Archive for the ‘Uncategorized’ Category

How siping adds value…and sales!

Tuesday, October 28th, 2008

I recently brought my car in to Discount Tire here in Denver to purchase a new set of tires.  The rep suggested a suitable tire and then began to put together a deal.  This included a credit for my old tires, a road hazard warranty, free installation, and free quarterly rotation and balancing for the life of the tires.  So far, so good.

Then, before presenting me with the total, the rep asked me a question: “Mr. Curtin, does your wife ever drive this car?”  I said, “Sure.”  He then said, “Would adding a feature called ’siping’ to the tires in order to provide extra safety by increasing road traction while decreasing braking distance by 200% be important to her?”  Naturally it would.

Although I’d never before heard of siping, I added the $10 per tire treatment and increased the amount of the sale by $40.  It turns out that siping involves scoring the tire with tiny grooves that increase the tire’s elasticity and grip on the road.  Now, some of you skeptics may think I was taken but that’s not the way I see it.  From a psychological standpoint, I feel assured that these tires will do the best possible job of gripping the road in the elements and braking to a stop quickly when necessary.

For me, safety is a priority when buying tires.  Guess who else knows that safety is a high priority for me—and most of its customers?  That’s right: the people at Discount Tire.  Now I don’t know what their profit margin is when this feature is added but I imagine it’s pretty high.

Now consider your own customers.  What’s important to them?  Safety?  Comfort?  Speed?  Accuracy?  Convenience?  Something else?  Think about the products and services that you offer.  What sort of value-added enhancements might you make available that your customers will feel good about purchasing?

Not every customer will bite but if it’s positioned correctly and matches one or more of the priorities of your target customers, enough will to make it well worth your while.

How Mr. Sunshine defeated Mr. Grumpy Pants

Tuesday, October 14th, 2008

Earlier today I brought three of my children, ages 3, 5, and 7, to the dentist.  We’ve been going to the same pediatric dentistry office since our oldest child turned 3 and was scheduled for his first “Happy Appointment!”  (That’s the nickname the dental hygienists give to a toddler’s first experience at their office.)

From the moment the kids arrived, they were entertained by an oversized aquarium stocked with the cast from Finding Nemo.  A raised platform surrounds the base of the aquarium in order for the really little kids to enjoy the same perspective as the bigger kids.  As their appointments came up, each child was greeted in the reception area and escorted back to the roomy, well-lit patient examination area complete with electric chairs that go up and down, loads of stickers, pencils, and those plastic rings that kids can’t get enough of…

Today, all three kids had their teeth cleaned.  During the cleanings, I heard the hygienists refer to each of their instruments by descriptive, kid-friendly names.  For example, the bright overhead light was “Mr. Sunshine.”  The suction straw was “Mr. Thirsty” and the high-pressure water jet was “Mr. Windy.”

Afterwards, all the little patients got to select their prizes and choose from a wide selection of themed toothbrushes, toothpaste, and floss ranging from dinosaurs and action figures for the boys to ponies and princesses for the girls.

During the appointment, I had a chance to ask one of the dentists how the current economy was impacting his practice.  He said, “You know Steve, I’m really concerned.  Only about half our patients are completely covered by dental insurance.  The other half either don’t have insurance or the insurance they do have covers 50% or less of the cost of the visit.  If the procedure is going to require much out-of-pocket expense, it’s easy for people to rationalize delaying a previously scheduled appointment by six to twelve months.”

I then asked another question that I felt I already knew the answer to: “So, you’re probably already seeing this sentiment reflected in your own business, right?”  To my surprise, he said, “Well, actually no.  But we’re sure worried about it.”

In reflecting on that conversation, I realize why I shouldn’t be surprised that his practice is still prospering in spite of the economy.  Did I mention how memorable the visits were for the kids?  Everything from the fish to the floss is geared toward making positive memories for the kids.

These memories not only fuel a desire to brush well and return to the dentist regularly.  As it turns out, they also insulate the practice from the negative effects of a sluggish economy we’ll call “Mr. Grumpy Pants.”

Convey authentic enthusiasm

Sunday, September 14th, 2008

Conveying authentic enthusiasm that adds a bit of a spark to an otherwise predictable transaction is an effective way to express one’s uniqueness while making it memorable for customers.

Three years ago, I ordered an omelet from an omelet maker at a Marriott hotel in Atlanta, GA.  He was wearing an apron that he meticulously pressed an accordion-like pattern into each morning before work.  It was so remarkable that you had to ask him about it.

And the personality that he put into his outstanding uniform carried over to the personality in his service as an omelet maker.  I still recall his name, Ulysses.  Seriously folks, how many of you can recall these types of details from an interaction you had with an omelet maker three years ago?

Ulysses is genuinely filled with enthusiasm and authentically conveys this enthusiasm to customers in a way that is unique, perhaps even singular, and matches his style and personality.

Authentic enthusiasm may be animated or may be reserved, but it will be real.

J.D. Power and Associates 2008 Study

Wednesday, July 30th, 2008

The results are in from the J.D. Power and Associates 2008 North America Hotel Guest Satisfaction Study. According to the study, hotels are feeling the double economic pinch of less leisure travel and higher operating expenses costs. They are trying to manage their costs at the same time they meet ever-higher customer expectations, but that effort hasn’t been totally successful. In 2008, overall satisfaction with hotels is down notably in four of the six segments measured by the study.

In my own 2008 survey regarding factors contributing to the decline in customer service industry-wide, the number one contributor to the decline was workforce optimization—which is just a fancy way of saying that operators are keeping a close eye on labor costs which account for roughly half of all total operating expenses in the hospitality industry.

Presumably, operators are faced with the dilemma of reduced guest satisfaction resulting from lean scheduling during these difficult economic times that reduces the ratio of employees to guests—leading to longer waits in line, on hold, etc. There’s no doubt that this becomes a balancing act as lines begin to form and guests grow impatient…

That said, I’m frequently reminded that it doesn’t cost any more for a guest-facing employee to smile, make eye contact, and have some “life” in her voice. These basics cost nothing at all and, regardless of staffing levels, may mean the difference between mediocre and stellar service from the guest’s perspective.

A penny for your thoughts? (I used to offer a nickel but times are tough!)