Speaker : Simon Sinek

We make assumptions based on incomplete information and our perception of the truth. Our behavior is governed by assumptions. Do we know why is a customer our customer and how to keep the ones that are loyal?

There are two ways to affect human behavior :

• to manipulate [ drop prices, promotions, fear, peer-pressure, aspirational message, pseudo-innovation - innovation is not a shiny new feature, innovation is game-changing - it changes industries, nations. ]
• to inspire

There were two Colgate toothpastes in the 1970s. There are 34 Colgate toothpastes now. And we’re not even talking about the other brands. There is too much choice and companies are having trouble differentiating their products, even though they are using manipulation in their marketing. Manipulation does not breed loyalty, it becomes expensive, stressful to both seller and buyer.

Talking about inspiration : Golden circle

• Why [ not to make money - that's a result - but what is the purpose, cause, belief, why does your company exist? Why should anyone care? Why do you care? ]
• How [ some know how they do it - companies know USP ]
• What [ what they do, what it is that you do ]

As an example : Apple : everything we do we believe in challenging the status quo, we believe in thinking differently [ why ] no trickery, no manipulation, no celebrity endorsements.

People don’t buy what you do, they buy why you do it. They don’t buy it for you, they buy it for themselves.

What you do simply serves the tangible proof of what you believe and why you’re doing it.

This isn’t some theory pulled out of thin air – it is cross-cultural as long as your customers are people and this is also grounded in the tenets of biology – the brain’s neo-cortex and limbic systems.

Why does it, sometimes, just feels right no matter what the facts and figures say – it is because of trust. And sometimes, no matter how rosy the facts and figures, it just does not feel right. This is where you’re functioning from the part of your brain that has no language powers – you just know it. It is your gut – [ but gut decisions are not scalable ] – why do you love your husband / wife – impossible question sometimes answered with “He / she completes me.”, which doesn’t even mean anything logically.

Feelings drive our behavior.

Repeat business is different from loyalty. Repeat business is, “I will come back to you and buy from you again and again and again.” Loyalty is, “I will stand in line for six hours and buy your more expensive product.”

If you don’t know why you do what you do, then how will your customers? This is followed by the discipline of ‘how’ – values, guiding priciples – followed by ‘what’ you do – results.

How to instill authenticity : this means that the things you say and the things you do, you actually believe.

We are social animals, ability to form cultures communities – culture is a common sets of values and beliefs – to ensure our own survival – when you surround yourself with people with similar beliefs, trust emerges.

Differentiation does not happen in ‘what’ – it happens in ‘why’ and ‘how’ you do it – you can’t copy and expect it to work – best practices are a joke.

Price, quality, service, features – these are adjectives for commodities – if these are the only points available for comparison / differentiation, then there’s no ‘why’. What the product does serves the tangible proof with which customers can rationalize why they need it.

Law of diffusion of innovations. Read more here and here.

I have a dream vs. I have a plan. The latter is uninspiring. Yes, you need a plan but you don’t START with the plan – give instructions after inspiring.

Being rich and famous are ‘results’ – if you don’t care why you’re doing it, you’re screwed.

For passion to survive, it needs structure and for structure to flower, it needs the growth of passion.

Successful businesses – entrepreneurships are always two people. Partnerships. JFK RFK. Steve Jobs and Wozniak, etc.

We’re always looking for advice – how and what to do – asking friends – don’t take all the advice – the ‘why’ will be confused.

Stop talking about what you do and talk more about the why you do it. Once you’ve created that value-connect and trust, then talk about the how you do it and then finally what it is that you do.