Episode Transcript
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John Kundtz (00:01):
How to wow
customers for life.
Disney secrets for Main Streetbusinesses.
Hi everyone, I'm your host,john Kundtz, and welcome to
(00:22):
another edition of the DisruptorPodcast.
For those that are new to ourshow, the Disruptor Series is
your blueprint forgroundbreaking innovation.
We started the podcast inDecember of 2022 as a periodic
segment of the Apex Podcast.
Our vision was to go beyondconventional wisdom by
confronting the status quo andexposing the raw power of
(00:43):
disruptive thinking.
By confronting the status quoand exposing the raw power of
disruptive thinking and today'sguest embodies that spirit Vance
Morris went from Disney castmember to carpet cleaner to
customer experience expert,proving you don't need the theme
park budget to wow yourcustomers.
Today we'll explore how to turneveryday customer interactions
into loyalty-buildingexperiences, drive referrals,
(01:06):
repeat business and long-termrevenue.
Vance Morris (01:12):
Welcome to the
show Vance I appreciate it, John
.
John Kundtz (01:13):
Thanks, We'll have
a little fun today.
Yeah, we should.
This is a great one.
That's near and dear to myheart.
But before we get going, tellus a little bit about yourself.
What's your background,education, experiences, how'd
you get here?
Feel free to start anywhere youwant, Sure thanks.
Vance Morris (01:27):
I would go back to
the.
I was a wee lad in a log cabin,but probably a little too far
back for everybody, but lived upand down the mid-Atlantic
Northeast area and spent a greatdeal of time working for a
little company called WaltDisney World and that was my
first real job, I think, out ofcollege.
I think I worked at a couple ofrestaurants beforehand, but
(01:50):
nothing that would compare.
And I had, I mean, for yourfirst job out of school.
I don't think there could be abetter place as far as to create
your base and your foundationfor how you're going to kind of
run your life and run yourbusiness life thereafter.
And I found it to befascinating I mean one.
(02:12):
I was a young guy, not evenmarried yet, not even the first
time, or the second time.
Hey more than the third time,but we won't go there.
What I learned immediately atDisney was not the whole
everybody expects you to talkabout.
Oh, you pick up trash realquick and the place is clean and
you know everybody's nice toeach other and they're all
(02:32):
rushing around to make sure thatyou have a great experience.
And that's all true.
First thing I learned reallywas that Disney runs on systems
and processes and they aresimple systems and processes, so
if they were difficult thewhole thing would fall apart,
because you've got to rememberwho's running the rides and
who's waiting on people.
(02:53):
It's a lot of, you know,teenagers or retirees, and they
don't want to have to do a lotof thinking.
So let's make the job as easyas possible.
You know the Whopper in, youknow New Jersey tastes the same
as the—no, they don't doWhoppers.
Big Macs sorry, big Macs tastethe same everywhere.
Same principle.
I am living proof that peopledo survive after leaving Disney
(03:17):
after 10 and a half years thereSpent a number of years in the
retirement community business,spent a number of years in
corporate food service.
So a lot of hospitality.
I found that I make a lousyemployee.
I don't like to be told what todo so.
Hence the first and secondex-Mrs Morris's extended there
(03:38):
as well, and so I started my ownbusinesses in 07, did what
every small boy dreams of doingwhen they're growing up.
I started a carpet cleaningbusiness, and one of the reasons
I did that was one I waslooking for something that I
could do that didn't requiremillions of dollars in
investment.
So restaurants were off thetable.
(04:00):
You know, even to get into aFive Guys franchise, you need a
million dollars liquid cash, andall that Not for me.
But I immediately positioned itas a premium level service.
So we were not going after thecoupon clipping crowd, we were
going after the affluent market,which proved to be a smart move
(04:22):
, if I do say so myself, becausetheir expectations are a lot
different.
Really, it's a faster way togetting profitable Serve
affluent people.
If you serve poor people,you're going to be poor.
If you serve affluent peoplewell, you got a chance of moving
up the chain.
So I've had that business nowgoing on 18 years, added a
(04:45):
oriental rug washing facility toit, added a mold remediation
company to it and back in 2013,I started coaching and
consulting other companies onhow to implement what I
implemented.
And, you know, create thosemoments of wow and create really
create customers for life.
John Kundtz (05:05):
You know it's
interesting and awesome.
As we were prepping for thiscall, we discussed my experience
with Disney.
So my first career actuallymost of my career was with IBM
and we used to go.
We'd made our numbers.
We would get to go to the 100%Club.
A lot of times it would be downthere.
We'd go down there and have abig powwow with all the IBM
salespeople.
They would always bring Disneyfolks in to talk to us about and
(05:28):
this was 30 years ago before Iwould say the customer
experience.
Today, user experience andcustomer experience is sort of
in the forefront of everybodyjust because of devices and apps
and things like that, apps andthings like that.
But back then I think Disneywas one of the first folks that
really sort of stressed theimportance of the experience,
(05:50):
simple things as we talked about.
They called them guests and theemployees were cast members and
, as you mentioned, theprocesses were simple, very much
like what we used to do at IBM.
Our processes were very simple.
It was respect for theindividual, best possible
service to our customers, everytask performed in a superior
(06:10):
manner.
Those were our basic beliefs andit's funny, as you fast forward
, those things still hold trueand I think sometimes folks
forget about that, and you justreiterated how you've been able
to play that to your advantage,even in something as simple as a
carpet cleaning business,although I'm sure it's not
simple behind the scenes, butthe business itself is fairly
(06:32):
simple.
People have dirty carpets.
You go in and clean them, right.
So, with that said, what aresome of the biggest mistakes?
You see, service You've been inthe service profession business
for a long time and what aresome of the biggest mistakes?
Service professionals, likecontractors and advisors,
lawyers, whatever the so yourclientele that you advise and
coach, when they are taking moretraditional approach to what
(06:53):
you call customer acquisition orcustomer service delivery.
Vance Morris (06:57):
Yeah, I think,
first and foremost, what most of
the people that work with me,my coaching members or my
one-on-one clients.
They forget about the customerthat they already have and they
are constantly focused on new,new, new, new, new.
And I'm not saying that youshouldn't have new customers.
(07:18):
You should, because you won'thave any growth if you don't
have new customers.
But if you want to haveprofitable growth, you've got to
retain and keep those customers.
I mean, if you went to DisneyMagic Kingdom today, 80% of the
people30, which is pretty goshdarn good considering the
industry average is, you know,20%.
We're doing really well and Ithink having business people
(07:56):
focus on a system for keepingyour customers, a customer
retention system I'll ask themall the time I said you've got a
marketing budget.
I said, okay, is that primarilyto get new customers?
Yes, well, how much money areyou spending to keep your
customers?
And they're you know, look atme like I got three heads and I
do the whole hum and a hum and ahum and a thing and I break it
(08:19):
down to them.
Getting a new customer isridiculously expensive.
Keeping one is relatively cheap.
So you know some of the numbers.
For my home service businesscost me $120 to get a new
customer in the front door $120.
Now my minimum service is $200.
(08:40):
So that leaves me $80 to paythe technician $200.
So that leaves me $80 to paythe technician.
Put gas in the truck.
Insurance no-transcript.
However, for me to market to myexisting customers and keep
them only cost me $22 a year,and that's direct mail and email
(09:04):
.
So I would much rather spend$22 a year per customer to keep
them around.
They're easier to sell tobecause they've already bought
from you.
They have the whole know, likeand trust.
You know if you've got a newproduct coming out, they'll be
the first ones to buy it.
You want to cross-sell, up-sell, whatever You're just in.
(09:25):
Client base is your goldmineand I just think too many
businesses don't put enoughemphasis on that.
They feel like, well, I did agood job, they should remember
me.
And maybe a hundred years ago,when you were the only
blacksmith in town, thatmight've been true, but these
(09:47):
days it's completely.
You got 20 blacksmiths in town.
And so I tell people I saidlook, it is not your customer's
job to remember you, it is yourjob to remind the customers why
you exist.
John Kundtz (10:02):
That's great advice
.
And you actually iterated astatistic that I don't know the
numbers, but your numbers aresort of right in line with the,
and we used to say this at IBMall the time it's a lot easier
to sell to your existingcustomers or clients than it is
to go out and find new ones.
And you prove that statisticand we used to use it all the
(10:24):
time and it's funny.
I don't know why, but people, Iguess, tend to forget about
that.
Maybe the pressure is to growthe business and they figure the
way to grow the business is newclients, new customers, as
opposed to, you know, growingyour customer base.
Vance Morris (10:40):
I got 10,000 likes
on my last post.
Great, you know you can'tdeposit a like in the bank.
They'll just laugh at you ifyou show up with 10,000 likes
and say, can I deposit for you?
You know, I think we're justbrainwashed into new, new, new,
new, new.
You know, I think we're justbrainwashed into new, new, new,
new, new.
And you know these vanitynumbers.
And I can understand.
Public companies need to havegrowth, number of users, number
(11:04):
of products, et cetera but atthe end of the day, bottom line
is what dictates theprofitability of the company,
not the number of customers youcan acquire.
John Kundtz (11:18):
I love that
statement.
If I had a dollar for everytime I get an email for some guy
that tells me he can make thispodcast, get a thousand more
downloads or this or that, I'mlike that's fine, but that's not
why I'm in business here andthat doesn't put any money in my
bank account.
When you ask them how you'regoing to do that, they all look
at you like you got three headsPretty funny.
So anyway, moving on as youadvise your coaching clients and
(11:39):
so forth, what mindset shift orhabit do you wish they would
sort of adhere to or adoptbefore investing more time?
As you just mentioned, thesetraditional marketing tactics
you know.
Vance Morris (11:50):
I think, first and
foremost, they've got to
embrace who.
They've got to embrace theirpersonality, especially in small
business.
I mean, we don't have themarketing budgets of Walmart,
coca-cola, pepsi, any of theseguys, and we probably never will
, unless we have an incredibleproduct.
So in order to differentiateourselves in highly commoditized
(12:14):
markets I mean, a dentist is adentist is a dentist.
You know, there's only so manyways you can clean teeth.
Well, what separates onedentist from another?
They probably do the same jobas well.
What separates one dentist fromanother?
The only thing is, is thein-office experience, or
bringing in the personality ofthe dentist, the carpet cleaner,
(12:36):
whoever you are, and so manybusinesses they think that, oh,
I got to have the right name formy business.
Well, how about your last nameor your first name would be a
great start, because thatimmediately separates you from
everybody else out there, thenallowing your personality to
shine through.
So I, in most of my marketing, Ishamelessly use my children in
(13:01):
the marketing, and I don't care,they love it.
I mean, they used to get kiddedabout it.
But so, for example, mydaughter, who's now 18, I used
to do ballet, was from like fiveuntil 13.
And we would go to the balletrecital every year and we'd get
a picture of her and her littletutu you know the ones you send
(13:21):
out to aunts and uncles andgrandmas and I would take that
and put it into my printnewsletter that I sent to all my
customers and I would do itevery year.
Here's Emma at age five, emmaat age six and I think she was
10 or 11 years old, and we're inthe grocery store and this
woman comes running up to Emmaand she goes oh my God, emma,
how was your recital?
And we look at each other likewho is this lady?
(13:44):
We got to go run and hide inthe frozen food section and I
had to think she's got to be oneof my customers.
She reads the newsletter.
She has watched my child growup from age five to whenever.
I've created that emotionalconnection with her, she is
never leaving.
I mean I got to do somethinghorrible for her to leave my
(14:05):
company.
She's going to stick arounduntil she moves or she dies.
And that is the missing pieceto most small businesses is
creating that emotionalconnection and it sounds woo-woo
but it really isn't.
I mean, everybody makes theirbuying decisions on emotion and
then they justify it with theirbrain so great you don't want to
(14:28):
use your kids.
Maybe you like fly fishing, ormaybe you do knitting or
whatever.
Bring that kind of personalityinto your business.
It's going to make youmemorable.
That's certainly going toseparate you from all of your
other competitors out there andyou're creating that emotional
connection which is basis forcustomers for life.
John Kundtz (14:50):
I mean it goes back
to that.
You know people buy from peoplethey trust and they know.
And if you go back to SimonSinek's why, you know why you do
something, not what you do, andyou know they make the
emotional decision first, as youmentioned.
It's funny.
It reminds me what you justtalked about, as your daughter
reminds me of a story here inCleveland where there's sort of
(15:11):
a similar business.
They do flooring and you knowthey install floors and carpet
and stuff like that.
Actually the people that buyfrom them could then buy from
you to clean them.
But about 20 years ago it wastwo brothers running this
business and one of the brothersput their daughter on.
She had to be about eight ornine years old and she sort of
(15:32):
closed the commercial right andthey used that mantra for years
and now she's an adult and she'snow back on the commercials
with her dad and her dad'sbrother and it's like we've all
watched this little girl grow up, just like your daughter.
And you know what, if I neededflooring, that business is right
(15:53):
on top of mind.
And I think that's the otherpoint you hit upon, especially
today where we're just barredwith information and social
media.
Madison Avenue has done awonderful job of sucking us in
and buying stuff we don't need,and so if you don't stay top of
mind, by the next time they needtheir carpets cleaned because
(16:13):
that's something you don't doevery day right, they're going
to forget about you.
You so just nurturing thatrelationship and moving forward
and staying top of mind andbuilding an emotional connection
, particularly if you're in abusiness, that's sort of local.
But even in a big business likeibm, I would get to know my
clients and I would know theirkids and what sports they were
(16:34):
playing or whatever, and I wouldwould compare it to mine and we
would always, over the years,build pretty good relationships
with those guys.
They didn't always buy from us,but you know what.
They trusted me and when theyneeded something, they would
come back to me.
So you've developed thisso-called complete system for
creating your wow moments.
And let's talk a little bit.
(16:55):
What makes those cost approachstand out, especially as you've
mentioned time-strapped businessowners, people without big
marketing budgets.
Vance Morris (17:04):
It doesn't take a
lot to wow somebody or impress
somebody.
Now, before we go through this,let me stress to everybody your
product or your service betterbe tight and good or great.
If you've got a crappy productor a crappy service, doing wow
(17:25):
stuff is only going toaccentuate that crappiness.
So we're going to make surethat you got the basics down
first.
One thing creating these wowsnot need to be a huge investment
of resources and money.
You don't need a Cinderellacastle, you don't need a roller
coaster.
You just need to have an openmind on how you want to do it.
(17:46):
You know how do you greetpeople when they walk into your
store, how do you answer thetelephone.
Each one of those moments onthe customer journey is an
opportunity for you to create anexperience, whether it's wow or
not, but create an experiencearound it, and that's what
Disney has done so well is theydon't do anything different than
(18:08):
anybody else.
I mean, they have hotels Well,there's millions of hotels out
there.
They have theme parks Okay,well, there's thousands of those
out there.
Hotels out there.
They have theme parks Okay,well, there's thousands of those
out there.
What makes Disney different isfinding each one of those points
on the customer journey andfiguring out a way to create an
experience out of it, andDisney's got this down.
I'll give you a quick example.
(18:30):
So in my carpet cleaningbusiness, one of the boring,
mundane things that we have todo is get into the people's home
.
We can't get into the house, wecan't deliver our service, so
we've created an entireexperience out of getting into
the home and it's completelyscripted.
All my guys know it and if theyforget something, we know that
(18:51):
we send them back to training.
Here's the standard we use, andso it goes like this.
It starts where we park, so wepark in the street.
We don't park in the driveway,god forbid.
We got an oil leak Now I gotsomething else I got to clean up
.
And he gets out and he's in aclean, crisp uniform because he
carries extra uniforms on thevan in case he gets dirty
beforehand.
(19:11):
He doesn't smell, because Idon't allow cologne or smoking
while you're on the job.
There's nothing worse thansomebody walking into your house
that smells like the Marlboroman who just took a shower in X,
I mean.
It's just.
That's disgusting.
He gets a little gift and hegets his magic rug and he goes
(19:31):
up to the front door he laysdown, you know, our special rug
which is, you know, logoed footmat where we'll wipe our feet.
We knock on the door, we don'tring the bell, we take a couple
of steps back and when thecustomer opens the door, we say
hi, my name's Josh.
I'm here to create your healthyhome.
May I come in?
We don't just barge in and then, when we're invited in, we do
(19:52):
an exaggeration of wiping ourfeet on the rug and then we put
little booties on our shoes andas we're entering the home, we
present the customer with a gift.
Now, when was the last time youhad any home service
professional, pest control,carpet cleaner, whatever give
you a gift before they did anywork?
I'm going to hazard a guess ithasn't happened.
(20:15):
So this does a couple of thingsfor us, and the premise is you
know, when you go to somebody'shouse for a party or whatever,
you bring a bottle of wine, youbring some hors d'oeuvres or
what have you.
So we feel we're going tosomebody's house, probably
bringing something.
So we invented the gift andit's a custom blue box and
(20:36):
inside the box is a bottle ofour spot remover, a bag of
cookies and a little note fromme thanking them for allowing
them into their home.
Now this cost me less than $5 todo this box.
Wow factor is huge and it alsostarts another process called
(20:56):
reciprocity.
I give something to you, youfeel compelled to give something
back to me.
So when we implemented the GIF,we saw an increase of our
mid-tier package by about 26%,which equates to about an
additional $65,000 a year insales, just by implementing that
little $5 box and mycompetitors all know I do it.
(21:21):
I've seen them hiding in thebushes watching my guys go into
the front door and it baffles methat others don't do it.
I think the reason they don'tdo it is they think they can't
afford to do it, which to methen says you have a pricing
problem and you have a valueproblem, but you know our prices
(21:41):
.
We command 36% higher pricesthan anybody else in our
marketplace.
Do we clean 36% better?
Maybe?
I'd like to think so.
But, we do provide an experiencethat no other home service
provider is given.
John Kundtz (22:00):
That's great, it's
all the perception of value is
given.
That's great, it's all theperception of value.
And if somebody's about a $5box, that means they're either
commoditizing their services, sothey're in the red ocean.
You've created a blue oceanright, just by creating an
experience that not only ismemorable but is.
I love the analogy of well, ifI'm going to somebody's house
(22:21):
for dinner, I'm going to bringthem some flowers or a bottle of
wine or whatever, right, I'mgoing to thank them for inviting
me into their house and I'mgoing to help provide some value
to the interaction or theexchange.
It's the same idea, especiallyand I don't think it matters
whether you're in a businessthat goes people's houses or if
you're in a business wherepeople come to you or if you're
(22:42):
in a business that's virtual,like a coaching or a mentoring
business.
It goes to just treat peoplethe way you want to be treated,
right, and I think people forgetabout that today.
I mean, maybe it's our grayhair and we grew up with that.
You know being hayward into uswhen we were kids in grade
school, but it just.
These are such politicaladvices which it's sort of funny
to me, and I'm glad we'rehaving discussion, because I
(23:03):
think people just sort of forgetabout it.
I don't know if it's just thenature of the world or what.
Vance Morris (23:10):
I mean, I think
they just they look at what
every other business is doingand they so it's incestuous.
I mean it's just, you know, andyou got to break that cycle by
doing something that is notprevalent in your industry.
So you know, I mean, I thinkall great ideas come from
(23:33):
outside of your industry.
The drive-thru at McDonald's,you know they got the idea for.
You know.
The drive-thru from aMcDonald's exec sitting getting
ready to make a deposit at thebank, and you know that tube
that whooshes up and flies yourmoney over to the teller.
He's thinking to himself, well,how do I get a milkshake into
(23:53):
that thing?
And so he.
So you take an idea from oneindustry and you put it into a
completely different industry,and now it's a breakthrough and
we have to look at that.
I mean, I'll never forget.
You remember Yellow Pages.
Well, you and I both rememberYellow Pages, and when I was
first starting out, yellow Pageswere still a thing.
(24:13):
Do we have to describe YellowPages to your audience, or do
they know what it is?
John Kundtz (24:18):
Hopefully they
don't.
If they don't, they can Googleit.
Put a link in the show notes toYellow Pages.
Vance Morris (24:22):
Yeah, there you go
.
But as I'm getting ready toplace my first Yellow Pages ad,
I'm skimming through theexisting ads and if you go to
any plumber, electrician, carpetcleaner, every single one of
them has a picture of their vanor truck in the ad.
What the hell's that got to dowith anything?
(24:42):
Nothing, we have shown.
You have a vehicle to get to myhouse to do the thing.
We don't need a picture of it,so it's wasted advertising space
.
You could be putting atestimonial in there.
You could be putting, you know,a statement in there.
You put a picture of your kidin there, right.
But because everybody has useda van or a vehicle in their ad,
(25:08):
they think, well, that's what Igot to do, that's what everybody
does, and you got to say, nope,look at what your industry is
doing, and the complete opposite.
John Kundtz (25:18):
Again, they're all
going into the red ocean, right,
they're all swimming with thesharks and getting eaten alive
and you know they're all mencompeting on price and that's
just a you know, it's just astrategy that you know.
You just got to figure out howto get out of there and I love
the idea of going and looking atother industries trying to then
apply it Part of why I wantedyou on the show, because
(25:39):
obviously, I spent a lot of timeadvising not-for-profits and
startups and other entrepreneurs, mostly in the technology space
.
But this is a greatconversation where we've
expanded it, and I think some ofthese ideas and just some of
these simple, practical thingsthat we sort of maybe all know
but forget to do on a day-to-daybasis has been a great
discussion and a reminder, Ithink, for those that are
(26:01):
listening.
Been a great discussion and areminder, I think, for those
that are listening.
So, speaking of those that arelistening, if you're like
looking for some practical waysto improve your customer
experiences, as we've beentalking about, without, as
mentioned, complexity or cost,vance has put together this
fantastic resource called the 52Ways to Wow your Customers.
It's full of simple, actionableideas and can be implemented
(26:23):
right away.
So I wanted to give a littleplug to you for that, because I
actually signed up for it.
I get fancy emails and it'sagain.
It's just simple stuff thatdoesn't take just takes some
time to think it through andthen apply it to your business.
Vance Morris (26:40):
I mean it's
literally some of those ideas.
I mean there's 52 of them, soyou got one a week that you can
implement.
But I mean it's literally someof those ideas.
I mean there's 52 of them, soyou got one a week that you can
implement.
But I mean it's simple stufflike hey, how about you just
pick up the phone and call fiveprevious clients and just see
how they're doing?
Oh my God, that's heartshattering.
You know, a handwritten, thankyou note.
We actually one of the thingswe'll do in our home service
(27:01):
businesses is we take our topfive customers for the month and
we mail them a cake through themail.
Now Maryland has a state cake.
It's called the Smith IslandCake, so it's a famous cake
around here.
Smith Island actually is nottoo far from where I live and
every month we send out fiveSmith Island Cakes to our top
(27:23):
customers.
Who sends a cake through themail?
I mean, unless it's yourgrandma sending it to you, for
you know.
So now does that cost a lot?
I mean, in the relativist, Idon't know, it's less than 50
bucks.
But the other stuff in there isjust almost no cost.
You know, pick up the phone,handwritten.
(27:43):
Thank you, note that kind ofstuff.
John Kundtz (27:46):
Amazing, it's funny
.
The last cake I got in the mailwas from my grandmother.
Yeah, there you go.
All right, let's wrap this showup.
How do people learn more aboutyou and where to find you?
What are your socials?
Sure, whatever you want toshare.
Vance Morris (28:01):
Yeah, I think I'm
the only Vance Morris on
LinkedIn.
Website is vancemorriscom, veryeasy to get to, and then that
special report that youdownloaded, the 52 ways to wow
without breaking the bank youcan get at wow52wayscom, so that
would be the best way toconnect Cool.
John Kundtz (28:21):
We'll make sure
that there are live links in the
show notes so that folks can gocheck you out, connect with you
on LinkedIn, download yourdocuments and hopefully learn a
little bit more on how to servetheir customers Well before we
wrap it up, I'll give you thelast word.
Vance Morris (28:42):
Oh boy.
Well, I will tell you, it's allimplementation.
I only have one saying.
I'm a very simple guy, so onesaying is enough for me, and it
is you won't profit unless youimplement.
You got to take action.
So take one idea you heardtoday on this show, take an idea
you heard somewhere else and bygolly go implement it.
(29:03):
Go do it, because you're notgoing to see any changes if you
don't.
So find something, do it, moveon.
John Kundtz (29:10):
Great advice.
As they say, you miss 100% ofthe shots you don't take.
Exactly.
Anyway, thanks, Vance.
Again, I'm John Kundtz.
Thanks for joining us in thisedition of the Disruptor Podcast
.
Have a great day.