Evergreen

What do successful evergreen businesses have in common? They thrive by fostering strong character, building communities, and delivering quality content.

Character Defines Your Business's Core

A business's character is more than its mission—it's its core personality. Customers connect with companies in the same way they connect with people: through authenticity and relatable values. Defining your firm’s "why" is the first step to building character, not just focusing on "what" you do.

Apple’s "Think Different" campaign illustrates this perfectly. They sell a lifestyle of creativity and innovation, not just gadgets. Customers buy into the identity. In stark contrast, Blackberry's failure with its Playbook tablet stemmed from lacking a clear "why" for its products, leading customers to feel disconnected. Another great model is Zappos, whose product videos show real employees, not models, passionately showcasing every detail of their shoes. Their authenticity embodies their company's commitment to both their products and customer service.

Examples

• Apple sells creativity, not just devices, through its marketing and product focus.
• Blackberry struggled because it failed to communicate "why" it creates.
• Zappos uses employee-led videos to foster trust and represent its true character.

Communities Build Emotional Ties with Customers

Communities aren't just gatherings; they're emotional ties between people and brands. Businesses creating communities help customers connect on a deeper level beyond transactions. These ties foster loyalty and spread the word about the company.

CrossFit is a standout example of leveraging community. With its free, daily Work Out of the Day (WOD) and online platform for sharing results, fans bond over shared goals. It started as one gym and grew to a global network of 8,500 locations. Harley-Davidson also excels, creating face-to-face community events involving employees and bikers. This tactic reinvigorated the company during tough times in the 1980s, cementing it as the leader in their industry for decades to follow.

Examples

• CrossFit encourages community through free workouts and global participation.
• Harley-Davidson fosters direct company-customer relationships through events.
• Adobe serves users with online forums that encourage discussion and sharing.

Content in Business Is About the Entire Experience

Content isn’t just your product—it’s the entire experience provided to customers. From the way services are customized to ease of access and quality, businesses must focus on all the interactions customers have with them.

Chipotle redefined fast food by allowing customers to customize meals while emphasizing fresh ingredients, earning them billions in revenue. Dell follows a similar playbook by enabling buyers to create computers tailored to their needs. Uber disrupted the taxi industry with an app-driven system, improving the experience of ordering, riding, and paying for transportation. These companies prove that customers value thoughtful, streamlined experiences over just basic services.

Examples

• Chipotle's customized meals redefine fast food for higher user satisfaction.
• Dell offers tailored devices to meet individual needs.
• Uber revolutionized taxis by introducing app-based, user-friendly systems.

Break Free from Averages and Generalizations

Viewing customers through averaged data offers a limited understanding of who they are. Instead, businesses should study segmented, behavior-driven profiles to tailor strategies uniquely for each group.

Collecting demographic data (like age or income) alongside behavioral insights (like spending habits or interests) creates meaningful customer profiles. For instance, one company used monthly lotteries requiring short surveys to gather actionable data from participants. Businesses that track purchase frequency, recency, and spending (RFM) can target promotions effectively, boosting retention and reengaging lapsed customers.

Examples

• A business hosted a lottery for surveys, learning more about its audience.
• RFM data helps companies reward frequent or big spenders.
• Companies using customer profiles make superior marketing decisions.

Rethink Loyalty Programs to Build Genuine Connections

Loyalty programs work best when they deepen connections, not just reward existing devotion. Focusing on “fence-sitters”—customers close to becoming more loyal—maximizes their impact.

Starbucks excels by sending frequent special offers to borderline regulars rather than hardcore loyalists. Amazon Prime offers a paid loyalty model, where customers spend $99 annually for perks like faster shipping and exclusive discounts, forging a deeper bond. Similarly, Jack’s Gastropub’s beer club charges members $79 annually for personalized benefits, including their own beer glasses and plaques.

Examples

• Starbucks targets borderline loyal customers with exclusive deals.
• Amazon Prime uses an annual fee to foster more invested memberships.
• Jack’s Gastropub creates loyalty through personalized experiences.

Sometimes, You Need to Fire Bad Customers

Not every customer is good for your business. Some demand more resources than they bring in. Identifying and letting go of unprofitable customers can save your company time and energy.

Amazon closes accounts of those excessively returning items, redirecting focus to more valuable segments. Sprint removed 1,000 recurring over-demanding users who exploited its resources, citing fraudulent behavior. Meanwhile, businesses like FedEx remedy customer complaints effectively but avoid unsustainably pleasing those who don’t align with their mission or processes.

Examples

• Amazon blocks customers with excess returns to maintain efficiency.
• Sprint discontinued clients who abused its system via exaggerated complaints.
• FedEx identifies and retools internal weak points to sustain loyal users.

Prevent Attrition and Rescue Customers

Losing a customer can sometimes be avoided. Monitoring when customers are slipping away allows businesses to reach out proactively with special offers or fixes to reconnect.

Publishing companies, for instance, prevent customer churn by fixing small inconveniences—like login issues—that irritate users. Companies that track and reconnect with lapsed customers through campaigns often see higher success rates. One firm spent $3,000 reactivating lost accounts and grossed $50,000 in return sales, a significant cost-to-revenue advantage.

Examples

• Fixing trivial website errors reduces subscription abandonment rates.
• RFM systems help companies spot disengaged users early.
• Targeting past users yields higher results than onboarding entirely new customers.

Long-Term Success Comes from Focusing on Retention

Chasing new customers while neglecting current ones is a common business pitfall. Retention strategies bring more value than acquisition in terms of profitability and brand loyalty.

When Groupon promotions brought Need A Cake 8,500 new customers in one day, the bakery couldn’t manage orders properly. Quality and trust plummeted, resulting in a major loss. Instead of overwhelming new campaigns, companies should focus on nurturing existing customer relations with follow-ups and deeper engagement.

Examples

• Groupon overwhelmed Need A Cake’s operations, harming its reputation.
• Prompt follow-ups can reinforce loyalty after first purchases.
• Retaining an old customer costs less than onboarding new ones.

An Evergreen Business Stays Relational, Not Transactional

Short-term sales are not the priority of a company designed to last. Evergreen businesses are built on relationships that evolve over time, offering customers something meaningful beyond their first purchase.

Southwest Airlines’ low-fare promise aligns with customer expectations, earning satisfaction through transparent communication. By contrast, Uber not only transformed how people use transportation services but also used community-driven incentives to foster relationships. For long-term growth, businesses need to think and act relationally rather than transactionally.

Examples

• Southwest Airlines’ budget-friendly model meets customer expectations.
• Uber reshaped urban travel while encouraging user-community engagement.
• Evergreen businesses balance ongoing trust over one-time sales.

Takeaways

1. Clearly define and communicate your company's "why" to create a strong, relatable character that attracts loyal customers.
2. Use customer data to better understand behaviors and push tailored loyalty programs or retention strategies to build relationships.
3. Let go of unprofitable customers tactfully to focus resources on those who align with your business's long-term goals.