Market Basket, a New England grocery store chain, is making headlines, but not for the reasons they would hope for…

And no one expected what would happen next…

No one.

You see, the chain was the subject of a long, ugly, and greedy feud between family members…

…with both sides vying for control of the successful company through board meetings, court appearances… and even a fist fight!

Yeesh!

Lately though, they’ve been all over the news because the board gave the company president Arthur T. Demoulas (and a few other key leaders) the boot…

And many people were NOT happy about it.

Why?

Because people loved Arthur T.

And to make matters worse, it was the board controlled by his cousin, Arthur S. Demoulas, that ousted him…

This is where it gets interesting…

When word got out that Arthur T. was fired, both the company employees and customers went on strike.

Workers refused to make deliveries, walked off the job, and even asked customers to boycott the stores…

Just look at the barren shelves in this photo:

With no food in stock and customers refusing to set foot in the store, Market Basket is losing millions.

But what’s the point of all this struggle? 

Why were employees and customers so upset about losing Arthur T.?

Arthur T. Demoulas has a reputation for being a “people’s leader.”

He’s commended for having a “personal touch,” and appears to genuinely care for the wellbeing of his employees and the customers they collectively serve…

Under his leadership, prices were low, people were paid well, their retirement funds looked good, and all of that good financial stuff…

But much more importantly, he was an icon of the company’s culture.

His influence spread to the employees, and those employees treated customers in kind.

The largest criticisms surrounding his removal from the president’s seat were about the company focusing more on profits than customers…

(A very key point)

…About losing the very heart of their company philosophy, who, according to a blog by protesters is, “truly a philanthropist who cares more about people than he does money.”

If you make your customers feel special, valued, and appreciated – you’ll earn their loyalty and their hearts.

A Boycott Based On Principle

Customers didn’t stop shopping at Market Basket because of empty shelves or disappointed employees – they stopped because they had respect for those employees…

And respect for the principles that they thought the company was built on.

They’d built a relationship with the workers at their local Market Basket, and when those workers felt betrayed… so did the customers.

Customers stopped going to Market Basket because something intangible changed…

Without their leader – and the principles he stood for – the business no longer seemed trustworthy.

Customers didn’t want to associate with the kind of company that would throw out a man like Arthur T.

The Big Lesson

While all of this is still unfolding, it’s hard to say what will become of Market Basket, of the thousands of protesting employees, or of Arthur T. Demoulas himself…

What’s absolutely clear, though, is the importance of “people focused” leadership.

The Market Basket board sent a clear message (intentional or not) when they ousted Arthur T., and drove it home when they ignored the outcry to reinstate him…

The message was that delivering satisfaction
to the customers wasn’t important…

And when customers don’t feel like they are
the top priority, the business will suffer.

On the other side of the coin, though, when customers do feel truly appreciated and a company actually improves their lives – those customers will go to bat for the companies they love…

Or, as Market Basket is quickly finding out, they’ll stand up for the people that provided value, even when the corporate higher-ups abandon them.

If you’d like more insights on estimating your business worth, check out this related piece on how to value a business.

A Market Basket customer, Raymond Santos, told Boston.com:

“Customers like me believe that you shouldn’t put profits over people. And quite frankly, I don’t think I could stand to watch one person lose their job fighting for what they believe in.”

He promises to spend at least $100 at a Market Basket competitor for each employee fired over the protests… (Source)

Some people are even offering to donate money to help Arthur T. buy the company!

When employees are treated well, they pass that sense of caring onto the customers… And when customers are treated right, they want to see the company succeed.

It doesn’t seem like that difficult of a concept, but Market Basket is learning the hard way…

What can you do to make sure your customers are at the top of your priority list?

In your corner,

Charlie