After the death of his father, God said to Abraham, “Go from your country and your kindred and your father’s house to the land that I will show you. And I will make of you a great nation, and I will bless you, and make your name great, so that you will be a blessing. I will bless those who bless you, and him that curses you, I will curse; and by you all the families of the earth shall bless themselves.” (Genesis 12: 1-3). In response, Abraham left what is modern Iraq and traveled west of the Jordan River.
Twenty-four years later, God said to Abraham, “I am God Almighty, walk before me, and be blameless. And I will make my covenant between me and you, and will multiply you exceedingly… Behold my covenant is with you, and you shall be the father of a multitude of nations… And I will establish my covenant between me and you and your descendents after you throughout their generations for an everlasting covenant to be God to you and to your descendents after you. And I will give to you, and to your descendents after you, the land of Canaan for an everlasting possession; and I will be their God… This is my covenant, which you shall keep, between me and you and your descendents after you: Every male among you shall be circumcised.” (Genesis 17: 1-10).
The Circumcision by Peter Paul Rubens (1605)
We tend to focus on the tangibles: many descendents, a promised land, circumcision. But this reduces the covenant to a pretty tawdry deal: I give you children and Canaan in exchange for you being circumcised. Is this why the promise given Abraham continues to resonate centuries later?
We give much less attention to the intangibles: “By you all the families of the earth shall bless themselves;” “I will establish my covenant between me and you and your descendents after you throughout their generations for an everlasting covenant to be God to you and to your descendents after you;” and “I will be their God.” At the core of the covenant is a relationship that Abraham has not requested nor earned, God will be God to him and his descendents, and because of this relationship even those who are not descended from Abraham will be blessed.
The fundamental differentiator is the relationship between God and his chosen people. There are tangible symbols of this relationship: a special place and the sign of circumcision. But the symbols are not the substance. Without the underlying relationship, the symbols lack power.
I am a member of several affinity programs – Hertz Gold, Marriott Platinum, United Premier Executive – and many more. Each of these affinity programs seek to differentiate the company from its competitors. Each program uses tangible symbols – membership cards, elite status, special offers, and personalized mailings – to communicate the promise of differentiated value through an ongoing relationship.
The affinity programs are designed to build customer loyalty and repeat business. Creating a sense of relationship – a shared identity – between the brand and the customer is the ultimate success. Differentiated value is intangible. The relationship is intangible. Crafting the intangibles is the real purpose of the affinity programs.
Hertz Gold allows me to move from my plane seat into the driver’s seat of a rental car with almost no hassle or delay. Hertz does not communicate with me very much. I do not perceive that Hertz is trying to create a relationship with me. Rather, the company delivers a recognized value at a competitive price and with consistent quality. I feel no sense of relationship with Hertz. I am open to competitive offers, but I usually choose Hertz. This company has my business, but it is not differentiated. I appreciate the service and product, but there is no promise of something more.
United Airlines does a great job communicating with me and rewarding my business. Through most of the 1990s I had a real relationship with United. I would not consider using another airline unless United could not get me where I needed to go. But the hassles of air transportation and the inability to actually use my benefits have, over the years, substantially reduced my loyalty to United. The symbols continue to have some meaning, generally as a reflection of the old relationship and its promise. But as the substance fades, the symbols lose their attraction. United or – perhaps more accurately – the airline industry failed to fulfill the promise offered.
Marriott properties can sometimes be less well situated than I would like or lack services I need. The architecture of most Marriott’s is atrocious. But over the years, in dozens of small ways, Marriott has created an intangible but very strong sense of relationship. The combination of services – a special reservations line, assured reservations at any location, free breakfast, a welcome gift, surprise upgrades, the way I am treated by reservations and at check-in – create the impression that I am personally valued.
In the case of Marriott this impression is certainly an illusion. I am just one of several thousand people who are enrolled in a database of high volume customers being served by a well-planned and consistently executed system. But Marriott made a promise and with each stay it renews the promise. The competence and consistency of Marriott has caused me to respond with a sense of emotional relationship that is irrational, but is also very real.
A promise is the beginning of a relationship, not its culmination. Each time we make a promise – as individuals or an organization – we initiate the possibility of a relationship. Tangible symbols play a role in building the relationship. But the promise is fulfilled only when the intangible relationship – rather than tangible symbols – is perceived as having the greatest value.
We tend to focus on the tangibles: many descendents, a promised land, circumcision. But this reduces the covenant to a pretty tawdry deal: I give you children and Canaan in exchange for you being circumcised. Is this why the promise given Abraham continues to resonate centuries later?
We give much less attention to the intangibles: “By you all the families of the earth shall bless themselves;” “I will establish my covenant between me and you and your descendents after you throughout their generations for an everlasting covenant to be God to you and to your descendents after you;” and “I will be their God.” At the core of the covenant is a relationship that Abraham has not requested nor earned, God will be God to him and his descendents, and because of this relationship even those who are not descended from Abraham will be blessed.
The fundamental differentiator is the relationship between God and his chosen people. There are tangible symbols of this relationship: a special place and the sign of circumcision. But the symbols are not the substance. Without the underlying relationship, the symbols lack power.
I am a member of several affinity programs – Hertz Gold, Marriott Platinum, United Premier Executive – and many more. Each of these affinity programs seek to differentiate the company from its competitors. Each program uses tangible symbols – membership cards, elite status, special offers, and personalized mailings – to communicate the promise of differentiated value through an ongoing relationship.
The affinity programs are designed to build customer loyalty and repeat business. Creating a sense of relationship – a shared identity – between the brand and the customer is the ultimate success. Differentiated value is intangible. The relationship is intangible. Crafting the intangibles is the real purpose of the affinity programs.
Hertz Gold allows me to move from my plane seat into the driver’s seat of a rental car with almost no hassle or delay. Hertz does not communicate with me very much. I do not perceive that Hertz is trying to create a relationship with me. Rather, the company delivers a recognized value at a competitive price and with consistent quality. I feel no sense of relationship with Hertz. I am open to competitive offers, but I usually choose Hertz. This company has my business, but it is not differentiated. I appreciate the service and product, but there is no promise of something more.
United Airlines does a great job communicating with me and rewarding my business. Through most of the 1990s I had a real relationship with United. I would not consider using another airline unless United could not get me where I needed to go. But the hassles of air transportation and the inability to actually use my benefits have, over the years, substantially reduced my loyalty to United. The symbols continue to have some meaning, generally as a reflection of the old relationship and its promise. But as the substance fades, the symbols lose their attraction. United or – perhaps more accurately – the airline industry failed to fulfill the promise offered.
Marriott properties can sometimes be less well situated than I would like or lack services I need. The architecture of most Marriott’s is atrocious. But over the years, in dozens of small ways, Marriott has created an intangible but very strong sense of relationship. The combination of services – a special reservations line, assured reservations at any location, free breakfast, a welcome gift, surprise upgrades, the way I am treated by reservations and at check-in – create the impression that I am personally valued.
In the case of Marriott this impression is certainly an illusion. I am just one of several thousand people who are enrolled in a database of high volume customers being served by a well-planned and consistently executed system. But Marriott made a promise and with each stay it renews the promise. The competence and consistency of Marriott has caused me to respond with a sense of emotional relationship that is irrational, but is also very real.
A promise is the beginning of a relationship, not its culmination. Each time we make a promise – as individuals or an organization – we initiate the possibility of a relationship. Tangible symbols play a role in building the relationship. But the promise is fulfilled only when the intangible relationship – rather than tangible symbols – is perceived as having the greatest value.
I would be interested in hearing your thoughts on how the promise is cascaded through an organization. How did Abraham convey God's promise so that it resonated with the people? How did Dick Marriott convey the promise so that it resonated throughout Marriott properties worldwide? Like you, I was a 'valued' United customer throughout the 90s and actually felt the love. Over the last 9 years, since 9/11, I have felt the cattle prod and little else... It is easy to look back and blame the break on 9/11 but that is too easy.
ReplyDeleteI have seen the best of times bring out the best and worst in people and I have seen the worst of times bring out the best and worst in people. 9/11 provided United (and thousands of other companies) with an opportunity (albeit an unsought and unwanted one) to reinvent themselves and redefine the way they operate in their chosen markets. To me, United has, so far, missed the opportunity.
The glib answer to your question (but I think it is also the accurate answer) is a combination of leadership commitment and a management system that is built around that commitment.
ReplyDeleteFor example, two weeks ago I called a Marriott reservationist to seek an "escape" from a non-refundable reservation when I was held up out of town. But I proposed a shift that would result in me spending two extra nights at the same property at a higher rate. The reservationist could not help, so I went online and emailed central reservations. In writing I could make the full explanation and give the first-line personnel something to take up the chain. In less than an hour elapsed time (with many a five minute investment of time) I had an accomodation.
It took me a awhile, but I finally found an email for the President of North American Lodging. I sent him the email record, expressed my thanks, and asked him to pass along my thanks to the reservation personnel. In less than five minutes the President of North American Lodging had personally responded from his BlackBerry.
Which came first, the leadership commitment or the management system? My money is on the leadership commitment, but then it took the management system to carry it out.