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October 31, 2006

Cutting Through the Clutter

http://www.slideshare.net/uriba/getting-through-communication-network-communities-marketing/1

The presentation was developed by Uri Baruchin for Tinylove's distributor event in Koln (Cologne) Germany, in September 2006. Tinylove is a client who designs developmental toys for babies. Their main target audience is parents, specifically “Generation-X parents. The question was how to help them reach this audience through the web in a world characterized by information overload.

Have a look, this presentation nicely captures the challenge that all companies face as they try to differentiate themselves in a "sea of sameness".

October 30, 2006

Red Bull = Passionate About Life

Redbulllogo.jpg Red Bull is the European "energy drink" company that is owned by Austrian billionaire Dietrich Mateschitz. Introduced in the United States in 1997, Red Bull has spawned an entirely new category in the U.S. beverage business. In America, Red Bull controls about 70 percent of the energy drink market, and sold slightly more than 1 billion cans last year.

Red Bull has created and cultivated a brand image, which associated the drink with youth culture and extreme and adventure-related sports, such as motor sports, mountain biking, snowboarding and dance music. Red Bull's target consumer segment began to adopt nicknames for the product such as 'liquid cocaine' or 'speed in a can', thus spreading its appeal.

The recruiting messages ask “if you have the Red Bull attitude?” They are looking for individuals that are fit its brand image. What does that look like? Well, according to the Red Bull “Mobile Energy Team” recruiting website, Red Bull is looking for people who are: passionate about life; who like people; who are positive and energetic; and who are fun and want to be part of a team.

Unlike most companies, the external Red Bull image is mirrored internally. According to the New York Times, if a Red Bull employee wants to learn to pilot a plane, Mateschitz will pay for flying lessons so the employee can expand their horizons. As Mateschitz sees it,

“when you are called Red Bull, when you stimulate body and mind, when you give people wings, this has to do with sports, flying, with having been empowered to do whatever you want to.”

 

No wonder this company has had such phenomenal success!

October 28, 2006

Engaged Frontline = Differentiated Experience

stockxpertcom_id426691_size1.jpgIf you want to deliver differentiated experiences, you must engage your frontline in the process. Have a look at our approach to creating a customer experience through creating an engaged and committed frontline.

October 27, 2006

A Blogging Scam

“In case you haven't heard about it here is my understanding of it all. Edleman and Wal-Mart had teamed up to manage their corporate communications in the social media realm. One of the 'ideas' that came out of this partnership was to start a grassroots org. that happens to sponsor blogs that would talk up Wal-Mart. This blog would allow readers to learn facts and info. on Wal-Mart to counter some of the negative press that they receive. Unfortunately for them (and moreso Edelman) there was no disclosure on who the bloggers on 'Working Families for Wal-Mart' were. It turns out that they work for Edelman. Ooops.”


Read “The Future of Me” and The Church of the Customer blogs to learn more about the Wal-Mart/Edelman Fiasco.

October 26, 2006

Are You Missing the V-Opportunity?

visit-the-linden-village.jpg Second Life is a virtual world with a real economy. At least three thousand users make at least $20,000 per year on SecondLife, selling everything from clothes to real estate. The economy of SecondLife has been estimated to be $64 million per year.

Many real world companies are embracing the v-world. But, when blue-chip companies like IBM start to aggressively participate, others should be careful of waiting too long on the sidelines.

IBM is now using Second Life as a location for meetings, training and recruitment. According to Reuters Second Life News Center,

“IBM has embraced Second Life to an extent unmatched by any other major company — it has more than 230 employees spending time in-world, and it owns some half-dozen islands. Some are open to the public, but most are private, with restricted access for the public."

 

So far in Second Life, IBM has set up a simulation of the Wimbledon tennis tournament, using data that tracks the position of the ball to re-enact points several seconds after they happen. It has also held virtual events such as an IBM alumni reunion, whose purpose was to allow for more natural and real interactions between people who cannot meet in person.

Crayon also launched this past week, and will act as a virtual consulting firm.

“Crayon is a different kind of company that integrates the best of the consulting, agency, advisory, thought leadership and education worlds. The goal of crayon is to help clients make sense of these changes and tap into them in order to differentiate themselves from their competition, participate in community-driven conversations, and stand out from the crowd."

 

It is only a matter of time before more and more "real-world" companies attempt to set-up shop in the v-world.

What is your company doing?

October 24, 2006

Scotia Adds Value Through PodCasts

en_topnav_logo.gif Scotiabank recently launched the Money Clip. What is the Money Clip? It is a series of podcasts designed to help Canadians get ahead financially. Each podcast provides exclusive interviews with experts who discuss aspects of personal finance.
“We hope to demonstrate the power of informative audio in a highly accessible and exciting way.”

 

The goal is to extend the neutral and helpful advice that they currently provide in their newsletter The Vault. There are currently over 1,000,000 subscribers to The Vault newsletter via email.

The most recent series of podcasts is focused on helping Canadians better understand Mutual Fund Investing. This series is hosted by Michael Seaton, who is The Director of Digital Marketing at Scotiabank. Michael also writes a blog called The Client Side, which focuses on “ideas, thoughts and stories from the frontlines of marketing."

Congratulations Scotiabank, you are certainly demonstrating innovation, while providing customers with meaningful information and insights.

Second Life - A Great "Test Bed"!

visit-the-linden-village.jpgWhat is Second Life? Second Life is a 3-D virtual world entirely built and owned by its residents. Since opening to the public in 2003, it has grown explosively and today is inhabited by a total of 1,097,243 people from around the globe. This alternate world is filled with many of the same basic interactions as the real world: people buy land, build homes, and pay for a range of every day goods and services. And they pay in cold, hard U.S. dollars which are exchanged for Linden Dollars, Second Life’s currency. Spending in Lindens, reached over 92 million dollars for September of this year, and October is already on track to outstrip that figure by 20%. Linden Lab today announced that largely due to heavy media coverage, it expects to add 50,000 new resident accounts today alone. In recent months Second Life has been growing by 38% per month in a sector that generates between $1 billion and $3 billion USD a year.

Now the boundaries between the virtual world and reality are starting to blur even more. Second Life is fast becoming a three-dimensional test-bed for real life corporate marketers, including Sony BMG Entertainment, Reuters, CNET, Sun Microsystems, Nissan, Adidas, Toyota, Wells Fargo and Starwood Hotels. For brands, Second Life is appealing because it’s a place where people immerse themselves in their products making it ideal for getting feedback as well as promoting products directly.

For example, Starwood, the owner of the chic W brand as well as the Westin and Sheraton chains, is the first real-world hospitality company to open in Second Life. Starwood is looking for feedback, and has opened aloft in Second Life. They are looking to test-market the hotels design and rapidly prototype the evolving concept. For instance, they will observe how people move through the space, what areas and types of furniture they gravitate towards and what they ignore. The project is an effort to tap consumers for ideas. They’re encouraged to post on a blog, which debuted on July 24, and features steady updates on the virtual hotel’s design, along with detailed screenshots.

Check out the ReBang Weblog. In the blog, they show a video about the Starwood Hotels. Check this out!

Starwood is already receiving comments. Like this one:

I don't spend anything like as much time in SL as our esteemed colleague, Gideon Television, but even from my passing experience I can tell this is an incredibly impressive build by Starwood and the folks at Electric Artists. The place just oozes sophistication and style. I had my doubts about whether or not this was a worthwhile exercise when I first heard about it - the American Apparel Store in SL still seems more like a PR exercise that a valid installation. But when you walk through the halls of the Virtual Aloft, you really get a sense of what this brand will be like, and it instantly became a “must visit” for me when I'm travelling. Many kudos to everyone involved - finally an SL build that has as much substance as it has panache.

Who else is entering Second Life?

1, Sun Microsystems, Adidas, Reebok, and American Apparel all have retail spaces on Second Life.

2. IBM held a global alumni reunion.

3. MTV has built its own Virtual Lauguna Beach as an extension of the TV show Laguana Beach.

4. Nissan spent $1,250 and a monthly $195 fee buying a virtual “Nissan Island” to promote its Sentra car.

5. Reuters joined CNET in opening a Second Life newsroom in October. As well, Wired Magazine just announced it is opening in Second Life.

We love the fact that these companies are participating in this virtual world. Who knows, maybe we will start to see companies “test and hone” their desired customer experiences in this virtual world. And even more radical – we may start to see them determine better ways to engage their employees to deliver the desired customer experience!

October 23, 2006

How Big is Your Gap?

As consumers, we all know that the food never looks as good as the picture in the magazine, and the service seldom equals the portrayals in the commercials. Nevertheless, these ads do serve to create an expectation of the service and the quality that a customer will receive. If there is too wide a gap between expectations and reality the results can have a huge negative impact on companies. While all of us expect some gap, what we don’t expect is employees’ to highlight the gaps for us. Why? Because employees are the ambassadors of the brand, and if they don’t have pride in what they are selling the company will never reach its stated goals and objectives.

Take Quizno’s – according to their website – Quizno’s is a Denver-based chain that is designed for the busy consumers who are looking for a tasty, fresher alternative to traditional fast food restaurants. Using premium quality ingredients, Quiznos offers better-tasting food through creative, chefs-inspired recipes to give you an experience that’s truly a “cut above” all the others.

Well according to one of their employees, Quizno’s doesn’t offer the premium quality alternative that is a “cut-above” all of the others. Have a look at this Quizno’s video. While this is the perspective of only one employee, it unfortunately was the first time that I had ever heard of a Quizno’s.

What does it tell me? In addition to the fact that one employee doesn’t think it delivers the premium quality it promises, it also tells me that the company is not spending enough time helping its employees understand the purpose of the advertising, or helping them feel proud of the alternative that they are providing to their targeted “busy” consumer segment.

In our opinion, companies need to understand the gap between how their employees feel about their brand, their company and their products and services versus experience they depict in their advertising and marketing campaigns.

If given the chance, what would your employees say about your company, or your products and services? How big is the gap between what you say you deliver, and what your employees believe you deliver?

Share other examples with us.

October 20, 2006

Ritz - Beware of Arrogance & Complacency

 

rc_logosm.jpg We have just returned from a client meeting that was held at the Ritz-Carlton in Miami. Why did we stay at the Ritz? We were studying companies that were known for their service excellence – so we decided to experience it first hand.

We were a little worried about the quality of the service prior to going to the Ritz. Why? We had read reviews with some of the following headlines:

• Not bad, not great, not quite the Ritz!
• A hotel facility in decline.
• Not a Ritz-Carlton, this place is a one star!
• Sub-par hotel, over-rated brand.

Since we were trying to show our client best in class experiences, we called the hotel directly to discuss the reviews. When we showed our concern, we were told simply that they were the only five star hotel, and were known for their service. They also said that they didn’t know anything about the comments that we were talking about. We emphasized how important it was for the Ritz to show their world-class service, as this was the reason for our staying there.

Early on in our visit, we had arranged to have the Director of Rooms and the Head of Human Resources come to discuss how the Ritz creates a world-class experience. Their passion was overwhelming, their pride phenomenal. In fact, everything we heard was amazing. The only problem, there was a serious disconnect between what we heard and what we experienced.

During our stay:

  1. Upon arrival, no-one used our names at the check-in counter even though our luggage tags clearly displayed them.
  2. Our rooms were mediocre.                       
  3. The turn-down service was inconsistent.
  4. Requests were made and never fulfilled. One of our team members had a safe that was faulty and it was never fixed, nor was there an apology from the hotel.
  5. The handle to the meeting room was falling off. The fan was loud and couldn’t be fixed. And when we asked to have our Internet extended in the room, no-one came to fulfill our request.
  6. And without fail, every time I called the front desk they said how can I help you Mr. McLeish! And even after I spoke (obviously a woman) they didn't correct themselves.

Yes, these are all little things. But, certainly not characteristic of the service that we expected. In fact, the service was underwhelming at best. We know that the Ritz-Carlton is world-renowned. We know that the Ritz has always been associated with quality and service. We just think that the Ritz has become complacent. They seem to be a little too comfortable with their brand and their reputation.

We would suggest that the Ritz-Carlton should be more aware of the actual experiences that their guests are having. They should go back to the basics and try to deliver them consistently, every time. Why? Because delivering poor quality ultimately leads to failure.

October 19, 2006

Sometimes, We Surprise & Delight Customers

images.jpgToday, I arrived at Starbucks to buy my usual Grande Latte. Once ordered, I handed over my debit card to pay for the transaction. I was then told that they were not able to process my transaction, as the system was down.

I looked in my wallet and found both U.S. dollars and Barbados dollars, but no Canadian currency as I had been traveling. The individual at the counter was watching me look through my wallet and then said – don’t worry today the coffee is on us. Sometimes, we have to surprise and delight our customers!

Well, Starbucks you certainly surprised and delighted an already loyal customer! Thank you.

October 16, 2006

Another "Wow" at the Mandarin Oriental!

our_com_logo.gifFrom the moment we entered The Mandarin Oriental Miami, we felt like we had entered a world of beauty and relaxation. The clever use of lighting, music, and running water created an environment which delighted every one of our senses instantly.

As we entered, we told the concierge that we had a meeting scheduled with Romy E. Saunders, The Director of Quality & Productivity. What did we want to discuss? We wanted to better understand how the Mandarin Oriental has created a customer experience that appeals to the well-heeled, luxury traveler in countries as diverse as Asia, Europe and the United States.

When we met Romy, we asked her to help us understand how the Mandarin created their mystical world-class experience. During our meeting, Romy discussed some of the key differentiators in the Mandarin experience, including the:

1. Importance of a strong sense of place. They do not have a “cookie cutter” approach to hotels, but ensure that each location has its own individuality and unique offering.

2. Legendary Quality Experiences (LQEs), which are delivered through 150 service standards that allow the experience to be delivered consistently across every defined “moment of truth”.

3. Relentless focus on delighting a guest. They do this through a strong sense of care and concern for their guests, not through a set-script.

4. Focus on details. Everyone participates in daily briefings, which solidify the philosophy of the company. As Romy, rightly points out – “you can’t live the philosophy of a company, unless you speak it.” As well, the daily briefings share customer service successes, and opportunities, and prepare each colleague for the arrival of each and every guest.

“We need to know who is in our home, and who do we need to host.”
5. Use of technology, which delivers a high tech and high pamper experience to each and every guest.

 

6. Emphasis on learning and development and the culture of continuous improvement, which ensures that each colleague delivers the desired experience consistently – day-in and day-out.

While, we were impressed with the list of key differentiators Romy highlighted. It was what she didn’t say that impressed us even more. It was her passion, dedication, enthusiasm for her colleagues, her guests, and her hotel. It was her emphasis on caring and concern, graciousness, respect, and the spoken sense of belonging that were, in our opinion, Mandarin’s reason for its overwhelming success.

In fact, we believe that Mandarin’s their true differentiator cannot be measured, and cannot be replicated. What is it? It is a unique spirit characterized by the willingness to create an environment where people can excel and where people have a genuine care and concern for each other and their guests.

We want to thank Romy and the Mandarin Oriental. Romy met with us and our client to discuss service excellence. She took the time out of her busy schedule and “moved heaven and earth” when one of our client teams was an hour late for a scheduled meeting. It is people like Romy, who highlight that it is the unique spirit of each and every colleague, who is responsible for bringing to life the desired experience – each and every day.

Thank you, Romy.

October 06, 2006

Watch Out Humans - Robot Kitchen is a Hit!

hkrestaurant.jpgThe "Robot Kitchen" restaurant in Hong Kong has recently hired three robots to welcome guests, take orders from them, and say goodbye when they leave. This is the first restaurant in Hong Kong to employ customer service robots in this capacity and according to an article in the HK Commercial Daily, business has grown between 20 and 30 percent over the past two weeks.

We think that anyone employed in the retail industry should take note. Why? Robots are able to deliver the unique and entertaining customer experience, everytime. As well, there will be no local variability in the experience across locations - the robot will deliver the same experience, everywhere. But most importantly, all of the robots will be highly engaged and loyal employees, period.

Unfortunately, we, humans require constant training to deliver the desired customer experience and even with training there is often tremendous local variability (See the HBR article Human Sigma). As well, they require a signficant investment in terms of time and energy to ensure that they remain loyal and highly engaged employees (See the Gallup Organization Study). And by the way, even with investment, a significant amount of employees are not fully engaged in the work that they do. All of this creates issues and challenges for companies that recognize that one of the only ways left to differentiate themselves is through creating a highly differentiated customer service experience.

There may be good news....customers still rate being treated with dignity and empathy as important components of a customer experience. The robots may have trouble with these concepts!

Stay tuned!

October 05, 2006

Bell Has Engaged Employees!

hero_ONen.jpgIt’s not often that you hear about a good customer service experience with a telephone company, but brace yourself, Iast weekend I had a great one.

 

 

The person I have to thank for this great experience is a service technician named Sarva. It all started at about 4:00 pm on a Friday afternoon when I noticed that the red extension line indicator on one of our phones was on. I was pretty sure that the phone was not in use as I was the only person home at the time, so I picked up the receiver to double-check. Dead air…I hit the release button a couple times but couldn’t get a dial tone. After checking all the other phones in the house, I realized that I was going to have place a customer service call to my local telephone company, in this case, Bell Canada.

I dialed the number and was greeted by “Emily” the automated phone attendant. Ah yes, the dreaded voice recognition system, designed to make customer service calls more efficient and cost effective. Honestly, is there anyone who actually enjoys conversing with the “Emily’s” of the telephony world? It takes me two attempts to get where I need to be, only be disconnected. Find a happy place, find a happy place…

Finally, I’m speaking to a very pleasant “ live” person who tells me that she is there to help me in any why she can. Excellent…she asks me some questions, opens up a trouble ticket and books me an appointment for the next day which is of course Saturday. She tells me that a service technician is scheduled to come to house between 8:00 am and 5:00 pm.

Did you say between 8:00 am - 5:00 pm? That’s a pretty long time; don’t you book in 3 or 4 hour time slots?
Oh, she responds,
is that your preference?
I guess I can schedule him from 9:00 am – 12:00 pm.” After unsuccessfully trying to cross-sell a monthly service maintenance fee she ends the call a little less pleasantly then when she started it.

 

The next morning I wake up to a beautiful autumn day. I wait impatiently for Bell Canada technician. Tick tock. Finally, a knock at the door. The service technician has arrived. He does a quick check on our phone jack and then spends about 15 minutes working on the demark box at the side of house. He lets me know that he has to leave to go check the local junction box but that he will be back soon. When he returns, he tests the phone line to make sure its working. Success! He says there was a problem with the wires at the box AND THEN… gives me his cell phone number and tells me to call him directly if we have any more problems over the next couple months. I’m almost speechless. Never, in the twenty or so years of dealing with utility service technicians has this happened. He took ownership of the problem and offered to be there, if we experienced any other issues.

That simple gesture is an excellent example of what the “employee factor” is all about.

October 04, 2006

Variability Prevents RBC From Delivering on Its Promise

logo_rbc_bankng.gifThursday, I became the proud new owner of a wonderful house. I now know why they rate home buying as on one life’s most stressful events! Don’t get me wrong. I love the house – can’t wait to move! But, the process and paperwork leading up to the purchase was crazy, and the timelines? My breaking point however came about when I needed to get a certified check to accompany my offer. You’d think something like that would be easy….

I went to a Royal Bank branch down the street from me. I was working against the clock and getting anxious so I figured I’d go with the closest branch. I walked in. The line was short. I breathed a sigh of relief. Unfortunately it was downhill from there. I walked up to the Customer Service Representative and smiled. I let her know that I needed a certified check, that I was putting in an offer on a house and needed to get it right away. Her response?

“No, I’ll give you bank draft though”. Umm…what? I asked her why not. “Because you don’t need one."

 

I explained that I had just signed an offer agreement that said I would be providing a certified check later that afternoon, so I stressed that I actually did need one.

“Listen” she said “I’ve been doing this a real long time. You don’t need a certified check. A bank draft will do. Trust me. Oh and it’s cheaper anyway."

 

I didn’t care at that point about cheaper, I cared about getting what I needed to have my offer accepted. I wanted that house! Then the kicker…

“Well, I can’t do a certified check anyway. You need to go to the downtown branch for that. But you don’t need one. You’ll find that out, and then you’ll be back!”
She was wagging her finger at me at this point. What did I do? I headed to the Downtown branch.

 

I arrived at the Downtown branch. Luckily once again the line was short. When I reached the Customer Service Representative, I told her I needed a certified check. She asked me what it was for. When I told her she gave me the response I was dreading

“I think what you might really need is a bank draft."
I nearly keeled over. The look on my face must been easy to read (I never play poker for this very reason). Right away she told me that she could certainly get me a certified check, but that a bank draft might be a better option. She proceeded to tell me the pros and cons of both. I was glad to finally be getting the information I needed. Then the best part. She told me that she understood that this must be a very stressful day for me and that the last thing I needed was more to worry about. She asked me for my Realtor’s number and said she would be happy to chat with him to ensure that I was provided with exactly what we needed. When she came back she had all the information we needed and we were off to the races. We had a bit of a chat about moving and house buying while she finalized the last details and then we were done. She smiled and wished me luck. I left relaxed and excited about “my” house.

 

After my first trip to a Royal Bank, I was convinced I would be moving banks. But, after my second encounter, I am content to remain a customer. Having said that, Royal Bank needs to focus on reducing the variability in its network – and focus on being FIRST for clients’ everywhere, every time.

October 02, 2006

Explain Why - Before You Raise Prices!

images.jpgI arrived at my favorite store today, Starbucks, only to be told by an employee that they are raising their prices by five cents, as of October 3rd. While I am not thrilled about the price increase on my already very expensive coffee – I am very disappointed about the manner in which I was told of the increases. A direct quote from the employee:
We are raising our prices tomorrow. Laughing, she continued…but, we still love our customers and we still appreciate their business.
Hmmm…why didn’t Starbucks arm their employees with how to introduce the price increases to their customers? Why didn’t they help their employees understand the importance of delivering the message in a positive and empathetic manner?

 

Wouldn’t it have been powerful, if Starbucks had provided every employee with the “one paragraph” that would explain why they were raising their prices…maybe they shouldn’t blame fuel and labor costs…but maybe, they should have tried something like this...

“We just wanted to let you know that we are raising our prices tomorrow, by five cents. We are raising our prices so that we can continue to provide you with the exceptional coffee experience that you have come to expect from us. We want to know that we value your business, and we hope that we can continue to serve you at this location (put the location of the store).”

October 01, 2006

Key To Success = Happiness at Work

stockxpertcom_id581227_size1.jpgA few weeks ago I was lining up for coffee. The place was packed. Normally I’m multi-tasking while I’m in line and a little oblivious to the goings on, but I was really taken aback by a gentleman in front of me who was complaining loudly about his staff –

“I don’t care if they’re happy, I just want them to get in here and to do what they’re suppose to and go home.

 

We’re not here to have fun, we’re here to work right?” I suppressed my urge to offer up my opinion.

 

I guess the Manager had not been told of all of the recent books and statistics that now show that – being happy at work isn’t a nice to have, it’s a must. That is why we love the new site by Alexander Kjerulf, otherwise known as the Chief Happiness Office. The site is dedicated to “Daily inspiration, energy and fun, simple tools to make yourself and your business Happy at Work”. Alexander takes us back to the basics and reminds us why happy employees make a better, more competitive and more profitable business. A quick excerpt form Alexander:

“Making your business happy, is not just a good thing, it’s the best thing you can do for any business, because it enhances everything else. Happy people learn faster, communicate better and form more efficient teams. Plus happy people care about what happens to the business. This means that happiness at work makes every other activity in the workplace more efficient. Expanding the business, introducing new business processes, signing new customers, dividing or merging - whatever your business needs to do, it can do so much more efficiently, when people are happy.”
The bottom line? There is no trade-off between happiness at work and the bottom line. This is not about sacrificing one for the other. It’s not a matter of either/or - it’s both or neither. Businesses don’t have to choose between profits and happiness. The real choice is this:

 

Do you want your business to be rich and happy or poor and unhappy?

As Alexander would say, happiness at work is an idea that is revolutionizing the business world. Fewer and fewer people are signing up to work somewhere where all they get is paycheck. And yet, even if you know that, how do you get started on your own workplace happiness revolution? Luckily for us, Alexander is writing a book about just that right in his blog. You can actually read the chapters as he writes them. Is any of this rocket science? Maybe not. But if it was so easy to implement everyone would be doing it!

Check it out. The Chief Happiness Officer will satisfy “softies” and number crunchers alike.