Perception Analyzer Dial.Log

Cult of IKEA

Here is an interesting article on the worldwide sensation that is IKEA.  There are some great lessons to be learned.

Experiential Divine (II)

Tom Peters had an excellent customer service experience at The Four Seasons.  He and his wife were traveling and dinner plans conflicted with a TV show they wanted to catch.  They asked the Concierge if the show could be recorded and the requested with granted.  In addition to returning from dinner to find a VCR with the recorded show and a nice note in their room, they were also left a plate of treats.  Recording the show was nice enough.  Having it ready to watch in the room that same evening was above and beyond.  Leaving a plate of treats is what makes The Four Seasons remarkable.

Another great example of this is last week an associate of mine, with a brutal cold, was traveling all week and staying at his usual Hilton hotels. One evening he felt so bad he phoned the Concierge and asked for a thermometer to check his fever. They brought one to him right away and then proceeded to send up some soup and checked-in with him periodically to see how he was feeling and if there was anything he needed. 

How many people will they both tell about their great and unexpected experiences?  How may people reading this blog and Tom's will spread the word.   What are you doing to surprise your customers and garner this kind of word of mouth?

Experiential Divine

Some great stuff on customer experience today...

First, Daddy Types tells us that The Cheesecake Factory brings kids a snack plate while their family is waiting to order and get their food.  Sounds like you don't have to ask for it, they just know that's the time when kids get the most impatient and start causing a ruckus (let's be honest).  This simple thing keeps the kids happy which in turn keeps the parents and other diners happy who then reward The Cheesecake Factory with repeat business.  It's the circle of life (or Hakuna Matata - a reference those with kids will certainly get).

Next, Decker Marketing shares a great list of 10 ways to create and manage experience: [via EX Group]

1. Experiences don't just happen; they need to be planned.
2. Think about the customer experience first—and then about the functional features and benefits of your brand.
3. Be obsessive about the details of the experience.
4. Create a small touch that sums up and stylizes your experience. (The Conrad Hotel in Hong Kong places yellow rubber ducks in its bathrooms—a quirky, memorable touch.)
5. Think situation, not product: "Grooming in the bathroom," instead of "razor"; "casual meal" instead of "hot dog"; "travel" instead of "transportation."
6. Strive for holistic experiences—experiences that are sensory, emotional, thought-provoking and relevant.
7. Track experiences across media: logos, ads, packaging, advertising and websites.
8. Use multiple metrics—from quantitative to verbal to visual. Be explorative and creative and worry about reliability, validity and methodological sophistication later.
9. Consider how the experience changes as the brand expands onto the Web or across international borders.
10. Add dynamism and "Dionysianism" to your company and brand. Most brands are too timid and too bureaucratic. Be ecstatic, passionate and creative.

Style Over Substance (in a good way)

Excellent post by Seth Godin on taking responsibility and thinking about how your customers (and people in general) feel when something doesn't go quite right (or even terribly wrong).

The Price is Wrong

I drive a 1999 Nissan Maxima and last week one of my two keyless entry remote thingies stopped working.  I tried changing the battery, but it still wouldn't work.  So, after looking at it for a prolonged period of time and willing it to open my car door, I came to the only logical conclusion - it's busted.  While I was mildly frustrated by this, I wasn't too upset.  After all, I've had it for over five years, used it to lock and unlock the car thousands of times and I have another one that works fine - it's just nice to have two since one is always misplaced.  So, I called my local Nissan dealer and told the somewhat-surly parts department guy that I needed a new keyless entry remote for my car and asked if they were in stock.  Turns out, they were and I could have one for a cool $135.  One hundred thirty-five dollars!

This is one of those cases where an organization makes less than it wants on some things it sells and gouges the customer on other things to make up the difference.  They may only profit $500 on the sale of a car, but they know they're going to make the money back on inflated prices for service and parts.  The problem is, I'm a loyal customer who now feels like I'm getting screwed.  So, the question is, what nets a company a better overall result - a happy customer and an unhappy customer that cancel each other out or two pretty satisfied customers, neither of whom got particularly screamin' deals, but neither of whom feel like they got screwed either?

I understand that if you don't profit enough on the sale of one thing, you have to make extra profit on something else to balance it out.  But, there is a price point for every product and service beyond which it just gets absurd.  Anyone who has used the van Westendorp (link is to a PDF overview) price sensitivity meter method of pricing research understands this.  The idea is to determine at what price a product or services seems inexpensive (less than you'd expect to pay and therefore a good buy), expensive (more than you'd expect to pay and enough to make you start question the purchase), too inexpensive (priced so low that you'd question its quality) and too expensive (priced so high that you'd question its value).  Within the resulting data rests the sweat spot price range.  Ignoring principles like that and simply pricing some products/services low (to make a sale) and other products/services high (to balance things out) is lazy business and doesn't serve anyone.

As for me - I'll use my other remote most of the time and for those occasions when I can't find it or I left in in my other coat pocket or my son has decided to play "hide dad's keys when he running late," I'll just do it old school by inserting key into keyhole and turning. Believe it or not, but that still works.  Now, what to buy with that $135 I just saved?

Time to Make the...um...Coffee???

Fast Company has published a very interesting web-only article entitled "It's Not About the Donuts" that looks at Dunkin' Donuts' current strategy to go after part of Starbucks' share of the coffee and espresso beverage market.

Knowing it can't win on customer experience, Dunkin' is going after Starbucks on speed and price by getting customers in and out faster with up to 40% lower prices for drinks made from their award winning beans.  Did you know, according to the article, that 57% of Dunkin' Donuts' sales come from beverages, not doughnuts (or other food items)?  How about the fact that Dunkin' sells 16% (2.8 million cups) of all coffee sold by the cup in the U.S.?  With 700-100 new Dunkin' locations opening each year, it could get interesting.

User Experience (UX) the eBay Way

Interesting interview by Mark Hurst on the Good Experience Blog with Andre Haddad, Vice President of eBay's Design Labs. Mr. Haddad is in charge of the user experience (which he calls UX) for eBay's 114 million registered users. Good read.

If This is How They Treat Their Best Customers...

I shop at a high-end retailer that has a loyalty program - for every $40 spent I get a card stamped and after 10 stamps I get a $40 credit toward my next purchase. Not a bad deal. I essentially get 10% back on every $400 spent. The problem is, they stick it to you with ridiculous rules.

First, you must spend $40 during each visit to the store in order to get credit for that purchase. If you only spend $30, for instance, then no credit and that $30 does not carry-over to next time. This rule is just unnecessary. I will spend the same amount of money over time or I won't earn the credit, but why force me to spend more than I want to on any specific visit? Either way, they still don't give me a $40 credit until I first spend $400, so why not let me earn it the way that works best for me?

Second, a completed card may only be redeemed on the next visit. I learned of this when my last purchase was $85. I needed one stamp to get my $40 credit. I asked if they could stamp me for the first $40 of my purchase and apply my $40 credit to the remaining $45. They said, "No, the card may only be redeemed on your next visit." So, then I asked if I could split it into two purchases. Ring me up for $40, stamp my card, then ring me up for the remaining $45 and apply the credit. This time the "no" came before I even finished my thought - clearly they had heard it before. And, to make it even more silly, since my purchase was $85 and my current card only needed one more stamp, they completed my first card and had to start a second one for the stamp for the second $40 I spent (though no credit for the remaining $5, of course). Now I have two cards. One that's full and taunting me until I go back to redeem it and one with a single stamp.

So, this is what they call a loyalty program, eh? I understand they want to get me back into the store and not redeeming my card until next time is a way to force that to happen. But, by the time I have a card full of ten $40 stamps, haven't I already established myself as a repeat customer? It's not like I'm going to spend $400 at their store just to get my $40 credit and never return. I'm not asking for anything more than they currently offer - $40 credit after $400 spent. Just don't stick it to me with ridiculous rules designed to force me to shop more at a store where I have already established myself as a good, repeat customer.

Bottom line - loyalty programs are for our most loyal and valuable customers. They spend the most, return to us most often and provide powerful word-of-mouth (positive and negative). Let's be sure to show them the appreciation, and treat them with the respect, they have earned.

Airport Art

First the JetBlue terminal at JFK gets an Oasis day spa and now the once vacant Terminal 5 at JFK gets turned into what reads like a living, breathing artistic experience. The web site is cool (turn up your speakers) and the concept actually makes me want to visit an airport terminal. All they need to do now is settle on either "Terminal 5" or "Terminal Five" as my brand-consistency early warning system started beeping when I saw both used on the web site.

Here's their description of the project:

"Terminal 5 is an event for air travel. The airport terminal designed by Eero Saarinen at John F. Kennedy Airport, New York, was left vacant in 2001. The site reopens with an exhibition curated by Rachel K. Ward to respond to the transitory nature of travel, architecture and contemporary art. Sculpture, installation, sound, performance and other media take place within the luggage carousels, ticket counters, VIP lounges, staircases and the tunnel walkway. The terminal also hosts an airport media lounge, airport gift shop and ongoing "Arrivals," a series of public events."

[via Right This Way]

Into the Void

Less than half of emails sent to the world's best-known brands actually get a reply. For the study, companies were contacted either through their info@ email addresses or using contact forms on their web sites. The study was conducted in English and Spanish and this article at Internet Retailer goes into detail on the stats. Highlights:

Request for product info:
English - 42.7% response (average resp. time 2.9 days)
Spanish - 46.9% response (average resp. time 2 days)

Complaint:
English - 49.4% response (average resp. time 1.6 days)
Spanish - 35.8% response (average resp. time 3.8 days)

Compliment about the site:
English - 35.6% response (average resp. time 3.1 days)
Spanish - 35.4% response (average resp. time 1.8 days)

Where to buy the company's products:
English - 50% response (average resp. time 1.7 days)
Spanish - 33.3% response (average resp. time 2.8 days)

What I think is important to look at though is the sheer volume of email these companies actually get and what percentage could be replied to without requiring unreasonable staffing levels.

via MarketingVOX

Airport Oasis

New York day spa, Oasis, is teaming-up with JetBlue Airways to offer a full service spa at the JetBlue terminal of JFK airport. Treatment times will even be coordinated with arrivals and departures.

From my perspective, what is so interesting about this is the blending of a high-end NY spa with a low-cost airline. Many (if not most) people who fly JetBlue don't do so because they can't afford other airlines, they do so because they appreciate the low fares and level of service for which JetBlue has become known. These are people who will still drop some cash on a nice spa treatment for themselves, especially when it is custom fit into their travel schedule. The spa opens around Labor Day and it will be interesting to see how it is received.

Thanks to one of my new favorite blogs, Right This Way (the Fodor's blog), for the link.

Micromarketing

Two great links today via Experience Economy Evangelist:

The first is the cover story of the July 12 Business Week that profiles, in depth, the shift from mass market advertising and marketing to micromarketing and highly targeting campaigns. This is a must read!

The second is an Atlanta Business Chronicle profile of The Coca-Cola Co's. slow and steady shift from the traditional 30-second TV ad to more "alternative marketing." Coke has been getting a lot of attention for this lately and being one the world's strongest brands with a $2 billion marketing budget, we'll all surely be interested to see how this effort further develops.

Customer Experience - Ritz Style

Great post over at 800CEOREAD Blog about a recent stay at the Ritz-Carlton Orlando. Stories like this always make me ask myself if my company does all it can to either make the customer experience flawless or make-up for it big time when it's not. Ritz-Carlton is famous for this and not by accident. With all their locations and levels of staffing, they have managed to drill this philosophy and its practice down through the organization and everyone seems to live by it. That's remarkable.

Try It...You'll Like It

Peter Davidson links to an article that describes a why-didn't-I-think-of-that idea by HP to offer hotel guests the opportunity to check-out digital cameras during their stay and print photos on-site to take home with them.

While probably not the first time something like this has been done, it is truly a brilliant strategy. Potential customers get to try the product in a real-world environment and HP (and the participating hotels) build goodwill by offering the service in the first place.

I have a few more GMail invitations available to those who comment on this post with other good tie-in ideas like this one.

More on Starbucks' Customer Experience

As a follow-up to this post, I refer you to this article from MarketingProfs about another less than satisfying experience at Starbucks along with a good analysis of the interplay between expectations, performance and satisfaction. In the article, the author describes his experience as "stressful" and when I was reading it I was imagining him as having been uncomfortable.

Stressful and uncomfortable are certainly two emotions with which no company ever wants to be associated. What's interesting is how much of this always seems to come down to the very last step in the marketing and customer experience process - the actual interaction with the customer. Millions and millions of dollars and countless hours of strategy and planning go into creating an experience and environment that is intended to evoke certain emotions. Then, one wrong word or one wrong look between staff and customer and it's all for naught.

I don't mean to pick on Starbucks exclusively as I notice this sort of thing all the time, whether face to face in a retail environment or over the phone with, say, an airline or some other service provider. The challenge for marketers is that this generally comes down to workers with the least to loose. So, how does one incent them to care as much as those developing the best laid plans?

Big Business and the Customer Experience

Yesterday I was reading the cover article in the July issue of Fast Company on Starbucks and its foray into music (link to that specific article is not available at the time of this posting). The article was about how Starbucks is rolling-out a service in many of its locations whereby customers may browse and listen to a catalog of songs and burn their own custom CDs onsite. The article went on to discuss the marketing behind this venture and how Starbucks is not in the coffee business, but the people business. They see this service as a natural extension to the experience people go to Starbucks to receive.

This post is not a commentary on the music service – it’s a commentary on customer experience because an hour after finishing that article I found myself in a Starbucks and fresh off reading the article, my critical eye was roving. The first thing I saw were five full trash bags piled-up in plain site (in the walkway between the front and back of the house) waiting to be taken out. The bags were clear so in addition to a pile of trash bags, the trash itself could be seen in all its glory. Then I ordered my coffee and when it was handed to me I said, “Thanks” and the clerk (or barista, if you prefer) said, “Uh huh.” So, I’m thanking them for my coffee and their way of thanking me for frequenting their store and helping to keep the lights on is to say, “Uh huh.” Next I moved to the fixin’s bar for some cream and sugar only to find the container of half and half empty and spilled coffee stains all over the counter (actually, they were probably stains from people pouring out some coffee to make room for cream because even when you ask for room for cream you rarely get it – so they end-up with coffee in the trash can and all over the counter). I brought the empty container to the clerk, they handed me a new one, I said, “Thanks” and they said, “Uh huh.”

So my question is, when does a company get so big that it can no longer really control the fine details of the customer experience? They can control the macro stuff – the furniture, the lighting, the music, the product offerings. But, when the interface between the company and its customers, at 8,000 locations (in Starbucks case), is a part-time hourly wage worker who probably doesn’t care all that much (I know I didn’t back in the day when I held a similar type of job), the micro stuff – cleanliness, friendliness, attentiveness – seems difficult (if not virtually impossible) to manage to the company’s highly strategized and fine-tuned corporate standards.