Latest / Leaders in Customer Loyalty, Powered by Loyalty360 / Loyalty360: A Q&A with Author Doug Zarkin on Moving Your Brand Out of the Friend Zone and Creating Emotional Loyalty
Transcript
- 0:05Mark Johnson: Good afternoon, good morning.
- 0:05Mark Johnson: It's Mark Johnson from Loyalty 360.
- 0:07Mark Johnson: I hope everyone's happy, safe and well.
- 0:09Mark Johnson: I want to welcome you back to another edition of our Authors in Academia series, where we look at topics and trends that impact customer channel and brand loyalty from a unique lens to give an enhanced perspective on the state of customer loyalty.
- 0:22Mark Johnson: Today we have the pleasure of speaking with Doug Zarkin, who recently published a book entitled Moving your Brand Out of the Friend Zone.
- 0:29Mark Johnson: I think it's a very timely book for those who are immersed in the customer loyalty industry, because emotional connection, emotional engagement, is very important to brands.
- 0:38Mark Johnson: Right now, there's challenges with how to do that, how to measure that.
- 0:41Mark Johnson: So looking forward to having this discussion with Doug to understand some of the value propositions that brands should be looking at and considering as they move their brand out of friend zone, should I say so, Doug, thank you very much for taking the time to talk with us today.
- 0:55Doug Zarkin: Mark, good to see you.
- 0:56Doug Zarkin: I think your background is probably the only one I've seen in all the podcasts and zooms that I do in Teams meetings.
- 1:03Doug Zarkin: That is even more cluttered than mine, so congratulations.
- 1:07Doug Zarkin: Very interesting stuff back there.
- 1:10Mark Johnson: Thank you.
- 1:10Mark Johnson: A little bit of Bronco stuff.
- 1:12Mark Johnson: I know you're a big giant fan, so you got to show the colors, I think Absolutely 100%.
- 1:17Mark Johnson: So first off, we like to start these on a more personal level, to get to know the person we're speaking with.
- 1:23Mark Johnson: So I'd love to know a little bit about your background, most recent positions and also maybe a fun fact about you, something you enjoy, a passion you have outside of work.
- 1:33Doug Zarkin: Sure.
- 1:34Doug Zarkin: So my career journey really is, I think, a great example of getting on the train at the end and working my way to the front.
- 1:40Doug Zarkin: I began my career, first career in the agency world, where I moved up the ranks and eventually started the youth, entertainment and lifestyle division of gray advertising.
- 1:49Doug Zarkin: And then I went to the client side and sort of fun fact is you're talking one of the few men that was actually an Avon lady.
- 1:54Doug Zarkin: When I joined Avon to help create and eventually launch their mark by Avon brand.
- 2:01Doug Zarkin: I had really never worked deeply in the beauty and clearly, when you go to a company that is called the company for women, if you don't shut up and listen and learn from the ground up, you're going to make some epic mistakes.
- 2:12Doug Zarkin: From there I went to Victoria's Secret to accelerate their pink brand, spent a number of years in fashion and beauty for 11 years at Essilor Luxottica, the chief marketing officer for Pearl vision, where I had the distinct pleasure of really revitalizing that iconic brand, and then this past week was named the chief brand officer for a company called Good Feed Holdings, which is an amazing health and wellness organization that owns brands like the Good Feed Store and OS First, which is a performance, sock brand and a bunch of others that are soon to be announced and really excited to get in there as the chief brand officer and help mature that portfolio.
- 2:53Mark Johnson: Okay, excellent.
- 2:53Mark Johnson: You recently published a book Moving your Brand Out of the Friend Zone.
- 2:58Mark Johnson: I would love to know, kind of a high level, why you decided to write the book and what's the genesis of the book and what's the book about.
- 3:07Doug Zarkin: You know, I'm realizing after spending my summer writing it and I wrote the book in about 16 weeks that I must be a masochist because I literally can't spell and auto-correct and I have a very, very love-hate relationship.
- 3:19Doug Zarkin: But for me it was really two things.
- 3:21Doug Zarkin: Number one, you know, I've had the privilege of being on podcasts and on stage in a number of conferences and it's always exciting when you say something that motivates somebody.
- 3:30Doug Zarkin: And number two is I have the pleasure of being involved in several mentoring organizations, formal, like AdWeek and the Association of National Advertisers Education Foundation, but also informal with you know, people I've come across in my career that I spend time with and this was an opportunity in putting out this my first book, which is now available at Amazon and soon to be available in Kindle format to really bring that thought leadership and the opportunity to help every young marketer kind of figure out their way to bear.
- 4:04Doug Zarkin: And so I'm excited that it's now hit and anxious to see the responses to it.
- 4:11Mark Johnson: That's Awesome.
- 4:11Mark Johnson: So the friend zone.
- 4:12Mark Johnson: Can you tell us a little bit more why brands should not be there?
- 4:16Mark Johnson: It'd be good to know.
- 4:19Doug Zarkin: So you know don't kid yourself, Mark we all know what the friend zone is in our personal life We've all been there and in the world of branding and marketing.
- 4:28Doug Zarkin: Unfortunately, brands don't know until it's too late that they're in the friend zone.
- 4:32Doug Zarkin: And the friend zone is essentially when you think you have a stronger relationship with your consumers than they think of you, and the easiest way to understand that reality is by looking at your sales trajectory and that sort of trigger tendency to start engaging what we all call latent customers.
- 4:49Doug Zarkin: You know, if, more and more, that database gets bigger and bigger, where people aren't coming back to you with the regularity that you expect, you're in the friend zone.
- 4:57Doug Zarkin: The friend zone is where there is a decent level of passion and trust, but not enough to prevent somebody from moving on, moving up or moving out of your brand and your products.
- 5:08Doug Zarkin: And so the premise is in today's marketplace, where a great idea can go from idea to execution in rapid time thanks to Kickstarter and Etsy and Instagram, you've got to really deepen your commitment, your consumers, to create what I call brand love.
- 5:22Doug Zarkin: You know where consumers are so passionate about your brand and your business and your products and your services that it doesn't matter what the hot trend is.
- 5:30Doug Zarkin: They're going to look really, really hard before they make any leap.
- 5:34Doug Zarkin: And, most importantly, these are the consumers that are your advocates, Because, whether we like it or not today, tomorrow and in the future, the most powerful tool in the marketers toolbox is word of mouth marketing, and that really comes when you can take customers and turn them into advocates.
- 5:53Mark Johnson: Interesting.
- 5:53Mark Johnson: So one of the things that we see at L360, being a trade association for the industry a number of brands growing number that are focused on emotional loyalty, right?
- 6:02Mark Johnson: So it's the same thing.
- 6:03Mark Johnson: You know, having that deep emotive connection with the customer is very important, but brands struggle with that Many brands.
- 6:12Mark Johnson: We just did a survey over the summer around emotional loyalty and brands think they have a deeper connection with their customers.
- 6:18Mark Johnson: They have a higher emotional loyalty quotient than they may actually have, right?
- 6:21Mark Johnson: So there's some challenges there, similar to what you said.
- 6:24Mark Johnson: The relationship piece.
- 6:25Mark Johnson: How do brands address that because most brands don't have metacognition to really understand the true depth of the relationship with the customer.
- 6:26Mark Johnson: Is that step one?
- 6:26Mark Johnson: How do brands or how should they address that?
- 6:39Doug Zarkin: I love the double word score metacognition don't ask me to spell it, but the way brands really can address it is first to admit that they have a problem, and the problem is is they're being too transactional with their consumer.
- 6:53Doug Zarkin: You know, if every engagement opportunity that you find is about trying to push something, whether they need it or not, you're not going to create brand love.
- 7:01Doug Zarkin: And so it's sort of resisting the urge and saying at the end of the day hey look, I'm in it to win it with you over the long term.
- 7:13Doug Zarkin: Let's work together to find the right opportunity where you can educate, inform and then stimulate me to do the action that I need to do when I need to do it.
- 7:26Mark Johnson: Excellent.
- 7:26Mark Johnson: When you look at the brand value equation and its impact.
- 7:30Mark Johnson: This is something obviously quite relevant to our members.
- 7:32Mark Johnson: As I mentioned, many are redoing the customer value propositions to try and get that brand value equation.
- 7:38Mark Johnson: Can you talk a little more about that, what it is and how brand should be striving to get that ?
- 7:44Doug Zarkin: righ, I'm definitely not Einstein and this is not the Pythagorean theorem, but what I've created in the book is the brand value equation.
- 7:53Doug Zarkin: The notion is that whether you're making $550, $500, or millions of dollars, you instinctually, without even knowing it, want brand value.
- 8:08Doug Zarkin: If I told you that your neighborhood fast food chain was going to raise their price of their hamburger from $249 to $1249, you wouldn't go buy it.
- 8:19Doug Zarkin: Just at the same way, if I told you that a luxury resort was going to discount all of their rooms to $99, no black out fees, no regulations you'd be jumping and booking a trip.
- 8:28Doug Zarkin: You just went through the brand value equation.
- 8:30Doug Zarkin: Brand value equals experience as your numerator divided by prices, your denominator.
- 8:35Doug Zarkin: As long as you have a net positive relationship, especially two to three times, you're going to be able to deliver brand value.
- 8:44Doug Zarkin: If your product or service is $100, you need to be delivering $200 to $400 in experience in order to have a really strong brand value equation.
- 8:56Doug Zarkin: The brands that find themselves in the friend zone are ones that are like $100 experience for $100 price or $75 experience for $100 price, where you're satisfied but there's no intensity.
- 9:11Mark Johnson: That makes sense.
- 9:11Mark Johnson: Interesting.
- 9:12Mark Johnson: You also have a unique idea around brand positioning and the art of sacrifice .
- 9:19Doug Zarkin: Can you tell u
- 9:21Doug Zarkin: You're going to shar.
- 9:22Doug Zarkin: Sorry for the yawn, it's early my time.
- 9:24Doug Zarkin: It's really simple.
- 9:26Doug Zarkin: You and I, I am sure, in our past lives or current lives, have found ourselves rolling up to one of those great buffets in Las Vegas or other places.
- 9:34Doug Zarkin: There is absolutely nobody who physically feels good after going to a buffet.
- 9:42Doug Zarkin: The human body is not designed to consume lobster and pizza and steak and Italian food and ice cream and pie.
- 9:50Doug Zarkin: Okay, you feel like shit.
- 9:52Doug Zarkin: Brands that try to do too much also feel that way, and the notion is practicing that art of sacrifice is part of the talent.
- 10:02Doug Zarkin: That is absolutely where you need to truly decide what you're going to do, what you're not going to do.
- 10:11Doug Zarkin: Every piece of communication can contain every single message.
- 10:17Mark Johnson: Yep.
- 10:17Mark Johnson: And I think that's interesting because we had a discussion this week in our community around just that right Having too much communication going out.
- 10:28Mark Johnson: A lot of brands do it.
- 10:29Mark Johnson: Supporting the retailers being one of them, and how to simplify that but have it to be more impactful based on their data and what they understand about the customer is very challenging with brands.
- 10:40Mark Johnson: Is that something you see, or maybe not as much?
- 10:44Doug Zarkin: Like 50-50.
- 10:44Doug Zarkin: I think you're starting to see a little bit of it, but I think there could always be more.
- 10:48Mark Johnson: Okay, when you look at customers, they have a tendency to be more irrational.
- 10:52Mark Johnson: You talk about looking for that alignment.
- 10:55Mark Johnson: They may say they have an interest in or value in a certain thing, but they may not actually end up, you know, partaking in that behavior.
- 11:03Mark Johnson: So you talk about looking to add value, you know, at $200 to $400.
- 11:08Mark Johnson: How should a brand look to establish that or do that when they're looking to add value, if they don't necessarily understand customers?
- 11:16Doug Zarkin: So you know, to me it kind of goes to the notion that I talk about in the book, about thinking human.
- 11:21Doug Zarkin: And thinking human emanates out of two things.
- 11:24Doug Zarkin: Number one, recognizing that consumers make emotional decisions before they make rational choices, and so that shapes not only what you say but how you say it.
- 11:33Doug Zarkin: The second thing is addressing your consumer with the mindset that imagine if that consumer that came in was the only consumer that you saw that day.
- 11:46Doug Zarkin: What would you do?
- 11:48Doug Zarkin: How would you treat them?
- 11:50Doug Zarkin: What would the experience be?
- 11:52Doug Zarkin: And that's the story.
- 11:56Doug Zarkin: I mean, that's at the end of the day.
- 11:57Doug Zarkin: That is the story.
- 11:59Mark Johnson: You also talk about the currency of trust within the book.
- 12:02Mark Johnson: You know, when you look at the currency of trust, your brands are very focused on trust, but trust can be very immeasurable in some manners.
- 12:12Mark Johnson: How should they be looking to build that trust quotient up?
- 12:18Doug Zarkin: Slowly and with humility.
- 12:19Doug Zarkin: A really easy way to build trust is through a series of small moments of caring connection.
- 12:25Doug Zarkin: Discounting is a gesture Sending an email or picking up the phone and calling your consumer a couple weeks or a couple months after they've engaged with your product, just to see how things are doing.
- 12:38Doug Zarkin: Got to be honest with you.
- 12:39Doug Zarkin: That goes a lot further.
- 12:41Doug Zarkin: You know, imagine you have your doctor who operates on you.
- 12:48Doug Zarkin: They call you the next day, the nurse calls you a week later.
- 12:52Doug Zarkin: You go and you see the doctor a month later, two months later, six months later.
- 12:56Doug Zarkin: But what about if, like a year later, out of the blue, your doctor just called you and said hey, listen, how's it going?
- 13:00Doug Zarkin: Is there anything you need?
- 13:02Doug Zarkin: That takes about seven seconds.
- 13:05Doug Zarkin: But wow, don't you think that that doctor really cares about you?
- 13:09Doug Zarkin: And the next time that somebody in your family friends network needs a doctor for that particular specialty, I bet your bottom dollar they're going to recommend it.
- 13:21Mark Johnson: Yeah, that makes sense, perfect sense.
- 13:23Mark Johnson: When you look at brands today, they're struggling with the technology, struggling with personalization, being able to do it scale.
- 13:30Mark Johnson: When you look at the opportunities for brands today, what do you think the biggest challenge or potential opportunity could be regarding brand loyalty, brand affinity?
- 13:40Doug Zarkin: So I think brand loyalty they have to think of it like one of my personal passions.
- 13:43Doug Zarkin: To your earlier question that I didn't answer is I'm a competitive tennis player and in tennis, yes, there are certain points that you went off your serve, but the majority is about setting up your opponent to win.
- 13:53Doug Zarkin: And I think, if you look at loyalty like a game of tennis, if you want to sell something incremental who emails before that you want to send the email that pushes that product or service?
- 14:06Doug Zarkin: Heat up with some content, with that moment of care and connection that's going to make the return on investment that much greater.
- 14:18Mark Johnson: Okay, that's a great point when you look at your career very successful, very unique, very diverse.
- 14:23Mark Johnson: What's the biggest challenge you have solved in your career?
- 14:28Doug Zarkin: Biggest business challenge, I would say, was probably repositioning Pro Vision, Revitalizing the iconic brand, getting it out of the friend zone, getting out of the world the buy one, get one free.
- 14:38Doug Zarkin: At the same time, the biggest challenge in my career itself has been my career itself moving from the agency world to the client side, navigating that world, learning how to be a leader.
- 14:54Doug Zarkin: They didn't teach you leadership in graduate school.
- 14:58Doug Zarkin: They certainly didn't teach you in undergrad.
- 15:00Doug Zarkin: You lead by learning how to lead and certainly I continue to be a work in progress.
- 15:06Doug Zarkin: My leadership style has evolved tremendously Early in your career.
- 15:11Doug Zarkin: It's all about accomplishment.
- 15:12Doug Zarkin: It's about being a single contributor, a rock star Wow, that kid's great.
- 15:18Doug Zarkin: Let me get him on the team.
- 15:19Doug Zarkin: Let me give him an opportunity.
- 15:21Doug Zarkin: Well, when you reach a certain point in your career, it's about others and it's about celebrating the journey and ensuring that others want to come along to the ride.
- 15:30Doug Zarkin: Climbing a mountain alone yeah, you can reach the summit and take a selfie, but it's that group pic.
- 15:36Doug Zarkin: It's a hell of a lot more fun.
- 15:38Mark Johnson: Excellent.
- 15:38Mark Johnson: That's kind of a follow-up question could be what are you most proud of in your career?
- 15:44Mark Johnson: Is the Pearl Vision kind of transition?
- 15:48Doug Zarkin: I think what I'm most proud of in my career is the people that I've had the opportunity to lead and grow.
- 15:55Doug Zarkin: I'm a big proponent of the how is as important as the what, and I think I certainly am a requiring leader.
- 16:03Doug Zarkin: I don't suffer fools.
- 16:04Doug Zarkin: Well, I do require my team to have purpose and bring the energy and the passion which is what I hire for, but I think I'm most proud of the fact that I'm actually a really good person at the end of it.
- 16:15Doug Zarkin: I love hard and, unfortunately, I hate hard.
- 16:19Doug Zarkin: So for me, in building a high-performing team, when you get a group of people that will go to bat for you, there's nothing and nobody more important to them, and I've made some very special relationships in the course of my career as a result.
- 16:32Mark Johnson: Excellent and, when you look at your book, very impactful in a number of different areas.
- 16:37Mark Johnson: Are there one or two things that you would recommend to brands who want to take that first step, because a lot of times they're sold to read a book and it's very, you know, boil, the ocean type approach, very challenging from a measurement implementation, but are there one or two things that you would recommend brands should consider to start with.
- 16:54Doug Zarkin: Yeah, embrace the notion of being a niche brand.
- 16:58Doug Zarkin: Niche doesn't mean small.
- 17:00Doug Zarkin: Niche means opportunity.
- 17:02Doug Zarkin: You know it's an opportunity that can allow you to grow and become a powerful force.
- 17:10Doug Zarkin: I would much rather have a very good idea of who my consumer is and know that I'm satisfying a need state beyond what they even expect, than to just spray and pray.
- 17:20Doug Zarkin: You can't afford to spray and pray.
- 17:22Doug Zarkin: It's just way too many competitors in the marketplace.
- 17:25Mark Johnson: Absolutely Interesting.
- 17:26Mark Johnson: And the last question, from a loyalty perspective are there a brand or two that you are most loyal to, that you find yourself driven to, and why.
- 17:38Doug Zarkin: In the world of sports for me, I'm probably most loyal to Wilson from Iraq, a6 for my sneakers.
- 17:45Doug Zarkin: There are some niche brands that I've really become loyal to, like Mugsy for Jeans.
- 17:48Doug Zarkin: I think they do an amazing, amazing job.
- 17:53Doug Zarkin: The brands that I'm most loyal to are the ones that add value to my life and to my family's life.
- 17:58Doug Zarkin: I can't think of what my life would be like without Amazon Prime.
- 18:01Doug Zarkin: I can't think of what my life would be like without some of that.
- 18:04Doug Zarkin: I can't think of what my life would be like without some of the streaming services that I'm joined mainly because they provide sources of entertainment and joy for myself and my family.
- 18:16Mark Johnson: So, yeah, okay, and now we have our fun quickfire question session and looking forward to hearing your responses and what's your favorite word yeah.
- 18:29Mark Johnson: Awesome.
- 18:31Mark Johnson: What's your least favorite word?
- 18:33Mark Johnson: Can't, okay.
- 18:34Mark Johnson: What excites you People?
- 18:38Mark Johnson: What do you find tiresome People?
- 18:42Mark Johnson: Okay, what is your favorite travel destination?
- 18:50Doug Zarkin: It's a great question.
- 18:51Doug Zarkin: It's a great question I would wow I don't even know how to answer that Probably going out east to the Hamptons to my in-laws house and just sitting by the pool and vegetating, doing a whole lot of nothing.
- 19:07Mark Johnson: Okay, a profession.
- 19:09Mark Johnson: What profession would you have liked to attempt if you weren't in the marketing arena?
- 19:17Doug Zarkin: Either journalism as a newscaster or being on Broadway.
- 19:22Mark Johnson: Okay.
- 19:22Doug Zarkin: What profession would you avoid?
- 19:24Doug Zarkin: Food service, because I tried it and I cannot balance a track.
- 19:30Doug Zarkin: Terrible.
- 19:32Mark Johnson: Who inspired you to become the person you are today.
- 19:37Doug Zarkin: My probably my mom, my dad.
- 19:38Mark Johnson: Okay, what do you typically think about at the end of the day?
- 19:42Mark Johnson: Gratitude and last question how do you want to be remembered by your friends and family?
- 19:54Doug Zarkin: Somebody who made a difference, not just for what he did, but how he did it.
- 19:59Mark Johnson: Excellent.
- 19:59Mark Johnson: Well, doug, thank you very much for taking the time to talk to us today.
- 20:02Mark Johnson: Congrats on the book.
- 20:04Mark Johnson: You know Moving your Brand out of the Friend Zone.
- 20:05Mark Johnson: It's available at Amazon and the Kindle Edition is coming out soon.
- 20:10Mark Johnson: You mentioned.
- 20:10Doug Zarkin: Kindle Edition is coming out soon.
- 20:12Doug Zarkin: Paperback version is available on Amazon and you can always go to dugsarkincom to find the links if you can't find it Perfect.
- 20:19Mark Johnson: Well, thank you very much again for taking the time to talk to us today and helping brands get their brand out of the Friend Zone, and thanks again.
- 20:27Mark Johnson: All right, thank you.
- 20:28Mark Johnson: I appreciate it, mark, absolutely.
- 20:30Mark Johnson: Thank you everyone for taking the time to listen.
- 20:32Mark Johnson: I'll make sure you join us back for another edition soon.
- 20:34Mark Johnson: Have a wonderful day.