Evergreen

Introduction

In a world where businesses come and go, some companies manage to stay fresh and vibrant year after year, like evergreen trees that remain lush even in the harshest winters. What's their secret? In his book "Evergreen," Noah Fleming reveals the strategies that allow businesses to thrive in the long term by cultivating deep, lasting relationships with customers.

Fleming argues that truly successful companies focus on three key elements, which he calls the "Three Cs":

1. Character
2. Community
3. Content

By developing a strong character, fostering a sense of community, and delivering valuable content, businesses can create an "evergreen" model that leads to sustainable growth and profitability. This book summary will explore each of these elements in depth and provide practical advice for implementing them in your own business.

The Three Cs: The Foundation of an Evergreen Business

Character: Defining Your Company's Identity

Just as people have unique personalities, successful companies have a distinct character that sets them apart. This character goes beyond just what a company does - it's about why they do it and the values they embody.

The Importance of "Why"

Apple is a prime example of a company with a strong character. Their iconic "Think Different" campaign didn't focus on what products they made, but rather on the idea of thinking differently and challenging the status quo. This resonated with customers who saw themselves as creative and innovative.

In contrast, when Blackberry launched its first tablet, the Playbook, in 2011, it failed to gain traction. The company focused solely on the device's impressive technical specifications without communicating why customers should care. Without a clear sense of purpose or character, Blackberry struggled to connect with its audience.

Authenticity Matters

Building character isn't about creating a false image - it's about communicating something real and authentic about your company. Zappos, the online shoe retailer, does this brilliantly through their product videos. Instead of using professional models, they feature real Zappos employees showcasing every detail of the shoes, quirks and all. This approach demonstrates the company's passion for its products and commitment to customer service, defining Zappos' character in a genuine way.

Guiding Principles

A company's character should serve as the foundation for everything it does, from decision-making to customer relationships. It's not just a marketing tool, but a set of guiding principles that inform every aspect of the business.

Community: Building Deeper Connections

While transactions are necessary for business, true success comes from building a community around your brand. This community creates deeper connections with customers, leading to brand loyalty and organic growth.

The Power of Shared Experiences

CrossFit is a perfect example of how community can drive explosive growth. By offering a free daily workout (the "WOD" or Workout of the Day) on their website and encouraging users to share their results, CrossFit created a global community of fitness enthusiasts. This sense of belonging and shared experience helped the company grow from a single gym to over 8,500 locations worldwide in just eight years.

Direct Customer Engagement

Harley-Davidson turned to community-building as a way to revitalize their brand in the 1980s. By hosting events and rallies, they created opportunities for direct engagement between employees and motorcycle enthusiasts. This focus on community not only saved the company but propelled it to become the world's largest motorcycle manufacturer.

Word-of-Mouth Marketing

Strong communities naturally generate word-of-mouth marketing, as members become brand ambassadors. This organic promotion is often more effective and cost-efficient than traditional advertising methods.

Content: Delivering Value Beyond Products

While many companies focus solely on their products or services, truly evergreen businesses understand that content encompasses everything they do and the value they provide to customers.

The Total Experience

Chipotle Mexican Grill doesn't just sell burritos - they offer a complete dining experience. From customizable orders with fresh ingredients to carefully designed restaurant spaces, Chipotle has transformed a simple food item into a lifestyle brand. This approach to content has helped the company grow from a single location funded by an $85,000 loan to a chain with over 1,500 restaurants and billions in annual revenue.

Customization and Added Value

Dell revolutionized the computer industry by allowing customers to customize their PCs, adding value beyond what was available off the shelf. This focus on personalization and meeting individual needs transformed Dell's products into unique content tailored to each customer.

Disrupting Industries Through Experience

Uber didn't invent the concept of taxi services, but they completely reimagined the experience of getting a ride. By creating a seamless app-based system for ordering and paying for rides, Uber transformed a basic service into a tech-driven content experience. This approach has allowed them to disrupt the transportation industry and expand to dozens of countries in just a few years.

Understanding Your Customers: Beyond Averages

Many companies make the mistake of thinking about their customers in terms of averages and broad demographics. However, this approach fails to capture the nuances and individuality of real people. To create truly evergreen relationships, businesses need to dig deeper and get to know their customers as individuals.

The Power of Segmentation

Instead of relying on generalized averages, use segmentation and archetypes to build a more accurate picture of your customer base. This involves combining demographic data (who your customers are) with behavioral data (what they do).

Collecting Customer Information

To gather this valuable data, consider implementing strategies like:

1. Short surveys with incentives (e.g., monthly lottery for free products)
2. Comment cards and feedback forms
3. Application or registration forms
4. Social media engagement and analysis

Creating a Customer Database

Organize the information you collect into a database or spreadsheet. This doesn't need to be a complex or expensive system - even a simple Excel file can be effective if used consistently.

The RFM Model

One powerful way to analyze your customer data is through the RFM model:

• Recency: When was the customer's last interaction or purchase?
• Frequency: How often does the customer engage with your business?
• Monetary Value: How much does the customer spend?

By tracking these metrics, you can identify your most valuable customers, spot trends, and tailor your marketing efforts more effectively.

Personalization and Targeted Marketing

Use the insights gained from your customer data to create more personalized experiences and targeted marketing campaigns. For example:

• Reach out to customers with low recency scores to re-engage them
• Offer special promotions to high-frequency purchasers
• Develop loyalty programs for high-value customers

By treating your customers as individuals rather than statistics, you'll be better equipped to build lasting relationships and foster an evergreen business.

Rethinking Loyalty Programs

While many businesses have loyalty programs, not all of them are effective at actually building customer loyalty. To create a truly evergreen loyalty program, companies need to focus on strategic relationship-building rather than just offering generic rewards.

Focus on Potential

The most effective loyalty programs target customers who have the potential to become more loyal, rather than those who are already devoted fans. This approach helps to grow your customer base and increase overall engagement.

The Starbucks Model

Starbucks' loyalty program is a great example of this strategy in action. They offer more special deals and promotions to borderline-regular customers than to their most frequent visitors. This approach encourages occasional customers to visit more often, while still rewarding loyal patrons.

Tiered Systems and Exclusivity

Consider implementing a tiered loyalty system that offers increasing benefits as customers become more engaged. This creates a sense of progression and encourages continued participation.

Amazon Prime

Amazon's Prime membership is a prime example of a successful loyalty program that actually requires customers to pay for membership. For an annual fee, Prime members receive benefits like free shipping, access to streaming content, and exclusive deals. This model not only generates additional revenue but also increases customer engagement and loyalty.

Jack's Gastropub Mug Club

Even small businesses can implement exclusive loyalty programs. Jack's Gastropub created "The Mug Club" for beer enthusiasts, offering members their own personalized mug, extra beer with each pour, and recognition in the bar. The annual fee creates a sense of commitment and exclusivity.

Balancing Rewards and Relationship-Building

While rewards are important, the most successful loyalty programs focus on building a deeper relationship between the customer and the company. This can include:

• Personalized communications
• Early access to new products or services
• Exclusive events or experiences
• Opportunities for feedback and input

By creating a loyalty program that goes beyond simple transactional rewards, businesses can foster a sense of community and belonging that keeps customers coming back.

Customer Service: Supporting Loyalty and Profitability

Effective customer service is crucial for maintaining an evergreen business, but it's not just about saying "yes" to every customer demand. Instead, it's about strategically supporting loyalty while also ensuring profitability.

Identifying and Addressing Unprofitable Customers

Not all customers are created equal, and some may actually be costing your business more than they're worth. It's important to identify these unprofitable relationships and take appropriate action.

Amazon's Approach

Amazon has made headlines for closing the accounts of customers who return an excessive number of items. While this may seem harsh, it's a strategic decision to protect the company's profitability and resources.

Sprint's Customer Purge

Telecommunications company Sprint took a similar approach when it closed 1,000 accounts belonging to customers who were constantly calling customer service and demanding fee reimbursements. By identifying these customers as potential fraudsters, Sprint protected its bottom line and freed up resources for more valuable customers.

Setting and Meeting Expectations

Good customer service isn't about bending over backward for every request - it's about clearly communicating what customers can expect and then consistently delivering on those promises.

Southwest Airlines' Success

Southwest Airlines is known for its high customer satisfaction rates, largely because they set clear expectations as a low-cost, no-frills airline. By delivering exactly what they promise, Southwest keeps customers happy and loyal.

FedEx's Proactive Approach

FedEx identified eight key areas of potential customer frustration (such as late deliveries or lost packages) and worked to improve their processes in these areas. By proactively addressing potential issues, they improved overall customer satisfaction.

Focusing on the Right Customers

Ultimately, effective customer service is about attracting and retaining customers who align with your company's character and community. This means:

1. Clearly communicating your brand values and service standards
2. Training staff to embody these values in every interaction
3. Being willing to part ways with customers who don't fit your business model

By taking this approach, you'll build stronger, more profitable relationships with the customers who truly appreciate what your business has to offer.

Reducing Attrition and Recovering Lost Customers

In the pursuit of an evergreen business, it's crucial to focus not just on acquiring new customers, but on retaining existing ones and recovering those who have drifted away.

Understanding and Preventing Attrition

Customer attrition, or churn, can happen for various reasons. Two main types to focus on are:

1. Losses due to company mistakes or oversights
2. Losses due to changes in customer habits or needs

Fixing Process Issues

Sometimes, simple fixes can make a big difference in customer retention. For example, a publishing CEO discovered that many subscription customers were leaving because they couldn't retrieve their passwords. By improving the website's password recovery system, they were able to significantly reduce churn.

Staying in Touch

Often, customers simply forget about a business or fall out of the habit of using its products or services. Implementing a system to track customer engagement (like the RFM model discussed earlier) can help you identify when a customer is at risk of leaving, allowing you to reach out with timely reminders or special offers.

The Power of Customer Recovery

Even when customers do leave, all is not lost. In fact, recovering lost customers can be more cost-effective and profitable than acquiring new ones.

Case Study: Successful Reactivation Campaign

One of the author's clients ran a reactivation campaign targeting 3,000 former customers, spending $1 per person on marketing. The results were impressive:

• 140 customers returned (a 5% response rate)
• Each reactivated customer spent an average of $350
• Total revenue from the campaign: $50,000
• Return on investment: Over 16x the marketing cost

This success rate far outpaced typical new customer acquisition campaigns, which often see response rates of around 2%.

Strategies for Customer Recovery

To effectively recover lost customers:

1. Analyze why they left in the first place
2. Address any issues or concerns they may have had
3. Offer a compelling reason to return (e.g., special discount, new product features)
4. Personalize your outreach based on their past relationship with your company
5. Make the reactivation process as smooth and easy as possible

By focusing on reducing attrition and recovering lost customers, businesses can build a more stable and loyal customer base, supporting long-term growth and profitability.

Shifting Focus: Existing Customers vs. New Acquisitions

While acquiring new customers is important for business growth, many companies make the mistake of prioritizing new acquisitions over nurturing relationships with existing customers. This approach can be counterproductive and even harmful to long-term success.

The Dangers of Over-Focusing on Acquisition

Placing too much emphasis on attracting new customers can lead to several problems:

1. Neglecting existing customers, potentially leading to higher churn rates
2. Stretching resources too thin, compromising quality and service
3. Offering unsustainable discounts or promotions that hurt profitability

Cautionary Tale: Need a Cake Bakery

The bakery "Need a Cake" ran a Groupon promotion that attracted 8,500 new customers in a single day. While this might seem like a success, the bakery was overwhelmed and unable to fulfill orders properly. The result was a significant financial loss and damage to their reputation with both new and existing customers.

Leveraging Character and Community for New Customers

Instead of focusing solely on volume, use your company's established character and community to attract new customers who are likely to become loyal, long-term patrons.

Strategies for Engaging New Customers

1. Use the point of sale as an opportunity to introduce your brand's character
2. Follow up purchases with personalized communications that go beyond generic confirmations
3. Invite new customers to join your community through social media, events, or exclusive groups
4. Offer a small gift or bonus that showcases your commitment to customer satisfaction

Shifting from Selling to Relationship-Building

Once a prospect becomes a customer, the focus should shift from trying to make a sale to fostering a lasting bond. This involves:

1. Introducing the customer to your brand community
2. Providing exceptional onboarding and support
3. Seeking feedback and continuously improving the customer experience
4. Offering loyalty programs or exclusive benefits for repeat customers

The Long-Term Value of Customer Retention

Investing in existing customer relationships often provides a higher return on investment than constantly chasing new acquisitions. Benefits of focusing on retention include:

1. Lower marketing costs
2. Higher customer lifetime value
3. Increased word-of-mouth referrals
4. More stable and predictable revenue

By shifting focus from acquisition to retention and relationship-building, businesses can create a more sustainable, evergreen model for growth and success.

Implementing the Evergreen Strategy: Practical Steps

Now that we've explored the key concepts of building an evergreen business, let's look at some practical steps you can take to implement these ideas in your own company.

1. Define and Communicate Your Character

• Hold a company-wide brainstorming session to identify your core values and mission
• Create a clear, concise statement that explains why your company exists (beyond making money)
• Ensure all marketing materials and customer touchpoints reflect your character consistently
• Train employees to embody and communicate your company's character in their daily work

2. Foster a Strong Community

• Identify platforms (online and offline) where your customers naturally gather
• Create opportunities for customers to connect with each other and with your brand
• Encourage user-generated content and testimonials
• Host events or webinars that bring your community together
• Establish a system for gathering and implementing customer feedback

3. Develop Valuable Content

• Audit your current products and services to ensure they align with your character and meet customer needs
• Look for opportunities to add value beyond your core offerings (e.g., educational resources, personalization options)
• Invest in improving the overall customer experience, from first contact to post-purchase support
• Regularly solicit feedback on your content and be willing to iterate and improve

4. Implement Customer Segmentation

• Set up a system for collecting and organizing customer data
• Use the RFM model to analyze customer behavior and identify key segments
• Develop targeted marketing and retention strategies for each segment
• Regularly review and update your segmentation to ensure it remains accurate

5. Revamp Your Loyalty Program

• Assess your current loyalty program (if you have one) and identify areas for improvement
• Consider implementing a tiered system that rewards increased engagement
• Focus on building emotional connections, not just transactional rewards
• Look for opportunities to create exclusive experiences or benefits for loyal customers

6. Improve Customer Service

• Train your customer service team to embody your company's character in every interaction
• Implement systems for identifying and addressing unprofitable customer relationships
• Set clear expectations for your service standards and consistently meet or exceed them
• Regularly gather and analyze customer feedback to identify areas for improvement

7. Focus on Retention and Recovery

• Implement an early warning system to identify at-risk customers
• Develop a proactive outreach program to re-engage customers before they leave
• Create a targeted win-back campaign for lost customers
• Analyze reasons for customer churn and address systemic issues

8. Shift Resources Towards Existing Customers

• Review your marketing budget and consider reallocating funds from acquisition to retention efforts
• Develop a comprehensive onboarding process for new customers to set the stage for long-term relationships
• Create opportunities for deeper engagement with existing customers (e.g., loyalty programs, exclusive events, early access to new products)
• Implement a system for regularly checking in with and nurturing customer relationships

Conclusion: Nurturing Your Evergreen Business

Building an evergreen business is not a one-time effort, but an ongoing process of nurturing and growth. By focusing on the three Cs - Character, Community, and Content - and implementing the strategies outlined in this summary, you can create a business that stands the test of time.

Remember that the key to long-term success lies in building deep, meaningful relationships with your customers. This means going beyond simple transactions to create a sense of belonging and shared values. It means consistently delivering value and exceeding expectations. And it means being willing to adapt and evolve as your customers' needs change.

As you implement these evergreen strategies, keep in mind that results may not be immediate. Like a growing tree, an evergreen business takes time to develop strong roots and flourish. But with patience, persistence, and a commitment to your core values, you can create a business that remains vibrant and profitable for years to come.

By prioritizing character, fostering community, delivering valuable content, and focusing on long-term customer relationships, you'll be well on your way to cultivating a truly evergreen business - one that can weather any storm and continue to thrive, season after season.