This post is the ninth in a series that will identify 10 different obstacles that have emerged from my analysis of customer satisfaction data. Maybe you will have encountered one or more of these obstacles in your own business? The ninth obstacle is deception.

Deception encompasses everything from the fine print used to mask hidden fees and other undesirable terms and conditions, to bait-and-switch marketing tactics that entice consumers with an attractive offer before substituting a costlier product or service.

Just last night, I stopped by my local King Soopers supermarket to pick up some essentials. Over the store intercom, I heard a woman’s voice:

“Attention shoppers: We will be giving away free merchandise at the red and black counter near Customer Service at the front of the store. This is the last announcement you will here. If you want free merchandise, please go right now to the red and black counter near Customer Service at the front of the store!”

Free merchandise? It sounded too good to be true. I’d been shopping at this particular King Soopers for more than 10 years and, with the exception of an occasional in-store taste sampling, had never heard of a promotion like this before. Intrigued, I made my way to the front of the store.

By the time I arrived, a small crowd had gathered in front of the red and black counter to receive free merchandise as instructed by the announcement.

Just then, a woman emerged from behind the counter and asked the crowd to squeeze in close so more people could fit around her booth. The woman was very animated. She held up an apple, asking the crowd to shout “Apple!” as she positioned the fruit to be sliced, diced, and pureed with her amazing food processor—for only $29.95!

A minute into her spiel it was evident that, in order to receive a free set of steak knives, you had to subject yourself to a protracted product demonstration replete with awkward humor and contrived attempts to involve the audience.

About this time, customers began to reconsider the sensational offer and resumed their shopping. I didn’t take a poll but I bet many of those customers felt duped by the original intercom announcement promising free merchandise.

In King Soopers’ defense, although it sells groceries, it is largely a marketing company that competes for the attention (and spending) of consumers in a noisy and competitive marketplace. Sometimes, it may seem necessary to make an outrageous claim simply to command the fleeting attention of prospective customers. And if some consumers feel duped, well, that’s just business…

But then there are companies like L.L.Bean. Although L.L.Bean is a retail company specializing in clothing and outdoor recreation equipment, it too is largely a marketing company with a significant mail-order, online, and retail presence around the world.

For those who are unfamiliar with L.L.Bean, it ranks among the top retailers in the world in customer satisfaction. And it’s the type of company that one would never associate with deceptive marketing practices. Instead, L.L.Bean relies on the honesty of its people and the integrity of its products.

If a representative says a product will arrive within two days, then you can take that delivery date to the bank. If the catalogue claims that all products are guaranteed to give 100% satisfaction in every way, you can count on it. There’s no need to look for a disclaimer or fine print that shields L.L.Bean from responsibility.

Unless you’re a magician, deception is bad for business. Commit to honesty, openness, and candor in all your customer dealings.

Gimmicks are fine—just not at the expense of customers’ trust. Besides, your customers probably have all the steak knives they really need.

I welcome all questions, comments, bouquets and brickbats.

In his book, Customer Centricity: What It Is, What It Isn’t, and Why It Matters, Peter Fader, Professor of Marketing at the Wharton School of the University of Pennsylvania, defines customer centricity as “a strategy to fundamentally align a company’s products and services with the wants and needs of its most valuable customers.”

One of the areas of customer centricity that Fader explores is customer development. By matching products and services with the wants and needs of their most valuable (focal) customers, customer-centric companies can increase repurchase rates, up-sell or cross-sell a variety of different products/services to existing customers, and realize price premiums—as loyal customers tend to be less price-sensitive.

In his article, The Skinny on “Fattening Up” Customers, Fader identifies Wells Fargo as an example of a company “whose relatively robust success through the recession seems due…to its customer development efforts. The average Wells Fargo household has over five different bank products, roughly twice the industry average, while about 20% have an impressive eight or more products from the bank. And Wells Fargo credits cross-selling with lowering its selling and advertising costs, given that it’s cheaper to target existing customers than new customers.”

Wells Fargo’s success with cross-selling to existing customers reminded me of an experience I had several years ago with the Denver-area furniture store where my wife and I had spent thousands of dollars furnishing our new home in 2000.

The arrival of our first three children between 2001 and 2004 prompted the need for additional chairs for our kitchen table. So, in early 2005 (five years after originally purchasing a kitchen table and four chairs with custom-upholstery depicting the French countryside), I phoned the store to order two more matching chairs.

After placing the order, I asked to be transferred to the store manager. When he came on the line, I introduced myself and mentioned the order I’d just placed and what prompted it. I then inquired as to whether or not his sales staff ever followed up with young couples who bought tables (with expansion leafs) with only four chairs after some period of time to determine whether or not their needs had changed and, if so, how the store might be able to serve those customers now.

I don’t recall the specifics of our conversation but I do remember that the store manager seemed preoccupied and dismissive during our call. It’s likely that he and his sales staff were busy servicing the prospective customers on the sales floor, reviewing sales forecasts, and planning the next direct marketing or advertising campaign that would ensure a steady stream of foot traffic in the showroom.

While customer acquisition is vital for growth, all too often companies squander opportunities to increase their market share amongst existing customers—what Fader refers to as “share of wallet.”

What if the furniture store had developed a simple customer relationship management (CRM) database that captured the formal demographics of its customers together with casual insights gleaned by the salespeople who had spent hours with customers coordinating furniture, selecting fabric, securing financing, etc.? And what if salespeople accessed this information afterward to reconnect with existing customers and make informed product recommendations to them?

No doubt this would have required an investment of time and money. Based on the robust economy in 2005, creating a CRM database (in order to gather information and better understand the unique characteristics and expected value of its focal customers) may not have seemed like the best use of the store’s resources. Although, as the Wells Fargo example illustrates, using customer data to capitalize on cross-selling opportunities has proven to be particularly effective in recent recessionary years.

Now consider your situation. What can you do today to develop your own customer base?

(Don’t wait. The furniture store waited and eventually closed in 2010 after being in business for 45 years.)

Have you ever been treated to a fine dining experience where the host hands you the wine list saying, “Why don’t you select the wine. Remember, it’s my treat.”

As you scan the wine list, a bottle of Far Niente Cabernet Sauvignon catches your eye but at $200 a bottle, you continue to scan down the list until you find a wine that’s priced more modestly. After all, you don’t want to appear to be taking advantage of your host’s generosity.

When the wine arrives, your host and other dinner guests will no doubt compliment your selection but you’ll be thinking of that Far Niente as you prepare to taste your second (or seventh…) choice.

Last week, I received a holiday catalogue from Tiffany & Co. The catalogue, as you might expect, contained many images of fashionable models wearing attractive Tiffany & Co. jewelry and accessories.

But what you might not expect is that the catalogue contained no prices. Instead, Tiffany & Co. included a separate, detached price list enabling ladies to peruse the catalogue and select their preferred merchandise—without censoring their favorite pieces due to price.

This also allows buyers to conceal the prices paid for gifts—providing discretion while ensuring their sweetheart doesn’t have to settle for her second (or seventh…) choice. Brilliant.

Have you ever enjoyed a bottle of wine at a restaurant and then, days or weeks later, could not recall the wine’s name?

On occasion, to improve the odds of recalling the wine, I’ll either take a picture of the bottle with my phone, scrawl the wine’s name and year on a cocktail napkin, or pocket the cork.

But what if my phone’s not handy, I don’t have a pen or the wine has a screw top in place of a cork (as many premium wines now do)? Or, what if I simply don’t think to take a picture, record the wine’s name or pocket the cork?

Well, Mollydooker Wines has thought of that.

Last night, I opened my first bottle of Mollydooker’s 2009 Maitre D’ Cabernet Sauvignon*. As I inspected the bottle, I noticed there was a removable tab on the back label with instructions to “Peel Here.”

I thought this was brilliant for several reasons:

• Since it has a screw top, there’s no cork to serve as a physical reminder of the wine.
• All of the critical information to locate (and purchase) more bottles of the same wine is contained on this small paper tab.
• By virtue of presenting this tab with instructions to “Peel Here,” Mollydooker is compelling its customers to remember this bottle of wine.

I’ve forgotten the names of many enjoyable bottles of wine over the years because I didn’t take steps to remember them. In a crowded marketplace, with wines from all over the world hoping they will come to mind when it’s time to buy, Mollydooker Wines has done something about it.

Cheers!

* For those who are interested, I would describe this wine as fruit-forward with a long, leathery finish. Priced under $25 in most markets makes it an excellent value. Here’s the wine makers’ introduction to the vintage.

Yesterday, at my son’s football camp, I noticed that whenever he went out for a pass during scrimmage, he’d stop, wave his arms wildly, and call out to the quarterback, “I’m open! I’m open!”

The quarterback would glance in Cooper’s direction and see what the rest of us saw—the defender standing just behind Cooper, ready to intercept the pass—and he’d either throw to a different receiver or run the ball.

Cooper was clearly becoming frustrated.

During a break in the scrimmage, I approached him and shared this advice: “Coop, if you want the quarterback to throw you the ball, you must give him a reason to. You need to make yourself a compelling target.”

Cooper’s eight years old, so I defined “compelling” for him as commanding attention; having a powerful and irresistible effect.

It occurred to me that this advice applies to business as well. Businesses, whether large organizations or sole proprietorships, must give prospective customers a reason to consider them. They must make themselves compelling in order to attract their attention and compete for their business.

What do you do to make yourself and your business compelling to prospective customers?

• showcase powerful testimonials?
• build a website or social media presence that commands attention?
• present an irresistible offer?
• distinguish your products and services from those of your competitors?

In business, as on the football field, if you’re not compelling, then you will likely become frustrated. Instead of being noticed, you may be ignored. And instead of being irresistible, you may just become irrelevant.

So what makes you or your business compelling?

The title of this post is a quote by Guy Kawasaki. Guy is a “somebody.”

I had my first interaction with Guy in 2009 when I approached him through Twitter to see about obtaining ten signed copies of his book, Reality Check.

Although he was busy with a leading blog, How to Change the World, a media website, Alltop, a venture capital firm, Garage Technology Ventures, and numerous writing, consulting, and speaking projects, he took the time to personally respond to me and fulfill my request.

———————————————————————————

True story: My original request was for ten signed books. This was the number of books ordered and paid for in advance.

When the box of signed books arrived from Guy’s Palo Alto office a week or so later, there were only eight books in the box. 20 percent of the order was missing!

I immediately wrote Guy a note on my stationery thanking him for taking the time to personally sign the books and fulfill my order. I also mentioned that, for some reason, there were only eight books in the box, instead of the ten books originally ordered for which I had prepaid.

I’ve never met Guy but know from his writing and speaking that he has a great sense of humor. With that in mind, since he had sent me only 80 percent of my original order, I decided to send him 80 percent of my original thank you note and business card.

After carefully snipping 20 percent off the right-hand sides of my business card and thank you note, I then mailed the remaining 80 percent of the note and business card to Guy.

About a week later, two more books and an Alltop t-shirt arrived in the mail.

Fortunately, the 20 percent strips from my original thank you note and business card were still on my desk. I mailed them to Guy the next day.

———————————————————————————

Months later, I sought Guy’s advice pertaining to an unconventional marketing idea that my wife, a marketer, opposed.

In his response, he endorsed the idea saying, “Steve, tell your wife that the way I got to be Guy is by doing stuff like this when I wasn’t Guy.”

In other words, the way Guy became a “somebody” is by doing things differently when he was a “nobody.”

Fast forward to Dec. 23, 2010: Because my blog is listed on Guy’s media website, Alltop, I received an exclusive email offer to preview an advance copy of his upcoming book, Enchantment: The Art of Changing Hearts, Minds, and Actions (Available March 2011).

Guy’s thinking is that, because recipients of his offer are bloggers who are loyal to Alltop, there’s a good chance that they will dedicate a blog post to his book around the time of its release in early March. As a result, Guy will gain exposure to his fans’ fans and the endorsements (and book sales) will multiply.

This is an unconventional (and brilliant) marketing strategy. Guy knows that anyone who has been introduced to his work through social media, by reading his books or blog, or hearing him speak at an event, and, further, has taken the time to register their blog with Alltop, will likely be receptive to his offers. And, due to the exclusivity of this particular invitation, I suspect his response rate will be quite high.

Contrast Guy’s unique approach to engaging with and marketing to his fan base with the familiar and predictable patterns of other well-known business authors and entrepreneurs who set up Twitter and other social media accounts in order to “connect” with their fans.

In my experience, these high-profile accounts generally connect with each other (i.e., well-known “somebodies”) and are indifferent towards others (i.e., lesser-known “nobodies”) and their attempts to engage.

In so doing, they may be unwittingly forfeiting opportunities to enchant their fans and influence their hearts, minds, and actions—in the way that Guy Kawasaki does so masterfully.

My two oldest boys recently attended a cousin’s LEGO® Star Wars™ themed birthday party at the LEGO® Store. When they returned home, each was carrying a bright yellow LEGO party goodie bag and proudly wearing a LEGO name tag that had been personalized with his name. I asked them how they liked the party. “We had a blast!” they exclaimed as they dumped the contents of their goodie bags onto the kitchen table, revealing:

• A LEGO Club magazine
• LEGO Club membership card
• LEGO Store coupon good for $5 off $35 purchase
• LEGO Builder’s License
• LEGO Tips & Tricks card

Soon, they were extending their LEGO experience by immersing themselves in more LEGO activities (i.e., building models, reading their LEGO Club magazines, and going online to the website). While at the website, they identified models they would like to buy with the $5.00 store coupons they received in their goodie bags.

I said to my wife, “The party sounds like it cost a fortune.” To my surprise, she said it only cost our cousin around $125. And that included:

• A themed, hour-long birthday party at the LEGO Store for up to 10 children
• A $100 LEGO Gift Card for purchasing the sets each party guest will build and take home
• 10 invitations, 10 thank you cards and 10 name tags
• Dedicated LEGO host for the party
• Exclusive LEGO birthday brick for birthday child

Wow! The LEGO Store is doing it right on so many levels with its design of this birthday experience:

• By offering themes like LEGO® Star Wars™, LEGO® City, and others, parents can tailor the party’s theme towards their child’s preferences.
• By including the $100 LEGO Gift Card, they are adding tremendous value to the $125 cost of the party while, at the same time, providing the centerpiece party activity as well as parting gifts for the party guests!
• By including the invitations, thank you cards, name tags, and dedicated LEGO host for the party, they are saving work for the parents—which is always welcomed!
• Lastly, by providing an exclusive LEGO birthday brick for birthday boy or girl, they are reinforcing the child’s uniqueness by allowing him or her to receive something special that can only be received by a child whose birthday party is held at the LEGO Store!

While the children are busy building LEGO models, LEGO is building loyalty through value and the customer experience. Brilliant marketing by a brilliant brand!