It's The Little Things

I recently travelled from West Kent to London on a day return ticket. Not my usual commuter season ticket, but the little paper one that the guard likes to stamp authoritatively. How sweet when I noticed that instead of the usual round punch there was in its place a butterfly. Now the service wasn't particularly great - the carriage was dirty and the train ran 15 minutes late. But it was the butterfly that I remembered at the end of the journey. I found myself smiling when the standard of service would otherwise have made me feel grumpy. Why? Because it suggested attention to detail, and care for passengers, it was done for no other reason than to give a little pleasure.

British Supermarket's - time for change?

I have ordered my weekly online supermarket shop from 3 of the biggest supermarkets now. I don't order from Tesco anymore because there are too many own label options, and not enough branded ones. I don't order from Waitrose any more because they screwed up my Christmas dinner shop and managed the enviable feat of sending me rotting onions 3 times in a row. In desperation I stuck with Sainsburys despite our ups and downs. Like sending me 'ripen in the fruit bowl' nectarines when I deliberately order ready to eat. Experience has taught me that 'ripen in the fruit bowl' means 'I go from rock hard inedible to mouldy without ever passing through the juicy ripe phase'. But this week Sainsburys managed the corker of all corkers. They delivered a rough-looking cauliflower, out of which a piece had clearly been cut with a knife - the edge of the removed mouldy bit still in evidence at the periphery of the cut. Talking to others I see I am not alone. The customer service departments somewhat perversely also verify this.
Has anyone actually found a supermarket that delivers fresh food that looks fresh and not the stuff that they can't sell instore? Supermarkets spend a lot of time looking at each other and comparing prices. They forget that most people don't enjoy the shopping experience that they offer - they shop there because they have no choice. It is ironic that the nation of shopkeepers has become a nation beholden to just 4 supermarkets. Yes, consumers do increasingly have a voice, but not yet it seems when shopping for their groceries.

When the Cost of a Refund is Too High

Refunds are about getting money back, about making you feel better when a service is below parr or you were sent something you didn't want. A "Big 4" supermarket sent me a home delivery and charged me for some duck legs that didn't get packed with the rest of my order. No problem they said we will issue a refund. So sorted....or so I thought. I've got no duck, but hey I can cook something else. Ahh! But it wasn't that simple. First you need to know that my refund was for £3. Here's what happened.

I got an email asking me whether I wanted the refund as (a) an e-coupon code to use with my next order or (b) a refund on my credit card, in which case could I call customer service. The thought of calling a call centre and hanging on the line to get a £3 refund filled me with horror so I opted for the e-voucher. It duly arrived by separate email. It was a complicated code. Of course I forgot to use it on my next order. Then when I did use it, it didn't get deducted by the checkout software. Call I'd been trying to avoid now duly put in to the customer service team. "Oh you have to click the "add voucher" button once you've put the code in...."

So, 2 emails read, 1 call to customer service at my expense, and 3 order deliveries later I finally got my £3 refund. God only knows how much it cost said supermarket in admin, let alone reduction in brand faith.

Apple - Owning The Buying Experience

On Monday I walked into an Apple store and handed over £1,440 without batting an eyelid. I got a slim, glossy laptop, a few accessories and a whole new computing experience in return. Quite remarkable because two days earlier I was a non-believer. Macs were expensive, incompatible with Microsoft and 'more for designers'. But customer service and visualising the experience won the day. I can't complain about the service I got in PCWorld, online, and down the famed Tottenham Court Road. (It was better than my experience of sales assistants when buying a printer - "I don't know the difference, I'll just look in the brochure.") I could see the brands and understand the relative specs. What I couldn't do was visualise me using them. There was no emotional connection. Just rows of same looking products with a spec label, and no easy way to compare them because each label commented on different aspects. Doesn't that just drive you back to the web? It does me.

The Apple experience was very different. Here, when I explained what I wanted to use the computer for, I got product recomendations, walkthrough of the relevant software, the option of one-to-one tuition and 15% discount on production of my son and his student uni card.

Buying a computer is still a big investment. The output it produces is a showcase of us. Whether we use it to crop and auto-adjust the home photo collection, create a website or make a business presentation, it lasts for years. Getting it wrong is costly. Being able to try the hardware - with the software we want on it - and receive a little personal tuition - these are the 3 keys to emotional connection. If it's only about price and product spec we may as well use a comparison web site which includes customer reviews and be done with stores and inexperienced sales assistants.

Apple's strength lies in its ownership of the hardware and retail elements of the supply chain, so it is able to co-ordinate the whole hardware/software/instore customer buying experience and make it tangible rather than imagined. Tangible experience is what converted me.

Brand Trust: The 4Cs Model

Brands are like diamonds. Rather intangible. Hard to value with the naked eye. We look at that nice piece of sparkly glass and have no idea of its worth. De Beers solved this by introducing the 4C test. It worked. Now we can compare carat, colour, clarity and cut information before choosing the one we want.

Why don't we introduce a similar model to quickly assess brand trust. The 4Cs being - Clarity, Competence, Consistency and Connection.

1. Clarity - what is it that the brand promises to do that others don't? We can use my brand essence test here.
2. Competence - do customers believe it does what it says it will do?
3. Consistency - is the message consistent over time ...across communication platforms ....between comms, company actions and the delivery experience?
4. Connection - how strong is the 'pied piper effect' versus competitors. How many followers buy off promotion? What price premium do they pay?

Having a clear promise and delivering on that promise are inherent requirements for a successful product/service. But the measure of a true brand is the premium paid by its consumers. It's true sustainability measured by the number of consumers who repeatedly see that premium as one worth paying. This is a quick way to see where brand trust is being eroded, and help us decide how best to act. For instance, looking at consistency will highlight the confusion that car buyers might feel when they decide to buy a German brand only to discover it's actually made in India now.

See previous article on brand trust.

More cuts at Asda - the end of the long tail?

It's that time of year again. Time to clear away the cobwebs in anticipation of brighter days. We're clearing more than cobwebs at the moment - institutions have been wiped away too. This has been threatening for a number of brands - particularly in financial services, motor and retail. Packaged goods looked on from the sidelines as grocers continued apace - we all need food and toiletries after all. Now it seems this may have been a little premature.

Asda is cutting some 30% of lines, from 10 key categories, reducing the previously fashionable long tail. Removing duplication where possible will cut handling costs and make more space for key value items. I have long been an advocate of reducing the number of indistinguishable product lines. When I go into a supermarket I am overwhelmed by the apparent choice. But it isn't really choice. Who needs to choose between 30 types of soft white thin-sliced bread? I am too busy and the decision isn't important enough for the time it takes to scan the shelves for something suitable. So I don't actively look and select, I go into closed mode and grab one I've bought before. A smaller selection puts the focus on products with real, distinguishable differences, gets shoppers back out of auto-pilot and forces us all to raise our game in product development and positioning. To those who do this best, the reward will be bigger market share from a smaller range. Amen.

Starbucks Instant Coffee - part 2

I have thought about this issue some more (see Starbucks Instant Coffee - part 1 if you haven't already), Starbucks coffee may not be the cheapest, but is that why visits are falling? ...And is a cheaper, instant coffee the answer? We can be pretty sure that plenty of research has been done. Yet, as a customer myself, cheaper coffee elsewhere is not what's reducing my visit frequency.

On weekdays I like Starbucks because I pay £3 for a coffee and get a free meeting room for an hour. That's good value. Its a change of scenery to do some quiet work. A place to observe our clients customers or meet business partners. Perhaps more business focused messages like this could help to fill the quiet afternoon lull.

My own visits have fallen because of the price and range of snacks. A drink and sandwich costs the same as a 2 course hot meal in the Thai restaurant next door, and I could buy, or make, a whole cake for less than the price of that small slice. Perhaps my Scottish roots are catching up with me. If you're a customer too, write and tell me what you think.

Womens Jeans That Fit - £12

Hurrah! Asda have launched a pair of jeans that cost the same as 2 ready meals in Waitrose. They are just £12. But - top this - they are available in sizes 11, 13 and 15, after Asda surveyed 10,000 women and discovered that two thirds of us don't fit the traditional 10, 12, 14, 16 sizing system anymore. This is an excellent example of a brand that is listening to what its customers need, and then delivering just that at a keen price point.

Starbucks Instant Coffee - part 1

I was speechless when I heard the news today. Starbucks Instant Coffee?!
The predicament is obvious. Starbucks wants to keep hold of customers through the economic dip. It’s having a tough time. The aggressive store expansion programme has left it with too many outlets, falling footfall and belt-tightening customers who now see that £3 is a lot to pay for a cup of coffee. Do that every day and your daily cuppa on the way to work is setting you back £60 a month. An obvious cut back when you’re looking to reduce outgoings.

Yet on the face of it, this strategy is hard to reconcile with the Company’s founding beliefs. In Schultz’s own words, he was inspired “to unlock the romance and mystery of coffee” by “the Italian passion for treating every detail of food preparation with reverence and an insistence that nothing less than the best will do.”

We are of course being reassured that it tastes exactly like the freshly-brewed version. That it took 20 years to get it right. That people can’t tell the difference. So maybe we are about to see a taste revolution. If anyone can achieve it Starbucks can, with its roasting and brewing experience and the current financial need.

There are two implications here. If it doesn’t taste as good, if we can tell the difference, then Starbuck’s reputation for quality coffee is challenged. If it does taste as good, why the need for all that palaver with barista’s, roasting and grinding whole beans. A coffee is only as good as its taste and the fairness of its sourcing. Cheaper coffee, same great taste...we’ll all switch, leaving Starbucks with a higher footfall requirement to maintain revenue. And so, on the eve of Valentine Day I have to ask, might this spell the death knell for the mystery and romance of coffee, which to-date has been the magic and passion driving the brand?

Bigger Please!

Is it me or have you noticed it too? Born at the very tail-end of the baby boom, I'm not exactly old, so I should be able to read product labels easily, right? Wrong! Glasses on, glasses off, contact lens in, at arms length, close-up. I can't quite make out how long I'm supposed to leave Viakal limescale-remover on my bath. I don't want limescale, but I don't want a hole in my bath either. Since we are fast becoming a more aged society, isn't it time that manufacturers used bigger typefaces....or put the instructions on a product website for us? (Though I note that www.viakal.com isn't anything to do with Viakal). I want to retain my uplifting belief that life begins at 40. It's rather hard to do so when my teenage son has to read the instruction label to me.

Round Peg, Round Hole

It's always good to share examples where competitive advantage is really working. Usually they've involved some departure from normative thinking....and this example is no exception. Its about talent selection to deliver the ultimate in customer service.

Thorkil Sonne is a Dane. He opted for a non-traditional talent-sourcing pool when founding his IT company, Specialisterne (The Specialists), 5 years ago. The decision has resulted in a real advantage, winning them business from Lego, Microsoft and Oracle. Specialisterne is a software tester. To do it well, to be best in class, requires long periods of concentration, and far more patience and attention to detail than most mere mortals possess. Thorkil's solution? 75% of his 50 employees have some form of Autism. The business need matched perfectly with the talents of the individual.

What does your company do? What skills does it require most? Might it benefit from a little extra lateral thinking next time you're recruiting?

The Price of Convenience

I don't buy Fruit Shoots anymore. The kids love the taste. They're good value, often on promotion, and I pass them everytime I visit the supermarket. So why don't I buy? The answer is simple. One day I looked at the small amount of liquid and the large amount of plastic. I imagined the liquid swigged, gone in a moment. The plastic here for a lifetime, and beyond. The price of convenience became higher than I was now prepared to pay. Not in monetary terms, but environmental ones. I'm not a green person. I have compost and non-compost bins because the council require it. But I don't do weekly trips to the bottle bank and I'm not a member of Friends of the Earth. There's lots of talk about Food Miles and Bags For Life. It's the thin edge of the wedge. As the cost we are prepared to pay for convenience peaks, there may well be a backlash, and heavily packaged goods will be an easy target.

Disney: Brand Magic

It's often easier to focus on what could be better, what needs mending, so today I want to celebrate success with a brand bluepint that has delivered in every aspect. When we think Disney, we think of a hugely trusted entertainment brand. Films; Mickey Mouse; Disneyland; Disney Channel. It's more. Did you know that it owns 10 TV channels? It is a media owner as well as an advertiser. The Company employs 5 different business models to maximise revenue, delivering what customers want and advertisers need.

It has a magical positioning. For parents, it is a safe haven. No sex or violence in a world where the window of childhood innocence is fast reducing. A Saturday morning lie-in while the kids watch a film; the Sunday cinema treat; cuddling up together to read a book. To young children it’s just fun. It's “me-time” for older children. No school, homework or household chores. While grandparents see a brand they grew up with, a shared connection with grandchildren experiencing it now just as they did when they were little. Whether logging on to Disney.com or walking into a Disney store, you enter a world of magic. Of make believe.

Business-to-business relationships are strong too. Selling Disney products means quality content; higher cash margins from the price premium; extended shelf life; frequent launches; cutting edge imagery...... Field sales offices are even located next to retailer headquarters around Europe such is their commitment.

The CEO, Bob Iger, has aligned all divisions and cast members, (as staff are called), behind a single strategy. Focus has switched to fewer, bigger franchises on more platforms and with a longer merchandising tail. All divisions are nurtured to identify fresh platforms e.g. cruise ships, and new franchises e.g. Pirates of the Caribbean which started as a park ride not in Disney Studios.

This is paying dividends. High School Musical started in 2005 as a Disney Channel Film. The soundtrack was released 10 days before the TV premiere. Publishing launched a novel, then as traction grew, a complete series. Consumer Products negotiated licences. 7.5m DVDs were sold. Parks held rallies. Theatricals created school and professional stage productions. The Ice Tour followed, then High School Musical 2. The crowning jewel, High School Musical 3 finally premiered at cinemas in Autumn 2008 to great applause.

What started as a $4m investment became a $500m+ franchise, even before the High School Musical 3 premiere. $125 for every $1 of initial investment. The financial rewards when brand and business operations work in harmony are high indeed.

When Premium Doesn't Mean Better

In a pre-Christmas blind tasting by Which, Netto mince pies scored better than Harrods, Waitrose and Sainsburys. At £1.19 for 6, you can buy 30 Netto pies for the price of 6 in Harrods. Enough for a party...and you needn't need worry what your guests might say. The test, among 150 people scored for appearance, taste and aroma; and showed that Netto isn't a nice anomaly. Aldi and Tesco pies got the same score. As did Mr Kipling and Co-op. Nor is this change in the natural order confined to mince pies. A £30 M&S made-to-measure shirt beat Savile Row's finest (RSP £165.90).

Shoppers assume that premium is functionally better, paying extra for emotional reasons, but justifying it on functional grounds. It is better quality, will last longer. If premium isn't functionally superior in ways that matter, shoppers will struggle to justify the extra cost on emotion alone. Do the "mince pie test" in your category. Do the premium products represent good value? How can you amend your strategy to attack/defend as necessary? Most people, it seems, don't want brandy and nuts in their mince pies.

Great Customer Service: If Not Now, When?

I fell in love with a dress in Monsoon and pair of shoes in Office. My dilemma...did the hues of cobalt blue match? The Office shop assistant accompanied me, shoes in hand, to Monsoon to find out. I have now told everyone how wonderful Office customer service is and how much they impressed me.

Contrast this with my bank, NatWest. Despite credit crunch and bail out headlines I've heard nothing. Just the usual statements. Oh, and a TV ad saying they could save me money if I cancelled my gym membership. We have just experienced the biggest stock market crash in living memory. Trust in financial brands is at an all time low. Why are they sticking with the old model?
What would it take for them to change the way they communicate with me? Why didn't they call me with personally tailored advice? They have my contact details; income; regular outgoings - information most companies would pay handsomely for. Meanwhile Martin Lewis, “the money saving expert”, is getting lots of media exposure, positioning himself in exactly this space. A space left by financial brands that didn't respond when and how customers needed them to.

As long as brands transmit messages which conflict with actual customer experiences, marketing budgets will deliver low returns. People will tell their stories to friends, family and 50 million people on the web....and people believe people more than they believe TV ads. Brands sticking with the old way of doing things, even now, as everything changes around them, risk being left behind. Customers will see that if great customer service isn't forthcoming under these conditions, then it never will be. They won't tell you, they will tell each other...and no brand promise can recover from that.

So tomorrow, or some time this week, take the journey that your customer takes. Take it anonymously and experience it as your customer experiences it. What did you find? I hope it is an experience that you would willingly share, one that you are proud of.