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Archive for the ‘competitive edge’ Category

Every doctrine has to start somewhere. Even this one.

Want to boost your repeat business, get tons of free referrals, acquire bunches of new customers and get lots of positive buzz for free? There’s a pretty simple way to do it that doesn’t have to cost you a whole lot. Can you guess what it is?

Simple: Purge your company of assholes.

In fact, let me share item #1 in my Better Business Doctrine with you real quick. Are you ready? Here we go:

The customer-facing organization with the fewest assholes wins.

That’s it.

A simple example, from the friendly skies.

Does this seem like common sense? Of course it does. And yet here we are, routinely forced to endure a passive-aggressive or plain argumentative jerks who would rather exercise their “authority” than provide customers – even stressed out customers – with pleasant experiences. Why is that? Let me answer that question: Because companies are still hiring assholes.

Let me give you a few personal examples:

1a. The Continental flight I was on a few months ago

Flight Attendant (sternly) to a passenger in the process of turning off their iPad, just not quickly enough: “SIR! I need you to turn that off right now!” (Stares angrily at passenger until the device is turned off, and walks away, visibly annoyed.)

This probably happens to flight crews 20+ times per day. Every time a plane pushes off from the gate and prepares its approach, passengers in the middle of a song, of a paragraph, of a game of Angry Birds or Brick Breaker take an extra 10-30 seconds to “comply” with the “please turn off your electronic devices at this time” announcement on the PA. I get it. It probably gets annoying after a while. But guess what: You’re a flight attendant. Asking people to turn off their electronic toys comes with the job. You don’t have to be an asshole about it. Case in point:

1b: The Delta flight I was on the following day

– Flight Attendant (with a smile, jokingly) to a passenger so absorbed by what he was reading that he missed the “turn off your electronic devices” announcement and kept his Kindle going: “Good book?”

– Passenger, sensing that he was the object of the flight attendant’s attention, looks up from his device: “I’m sorry?”

– Flight Attendant, nonchalantly points at the Kindle: “Good reading?”

– Passenger, smiling back: “Yeah. Very!” (Gets it. Laughs. Starts to look for the “off” button.)

– Flight attendant: “You can turn it back on as soon as we’re on the ground.” (Walks away. Stops. Turns around.) “The book. What is it?”

Passenger answers. Flight attendant repeats the title as if to remember it, nods as if interested, and returns to his station.

The difference between the two isn’t training or pay. It isn’t corporate policy or procedure. It isn’t even company culture. The difference between the two occurrences is this:

One of these flight attendants, at some point during the course of her day, week, month, year or career, decided to let her asshole flag fly. The other one didn’t.

The basic impact of an asshole on your customers

How every asshole on your payroll affects your brand equity and impacts your business on a daily basis.

The impact of just one asshole’s behavior in a customer-facing role doesn’t stop with the one customer they treat poorly. Ten rows of passengers witnessed the exchanges on both flights, and I can guarantee that the ten rows on the Continental flight (30 passengers) were not impressed, while those on the Delta flight surely were. The ramifications of this are simple:

Whatever shot Continental had at influencing these 30 people to develop a preference for flying its friendly skies, for being more loyal, for looking to book future flights with them first, just flew out the window, not because of price, not because of delays, not because the plane was dirty. The price was great. The plane left on time and was impeccable. Continental did everything right except one thing: Someone there allowed an asshole (and probably more than one) to take on a key customer service role. Delta, on the other hand, scored some points.

And just to be fair, I’ve run into my fair of assholes working for Delta too. Few domestic US airlines seem immune to this phenomenon these days, except for perhaps Alaska Air, whose service and hiring practices, to my knowledge are still impeccable.

That said, my experience with Delta flight crews recently has been stellar, and not just because of this little anecdote. (Expect another post about what else happened very soon.) The difference between the two airlines for me was limited to my experience, as it is for all of us. Before the recommendations and the word-of-mouth and the marketing, our own experience shapes our bias.

Every positive experience creates positive associations with a brand, while every negative experience creates a negative association with a brand. More positive than negative = positive bias, preference, even loyalty. Consistent negative experiences (especially those that repeat themselves, like frequent delays, rude employees, apathetic managers, or being talked down to by an unprofessional asshole) = negative bias, preference for your competitors instead of you, and cynicism towards your brand.

The wheels of this mental equation – more emotional than empirical – start turning every time the thought of your brand comes up, and you need to understand it isn’t linear. The way we process the negative and the positive isn’t as balanced as you might think. For whatever reason, until you have grown into a loyal fan of the brand, the equation tends to be heavily weighed towards the negative: What you did right six months ago – or for the last thirty years,- doesn’t matter nearly as much as what you did wrong yesterday or just last week. That’s part 1 of how the mental math of brand experiences work. Part 2 is this: People will easily forgive incidents and accidents: Lost luggage, no available upgrades, long lines at the counter, mechanical problems, etc. Those things are out of your control, and once the anger and frustration subside, they’ll get it. Those negative impressions will evaporate. But one thing customers won’t forgive of any company: Being deliberately treated badly by an asshole.

Just as being an asshole  is a choice, – especially when dealing with a customer – hiring an asshole and keeping them on staff is also a choice. Because of this immutable fact, every company bears its part of responsibility in the hiring and promoting of assholes. Customers instinctively understand this, which is why when they run into one of your company’s assholes, they don’t blame the asshole for treating them poorly, they blame you. They blame the brand. The negative association they take home with them isn’t with that person (whose name and face they will forget inside of a week), but with you. Your assholes are faceless. All customers remember is the context: You. Your company. Your brand. The asshole just goes on being an asshole day after day, happy to have a job that pays him – even rewards him – for being a complete raging asshole all day long.

At the end of their shift, what you have to understand is that assholes in your employ don’t lose customers. You do. You spend your resources bringing them to the cash register, and every asshole on your staff spends all day making sure they never come back.

For this reason if none other, choose and evaluate your employees carefully.

The impact of just one asshole - amplified by social media

The real cost of letting assholes poison your brand from the inside.

If you are in business and have employees, let me be VERY clear about this: You are always only one asshole away from losing your best customer. The more assholes you have on staff, the faster and more often this will happen.

Not only that, but assholes tend to turn off, not only the one customer they happen to be unpleasant to, but everyone within earshot as well.

And today, ladies and gentlemen, “within earshot” isn’t just the ten rows on the plane or the ten people in the store waiting to check out. It is also potentially the hundreds of thousands of Facebook and Twitter users who might get a glimpse of that negative experience and be turned off in turn. Even millions, for that matter. (See previous 2 images, inspired by David Armano’s “Influence Ripples” theory (Edelman), below:)

David Armano's "Influence Ripples" (Edelman)

Let me give this a financial angle for you: Over the course of a year, one asshole on your staff, just one, can invalidate every dime your company has spent on advertising, marketing and PR. That’s the real liability of assholes. For small businesses, an asshole might only cost you $10,000 in wasted marketing, messaging or brand positioning. If you’re a bigger company, the same asshole (or a whole army of them, which is more likely) could cost you hundreds of millions of dollars in wasted marketing and brand management dollars.

That was part 1 of that equation. Part 2 is measured in lost revenue from disappointed customers taking their business elsewhere (your competitors thank you), lost revenue from all of the net new customers delighted customers would have recommended you to (but didn’t, because your assholes chased them away), and so on.

As a result, the higher the proportion of assholes to caring professionals a company has on staff, the more likely it is to have to spend more and more on marketing (with increasingly diminishing returns), while customer retention falls flat and even starts to dip into the red. Assholes aren’t just bad for customer service or your brand’s image. Assholes are bad for business. They are a counter-current to your hopes and dreams. They are the cancer that first weighs you down, then eventually makes your brand begin to fail, then wither, then die.

So let me repeat today’s lesson: The customer-facing organization with the least amount of assholes wins.

Don’t believe me? Ask Zappos. If you have never heard of Zappos, they sell shoes on the internet. That’s it. Well… LOTS of shoes. So many in fact that Amazon bought them for a pretty penny. Not only that, but Amazon decided not to make any major changes to Zappos’ leadership or culture. They left Zappos alone because the model works well just as it is. What’s Zappos’ secret? The customer experiences they create are stellar. Why are they stellar? Because Zappos pretty much has a “no asshole on staff” policy. Their hiring practices focus on this, and for good reason: They know that a happy customer is a loyal customer.

The simple truth (and we all know this) is that happy customers are good for business. In fact, no. They are GREAT for business: The happier a customer is, the more likely it is that they will come back, spend more, spend more often, and recommend you to all their friends. This is what you want. This is what makes businesses insanely successful. This. You don’t have to invent the iPad to be a huge success. Zappos just sells shoes on the internet. Virgin Airlines just flies people from airport to airport. Intercontinental Hotels (disclosure: client) are basically just… hotels. We’re not talking space walks or time travel, here. Your favorite restaurant, your favorite coffee shop, your favorite mechanic, none of them necessarily reinvented the wheel, right? They didn’t win a Nobel prize for revolutionizing their industries. No. What they did was this: They figured out that a happy customer is good for business, so they focused on that. They earned your trust, your respect and your loyalty. Want to know how they did that? By giving you theirs.

Let me let you in on a little secret: An asshole doesn’t think that way. An asshole doesn’t think about happy customers. He doesn’t care about happy customers. An asshole only thinks about himself: His own mood, his own frustrations, his own personal dramas, his own power trips. An asshole doesn’t give anyone their trust, respect or loyalty. Assholes just don’t think that way. And that is precisely the rub: No matter how well you pay them, you can’t make assholes give a shit. And that is bad for business. Very bad.

A fork in the road for every organization:

Do you know one way to make sure your customers are always happy? Only hire people who want your customers to be happy too. People who want to be helpful, who want to fix problems, who take pride in making someone’s day better instead of worse. People who genuinely want to see the company do well. People with pride and self respect and ambition beyond their own bank account or advancement. Do you think this is too hard? It isn’t. Just hire better.

Want to guess how to guarantee that your customers will not be happy? Hire assholes to take care of them. (It works every time.)

That’s your choice: Door A or Door B.

Door A: Hire super nice, helpful people and your business will soar.

Door B: Hire assholes, and your business will forever struggle to stay afloat.

Every time you run into one of your employees (or candidates) and he or she acts like an asshole, I want you to think about that. I want you to think about how much harder you want to have to work to make your business successful once they start pissing off every customer and client they come in contact with.

Taking a step back so you can see your entire business now, how many assholes do you really want on your payroll, and how many customers do you want to put them in front of? Pull out a piece of paper and write down a number. Do it. Write it down. How many assholes do you want on your payroll?

Next to that number, write down how many assholes you have on your payroll now. Go through your mental org chart, and start counting them in your head. When you’re done, write down how many assholes you know are in your company right now. If that number is higher than the first number you wrote down, you have some cleaning up to do.

In closing, let me leave you with the top 5 ways to make sure that your company starts becoming asshole-proof.

Top 5 ways of asshole-proofing your company:

1. Don’t hire assholes. They are bad for business, and they breed inside organizations like weeds.

2. Don’t promote assholes. The only thing worse than an asshole is an asshole with authority (including the authority to hire and promote assholes when you aren’t paying attention).

3. Give your current assholes the “opportunity” to go work for your fiercest competitor. Do this immediately. Make sure the door doesn’t hit them in the ass on their way out.

4. Once removed, replace your former assholes with nice, smart friendly people. (They’re out there and they want to work for you, but your assholes probably already turned them down. Go find them and invite them back.)

5. Reward all of your employees for NOT being assholes.

That just about takes care of it for today. Any questions?

Inspired (in a good way) by conversations with Julien Smith, Geoff Livingston, Keith BurtisChris Brogan, Kristi Colvin, Tyler Durden, Jeffrey Jacobs, Peter Shankman, among others.

*          *          *

And in case you haven’t picked one up yet (or your favorite client seems to be having trouble figuring out how to bring social media into their organization), you can pick up a fresh copy of Social Media ROI at fine book stores everywhere. If you have sworn off paper, you can also download it for iPad, Kindle, Nook or other e-formats at www.smroi.net.

Tip: Leave it sitting conspicuously on your desk when your boss does his rounds. It seems to be a good conversation starter.

(Click here for details, or to sample a free chapter.)

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I was inspired by Chris Brogan’s post today in which he discusses confidence and conviction. Before you read my comment (below), go check out his post and come back. Here are some highlights:

The guest at the table next to mine asked their server, “What do you think of the halibut special?”

The server replied, “I’m not really sure. What did you have in mind when you came in? You know, people really are much happier when they have something in mind. I think it’s okay. I’ve sold a lot of it. I haven’t personally tried it, but it looks good.”

All I was thinking was, if I were the server, I’d say this:

“It’s a great presentation: crispy top and served over our lime rice. I’ve sold lots of it today.”

[…]

No waffling allowed.

Confidence and conviction are the key to many things in life.

A frequent critic (and someone I admire a lot), Ben Kunz, once said something like this about me (not his exact words): “What I hate most about you is that you always sound like you know exactly what you’re talking about, and that’s dangerous.”

I took this to be a great compliment. Again, I admire Ben a lot. He doesn’t let me rest on my laurels.

I take great pride in my confidence and conviction in matters that are important to me. I use confidence as a leadership trait all the time. And I admit when I’m wrong as often as is necessary to make those two traits worth a damn.

This got me thinking. This is a pretty important topic, especially given Ben’s “dangerous” comment thrown in. It may not seem like it, but confidence and conviction are two of the most important building blocks of professional competence. And in an “industry” (Social Media) drowning in incompetence, the danger isn’t that someone should speak with conviction about what they are competent in. Incompetence posing as competence is the danger, not confidence and conviction. Here is my response to Chris’ post:

Reminds me of rule #3: Know your sh*t. As a waiter, an executive, a cultural anthropologist, a politician, a teacher, a doctor or whatever. Just know your sh*t. A waiter who hasn’t tasted everything on the menu isn’t taking their job seriously.

Knowing exactly what you’re talking about isn’t dangerous. It just means that when you bother to open your mouth, you aren’t just making monkey noises for the sake of getting attention. You speak with purpose about something you know about. I’ve watched you in action, Chris. If the common advice is to listen 80% of the time and talk 20% of it, you have the uncommon trait of pushing the ratio to its limits: You listen about 95% of the time and talk 5% of it, if that. That tells me that when you DO say something, I had better listen. And so far, even what you think is just improv is still seeped in insight. You have good instincts, Chris. It’s why you rarely say something dumb.

Likewise, when you don’t know something, you have no problem saying “I don’t know but let’s find out,” which takes confidence as well, and lays the foundations for conviction when someone asks the question again next time and you actually know the answer.

With all due respect to Ben, the danger isn’t to speak with confidence and conviction about things you know. The danger is to speak with false confidence and a facade of conviction about things you don’t know well enough. Too many people choose the latter as their MO. You don’t. It’s why I read your stuff.

We saw this last year with the Social Media R.O.I. debacle, which few of the self-professed “experts” and “gurus” who blabbed about the “mysterious” acronym bothered to even look up in wikepedia, much less learn about from a business class or an actual management job. Instead of either learning how to define R.O.I. or (god forbid) tie to a P&L, many just made up their own versions. Others dismissed the need for R.O.I. completely. Precious few admitted that R.O.I. was outside of their expertise, which was the right thing to do. The professional thing to do.

Here’s a tip: Community managers don’t necessarily need to be experts in R.O.I. – Case in point: If you’re an expert in customer service on Twitter, or community management, or online reputation management, speak with confidence and conviction about that. The guy responding to negative comments on facebook doesn’t need to be an expert in doing anything but creating content and managing positive and negative comments. The R.O.I. piece, let it go to someone better equipped and trained to deal with it. Leave the stuff you don’t know to people who DO know. Businesses need real expertise, not smoke and mirrors and made-up “expertise.”

As an aside, you will get a lot further in life by learning how to get good at something than pretending to be good at something you suck at.

Don’t lie. Don’t make it up, hoping you won’t get found out. Learn what you can, be honest about what you know and don’t know yet, and make sure that you know what you’re talking about before opening your mouth. In other words, just know your sh*t.

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Pop quiz: You own or manage a restaurant. A hotel. A coffee shop. A specialty goods store. A hot dog stand. A bank. A movie theater. A shoe store. A gym. A bodega. A hair salon. A sushi bar. A pub. A public park. A swimming pool. A museum. An art gallery. A city. Do you know who the mayor of your business is?

If you don’t, find out today. Right now. Here’s why: It could help your business grow pretty quickly if you play your cards right. More on that in a minute. First, here’s how to find out who has claimed the title of mayor on Foursquare: (Huh? fourwhat? Hang on. We’ll get to that too.)

The How:

Step 1: Go to www.foursquare.com

Step 2: In the search box (top right) enter your business name.

Step 3: When your business information pops up, look to the right of the screen. You will see an icon labeled “mayor”. That’s who the mayor is.

The Now What:

Find out who they are, and you give them the royal treatment next time they come into your store. Let them know you’re paying attention to a) Foursquare, b) whom is taking the time to check in every time they come into your place of business, and c) who is sharing that information (that recommendation) with their friends on Foursquare, Twitter and Facebook.

Think about giving them a discount or a gift while you’re at it. Set up a “mayor parking” spot outside. Treat them like a VIP inside the store. Address them as “Mister Mayor” or “Your Grace,” when they walk in. It’s up to you. Have fun with it. Give them more reasons to like you. It never hurts to reward kindness with kindness, and remember that it is supposed to be fun and rewarding.

The Why:

If you aren’t familiar with Foursquare yet, here it is in a paragraph: It’s a game played on mobile devices. People “check in” to businesses and other locations, and try to accumulate points. In some instances, they win much coveted “badges” (see some examples below).

In other instances, if they are the most frequent visitor of a location (like your store), they are crowned “mayor” of that location. The game is free, works on a variety of mobile platforms, and players have the option to share their check-ins with their network of family and friends on Foursquare, Twitter and Facebook. It’s a silly game, sure, but it is powerful as well. Here’s why:

1. Frequency – Because checking-in is a game, it is fun. That, in and of itself, is reward enough. Mayorships and badges are also rewards for activity on Foursquare. What it means is this: Foursquare gives people an incentive to visit your store more often, just so they can check in. Especially if you are running a promotion aimed at your store’s mayor. As a business, you can thus easily use Foursquare to increase the frequency of visits to your store(s). That equates to more foot traffic, more mindshare, and potentially more sales. (While they’re in your store, they’ll probably buy something.)

2. Reach – In case you missed it earlier, when someone “checks in” to your location, they broadcast that check-in to their various digital networks. Right now, that is mostly Foursquare itself, Twitter and Facebook. This will probably grow over time. But consider that the average american has what… over 200+ “friends” on Facebook? Think about the power of having a single customer broadcast that they are in your restaurant, in your hair salon, in your pub to 200+ of their friends every time they come in. Now multiply that by ten customers. Now multiply that by 100 customers.

Though not technically “active” word of mouth, Foursquare check-ins are still de-facto endorsement of your business. In other words, it isn’t just a question of exposure. A check-in is an affirmation of endorsement. It might as well say “I am here, and I am proud to tell you all that I am doing business here. Come do the same.” That’s the context of a check-in.

Every time one of your customers checks-in and broadcasts that they are doing business with you, they potentially trigger a visit in an average of 200 other potential customers. (Either existing customers or potential customers.)

3. Yield – Of the three, this one is probably the toughest to achieve, but as a measure of loyalty, yield (average purchase amount) can be impacted by foursquare activity. As frequency of visits increases and loyalty follows suit, it is likely that a portion of your customers will escalate their purchase amounts as well. Loyalty can lead to a higher percentage of wallet share, not just through buy rates (frequency) but also higher price-point purchases.

A word on escalation: Take the example of a bike shop. A casual customer may come in once a month and buy some energy bars, a bike jersey and some socks. As this customer is developed into a regular, they start purchasing all of their energy bars from you instead of buying them from several different places. They may also start jonesing for that new pair of cycling shoes and that new helmet they will soon rationalize they need to replace their “old” ones with. If you treat them well and understand their needs, this escalation may lead to a higher dollar purchase like a race wheel upgrade, a carbon-fiber set of handlebars upgrade, a full bike tune-up, or even a brand new bike to start off the new season in style.

Result: In six months to a year, you could potentially turn a casual customer who only bought low-hanging-fruit items in your store to a loyal customer with a habit of dropping large amounts of cash on premium upgrades with you, instead of blowing them on something else.

Note: You cannot escalate yield if you do not have a relationship with your customer. There is no shortcut here. You have to get to know them. You have to become part of their world. This is not something you can do from a corporate office, or from the back of the store. Someone has to interact with them on a human level – both online and offline.

More thoughts on how to leverage Foursquare:

How your business can use Foursquare is up to you. Use your imagination. Try different things. Be clever. Have fun with it. Perhaps you can work with Foursquare to create badges for your business, the way that Bravo, Starbucks, SxSW, Marc Jacobs and several cities (San Francisco, New York, Brooklyn and Chicago) already have. Here is Starbucks’ very own Barista badge. To obtain it, players only need check in at 5 different Starbucks locations:

Imagine the same thing for your business, or banding with retailers in your area to create a badge players could unlock by visiting 5 of your combined locations. You could work with an organization or with a city even, to help promote your business through Foursquare. You don’t have to do it all yourself.

Perhaps you can also create promotions around Foursquare activity, like flashmobs (using your business and a particular sales event to help customers achieve both all-too elusive swarm badges (50 people checking in together and 250 people checking in together.)

Another fun idea: Procure some Foursquare Merit Badges and ceremoniously award them to customers who acquired virtual badges online (see below).

Whatever you choose to do, start at the beginning: Find out who the mayor of your business is, acknowledge that status, and reward it with warmth and gratitude, if not with product.  Next: Create an account and get rolling. It’s your business. Take charge and participate. Welcome to a whole new world of marketing fun. If you’re lucky, you will beat your competitors to it. (Never underestimate first-mover advantage, especially in the age of twitter & facebook real-time word-of-mouth.)

Footnote: I spoke to two retailers yesterday who had never heard of foursquare. One didn’t know that dozens of customers were already checking into their store regularly, and I added the other’s venue because there wasn’t one yet. Guess what: One knows who the mayor of their business is today, and he has a plan now. The other will know as soon as someone becomes the mayor, and is already working on some promotions. We will revisit these two businesses in a few months to see how they fare.

Also check out Gowalla.com while you’re at it. Very much the same thing, and it too is growing.

Additional reading:

Via Mark Van Baale (@markvanbaale on twitter) – “Foursquare sees another big Domino fall

And this great piece via Mashable on Foursquare’s business analytics dashboard.

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