When I received my first management position with Marriott in 1992, I worked for a general manager named Mark Conklin. Although Mark (as he preferred to be called) oversaw more than two hundred employees, each employee received a hand-written card from him in the mail to honor the anniversary of their birth.

And he didn’t merely scrawl his signature beneath a pre-printed generic “Happy Birthday!” message. He took the time to write a full paragraph that highlighted a recent contribution the employee had made to the hotel, thanked them for their commitment to excellence, and wished them a Happy Birthday!

It would have been easier for Mark to distribute the cards through interoffice mail so that employees received their cards at work but he chose to mail the cards to employees’ homes. He reasoned that the cards would be opened in front of family members and that employees could take pride in sharing the positive comments about their valuable contributions at work.

Although this was 20 years ago, I still have the handwritten notes I received from Mark on my birthday. I keep them with the memorabilia I collected during my 20 years with the company. That’s how much they meant to me.

On December 13, 2011, J.W. Marriott, Jr. announced that he was stepping down as chief executive officer of Marriott International. Arne Sorenson, chief operating officer, has long been viewed as Mr. Marriott’s successor and will assume the CEO role in March. He will be only the third CEO in the company’s 85-year history and the first from outside the Marriott family.

The stability of having Mr. Marriott in the CEO role for nearly 40 years has provided Wall Street analysts with a level of confidence—even during some tumultuous economic cycles. His presence has also assured the company’s quarter million employees that they would be treated fairly and with respect. Customers even took comfort in knowing that there was a real “Mr. Marriott” standing behind the Marriott brand.

All this will change in March when Mr. Sorenson assumes the CEO role. There will likely be a bit more scrutiny by Wall Street. Employees may become more skeptical of corporate initiatives, and customers may begin to question the company’s longstanding commitment to maintaining the high standards of product and service quality championed by the founder’s son.

Last month, when the announcement was made, I was in the process of sending holiday cards and decided to send Mr. Sorenson a card with a brief note congratulating him on his promotion. Let me be clear: I don’t know Arne Sorenson personally. In fact, I’ve never even met him. My only connection to him is that I used to work for Marriott. And I certainly never expected to hear back from him.

To my surprise, the soon-to-be CEO of a $25 billion company took the time to send me the handwritten note below thanking me for my card:

After reading Mr. Sorenson’s note, I was reminded of the birthday cards I received from Mark Conklin 20 years ago—and was reassured that Marriott is in very good hands.

What are some other actions performed by leaders that have made a lasting positive impression on you?

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.”

While reading the book, I was reminded of the Aristotle quote: “There is nothing so unequal as the equal treatment of unequals.”

This is a slippery slope in customer service because, when taken to extremes, it appears to be prejudicial service, where one customer is prematurely judged as less valuable or important than another customer. (Think about the scene in Pretty Woman when Vivian, played by Julia Roberts, was snubbed by saleswomen based on her immodest appearance while shopping at an upscale boutique along Rodeo Drive.) And, of course, this is wrong.

That said, there are many who will say that all customers should be treated equally. I’d like to make a distinction here between the terms equally and equity:

• Equally means having the same value as another.
• Equity means the state, quality, or ideal of being just, impartial, and fair.

Equally means 50:50. Equity might mean 60:40 or some other unequal ratio—based on what each party needs and deserves.

I have four children. The three oldest receive allowance but their allowance is not equal. The financial needs of my 5^th Grader differ from those of his 1^st Grade sister and their individual allowances reflect that difference. Their allowance is not equal but it is equitable.

In the same way, customers who have flown 100,000 miles with an airline and achieved elite status in its frequent flyer program deserve to board the airplane ahead of those passengers who fly less often. And retail customers with a history of significant spending deserve to be notified of sales before the general public in order to preview the best selection of sale merchandise. These perks may not be spread equally among the customer base but they are distributed equitably.

I agree with Fader’s assertion that “the customer” (a generic term used to represent every customer in a company’s customer base) does not exist because every customer is different. According to Fader, “You must not only accept but celebrate the idea of customer heterogeneity (or uniqueness). By putting forth the effort to better understand the habits, tendencies, and value of each and every one of your customers, you can build better, stronger, and more profitable companies.”

So gather as much intelligence as you can about your company’s very best customers and then look for opportunities to recognize and delight them.

Doing so will reinforce their personal importance (not their importance as people—that’s equality—but their importance as customers) while recognizing the value they bring to the business through personal spending, loyalty and referrals.

I welcome all questions, comments, bouquets and brickbats.

Remember the Aesop’s Fable, The Goose with the Golden Eggs?

A man and his wife had the good fortune to own a goose that laid a golden egg every day. Lucky though they were, they soon began to think they were not getting rich fast enough. Imagining the goose must be filled with gold inside, they decided to kill it to obtain all of the gold at once. However, upon cutting the goose open, they found its innards to be like that of any other goose.

The primary moral of this story that many companies would do well to acknowledge is that greed destroys the source of good. In the same way, by nickel and diming customers, many companies are damaging the relationships they have with loyal customers.

My favorite nickel and diming story comes from Bob Farrell, co-founder of Farrell’s Ice Cream Parlors. In his timeless book Give ‘em the Pickle, he shares a letter he received from a customer:

“Dear Mr. Farrell,
I’ve been coming to your restaurants for over three years. I always order a #2 hamburger and a chocolate shake. I always ask for an extra pickle and I always get one. Mind you, this has been going on once or twice a week for three years. I came into your restaurant the other day and I ordered my usual #2 hamburger and chocolate shake. I asked the young waitress for the extra pickle. She said, “Sir, I will sell you a side of pickles for $1.25.”
I told her, “No, I just want one extra slice of pickle. I always ask for it, and they always give it to me. Go ask your manager.” She went away and came back after speaking with the manager. The waitress looked me in the eye and said, “I’ll sell you a pickle for a nickel.”

Needless to say, the customer refused the offer, left the restaurant, and was instantly transformed from a promoter of Farrell’s Ice Cream Parlors, a loyal enthusiast who keeps dining at Farrell’s and urges others to do the same, to a detractor—an unhappy customer who doesn’t return, refuses to recommend Farrell’s, and shares his negative experience with others. In the pursuit of golden eggs, Farrell’s was killing the goose.

Here’s another truly outrageous example of nickel and diming customers:

Ryanair, the Irish discount airline, has taken nickeling and diming passengers to a whole new level. Last year, its CEO announced—with a straight face—that he was working with Boeing to install pay toilets in the airline’s 168 Boeing 737s.

It’s true. Passengers would be required to spend one British pound (about $1.50) to use the toilet. No word yet on options for those passengers who either don’t have cash or don’t have the proper change. I suppose they can cross their legs—assuming there’s sufficient legroom…

And, just today, The Consumerist reported that a class action lawsuit was filed against Hilton for allegedly charging hotel guests 75 cents for newspapers they did not request and believed were provided at no charge.

Any time making money becomes more important than properly serving customers, the business suffers. When the bottom line drives a company’s decisions relative to serving customers, it will begin cutting back on product and service quality in order to improve its near-term operating statement at the expense of long-term customer goodwill and loyalty—not to mention comfort.

If companies genuinely believe that there’s a valid relationship between customer satisfaction and financial results, why would they ever agree to nickel and dime customers to capture another half-percent when they could invest in and deliver exceptional customer service and reap double digit returns on every metric that matters: employee satisfaction, customer satisfaction, market share, revenue, profit, etc.?

The American Customer Satisfaction Index (ACSI) produces scores for the causes and consequences of customer satisfaction and their relationships to, among other things, financial results.

Claes Fornell, Professor of Business Administration at the University of Michigan’s Ross School of Business, oversees the data collection and analysis of the quarterly ACSI results.

According to Fornell, “A five percent improvement in customer satisfaction leads to an increase of over 35 percent of future operational cash flow.” That’s a lot of golden eggs!

He refers to customer satisfaction, or the goose’s health, as “the ultimate economic asset for business, because the sum of the value of all its customer relationships is also the true value of the company.”

If companies would channel the same energy and ingenuity into customer satisfaction that they use to identify and apply creative ways to nickel and dime customers, they would more than recover the revenues gained from these irritating practices.

Instead of nuisance fees, these companies should look for efficiencies and cost containment strategies that will have the least negative impact on customers. By searching for ways to add value rather than fees, they will be caring for the goose—customers—while earning plenty of golden eggs!

In today’s economy, consumers increasingly scrutinize the “value for price paid” of a product or service. While extraordinary customer service adds value, many service organizations miss opportunities to provide the “little extras” that create value in the minds of their customers.

Companies that recognize the value of offering “little extras,” and are intentional about incorporating them into the customer experience, can elevate the quality of their customer service. These value-added extras are frequently unexpected and so provide a pleasant surprise that forms a lasting positive impression on customers.

Here are some examples of “little extras” that I have experienced as a customer:

• Chick-fil-A, a quick service restaurant, provides a mint with each order—similar to full service restaurant.
• Papa Murphy’s Take ‘N’ Bake Pizza gives me a two-stamp head start on my pizza loyalty card. Now I’m 17 percent closer to a free pizza!
• Tony’s Market in Denver, CO includes preparation instructions on its meat packaging (e.g., oven/grill temps, meat temps, etc.).
• A New York City hotel I visited encourages its front desk clerks to spontaneously send guests “Connection Cards” intended to welcome them, acknowledge something they shared during their check-in (e.g., where they are from, the reason for their hotel stay, the Broadway show they plan to see, etc.), and provide the clerk’s name and extension number for further assistance.
• The General Motors dealership that services my car always washes it before pulling it around front and delivering it to me.
• Our garbage collector always brings the trashcans from the curb to the top of our driveway.
• The Wine Experience Cafe & World Cellar in Aurora, CO serves its coffee tableside in French presses.
• Starbucks Coffee on occasion offers complimentary samples of ground coffee, pastries, and specialty coffee drinks.
• The professional waiters at Sparks Steak House in New York City are adept at changing the table linens between entrée and dessert courses without removing your wine glasses or exposing the tabletop.

Sometimes these “little extras” are tangible (e.g., Chick-fil-A’s mints) and other times they are intangible aspects of the service experience (e.g., the changing of table linens at Sparks Steak House). In most cases they are unexpected and have the power to transform routine and ordinary transactions into unique and extraordinary service experiences!

The difference between ordinary and extraordinary really is that little extra.

What “little extras” do you offer your customers?

The notion of unique knowledge was first brought to my attention by a colleague from Boston. John was quite interesting and I learned a lot from him by listening to his insights related to topics ranging from history to customer service.

I would characterize John’s knowledge as substantial as opposed to superficial. Conversations with John were deeper and more memorable than superficial discussions that are soon forgotten.

One evening John and I were discussing customer service and he asked me, “Steve, what are some of the names of meeting rooms at your hotel?”

I responded, “Odets, Wilder, Cantor, Jolson…”

John interrupted, “If I were a customer and asked you why the room was named ‘Odets,’ what would you say?”

I thought about it a moment and realized that I didn’t know the significance of the name. I admitted this to John saying, “You know, I just got so used to the name representing a meeting room that I didn’t really give it much thought.”

John was not one to lecture but he did make the point that it’s our responsibility to know the significance of proper names and to learn the histories and stories that reflect the cultures, neighborhoods, and buildings in which we work. This unique knowledge has character, is memorable, and may be the difference between a bland and ordinary transaction and a unique and memorable experience.

Here are a few examples:

Unique knowledge about the chef: “Our chef trained at the prestigious Restaurant School in Philadelphia and apprenticed at Le Bec Fin. She also traveled to France to refine her knowledge of French delicacies such as truffles, escargot, and foie gras. In fact, our Pâté de Foie Gras is our signature appetizer. May I tempt you with an order?”

Unique knowledge about the building: “There’s quite a bit a history in this hotel. In fact, in 1926 the famed magician Harry Houdini escaped from a sealed underwater coffin beneath this very roof when it was the Shelton Towers Hotel.”

Unique knowledge about the neighborhood: “Our restaurant is located in the Gaslamp Quarter which is named after the gas lamps that lined the streets in the early 1900s when the area was a red light district known as ‘Stingaree.’ The name was probably derived from the fierce stingray fish in the San Diego Bay. It was said that you could be stung as badly in the Stingaree as in the bay!”

Unique knowledge about proper names: “Your meeting is being held in the Odets meeting room on the fourth floor. The room is named after the playwright Clifford Odets who wrote the plays Waiting for Lefty and Awake and Sing. Several of our meeting rooms are named after other well-known playwrights. After all, you are in the Theatre District!”

While customers appreciate nice employees, they value knowledgeable employees. And the more unique knowledge they possess, the more value they can bring to the customer experience.

Have you shared or experienced unique knowledge recently?

The week before Christmas, I brought my car in for maintenance. The dealership offers both a waiting area as well as a shuttle service to take you to local destinations while your vehicle is being serviced.

While leaving my keys with the service department, I inquired about the shuttle driver and learned that he was off site and would return in the next 10-15 minutes. I then asked the rep if he’d have the driver locate me in the waiting area upon his return in order for me to run a local errand while my car was being serviced.

The rep agreed, made note of my name and cell phone number, and assured me that it would be no more than 15 minutes.

So far, so good.

While I was sitting in the waiting area, a client called. I took the call and moved to a quiet corner of the waiting area to talk.

Within five minutes or so, the shuttle driver appeared and called out my name. I motioned to the driver that I was on the phone and would be a few minutes.

The driver left the area, returning a few minutes later.

As I was listening to my client and taking notes in my planner, the driver walked towards me, pointed to his watch, motioned for me to wind things up and said, “I’ve got places to go.”

Stunned by his actions, I instructed him not to wait on me and that I would just take the next available shuttle. Clearly annoyed, he let out an audible sigh, turned, and walked away.

Think about the irony of this situation: Because I’m making myself available to serve a client over the phone, I’m reinforcing his decision to hire me. Because he hires (and compensates) me, I can afford to have my vehicle serviced at the dealership. Because I’m servicing my vehicle at the dealership, there’s a need for a shuttle driver. And because there’s a need for a shuttle driver, this employee has a job.

After my call ended, I approached the dealership’s general manager and we sat together briefly in his office.

I shared what had happened, recognizing my contribution to the misunderstanding. I realize that conflict doesn’t occur in a vacuum. Conflict is the result of a failure to meet expectations—and I clearly did not meet the shuttle driver’s expectations. After all, I had requested the shuttle service and then wasn’t available when the driver returned. I get that.

Even so, I told the GM that the driver’s behavior made me feel devalued as a customer. His dealership spends a lot of money to evoke certain feelings from its customers and I’m certain ‘devalued’ isn’t one of them.

What the GM did next cemented my loyalty to his dealership and the Cadillac brand.

He said, “Here, take my car” as he handed me the key to a white CTS in the parking lot.

As we walked from his office to the showroom, he apologized on behalf of the shuttle driver, thanked me for my business and said, “Take as long as you need. I’m here until 7 o’clock.”

Misunderstandings are inevitable. How employees respond to them, however, is optional. Those employees who truly value customers, seek understanding, and give customers the benefit of the doubt (or, in some cases, the keys to their car), are one step closer to resolving misunderstandings—and creating loyal customers.

Have you met anyone who enjoys being nickel-and-dimed? Do you know anyone who embraces unexpected add-on charges? Of course not. That’s because these business practices are irritating.

Last week, I brought my family to Fatburger to enjoy a good hamburger (their burgers are delicious). Since this was my first time at Fatburger, I was especially attentive to things like cleanliness, customer service, value for price paid, etc.

I spotted a sign near the register promoting kid’s meals for $5.59. This included a hamburger, fries, and a drink. Since three of my four children were interested, I placed an order for three kid’s meals with plain cheeseburgers, fries, and chocolate milks.

When I received the total, I immediately felt like it was too high (not the sort of reaction you want customers to have in response to their bills). After paying, I joined my family at one of the booths and began scrutinizing the receipt (again, this is not the sort of reaction you want customers to have after completing their purchases).

After adding up the cost of the $5.59 kid’s meals that I ordered, each totaled $7.36 before tax.

Here’s the breakdown from the receipt:

$2.79 Hamburger
0.79 Cheese
1.69 Chocolate milk
2.09 Fries
$7.36 Total

That’s $1.77 or 32 percent more per meal than I expected to pay! I felt nickel-and-dimed by the unexpected add-on charges. When I approached the manager during my meal to inquire about the charges (yet another reaction you don’t want customers to have), he graciously refunded me one dollar for each kid’s meal I purchased.

Now, I suppose a Fatburger representative would point out my own negligence in either overlooking the menu’s fine print (something else that irritates most customers) or failing to inquire about the price differential when ordering chocolate milk as opposed to a soft drink.

But she would be missing the point.

You don’t win these types of debates with customers. And even if you score more debate points, who cares? The customer ultimately decides who the real winners are because, in business, winning is influenced by factors such as repeat purchases, referrals, and other characteristics of loyal customers.

Personally, I am loyal to Chipotle Mexican Grill. Like Fatburger, Chipotle has clean restaurants and an amazing product. But unlike Fatburger, I’m not surprised by unexpected add-on charges and don’t feel compelled to scrutinize their receipts.

When I order a burrito with cheese and sour cream, the price doesn’t change. And if I order guacamole, the server will always announce the extra charge and gain acceptance before adding it to my burrito—avoiding an unpleasant surprise at the register.

In spending my discretionary income to dine out at a quick service restaurant, I will choose fat burritos with no surprises over fat bills with unexpected add-on charges.

How about you? Why do you choose to spend where you spend?

My family and I decided to try Carino’s Italian restaurant for the first time tonight. When we entered the restaurant, we were “greeted” by the hostess with the predictable, “How many?” before being seated. Our server approached our table within a minute or two, delivering interactive menus and crayons to the kids and menus to me and my wife.

Our server demonstrated the hospitality basics well. She smiled, made eye contact, and added a bit of enthusiasm to her voice. And she did not seem put off by my six-year-old’s tendency to vacillate during his beverage, entrée, and dessert orders.

Even so, there were several events that marred the experience:

• Our server repeated left the table empty-handed while paper wrappers, used paper napkins, plates, and glasses accumulated. One of the reasons we enjoy dining out is that we don’t have to look at the mess that a family of six produces during meals. Eventually, I stacked everything I could reach and asked that it be removed.
• Midway through our meal at around 7:00pm, another server completed what appeared to be her closing sidework (e.g., consolidating salt and pepper shakers, filling sugar packet caddies, etc.) at the table next to us—in full view of the guests dining around her. Instinctively, I checked my watch to see if it was later than I thought. That’s not the reaction you want your guests to have during their meals.
• Later, after our children had ordered dessert, the sundaes came out with no spoons. Remarkably, it took about four minutes for the spoons to arrive (that’s an hour and a half in kid time). By then, without the use of utensils, they had consumed nearly every bit of their whipped cream—and what little remained was on their noses…

As uninspiring as this service was, the low point of the evening came when our server delivered the family style pasta plate that my wife and I planned to split. Carino’s family style entrées are intended to serve 2-3 adults and, knowing that we were sharing this entrée, our server brought a plate for each of us.

She handed me the large plate of pasta and set the two entrée plates on the table in front of me. I asked her if she could serve my wife—as she was seated at the opposite end of the table and we had four kids between us.

Her response floored me: “You do that.”

Now, I realize that Carino’s Italian is a fast-casual concept but it’s not a cafeteria. There were no buffets visible. That makes it a full service restaurant. Our server, in denying my simple request, missed an opportunity to serve her guests and moved what had been a neutral experience to a negative one.

So, even though I felt like there was value for the price paid (our bill came to $56.00 for a family of six—including entrées, salads, drinks, desserts, and a double espresso), I likely will not return to Carino’s Italian restaurant.

There are plenty of other restaurants out there with higher standards for table service whose servers are also willing to serve.

I recently bought some fresh fish at Whole Foods Market. As is customary, I waited my turn as customers who arrived before me had their orders fulfilled. When it was my turn, an employee behind the counter smiled, made eye contact, and with enthusiasm in his voice asked, “Did you see something you liked?”

As much as I appreciate quality products and friendly service, so far it had been a pretty predictable shopping experience. Whole Foods isn’t cheap and has a reputation for better than average product and service quality intended to justify the higher prices. When I shop there, I expect for the store to be extra clean, for the products to be extra fresh, and for the staff to be extra knowledgeable and helpful.

On this day, I watched as the employee gathered up the salmon fillets I had selected. He handled the fish with care, applying olive oil and seasoning as requested to each side of the fillets. As good as the service was, so far there was nothing out of the ordinary.

Having oiled and seasoned the fillets, the employee then wrapped them in butcher paper. He then handed them to me over the counter with a broad smile and said, “Here you are. Is there anything else I can get for you?”

I said that I was all set and thanked him for his help. Still, as great as the product and service quality had been, there had been nothing that made an impression—that had stuck out as being particularly memorable. What happened next changed all that.

As I looked at the wrapped fish, I noticed it had been wrapped in a customized butcher paper—made to look like newsprint—bearing the name: Seafood Times. Beneath the masthead were a variety of informative and entertaining stories such as Whole Foods Market Pleads Guilty to Seafood Discrimination and Make Your Kitchen a Safe Harbor.

Instead of bland and uneventful brown butcher paper, I had received something extra: a unique and refreshing version that had been customized by Whole Foods to extend my experience from the store to my home. All of a sudden, what had been a predicable transaction at the seafood counter transformed into a memorable service experience. I now had a powerful memory of my visit and a story to share with others.

When so many retail transactions are characterized by indifference, experiences like this one are a breath of fresh air. Companies that go the extra mile to surprise and delight customers will not only make headlines, they will make lasting impressions their customers will remember when it’s time to buy.

The other day I was waiting in line at Starbucks and noticed a display of coffee mugs that were selling for $8.95. My first thought was that another coffee cup was the last thing I needed. And, if I were going to buy one, I likely wouldn’t pay full price. I’d look around for a mug with a bright red price sticker on it because, after all, a mug’s a mug. Right?

Maybe not. Alongside the mugs, I noticed a conspicuous display card containing a bit of background information on the mug. It read:

SAFARA MUG

Made by potters in Toki City, Japan, using techniques passed from generation to generation for more than 400 years.

$8.95

No longer was this “just another coffee mug.” It was a unique piece of pottery that had been crafted by artisans with specialized knowledge that had been passed down from one generation to the next. And no longer was a selling price of $8.95 too high. It appeared reasonable, given the origin and craftsmanship of the mug.

Now, I have no illusions that this mug will appreciate in value and one day become a collector’s item worthy of a display case in the Smithsonian. That’s not the point. The point is that this commodity, a coffee mug, had been transformed into a piece of art by simply adding 19 words of unique knowledge.

Unique knowledge is interesting, unexpected, and adds value to the customer experience. It’s not ordinary or predictable. It’s sexy in the sense that it attracts attention. You notice it. It’s unique and memorable.

Consider your own products and services. How can you add value by including unique knowledge—a story that will captivate your customers, reposition your offerings as anything but commodities, and justify your price premiums?