against a problem they
aren't cognizant of as a business or brand
issue.
Old thinking catches up to new realities

13. And by extension the brand legacies in their hands.
This includes state and regional brand economies. Efforts to revise history for better public
relations story is a scandal waiting to happen. Some passionate historian will eventually find
the truth and before you know it a very expensive story falls apart in public.
Earning the tarnish of
corruption or discrimination,
cast a huge shadow and that
is a problem for all
•institutions,
•chief executives
•and business owners
in places where the
unacceptable is tolerated.
Consequences There are community
forums devoted to
exposing revisionist
history?

14. Why new approaches to customer attrition and building
brand equity are needed
What is at stake if you
don't get better at
understanding the
layers of context at play
in your business'
success?
What is at stake if you
don't get better at
understanding the
layers of context at play
in your business'
success?
One is that it
takes courage to
change
One is that it
takes courage to
change
One of the most common mistakes I notice with surveys is the result of not
exploring assumptions and biases in questions or response options.
This is directly related to lack of diversity (in perspectives), and not asking the
right questions.
There are many reasons for this.

15. What changed?
A group of friends are planning to meet up.
Person One suggest a place to avoid recalling this blog
mention.
Person Two shares her negative experience there and
that she doesn't feel comfortable supporting that
business. Combined with a few other experiences after
moving for a job she has since quit, she is organizing her
big business launch events several states away.
A third person mentions the whole area feels
unwelcoming and questions whether its deliberate. They
are celebrating that Person Three is moving to the
Pacific northwest.
Person One notes there are a lot of businesses closing
in comparison with when they first met everyone went
downtown and businesses seemed to stick around.

16. Seeing Hidden Reality
Could your customer
attrition
problem actually be
the result of personal
boycotts?
Could your customer
attrition
problem actually be
the result of personal
boycotts?
There is frequently unrecognized resistance that expresses in micro
economies not just politics.
It makes economic development more expensive on every level. This
in turn means having to overcome realities of guilt by association for
businesses in areas with reputations that can negatively impact
perceptions of your brand to drain its equity.
One last question...

17. Start asking the right questions
Whether you get the best solutions or not
depends on asking the right questions.
What often happens instead is “target
blindness” gets reinforced leaving many
unprepared to survive disruptive innovations.
Will you be one of them?
Go to ArtBasedSolutions.com

18. The podcast, 3 easy steps to get started now with better data
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19. What is it worth to avoid customers cringing
when they encounter your brand?
Simply fill in the form at http://ArtBasedSolutions.com or
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sent to your inbox. Only get this guide if you want to:
•strengthen meaningful connections to your
brand
•enhance brand value and legacy
•increase customer loyalty
•avoid the pitfalls of staff and customer
attrition
•and insulate brand for the future

20. “Cultivating a
better kind of
different.”
“Cultivating a
better kind of
different.” Yvette Dubel
@ydubel