The Power of Gratitude

"And in the end, all that remains is our friendship." So says consoliere Tom Hagan as he reassures a bewildered US Senator that the murdered prositute in the Senator's bed would "disappear. . . as if she never even existed" in in the cinema classic Godfather II.

I thought about the Godfather movies while reading the latest research on customer gratitude and it's effects on business relationships. After all, nearly all of Vito Corleone's business was based on gratitude--doing favors for people who would not only repay the favor but also spread word of The Don's generosity and. . . um. . . capabilities. Prostitutes, horse heads and the like notwidthstanding, it's the model most businesses--especially service businesses--use.

First authored by Robert Palmatier of University of Washington with an assist from others including consumer behavior guru Frank Kardes, the article examines how feelings of gratitude strengthen business relationships as well as the key components to engendering that feeling within customers. They performed a big market survey plus extensive experiments with a large number of subjects. Here's what they found:

Four Factors in Creating Gratitude with Customers/Prospects
1. Doing something that is perceived as being of your own freewill--not something either contractually required or perceived to be "part of the deal." Those of you who have read the negotiating bible "Getting To Yes" will recognize this, where they advise you to "throw something in at the end" to make the customer feel like they have won something. So, even if the customer was already going to get the "Hannah Montana Back-To-School Commemorative Place Mats", make it seem like a spontaneous act of generosity.

2. Perceived Motives: The customer must perceive your motive as being earnest--or at the very least not malevolent. This is a hard one to break down, but I would liken it two very different experiences getting your car serviced. When you get your oil changed and the Jiffy Lube guy says "Would you come out here for a moment?", you prepare yourself for the shakedown ($3,000 tune-up) that is about to happen--you knew it was going to happen, but you still walk away from the experience thinking less of the Jiffy Lube and the guy. Conversely, if you hear a knock in your engine and the mechanic tells you, "We can completely fix it for $1,500 or do a six month band-aid for $200" you are likely going to tell all your friends to come to this mechanic because you do not question his motives.

3. Risk Undertaken By Seller: Without exception, doctors, lawyers, consultants and brokers have nightmare stories about prospects who sap every fiber of their being trying to get free services and advice. While those people represent A Bottomless Hole of Time, Money & Energy (aholes, for short), spending time off the clock with a prospect or customer is builds gratitude and trust. The trick is distinguishing the aholes from the prospects with potential to protect your own resources and sanity.

4. Meeting "The Customer's Perceived Need For the Received Benefit": The quotes represent the authors words. I would merely call it thoughfulness. If you take the time to really consider your client's needs and help, research showed it made a big difference. For instance, if you receive a holiday business gift of, say, Godiva Chocolates, you might very well think, "Nice chocolates--either all the other clients got this or this is a re-gift." However, if your contracts attorney calls you out of the blue and says, "I remember you mentioned a problem with your property taxes, so I asked a buddy of mine who is a real estate attorney and he said..." That's big and, more importantly, it provides value to the client's specific situation.

Lastly, the authors conducted a large survey to see what effect gratitude had on relationships and purchasing intentions and the effect was hugely significant. In short, for a customer, gratitude and the trust & obligations it generates, an offer they can't refuse.