Lessons

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The Art of Recovery

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One of the fastest ways to lose the trust of your customer is to make a mistake and be average at fixing it.

A quick illustration…

We recently bought some furniture for our new home… a relatively painless process, at least the buying part. One of the reasons we selected what we bought is that all of the pieces were in stock and could be delivered on the date requested. Without that assurance, we would be sleeping on the floor and eating on TV trays…not a good situation after a month out of the country and moving the week you get back…even though camping in Colorado is nice this time of year. Well, you probably can guess the outcome…the delivery truck came…but without some of our furniture. The delivery folks had no clue, “we just deliver what they put on the truck, we don’t sell it”. A call to our sales person determined he had forgotten to notify us that the pieces were on back-order, this even after he assured us everything would be delivered to our satisfaction. I, of course, diplomatically and calmly voiced my displeasure (honest, I was nice). So, here was the salesperson’s big chance, right?...an opportunity to really show me what he and his company were capable of. Instead, here’s what he said, “what would you like me to do?” and “we’ll get it to you next week…guaranteed” A broken promise, you have my money and I don’t have my furniture…not good.

Mistakes are bound to happen…in any business…we all know that. We also know that the correction of those mistakes is paramount to a successful future for any organization. But, just “fixing the problem” isn’t enough any more. A simple “I’m sorry” and a discount doesn’t make much of an impression when there are so many other products and services to choose from. And, while this seems likes it’s leading to a customer service lesson, it’s not…it’s a marketing lesson. Every mistake, every service screw-up, every fly in the soup is a wonderful marketing opportunity…it’s the most likely place for you to beat the competition and gain lifelong customers…for three reasons. 1. you have their undivided attention…this happens very rarely; 2. the customer expectation is that you will fail…or at a minimum that you will be average (offer the proverbial 10% and apologize). In their minds, you’ve already let them down. Now, it’s just a matter of getting out the door before you can cause any more damage; and 3. your competition isn’t likely to do much better…the odds are that disgruntled customers are leaving your competitors at least as often…and for many of the same reasons. In other words, screwing up is actually a pretty good place to be…if you’re up for the challenge.

Again, simply recovering from a mistake is not the opportunity…that’s expected. Your best chance to act remarkably and regain the trust of your customer lies in how you recover. At the end of the experience, two things need to happen: 1. the customer must feel special; and, 2. they need to shake their heads in disbelief at the lengths you took to earn their faith. The only way to accomplish these two goals is to act with sincerity, empathy and honesty…tell the truth, try really hard and be remarkable.

Marketing takes many forms, and it often happens behind the scenes or after the initial sales transaction, like when there are issues. So, the next time there’s a problem, don’t just fix it, make their heads spin!

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Build A Story

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Yesterday was an exciting day for Charlotte, North Carolina…they won…they won the right to spend over $100 million on a new building…the NASCAR Hall of Fame. Congratulations.

This is huge for the city of Charlotte, as it would have been for any of the other candidate cities, like Atlanta or Daytona Beach. And, not because this new venture creates jobs, improves land value or streams millions in taxes…but because it fuels a story.

NASCAR is a very powerful story, almost a religion…especially in the South. Millions of people watch the races, buy the myriad of logo stuff, watch the ads on TV and revere the drivers…past celebrity status. They believe…because they want to, because of how it makes them feel.

People won’t visit the NASCAR Hall of fame because it cost over $100M to build. They won’t visit because of ample parking, a fancy lobby or clean restrooms. They’ll come because they’ll have a chance to be a part of the story…to get closer to the dream.

So, if you’re in the market to develop a hotel, build a story first, and a building second. Stories are more interesting, last longer and pay much bigger returns...just ask Charlotte.

Bespoke

This is a word with strong legs, and one I was turned on to by my good friend Alex.

The more you invest in creating individual experiences, the better chance you have for success. People crave feeling special. They don’t want the same thing as the next person. That’s boring and carries little value anymore. Marketers are starting to figure that out. Services of all kinds, from suit tailors to snowboard manufacturers, are beginning to realize this important phenomenon. Personalization is in…standardization is out.

It’s time to go beyond a quick check-in and calling people by name…that’s a given.

What are you doing to create customized experiences for your guests…for your employees?

Advertising By-Product

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The more that avertising fails to sell products and services, the more creative the agencies become in trying to get the attention of the prospective buyer. Now, particularly with TV, this produces an interesting by-product...some very good entertainment. Until recently, I focused on the negative aspects of all the mind numbing ads. Now, I take what it gives...and in some cases it offers a pretty good laugh. The rest of the time I just tune them out, go to the fridge or turn the channel...just like I'm supposed to.

Someday, it's all going to change again...and the Office Depot Rubberband Man and Budweiser Chameleons will be all but a memory. Enjoy it while it lasts.

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Kips

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There was once a small restaurant in Pagosa Springs, Colorado named European Café. The food was average, the atmosphere was average, the service was okay and there was little evidence of anything European…so no real niche. It was just an average place trying to feed off the traffic down the main road. It’s gone now.

Enter Kips.

Same location, same building, same kitchen, same traffic down the main drag…and every time I go there, it’s packed. Because it’s new? I don’t think so.

Kips does a few things very well.

The Best- They know what they can be the best at. And, they focus on just that. It’s a hole in the wall kind of place serving Baja style Mexican tacos. It comes complete with the relevant surf decorations and appointments, a small bar with one TV, and a couple of regionally brewed beers on tap…my kind of place.

Care- The service is super friendly. Joe & Becky really enjoy what they do. It’s casual, but professional enough not to leave you wondering about what’s coming out of the kitchen.

This is really key…

Audience- They don’t try to be all things to everyone passing by. They choose an audience which is underserved (21-40 year-olds, snowboarders, hikers, river rafters and the like) and they make them happy. I don’t think they care if it’s not your style or if you’re looking for fancy restrooms. They focus on one group…and that’s it.

Try following their lead. And, come by for the tacos and a smile if you make it out this way.

Return On People

Thanks Seth for jump starting my brain…again. Here’s a link to the post that did it.

I’ll begin with the point…no amount of over the top design will overcome the shortcomings of people. And, on the flip side, if you load-up a modest hotel property with extraordinary talent, lots of good things are likely to happen.

Think of your fondest hotel memories. Chances are they exist because someone made you feel special and cared for…not because the restaurant used Spiegelau stemware, the bell staff wore $1,000 uniforms or the pool was equipped with an underwater sound system. Those things didn’t hurt the cause. But, they didn’t ensure victory either.

Lesson 1: Be sure to spend as much money as possible on people. It’s the first clear sign that you care. And, it has the greatest return over time.

Lesson 2 (when developing a new hotel): If you’re going to make cuts, do it on the front-end, so you can spend more where and when it matters most…on your employees, once you get going.

Here’s an example. The Inn on Biltmore Estate opened and immediately ran some the highest service scores (consistently 96% or better) ever measured for an opening property (by an independent evaluation company whose other clients included Ritz, Kempinski, etc.). That went on for quite a while (probably still is). Like with any new project, our team was faced with some serious financial decisions both during development and pre-opening. In essence, we didn’t get everything we wanted. We had to sacrifice some of the bells and whistles in order to get the doors open…things some of us thought would put as at a disadvantage, and maybe even risk failure. The lesson I learned is that those “things” can be replaced and the associated obstacles overcome with something better, a more effective weapon…great people. Whether it was luck, smarts, or a little bit of both, we achieved those guest accolades and their respective high marks by caring for them…in a very special way. Landscaping, fine china and an abundance of computers didn’t accomplish that. People did.

Maybe we shouldn’t measure ROI, instead ROP.