From Cigars to Continuity: Simon Devlin’s Secrets to Building Customer Loyalty
Podcast Information:
- Title: Marketing Secrets with Russell Brunson
- Host: Russell Brunson | YAP Media
- Episode: From Cigars to Continuity: Simon Devlin’s Secrets to Building Customer Loyalty
- Release Date: December 2, 2024
Introduction to Simon Devlin and His Cigar Business
Russell Brunson welcomes Simon Devlin, the guest of the episode, highlighting Simon's unique approach to building customer loyalty in the traditionally offline cigar industry. Simon introduces his business, which began in 1997 with importing, wholesaling, and distributing cigars. Over the years, he expanded to owning retail stores and a private cigar club in Australia.
Notable Quote:
"I started my business back in 1997, importing, wholesaling, and distributing cigars... I have retail stores in Australia and a private club as well."
— Simon Devlin [03:04]
Discovering Dan Kennedy’s Marketing Principles
Simon shares his pivotal moment in 2010 when he encountered Dan Kennedy’s work, which revolutionized his approach to business. After receiving the co-authored version of Psycho-Cybernetics by Maxwell Maltz and Dan Kennedy, Simon delved deep into Kennedy's marketing strategies, leading him to adopt and adapt these principles within his cigar business.
Notable Quote:
"Up until that point, I thought I was a pretty good sales guy. But then that just changed my world..."
— Simon Devlin [05:02]
Challenges in Scaling the Business
Initially, Simon struggled with scaling his retail operations. Despite hiring passionate employees, sales performance lagged behind his own. Upon observing his team, he realized that the lack of genuine engagement and rapport with customers was the root cause. This insight led Simon to develop the concept of an Engagement Funnel, focusing on building personal connections rather than just selling cigars.
Notable Quote:
"I never actually talked about cigars with the customers. I got to know them, and eventually, we would get around to cigars."
— Simon Devlin [09:39]
Hiring the Right People: The Service Gene
Understanding the importance of authentic engagement, Simon identified that his success stemmed from connecting with customers on a personal level. To replicate this, he sought out individuals with what he termed the "service gene"—those who innately desire to look after people. This strategic hiring significantly boosted customer interaction and sales.
Notable Quote:
"I realized that person is actually someone who has the service gene... someone that has not only the desire but the innate need to want to look after people."
— Simon Devlin [11:10]
Developing the Membership Model
To ensure consistent customer retention, Simon integrated a membership system into his business. Starting with private cigar keeps, customers paid an annual fee to access exclusive storage and a private lounge. Over time, he evolved the membership tiers, adding value through discounts, exclusive events, and personalized experiences.
Notable Quote:
"It's the experience and engagement that make people truly engaged. And the return path that gives you rivers of gold."
— Simon Devlin [15:08]
Expanding Offer Stacks and Enhancing Membership Value
Simon didn’t stop at cigar storage. He transformed his retail operation into a men's luxury gift store, offering complementary products like writing instruments, luggage, and wallets. This diversification enriched the membership offerings, making the club a hub for exclusive luxury items and experiences.
In 2010, inspired by Dan Kennedy’s Magnetic Marketing, Simon introduced a robust return path system to keep customers returning. This included personalized follow-ups, exclusive events, and stacked offers that significantly increased customer lifetime value.
Notable Quote:
"We started adding in different products to our store as well. It evolved into a big boys toy store, but still always had a heavy focus on the cigars."
— Simon Devlin [23:22]
Creating Exclusive Membership Tiers
Simon introduced multiple membership tiers to cater to different customer segments:
-
Gold Membership ($995 Joining Fee + $1,600 Annual Fee):
- Private cigar keep
- 10% discount on all store purchases
- Access to exclusive offers from partner vendors
-
Platinum Membership:
- Includes all Gold benefits
- Whiskey keep in the lounge
- Four exclusive Platinum Member lunches annually
- Special event invitations and branded merchandise
-
Platinum Plus Membership:
- Additional exclusive events
- Enhanced merchandise like smoking jackets and pins
-
Devlin’s Black Membership ($10,000 Annual Fee):
- Invitation-only tier with personalized experiences
- Access to high-profile events with Hollywood personalities
- Customized merchandise and recognition
Notable Quote:
"It's about how you structure the offer and then how you give status and these things that people don't want to lose."
— Simon Devlin [35:14]
Implementing the Experience and Engagement Framework Online
Recognizing the potential to replicate his offline success online, Simon launched a separate venture, Cigarbox.com, featuring an attractive character, Joe Box. This initiative allowed him to apply his Experience and Engagement principles to e-commerce, focusing on personalized interactions like welcome calls and handwritten notes to build trust and loyalty.
Notable Quote:
"We created something that I call a lifetime value call... it was a welcome call."
— Simon Devlin [43:47]
Launching the Continuity Program: Family of the Leaf
Building on his success, Simon introduced Family of the Leaf, an online continuity program offering monthly subscriptions with tiered pricing. This program includes curated cigar selections, storytelling around each cigar, and exclusive offers, ensuring sustained customer engagement and revenue.
Notable Quote:
"We are now launching the continuity program which is called Family of the Leaf... that's launching early next year as well."
— Simon Devlin [50:33]
The Two-Legged Stool Framework
Simon discusses his upcoming book, "The Two-Legged Stool: Why Your Retail Business is Destined to Fail," which outlines his framework for sustainable business growth. The Two-Legged Stool emphasizes balancing the Offer with Experience and Engagement to ensure customer loyalty and consistent revenue.
Notable Quote:
"The two-legged stool is experience and engagement intersecting with the return path and the offer."
— Simon Devlin [37:58]
Final Insights and Expansion Plans
Simon concludes by expressing his ambition to apply his proven framework beyond Australia, planning to introduce his methods to the U.S. market with the support of partners. He emphasizes that his approach is universally applicable, whether in retail, hospitality, or online businesses.
Notable Quote:
"I believe there's not a single business in the world that you can't add a membership to."
— Simon Devlin [35:35]
Conclusion
Simon Devlin's journey from a traditional cigar business to a membership-driven model exemplifies the power of combining authentic customer engagement with strategic marketing. By leveraging Dan Kennedy’s principles and focusing on building genuine relationships, Simon has successfully cultivated a loyal customer base and scalable revenue streams. His insights offer valuable lessons for entrepreneurs aiming to enhance customer loyalty and achieve sustainable business growth.
Notable Quote:
"It's the experience and engagement that make people truly engaged. And the return path that gives you rivers of gold."
— Simon Devlin [15:08]
Additional Resources:
-
Simon Devlin’s Book: “The Two-Legged Stool: Why Your Retail Business is Destined to Fail” – Available for pre-order at TwoLeggedStoolBook.com or SimonDevlin.com/book.
-
Devlin’s New Venue: The Embassy – Opening in February in High Street Subiaco, Rockabee Road, Perth, Australia.
This episode provides a comprehensive look into Simon Devlin’s innovative approach to building customer loyalty through memberships and personalized experiences, offering actionable strategies for both offline and online businesses.