Archive for May, 2008

Freedom of choice

Monday, May 19th, 2008

I’d like to contrast my last post, When people compete, products get better, with an illustration of abundance mentality and consumer choice.

My father-in-law is a restaurateur here in Denver. Several years ago, he took out a full-page ad in the local newspaper that read, “Take this ad to your favorite restaurant and receive $10 off dinner for two.” The ad did not specify the name of a restaurant or any contact information.

Diners then began to show up at restaurants located throughout the Denver area with the coupon and puzzled restaurateurs contacted the paper to see who took out the ad. As the word spread between restaurateurs that my father-in-law was responsible for the ad, they began to call him at his restaurant.

The conversations went something like this: “Hey Ed, there are some customers here at my restaurant who are trying to use your coupon!” to which my father-in-law responded, “It’s not my coupon. It’s everyone’s coupon. But if you don’t wish to be their favorite restaurant, then send them to me. I would be honored to be considered their favorite restaurant!”

To me, that illustrates an abundance mentality versus a scarcity mentality.

While a person with a scarcity mentality sees the world as a finite pie—and feels threatened by forces that may reduce the size of his or her slice—a person with an abundance mentality sees the pie getting larger and larger with more opportunities for everyone to increase the size of his or her slice!

When companies compete, products get better.

Thursday, May 15th, 2008

There’s a bagel restaurant in my neighborhood that posts a sign on its front door that reads, “No outside food or drink!” Apparently, the owner feels threatened by the Starbucks kiosk located inside the Albertsons supermarket next door.

The owner must think that by posting this sign he will deter the competition from cutting into his sales of high-margin lattes and espresso drinks. What he doesn’t realize is that people do not want to be forced to drink a mediocre alternative to their favorite coffee beverage.

The last time I bought a bagel in his shop was four years ago. At that time his sign was more specific and said something like, “No Starbucks beverages allowed on the premises!” It was such a turn-off to me.

I understand the owner’s underlying intent: to limit the erosion of his own beverage sales by keeping the competition’s beverages out of his sit-down bagel restaurant.

Ironically, the message had a different effect on me. I’d rather enjoy a good cup of coffee than eat one of his bagels. In fact, I presently drive to another bagel restaurant that is four miles further from my home. It also sells coffee and has a Starbucks retail store next door. The difference is that it does not censor the competition’s coffee.

I wonder what would happen if the bagel restaurant owner would remove the sign and accept (or at least tolerate) customers who entered the restaurant, Starbucks in hand, and ordered one of his bagels for dine-in?

On the one hand, bagel sales from people like me who resent the sign would increase. On the other, beverage sales might decrease due to granting customers the option to drink the competition’s coffee beverage on the premises while enjoying their bagel.

What might the owner do differently in order to address a situation where customers are consuming more beverages from Starbucks than from his own restaurant?

What if he invested in the quality of his coffee beverages to rival top brands such as Starbucks and Dunkin’ Donuts—who are renowned for their coffee? Perhaps he could then offer a complimentary 12 oz. refill to (in addition to customers who purchase his coffee) customers who come in with a coffee beverage from the competition.

Imagine the effect this could have. Customers who have never tried his coffee may, after sampling it, agree that it’s as good as or perhaps better than the coffee they ordinarily drink. Customers will appreciate the value they receive by enjoying a complimentary 12 oz. coffee refill. If the customers choose to remain at the restaurant rather than taking their refill to go, maybe they will order a second bagel or a muffin to enjoy as they linger?

Instead of putting up barriers to the competition and limiting customers’ freedom of choice, why not relax the barriers and let customers decide?

Cowbell Sandy

Wednesday, May 7th, 2008

I recently heard a story about a Paradise Bakery & Café general manager who earned the nickname “Cowbell Sandy” from her adoring staff.

It seems that a couple of years ago she started an incentive program to increase add-on sales of bottled water, cookies, and other high margin items. She worked with vendors to sponsor the prizes, ranging from iTunes gift cards to iPods.

Employees were so enthusiastic about the incentive program that they were constantly asking Sandy to see the printout to determine how they were performing compared to their co-workers. The report was the only way that employees could see who on the team was generating the add-on sales.

That gave Sandy another idea. Instead of tracking the incentive program electronically and then letting people know how they were doing only when the report was printed, she decided to clank a stainless steel container with a metal spoon and hoot and holler just a bit to acknowledge—in the moment—when one of her team members had added sales.

In doing so, Sandy included an element of spontaneous recognition to the incentive program. This not only created additional enthusiasm among the team, it also created a stir with customers in the mall’s food court. All of sudden, customers were coming by to see what all the clanking and laughter was about. This increased store traffic in a competitive environment with plenty of other dining options to choose from.

A couple of weeks into the promotion, the staff got together and bought a cowbell for Sandy to use in place of her makeshift noisemaker. From there, the nickname “Cowbell Sandy” was inevitable.

The program was a huge success! Top producers were adding an average of $11.50 an hour in add-on sales. Team members were receiving constant recognition from an inspiring manager in a high-energy environment filled with enthusiasm—and customers!

How about you? Do you know a “Cowbell Sandy”? Or, maybe you are a “Cowbell Sandy”? If so, feel free to chime in…

Paper or Plastic?

Saturday, May 3rd, 2008

Ever noticed the greeting you receive more often than not by the person bagging your groceries at your local supermarket? If your local supermarket is like mine, it probably sounds something like this: “Paper or plastic?”

All too often, appropriate greetings have left the repertoire of most customer-facing employees in the service industry. Appropriate greetings seem to have transformed from gracious messages to welcome customers to robotic questions designed to increase throughput…

Here are some other “greetings” I hear a lot:

“Two for dinner?”

“Checking in?”

“For here or to go?”

As customers, it’s just as easy to lower our expectations of service providers and simply comply with these robotic questions in the same manner. But there’s no magic there. Nothing is happening to engage the customer, to make it memorable, or to build loyalty.

That may be why it’s so refreshing to experience service providers who are less robotic and more unique. These employees get your attention and make an impression by demonstrating authentic enthusiasm for their customers in ways that transform typical bland, ordinary transactions into memorable and unique experiences.

Your thoughts?

Retail Store Greeters

Thursday, May 1st, 2008

I used to work with a gal in New York who was fond of saying, “Love ya, mean it” – all in the same unenthusiastic breath. While her irreverence endeared her to all, it demonstrated to me that words alone, apart from an authentic delivery, can be pretty useless in conveying a message.

To that point, we’ve all experienced greeters at retail stores such as Wal-Mart, Best Buy, Blockbuster, and others. Their role is to make shoppers feel welcome by greeting them and perhaps offering a bit of assistance as they enter the store.

At one time, there may have been a spark of enthusiasm – perhaps because it was new and unexpected – for the greeter role. Today, from my perspective anyway, it appears as though the novelty has worn off. Ironically, the greeter’s podium at one large retailer faces into the store so that the rep greeting shoppers has his or her back to them. This results, many times, in a half-hearted glance and greeting over the right shoulder. It appears to be more of a security post than a greeter’s station.

At another retailer, the greeting is so long and scripted that all of the warmth and authenticity that should accompany a sincere greeting has been squeezed out in order to reinforce the store’s marketing message.

So what’s your read on store greeters? Are they unnecessary roles or is the problem in the execution?

“I appreciate your comments, mean it.” : )

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