The Hostage Factor

This recent bit of news sparked a thought about loyalty and frequent guest programs.

Loyalty should be based on the experience, not bribery. If you’re good, guests will come back and refer you to others. If you’re not, they won’t. It’s as simple as that. So, if you build a loyalty program to “retain” customers, you’re telling us something…you’re really not good enough. Rather, put your money into building fantastic memories. Then, develop an “appreciation” program that sends this message…thank you! That’s it, no strings attached, no mixed messages, etc.

Loyalty or “hostage” programs are extremely expensive, and really don’t work in the end. I recall years ago Marriott debating whether to end their frequent guest program. It was costing them a fortune. But, the thinking was that if they dropped it, they would lose too many customers. Well, that’s the true test of whether you have a hostage program or an appreciation message. Is the experience good enough to stand on its own? Or, does it need to be augmented with incentives to keep people coming through the door?

There’s an exception to this premise…when all of the experience options are relatively the same. A good example is the airline business. With exception of a few, service levels are at an all-time low across the board on the major carriers. So, their frequent flyer programs are more valuable than ever. These programs have become the primary reason customers choose them. Of course, their marketing departments will have you believe this is a good thing, “our customers really like us”. BS...Hostages don't get to exercise options because their aren't any! You’ll note that in markets where there’s competition from customer focused carriers, i.e., SWA and jetBlue, the big guys lose.

Build great memories for your guests and thank them…don’t hold them hostage.

A Whole New Mind

A_whole_new_mind

I just finished a fascinating book, A Whole New Mind, by Dan Pink. In a nutshell, it is one of the most stimulating and thought provoking books I've read in quite some time. It is wonderfully researched, leaving a great trail of other inspiring materials. And, it has a nifty set of practical applications at the end of each chapter which can be put to use right away.

The chapters on Design, Story and Meaning are especially appropriate in the context of creating memorable experiences. And, these ideas in particular are quite essential to success in hospitality.

A Whole New Mind is one of those rare books which was written from the heart and soul with ideas and principles which are useful both in your everyday life and at work. It's nice to read from an author who clearly places "meaning" ahead of material gain.

It's been added to my Required Reading list.

Dan, I hope it becomes a best seller. Congratulations.

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?

Communication Relationships

I’ve recently been caught-up in conversation about the power of newsletters, e-mail blasts and blogs as “marketing” tools for our industry.

There are two very important parts to a successful communications relationship no matter the medium: interesting content and permission. Of course, permission usually comes on the heels of interest. So, the focus should be on communicating information the reader (or listener, we can’t forget about the rise of podcasting) finds stimulating. But, if they don’t know it’s coming in the first place, you’re battling something far worse than just getting their attention, you’re fighting negativity related to the invasion of their privacy…curtains for you. See my examples below.

Just this month I have been “violated” by two e-mail newsletter subscriptions. I say violated because neither had my permission to send them. I met both of the offending parties last month on separate occasions, one personally and one via e-mail. We traded some networking “how do you do’s”, contact information and ended on a friendly, “see you around” note. Next thing you know, I’m getting e-mail newsletters from them. This is one of the best ways to really annoy your audience. To make matters worse, I’m the one required to go through the “steps” to unsubscribe. Had they just asked for my okay during our meeting, I probably would have said “yes”. Then, I could have objectively decided whether the content was interesting enough to stay tuned. Sadly, I was already on the defensive when the first newsletter arrived, and barely made it through the first few sentences.

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.

It's Always About The Money

Richard Walsh makes a good point in his recent article, The Brands Sell The Brand Not The Hotel Property.

He points out that hotel franchisors often require their member properties to channel all on-line bookings through the chain's website thus limiting the ability of the individual hotels to relate and sell directly to their guest. We all know why they do it....for the fee associated with each reservation transaction.

But, is it smart? Both Richard and I don't think so. He says the chains would still make a buck if they released their partners since they collect fees tied to the incremental revenue gain (of course, not as much...that's why they don't do it). I say, these folks are extremely short-sighted in putting reservations transaction fees ahead of strong win-win relationships with their customers. Eventually, it's going to bite them... Unless, of course, the "brand" is the primary attraction for the hotel in which case the property has bigger worries.

'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”.

How Does A Tiger Make You Feel?

Tiger_woods

Well, after this weekend, I know how Nike feels..can you say, cha ching! I don't think it could have been orchestrated any better.

Take a look at this clever video put together by Joseph Jaffe. Yes, it should be the next Nike commercial.

Watching this replay of that very memorable moment doesn't make me want to run out and buy shoes, shirts and hats. But, it sure reminds me of the Tiger Woods story and how that makes me feel. Over time, I have definitely come to associate those feelings with Nike...Just Do It!

So, what am I really buying?

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.

Customer evangelism begins at home

I couldn't agree more with this recent entry about command and control work societies.

I have one further thought for people like Charlie...take a look around you. If the payroll is laden with brainwashed, submissive types (especially higher up the food chain), get off the bus...before you get fired. I know, easier said than done. But, it's reality.

Link: Church of the Customer: Customer evangelism begins at home.

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.