Star Concepts

Only For A Few

W_wow_suite

When putting together your marketing arsenal for memorable experiences, don’t forget about exclusivity. “Limited” and “out-of-reach” are attention getters to most of us, and more importantly make us feel special if we’re lucky enough or have enough money to be included.

Rolls Royce
Cuban cigars
A sky box at a major sporting event
Dinner at Per Se

Like this $70,000 package offered by W, New York. Now, it probably won’t sell, but it makes for a really good story.

Big Isn't Better

Org_chart

Thanks to Ben and Jackie over at Church of The Customer, I recently learned that GM spent around 2.8 billion dollars on advertising in 2004. If that’s even close to being accurate, that’s insane! On top of that, they plan to spend an additional 10% this year to hopefully reverse declining sales.

I won’t go into why they shouldn’t throw that kind of money away, why I wouldn’t buy their cars or what they should do instead. Number one, it’s not rocket science. And, number two, a number of very good alternatives are already listed on Ben and Jackie’s site.

What I do offer is a theory on why companies like this never change, why they rarely choose a path that’s obviously so much better to the rest of us. They won’t do anything new, meaningful or effective because they’re too big. Most big companies like GM can’t make quick or radical changes no matter how sensible the new ideas must seem. They have spent loads of energy, years of time and huge dollars getting the “machine” moving in a certain direction with a certain purpose. Along the way a bureaucracy and political infrastructure was created to manage the process, and ensure its success. So, anything or anyone that comes along and threatens the livelihood of what took so long to create is immediately debunked, voted out or studied until the results say what the fathers want to hear. Another way to say it…It’s too risky to make wholesale changes brought forth by the few (or outsiders), and huge companies typically don’t take these types of risks.

Smaller companies have the edge when it comes to change. They are nimble, quick and able to react to criticism, environmental change or new ideas almost instantly. Some big companies act like small ones. They minimize the superstructure, instill a culture of customer and employee centric thinking and have way fewer managers and consultants to consider every time someone throws a curve ball. Sure, sometimes they crash and burn. But, it’s much easier for them to get back up, dust off and move onto something else.

GM can’t do that. There are too many jobs and egos at stake.

Black Glove Marketing

Black_glove_1

Marketing is like a puzzle. All of the pieces need to fit neatly together in order for the image to make sense. It doesn’t work if pieces are missing or if you have some that don’t fit anywhere.

I’ve mentioned some important marketing elements before (design, story and care). Any one of these on its own is not enough to carry you...at least not anymore. Take coffee for instance. You could have the greatest blend in the world (yes, hand picked by Juan Valdez). But, put it in a crappy looking cup, and it just doesn’t taste good. Worse yet, deliver it without passion and in a place that’s cold and uninviting and you might as well sell instant.

Here’s a company that seems to get it, Black Glove Coffee. They use design and story to make their product meaningful to people who enjoy more than flavor when they sip their coffee. They make the coffee experience personal with descriptions like, “hand-made”, “small batch”, “New York” and “gourmet”. Of course, they aren’t the only ones making good coffee. But, that’s clearly not what they’re selling. They sell creativity, enrichment, relaxation and joy. The website supports this experience very well. It’s functional, efficient, aesthetically appealing and smooth.

So far, the pieces fit perfectly. I’ve ordered some coffee. We’ll see if it all comes together…I’ll let you know.

Thanks to Aki and Alex for the referral.

Trust Me!

Trust

Relationships are about one thing…establishing trust. Every time we get to know someone, we move along a line, from skepticism…toward unwavering belief in their commitment to look out for us, and perhaps back again. We don’t always begin or finish at the ends. But, we definitely move back and forth to some degree:

People We Don’t Know (no trust)…………………Our Friends (Unquestionable Faith)

The key to business success is to make friends and keep them by developing relationships perpetuated by trust.

Think about it, buying and selling is all about trust. We listen closely to those we trust about what to buy, and when to buy it. We buy more from those we trust than from those we don’t. We even find ways to forgive when mistakes are made…if we trust them. It’s a quid pro quo world. Show me that you care about me, and I’ll do the same for you.

Strong relationships based on trust enable you to have meaningful conversations. Conversations allow you to ask questions, listen and interact. And, interactions allow you to demonstrate passion, creativity and caring. Together, they make people feel different and special, creating long-lasting memories…and loyalty for your product.

Here’s a good example of what happens when companies are genuinely interested in long lasting relationships with their customers…and, when they’re not…

Brand Investment

Design, Story and Care

These are the three keys to success in the hospitality business (likely, in any business)…unless you’re willing to complete on price. And, for most of us, that’s not a good option. We don’t have the supply empire or resources to weather those nasty “price wars”.

More and more, it’s not about price. People want something “different”. Not just in hotels, but in almost everything. Especially, as the price gets higher. People want unforgettable experiences and meaning. They’ve had everything else. And, they can afford to be stimulated in a new way.

So, how do you give people memorable experiences and meaning? With a healthy dose of Design, Story and Care.

Much more on each, later.

Where Has Service Gone? #7

The last in my series....

SOP’s- While not necessarily intended to do so, systems and procedures often limit the passion and creativity of the best people in the organization. Standards and SOP’s should allow people to focus on building memorable experiences by serving as reminders or taking the guesswork out of recurring tasks, in essence minimizing left brain processes. Procedures shouldn’t stifle the artfulness of service or take anything away from a person’s ability to think on their feet. The right brain should be left free to infuse character and emotion into the guest experience, allowing those wonderful people you hired to really exercise their passion and build customer relationships.

Another problem…systems and technology are too often implemented to serve the Chiefs vs. the Indians. Terms like efficiency, cost savings, productivity, etc., rule when these processes are developed. If you’re serious about creating balance between consistency and freedom to think, start with some reflection with questions like this one…Why are people paid to perform functions instead of providing memorable experiences?

Where Has Service Gone? #6

The Robin Williams Effect (see my previous post)- Companies often lose sight of (or never see it to begin with) the “delivery” side of the experience equation. They are so focused on making the best widget that they seem to forget about an equally important aspect of making something really great…the people. Passionate employees who build relationships with customers make “memorable experiences”. Fancy lobbies, comfortable beds and great food don’t relate with your guests…people do. Without their enthusiasm, creativity and ability to think, the experience will be stale and most likely very average.

So, make sure you get a fair amount of these folks on board.

'Discover' how to loose credibility

Discover_001

"Account Documents, Open Immediately, Important Information Enclosed"

Discover_005

"Sucker!"

The first part of being responsible and a big part of providing a positive memorable experience is being honest.

So, why would a major credit card company risk credibility by pulling something like this? Do they really think that trickery and deceit is the way to build a long-term relationship?

Discover's in trouble if they keep this up.

Where Has Service Gone? #5

Too Big- Large companies are typically not as good as small ones at consistently providing memorable experiences. Malcolm Gladwell devotes a chapter to this subject in his excellent book, The Tipping Point, in which he refers to the phenomenon as “the rule of 150”. He illustrates that once an organization, club, culture or community hits 150 people, it changes…because the inhabitants, faced with too many choices, can no longer focus on the development of meaningful relationships with each other. Hence, the organization splinters into sub-groups working independently from another. This is a powerful concept as it relates to providing memorable service and the adaptation principle I wrote about previously.

Assuming that you are not an organization of one (where the problem of “big” certainly doesn’t apply), the critical component to successful adaptation is the transfer of new knowledge to others in the company. Without this transfer, anything learned is dead, and likewise is the process of enhancing the guest experience. In large companies, the transfer of this valuable information is either interrupted or delayed to the point where it just takes too long to work effectively. For instance, if Mr. Johnson is allergic to nuts, it’s likely that the restaurant staff may know, but far less probable that housekeeping ever gets this vital information. So, who removes the nuts from the mini bar? Yes, Mr. Johnson knows not to eat the nuts in the mini bar. But, if they were removed and replaced with his favorite chocolate bar, he’ll likely notice…and remember. Smaller groups and smaller environments usually foster better teamwork and more effective communication. That simply leads to more adaptive and better service.

The other issue typical of bigger companies is the size of management. “Too many chiefs” as they say, who are interested in controlling every touch-point and customer interaction leaving the line staff powerless to adapt and “think on their feet”.

So, if the company is getting bigger, break it down into smaller more manageable pieces, flatten-out the organization, hire great people, and let them be part of the evolutionary “process”.

Where Has Service Gone #4

The Purple Cow- I’m borrowing the term from Seth Godin because it’s quite perfect.

This should really be the first item on your list no matter what you’re offering to the market. Forget about being a winner in the minds of the customer if there’s no true commitment to being the best, or better yet, the only one doing it. Be Remarkable! And, make it more memorable with a great story…because that’s what people remember, and that’s what they buy.

Unfortunately, it’s too often about making money first, and building something great last.

Adaptation Revisited (Where Has Service Gone? #1)

After some further thought and a little editing of my earlier post, here's an expanded version of the "adaptation" principle.

Adaptation- Memorable Experiences are difficult to produce because they can’t be prescribed. It’s an evolutionary process which occurs by building relationships with customers and learning from our shared experiences with them. Every word and every action tells a story about an individual. And, every guest interaction is an opportunity to better understand the story and adapt new ways to exceed future expectations.

Of course, some of this process occurs before the guest actually arrives. That’s what makes it personal. But, there’s a fine line between knowing too little, and knowing too much. If you try too hard to know everything possible about the guest before they even get there, it’s likely the experience becomes prescribed where almost every expectation is executed according to a plan leaving little room for creating the “unexpected”.

It’s more than smiles and using someone’s name. It’s about paying close attention, and continually moving the experience along a path of higher and higher expectations.

The Butter Story

Animal_farm

If there’s no story behind the experience you’re selling, it’s going to be (or, has been) a tough road. Stories sell because they strike an emotional chord with your guest. More and more, it’s the “process” and the behind-the-scenes part of the experience which sets you apart from others, becomes the most memorable, and hence, is the most sought after.

For instance, take Animal Farm butter. It’s great butter to be sure. But, it also has a great story to tell. It’s produced from only seven cows on an organic farm in rural Vermont. No tractors, no fancy milking machines, just love and passion. In fact judging from the photo, I suspect Diane and her family care for those cows like children. I bet the Robin Williams Effect is in full swing up there.

The limited quantities make this butter very exclusive and very hard to get. How much do you think this story is worth?

Only three restaurants were smart enough (and lucky enough) to use this butter story to perpetuate their own. You can hear it at Keyah Grande, Per Se and French Laundry.

So, what’s your story?

Where Has Service Gone #3

Part three in the series, "What's wrong with Customer Service?"

Caring for Employees- There’s always a lot of talk in this area, and usually far less action. You hear it from HR managers and read a lot of mission statements referring to “the employer of choice”. But, in many cases, it’s the same companies who are doing the head scratching when it comes to lost market share and increasing customer complaints. If you have service problems, the underlying issue and root cause usually begins with how you hire and look after your people. Strategically, it’s relatively easy to solve. Partner with the best talent available (see the Robin Williams Effect), and then bend over backwards to take care of them. In practice, it’s very difficult to pull this off. But, the rewards of hard work are exponential when it comes to selecting and retaining the best people. The intricacies of this subject are well covered by people much smarter than me, like Dr. Gerald Bell and his Selecting Achievers Program.

It’s easy to tell if you have a problem. Look at three things: 1) How hard is it to attract people to work with you?; 2) How quickly do people leave?; and, 3) Are you losing or gaining customers? In essence, if you care about your staff, it will show where the “rubber meets the road”.

When there are service issues, start with some serious reflection on how employees are treated, not on what they are doing wrong. My guess is that companies who are recognized for superior service truly put their people first, even ahead of their guests. On the contrary, if sales are suffering, the employees are probably doing so as well. See my earlier post for an example of a company doing a great job.

Where Has Service Gone #2

The second part of my answer to the question, “What’s wrong with Customer Service?”

The Wrong Audience- This one seems to affect all types of companies, large or small. It’s easy to fall victim to thinking that a product or service will be liked by everyone, especially by the producer who is typically tied to it emotionally. But, a very large part of providing memorable experiences is relating to the correct customer. It is extremely difficult to “change” customers’ beliefs about anything. So, rather than using push and bully tactics to “force” people to like the experience, find people who are truly interested in feeling what was designed into the product or service in the first place. It’s so true that an experience can’t be “all things to all people”. And, when that’s attempted, it just aggravates those looking for a different experience….to the point they might even think you provide “bad” service.

Where Has Service Gone #1

Here is the first in my series of answers to the question, "What's wrong with customer service?"

Adaptation- Memorable Experiences are difficult to produce because they can’t be prescribed. It’s an evolutionary process which occurs by building relationships with customers. While the product (thing being sold, or the physical hotel) is relatively static, customer relationships are not. It’s more than smiles and using someone’s name. It’s about being “adaptive”, and continually moving the experience along a path of higher and higher expectations.

Has Service Gone South?

I was recently asked by an upstart magazine to give my thoughts on “what’s wrong with Customer Service (is it diminished or trimmed out of budgets)?”

Here's my intro to the answer. I'll post the sub-parts throughout the upcoming week, and the link to the article once it's published.

It’s not so much that service is broken as it is the lack of passion and focus behind it that’s missing. I don’t think budgets are trimmed. I think they are misaligned. Too many resources are placed into programs designed to make-up for poor product design and/or lack of talent to relate to the customer. Money is too often spent on the “icing” without any concern for what’s in the “cake”. No amount of slick advertising, image campaigns or PR will make-up for an average product or for people who don’t care about what they do.

The Robin Williams Effect

Robin_williams_3

Have you ever wondered what makes Robin Williams so memorable? Even if you’re not a fan of his humor or acting style, it’s likely you remember him. And, what is it we remember about Mr. Williams? Is it the jokes? Nope…not likely. It’s the delivery. It’s how he tells jokes, how he behaves, how he makes us feel that is so memorable. It’s the sweat, the constant motion, the waving of extremities, the colorful attire and the facial expressions that so effectively communicate his passion for what he does. As he performs, he has us believing that he would rather be nowhere else than on that stage. He epitomizes the definition of “caring for your customer”.

Do you and your employees display this sort of passion when interacting with your guest?

If not, it’s time to refocus. No, in fact, it’s time to smash the camera and start over.

Start here…Hire creative, passionate people who will create memorable experiences with your product.

People Like People

Another opinionated point against self check-in kiosks, wake-up systems and the like. Thank you, Seth, for bringing it back to the forefront.

The bottom line is that people like to do business with people. We like to exchange experiences and feelings. That’s human nature, and that’s why we buy one product over another. As long as technology makes that process easier and makes the guest feel better about you, it’s fine. But, I think we’re headed in the wrong direction when we eliminate the opportunity to personally interact with our customer just to save a buck, or make it easier on ourselves. In the long run, that can’t be good…for anyone.

Say No To Automation

I have a counterpoint for Seth regarding his recent post and respective comment, “Use an ATM system instead of the front desk at the hotel. Use an automated wake up call system. But then put the money you save into wonderful people at the concierge desk.”

Get rid of the automation AND hire wonderful people!

As I pointed out in my own rants here and here, do away with the front desk, the ATM and the wake-up system. I haven’t talked with anyone yet who likes them (guest or staff). They were designed either in the dark ages (in the case of the front desk) or to save money (reduce staff and improve efficiency which is so old school) and they alienate most of us who come into contact with them. So, if you’re in the people business, wake-up (no pun intended) and ditch the “barriers” to service and hire more people to take care of your customer. If you want to invest in electronics, buy stuff that enhances the guest experience like iPods, WiFi, etc.

The best hotels in the world (those with the most customer raves about fanatic levels of service) do not have more systems than people. I believe that’s the point Seth makes about the concierge desk.