[Over the coming weeks I'll be sharing excerpts as we work towards completing the manuscript for 'What's Your Purple Goldfish?'. Today is Chapter 12, the first of the 12 different types of Purple Goldfish]

A dozen ways to go the ‘extra mile’

There are a dozen different types of purple goldfish.  Half are based on ‘value’ and half are based on ‘maintenance’ according to the value / maintenance matrix:

Here are main elements of both:

Value

• What are tangible and intangible benefits that your service or product provides?  (Note: Price factors into value, but only as it relates to the level of benefits and how effective the product or service is)
• What is the level of design, craftsmanship and service? How is the attention to detail?
• Is the product or service fulfilling its brand promise?
• Does the product or service go ‘above and beyond’ your expectations?

Maintenance

• What was the buying experience like?
• Do you enjoy working with the brand or service provider?
• Do they make things turnkey or simple?
• Are they responsive to problems / issues?
• Do they demonstrate initiative and the ability to go above and beyond for customer satisfaction?

Bottom line and marketing takeaway:

You need to figure out where you land on the value / maintenance matrix.  When I say figure it out . . . it’s not your opinion as a brand that counts.  It’s customer perception that counts. A study by Bain & Company revealed that 80% of the 300+ companies surveyed believed they delivered a “superior experience”, but when customers were asked about their own perceptions they rated only 8% of those companies as truly delivering a superior experience.  Not only is it important to see where you fall, but to see where you land relative to your competition. Strive to get into the ‘target zone’ of high value / low maintenance with your customers and profitability will follow.

The next six chapters in the book will cover the types of purple goldfish associated with ‘VALUE’:

#1. Throw-ins – little unexpected extras that are included with your product or service.

#2. In the Bag / Out of the Box – little unexpected things that are added as a surprise.

#3. Sampling – give your customer an ‘additional’ taste by offering a free unexpected ’something extra’ on the house.

#4. First & Last Impressions – you have two chances to make an impression.  When your customer comes through the door and right before they walk out, hang up or log off.

#5. Guarantees – giving your customers that ‘little extra’ pledge that you’ll stand behind your product or service.

#6. Pay it Forward – give a ‘little unexpected extra’ back to the community.

The lowest hanging fruit in marketing lagniappe is added value.  Let’s look at some examples that ‘throw-in’ little extras to add value:

Spotlight: Zane’s Cycles

The etymology of Lagniappe stems from the Quechan ‘yapay’ which means ‘to give more’.  Zane’s lives by this mantra, leveraging customer service as differentiator.  A 30+ year veteran of the retail bicycle industry, Chris Zane has built Zane’s Cycles of Branford, CT into one of the largest bicycle stores in the nation by giving customers more than they expect. More importantly they then stand behind the sale by giving more service than others seem reasonable (especially competitors).

A Bowlful of Quarters

Zane’s is willing to spend $100 to service a customer.  To illustrate the point Chris uses the metaphor of a bowlful of 400 quarters.  During presentations he walks around with a bowl and encourages members of the audience to take quarters.   Most take a few quarters, but no one ever takes the whole bowl.  According to Chris:

“The point is that when you as a customer are presented with more than what seems reasonable, like a bowl of 400 quarters, you will self-regulate….By providing more service than what folks consider reasonable we can build trust and loyalty and remind them how hard we’re working on their behalf.”

Here are a dozen compelling ways that Zane’s offers ‘little extras’ to maximize lifetime value:

1. Lifetime Service Guarantee - all parts and service are covered for life. Translation = buy your bike from Zane’s and tune-ups are free.
2. Flat Tire Insurance - pay a minimal one time fee at purchase and Zane’s will fix your flats (tubes and labor) for life.
3. Free Trade-In Program for Kids - buy a bike for your child at Zane’s.  When they outgrow it, simply bring it back to trade-up.  Zane’s gives you a credit for the price of the former bike towards a new one.
4. Gift Certificates in Water Bottles – Buy a gift certificate and Zane’s will throw in a complimentary branded water bottle that holds the certificate.
5. The One Dollar Rule – Zane’s doesn’t charge for any parts that cost them one dollar or less.  Need a master link for your chain, its on the house.  In fact they typically will throw in an extra master link for lagniappe.
6. 90 Day Price Guarantee – find your bike cheaper somewhere else, they will match the difference plus an additional 10%. No forms to fill out and no credit card processing, Zane’s hands over cash to keep it simple.
7. Giving Back – Zane’s gives back to the community whether its a helmut purchasing program for inner city kids, sponsoring local teams or creating a college scholarship program.
8. Coffee Bar – Zane’s has a nice espresso bar in the store encouraging customers to sit down, relax and enjoy a cup of gourmet coffee.
9. Set of Small Tools –  Zane’s provides a complimentary toolkit when shipping bikes to premium recipients.
10. Webcam – Zane’s has a camera in the repair shop which gives customers the ability to Skype the team.
11. Personal Notes – each person who buys a bike receives a handwritten ‘thank you’ note
12. Test Rides – Want to test a bike at Zane’s? You’re free to take it out for a ride.  No credit card or drivers license required.  Each year they lose a handful of bikes, but the small cost is insignificant compared to the trust gained and hassle avoided.

Here is another Baker’s Dozen of companies that stand out by ‘throwing-in’ little extras:

You are FREE to change your travel plans

#670 in the Purple Goldfish Project come from Southwest Airlines. Southwest stands for ‘freedom’ in air travel.  Following up on the successful ‘Bags Fly Free’ program, Southwest introduces the next chapter in eliminating fees:

‘No charge for change fees at Southwest. Saving customers upwards of $150′

At Southwest fees are a four letter word, a very bad four letter word.  Here is a rundown of how they treat fees:

• No 1st or 2nd Checked Bag Fees
• No Change Fees
• No Fuel Surcharges
• No Snack Fees
• No Aisle or Window Seat Fees
• No Curbside Checkin Fees
• No Phone Reservation Fees

Marketing Lagniappe Takeaway: Fees don’t fly at Southwest.  Sometimes marketing lagniappe is not about what you give, but rather what you decide not to charge for.

Channel your inner Robin Hood… give it a shot in Lana’i

#730 in the Project comes via the Four Seasons

A bow and arrow aren’t just tools for William Tell. At Four Seasons Resort Lana’i (@fslanai) in Hawaii, you are invited to try your hand at archery or clay shooting for a chance to win the prestigious crystal pineapple.

Here’s part of a review from Trip Advisor:

“My son and I enjoyed going to the shooting range and taking a lesson with the air rifle, followed by target practice and each of us winning of crystal pineapple for our accuracy during the shooting contest. The instructor, Reno, was very friendly and made the experience memorable for us.”

Marketing Lagniappe Takeaway: Fantastic experience with a signature limited little extra.  A very purple goldfish indeed.

A JellyBean and Huge Scoops

Wilsons slides into the Purple Goldfish Project at #333 courtesy of Jody Padar:

“At my favorite ice cream store in Door County Wisconsin. They put a jelly bean at the bottom of the ice cream cone. So it doesn’t drip. They also give the biggest scoop ever. It’s tradition. The girls who scoop the ice cream live upstairs. There is never a night in the summer where the line is short and everyone happily stands on the porch waiting. They were featured on the Travel Channel. And were sold for a few million dollars a few years ago. Not bad for a ice cream store.”

Caledonia doles out the chowder

Myrtle Beach may be mecca if you are a fan of playing golf.  Take your pick of roughly 125 courses with a 25 mile radius.

With so many choices… how do you stand out in the ’sea of sameness’ as a local golf course?

Enter Caledonia Golf & Fish Club in Pawleys Island, SC.  Built in 1995 Caledonia has earned a top billing.  Jeff Day submitted them as #575 in the Project.

In Jeff’s words,

Caledonia Golf & Fish Club offers a cup of chowder at the turn, which is cooked and served right in front of you on the tenth tee – it’s a unique experience.  In addition, on Thursdays the course hosts a collegial public fish fry on the grounds for players to relax, eat and mingle, sharing glowing reviews of their day.

Moe’s Southwest Grill in New York City likes to salsa

This purple goldfish was submitted to the Project by Jordan Stark.  Great catch:

“I thought of you the other day when I grabbed lunch a Moe’s Southwest Grill and was pleased to find that with any of the meals you order you are given free tortilla chips and then can pick from 4 or 5 different types of salsa. This may not sound like much but over Chipotle, the most comparable quick-food mexican restaurant, that would cost you $2.50. Who doesn’t love some free chips and salsa with their meal??”

Today’s Lagniappe (a little something extra) – At Moe’s their music literally falls on dead ears.  Listen closely to the tunes they play and you’ll notice one thing all of the artists have in common.  They’ve all gone to the big concert hall in the sky.

Changi Airport gives a little extra on the slide

#508 in the Project is taken from a post by Colin Shaw of Beyond Philosophy:

“Sometimes, the best ideas are the simplest ones.

Inside Singapore’s Changi Airport there is a four-story slide. What on earth is a slide doing in an airport? Simple – it’s putting a bit of fun back into the customer experience. Spend 30SGD within the airport, and in return you get two slide tokens. This is a great way of rewarding customers who would most likely be shopping within the airport anyway, and thus turning an automated and boring time spent waiting around, into a surprising, rewarding and entertaining experience.

Isn’t this a bit exclusive I hear you ask? What if you don’t want to pay for that over-priced cup of coffee? Well, there’s the smaller but free one-and-a-half story slide for the more frugal airport customers.”

A little something extra from ‘The Vegas’

#658 in the Project is taken from a restaurant review in the Las Vegas Review Journal:

“If you’re even slightly tuned-in, you’re no doubt aware that Michael Mina is widely regarded for his skills as a chef, most notably with fish and seafood.

But you may not know that he absolutely rocks french fries and onion rings.

No lie, french fries and onion rings, two of the standouts of our recent dinner at Stripsteak at Mandalay Bay. The skillful preparation of them proved why these two simple things — often deservedly scorned — have solid footholds in the culinary landscape [great video on NBC Today Show featuring Michael Mina and the prep of the fries].

The french fries were a lagniappe, served shortly after we ordered our wine. Fried in duck fat, they had an extreme crispness that sharpened the contrast to their fluffy interiors. They were served as a trio (a favorite Mina conceit) with one portion dusted with smoked paprika and served with barbecue sauce, one served with aioli, the other with homemade ketchup. Servers at Stripsteak point out that entrees are served a la carte, but with a lagniappe as generous as this, that point is easy to argue.”

Marketing Lagniappe Takeaway: Create your own signature element.  Here Michael Mina utilizes french fries prepared in duck fat.  He goes further to create 3 varieties with 3 custom sauces.  C’est magnifique!

Specially made socks keep the feet warm

On the heels of a cold Connecticut winter, we offer a little something extra to keep your feet warm.  #686 in the Purple Goldfish Project was submitted in an e-mail by Keith Green:

“Donna just got back from NailsPlus in Little Silver (it’s a chain
apparently) where they give customers a free pair of these socks with a purchase of a toenail painting. They are specially-made socks that go over flip flops, perfect for women getting their nails done in cold weather climates. There’s a Rex Ryan joke in here somewhere…”

A sweet handspun extra is on the menu

#701 in the Project was submitted via e-mail by Matt Sheehan of ‘The Good Men Project‘:

In Matt’s words:

“How are things with you? I see that the Purple Goldfish Project is moving along swimmingly (horrible joke, I know).

Anyways, I was out to dinner in the Back Bay last week and I had a head on collision with a piece of marketing lagniappe. Lolita, a hot new Mexican restaurant and tequila bar on Dartmouth and Boylston, gives free cotton candy with your bill at the end of the meal. They also give you a complimentary grapefruit- and tequila- flavored shaved ice palette cleanser when you first arrive at your table.

The original Lolita is in Greenwich, so maybe you can take the Misses for your next date night and see what it’s all about! “

Marketing Lagniappe Takeaway: Make your little extra memorable, fun and sweet.  Cotton candy hits on all 3.

Made from scratch and goodness

In the name of good eats, Jim ‘n Nicks rises to #700 in the Purple Goldfish Project from a tweet by @curbsidenick:

“@biteandbooze @fairelescourses – @jimnnicksbbq is serious #bbq. and the unlimited cheddar corn bread is amazing. love some good #lagniappe”

In case you’re hungry, here is the recipe courtesy of a post over at knoxnews.com:

Jim n’ Nicks cheese biscuits

• 1 1/2 cups flour
• 1 cup sugar
• 1 cup shredded cheddar cheese
• 3/4 cup milk ( 2% works best)
• 1 eggs, beaten well
• 4 tablespoons butter, softened
• 1 1/2 teaspoons baking powder
• 1/4 teaspoon vanilla

Mix all ingredients together. Pour into greased muffin pan and bake at 400 for 15 – 20 minutes. This recipe makes about 12 muffins.

Marketing Lagniappe Takeaway: Jim ‘n Nick’s take pride in the fact that everything is made from scratch.  What better way to drive that signature fact home than by giving away unlimited cheddar biscuits.  Mmmm mmm good.

Benefits for both customers and prospects

#674 in the Project comes from a new program by Allstate.

Here is the thumbnail of the program straight from the good hands folks:

Good Hands℠ Roadside Assistance is the first free-to-join, pay-per-use, roadside assistance service that is available to all drivers, not just Allstate customers. Allstate created Good Hands Roadside to offer protection to the 35 million American households that don’t have roadside assistance services. The company also wants to provide an alternative for the 52 million households with roadside assistance that pay annual fees. Studies show the average driver uses their service only once every three years.

“With the launch of Good Hands Roadside, Allstate continues to broaden the definition of protection with new products and services consumers want in the ways they want them,” said Chuck Paul, group vice president, Emerging Businesses, for Allstate. “This is just another option individuals can use to protect what matters most.”

Allstate suggests taking two minutes to pre-register before road “Mayhem” strikes at www.goodhandsroadside.com to improve response time.

3 Marketing Lagniappe Takeaways:

1. Build value into your lagniappe and keep it relevant.  Roadside Assist is a nice compliment to the positioning of Allstate and their ‘good hands’ promise of protection.

2. Make it easy to understand and join.  The value proposition is straightforward: No fees, a reliable service and pay a low price only when you use it.

3. Benefit your customers, but open it up to prospects if possible.  This is a great way to establish a relationship with future customers.  One of my favorite examples of this is the TD Bank ‘Penny Arcade’ which allows anyone to exchange their coins with no fees.

A free pizza and make it snappy

My friend Matt Sheehan recommends the Alligator Lounge in Brooklyn.  A place where the pizza is always on the house as #205 in the Purple Goldfish Project.

Here is a snippet from the NY Magazine’s Karen Hudes on the Lounge:

Inside what was once the Galleria pizza place, this bar’s turquoise walls, pink flamingoes and Romanesque details don’t quite gel, yet one crucial feature remains intact: the arched, wood-burning oven. Because of the owners’ sensational idea of serving free personal pizzas every night until 3:30 a.m., this unremarkable joint has turned into a loveable hangout that’s a great first or last barhop stop. Young and old Williamsburg folk congregate along the bar, in the maroon, open-angle vinyl booths, and around the green pool table. A booming jukebox and Big Buck Hunter Pro game in back provide entertainment. A selection of 10 draft beers complements the delicious crisp-crust pies, which are on the house with every drink; toppings like pepperoni, caramelized onions and flavorful sweet sausage are available for an extra $2.

Here is a review of the place from a customer:

“I don’t want the place to get so crowded that I can’t get in. This is a fantastic place, with Widmer Hefeweizen on tap, and of course… free pizza. I didn’t know about the pizza when I wandered in mid-week. When the bartender told me about it, I pictured pizza pockets… but it’s wonderful wood oven thin crust pizza. You pay 2 bucks for your first topping and 1 buck for after that. I had mine loaded, so it set me back a whole 5 bucks. The same pizza in Manhattan would have set me back 15 bucks. Would I be back? I’m thinking of getting an apartment above the place!”

A very nice school of flying purple goldfish

#579 in the Project flies in courtesy of JetBlue

Jet Blue builds value into their flight offerings.  They know the little things can make the biggest impact.  They understand it takes more than the proverbial half a can of soda.

Let’s look at each differentiator:

• Full can of soda and unlimited brand name snacks. What’s with the cup of ice with some soda in it by other airlines?  You wouldn’t put up with that treatment on the ground.  Good point.
• First bag free. Southwest has done an amazing job of promoting that ‘Bags Fly Free’, but JetBlue is singing from the same prayer sheet.  Saving customers either $25 or $50 per round trip is an added value.
• 36 channels that allow you to watch . . . when you want to watch them.  JetBlue gives you the two things that traditional air travel takes away: CHOICE and CONTROL.
• The most legroom in coach.  Being 6′2″ I can tell you this is key.  Nothing more annoying than the person in front of you reclining into your kneecaps.
• Direct flights. Avoiding layovers is key.  It saves time, hassle and annoyance.

One more flying Purple Goldfish for good measure

#773 in the Project was submitted via e-mail by Gene Willis:

“KLM gives Delft Blue Houses to customers who fly business class”

Here is a little additional background on the history of the houses courtesy of Theo Kiewiet:

The KLM houses are presents to travelers a board KLM flights in Business and Royal Class. They have been presented over a long period and thus have become collector items. There are currently over 90 different types which are each individually numbered in order of release.

There is Dutch Genever, 35% alcohol, in the houses, which are in fact bottles with a cork and seal on top. Sometimes the genever has been drunk but mostly the empty bottles were empty all along. On flights to some countries with strict alcohol restrictions empty houses are presented. On some of the houses a sticker explains this by referring to customs regulations. Sometimes there is a cork and seal and sometimes there isn’t (and never was) on the empty bottles.

KLM started issuing these miniature bottles in 1952. Airlines were not allowed to give presents to their customers because of unfair competition. So, KLM had some Blue Delft houses made, and filled them with genever (gin). Then, of course, their competitors complained “KLM ís giving presents to their customers”. KLM said “May we decide how we serve our drinks? Is their a law which tells me drinks have to be served in a glass?”… and so it all started. KLM was founded in 1919. In 1993 there were 60 different houses issued. In 1994, when KLM celebrated it’s 75 anniversary, they issued a total of 15 miniatures, bringing the total to 75 so that the number of houses would be the same as the age of KLM, in fact house #75 is the former KLM head office.

Marketing Lagniappe Takeaway: One of ingredients of a purple goldfish is the idea of limited.  Give something that is unique and signature.  KLM nails this with the Delft Blue Houses.  The Gin inside is just a little added lagniappe.

[Next Up is Chapter 13. 'Its In The Bag' - the second of 12 different types of purple goldfish]

Today’s Lagniappe (a little something extra for good measure) – JetBlue builds value into their flight offerings.  They know the little things can make the biggest impact.  They understand it takes more than the proverbial half a can of soda.

Here is a handful of humorous videos showing how they differentiate themselves from the competition:

[Originally featured on my guest post over at 12most.com]

A dozen ways to go the ‘extra mile’

Roger Staubach once said, “There are no traffic jams on the extra mile.”.

Are you doing the little things for your customers?

Giving Little Unexpected Extras (GLUE) shows you care.  Today we’ll focus on the ‘12 Most’ impactful ways you can provide ‘little extras’.

There are a dozen different types of marketing lagniappe.  Half are based on ‘value’ and half are based on ‘maintenance’ according to the value / maintenance matrix:

Here are main elements of both:

Value (the what and when of customer experience)

• What are tangible and intangible benefits that your service or product provides?
• Does your product or service go ‘above and beyond’ to exceed customer expectations?
• Are you giving that little unexpected extra to ’surprise and delight’ your customer?

Maintenance (the who and how of customer experience)

• What is the buying experience like for your customer?
• Do you make things turnkey or simple for your customer?
• Are you responsive to problems / issues for your customer?

Categories:

#1. Throw-ins (value) – little extras that are included with your product or service.  They help you stand out in a ’sea of sameness’:

Southwest Airlines – ‘Bags Fly Free’ and no change fees on Southwest.

#2. In the Bag / Out of the Box (value) – little unexpected things that are added as a surprise.

Maggiano’s - order a pasta dish and Maggiano’s will pack an additional one up for you to take home on the house.

#3. Sampling (value) – give your customer an ‘additional’ taste by offering a free ’something extra’ on the house.

Bigelow Tea – order a box of tea from Bigelow and you’ll be treated to a sample of another flavor on the house.

#4. First & Last Impressions (value) – you have two chances to make an impression.  When your customer comes through the door and right before they walk out, hang up or log off. These little extras make you memorable and more importantly ‘talkable’.

Hard Rock – When you check in the Hard Rock will let you sample a Gibson guitar.  Check in, plug-in and rock out.

#5. Guarantees (value)  - giving your customers that ‘little extra’ pledge that you’ll stand behind your product or service.

LL Bean – Leon Leonwood backs his product . . . for a lifetime.

#6. Pay it Forward (value) – give a ‘little extra’ back to the community.

Plaza Cleaners – if you are out of work and need a suit cleaned for an interview, Plaza will clean it for free.

#7. Follow-up call (maintenance) – make the ‘little extra’ follow up with your customer.

Rite Aid follows up with a call to check on a patient.

#8. Added Service (maintenance) – the ‘little extra’ that’s an added unexpected service.

Safelite repair or replaces your glass, but they also vacuum your car and clean your windows.

#9. Convenience (maintenance) – what ‘little extra’ can you add to make things easier for your customers.

Amazon – Frustration free packaging that’s hassle free and good for the environment.

#10. Waiting (maintenance) – all customers hate to wait.  If its inevitable, how can you do a ‘little extra’ to make it more bearable.

Pacific Cafe - while you wait for your table, enjoy a glass of wine on the house.

#11. Special Needs (maintenance) – acknowledging that some customers have needs that require special attention.

Rainforest Cafe – the restaurant caters to the needs of customer by doing a ‘little extra’ for those with food allergies.

#12. Handling Mistakes (maintenance) – admitting that your wrong and doing the ‘little extra’ above & beyond to make it more than right.

Nurse Next Door - this nursing agency in Canada takes the idea of ‘humble pie’ literally by delivering a pie when they make a mistake.

Today’s Lagniappe (a little something extra thrown in for good measure) – Here is the inspiring father and son story of Rick and Dick Hoyt.  They epitomize the ‘Extra Mile’:

Episode #12 – The VM Matrix and an Interview with Joe Sorge of AJ Bombers

I’m joined by wingman Jack Campisi (a.k.a ‘Social Jack’ or ‘Maverick’) on the video podcast.

Here is a rundown of the video podcast:

- We discuss the concept of the VM Matrix.

- We look at how both ‘value’ and ‘maintenance’ play into measuring customer experience.

- A comparison of Netflix and Blockbuster on the VM Matrix.

- An interview with Joe Sorge of AJ Bombers (@ajbombers).  We discuss a few of his purple goldfish including the P-Nut Bomber, the Beach Chairs, the Quad Cow and Twitter handles.

Click here to subscribe to the Podcast in iTunes

HELP me catch another 604 purple goldfish for a great cause.

FISHERMEN WANTED: Click here to send me your example

Forget the yada, yada, yada . . . The lowest hanging fruit is giving ‘added value’

I recently wrote about the two concepts I believe are critical when building a customer experience.  They are the concepts of value and maintenance which comprise the VM Matrix:

Here are main elements of both:

Value (the what and when of cx)

• What are tangible and intangible benefits that your service or product provides?
• Does your product or service go ‘above and beyond’ to exceed customer expectations?
• Are you giving that little unexpected extra to ’surprise and delight’ your customer?

Maintenance (the who and how cx)

• What is the buying experience like for your customer?
• Do you make things turnkey or simple for your customer?
• Are you responsive to problems / issues for your customer?

Which element do you tackle first to make the biggest difference?

It is my opinion that it is far easier to control the value portion of the equation.  The maintenance portion requires extensive employee training, buy-in and implementation. You have far less variables when you are talking about delivering tangible added value to the customer experience.

‘Actions Speak Louder than Words’

The practice of exceeding expectations via g.l.u.e (’giving little unexpected extras’) is based on the concept of marketing lagniappe.  Lagniappe is a creole word that means ‘the gift’.  It’s the practice of the merchant to give a little something extra at the time of purchase.

The power of marketing lagniappe is rooted in the idea of being unexpected.  It’s based on the concept of ’surprise and delight’.  By giving the little unexpected extra you can create a WOW moment.  You disrupt the cognitive schemas of your customer by doing something out of the ordinary.  Not only is it effective in promoting loyalty, but it gets people talking, tweeting and posting about the positive customer experience.

Do you agree?  Is the what and when (giving a little extra at the time of purchase) easier to address and more impactful than the who and the how (employees increasing their level of service)?

Next post: We’ll explore the 5 main ingredients or r.u.l.e.s when creating added value.

Where is the lagniappe in your marketing? What’s Your Purple Goldfish?Download the FREE eBook here

Shareholders vs. Customers.  Who comes first?

I just watched the documentary ‘The Corporation’ (2005). Interesting film on the history and evolution of the modern day corporation.

Here is a 6 minute segment from the film on YouTube called ‘Monstrous Obligations’:

I kept thinking as I watched the film about a debate my friend Jarvis Cromwell of Reputation Garage introduced me to. Jarvis is a leading authority of the concept of trust and the role it plays as a strategic business driver.   The central question is, “Why are corporations in business?”  Jarvis outlines the two sides of the argument:

1. Milton Friedman – the sole purpose of a corporation is to drive shareholder value.

“There is one and only one social responsibility of business,” Friedman wrote back in 1970, and that is to “engage in activities designed to increase profits.”

2. Theodore ‘Ted’ Levitt – companies are solely in the business of getting and keeping customers.

“Not so long ago companies assumed the purpose of a business is to make money. But that has proved as vacuous as saying the purpose of life is to eat” Levitt further adds, “The purpose of a business is to create and keep a customer.”

So – what comes first?  The customer or the bottom line?

The view of the documentary is that the last 100 years have seen corporation solely focused on the bottom line.  The approach has been ‘win at all cost’ with little or no regard on external effects, collateral damage or customer experience. The problem is that only pursuing the bottom line can neglect the customer.  This was outlined in an article from HBS by James Allen, Frederick Reicheld and Barney Hamilton:

“Call it the dominance trap: The larger a company’s market share, the greater the risk it will take its customers for granted. As the money flows in, management begins confusing customer profitability with customer loyalty, never realizing that the most lucrative buyers may also be the angriest and most alienated. Worse, traditional market research may lead the firm to view customers as statistics. Managers can become so focused on the data that they stop hearing the real voices of their customers.”

My two cents

My take is that the customer must come first.  Customer experience should be priority #1.  Stop focusing on ‘the two in the bush’ (prospects) and take care of ‘the one in your hand’ (your customer). You need to focus on two things: value and maintenance.  Enter the vm matrix.

Here is my breakdown of both:

Value

• What are tangible and intangible benefits that your service or product provides?  (Note: Price factors into value, but only as it relates to the level of benefits and how effective the product or service is.)
• What is the level of design, craftsmanship and service?
• Is the product or service fulfilling its brand promise?
• Does the product or service go ‘above and beyond’ your expectations?

Maintenance

• What was the buying experience like?
• Do you enjoy working with the brand or service provider?
• Do they make things turnkey or simple?
• Are they responsive to problems / issues?
• Do they demonstrate initiative and the ability to go above and beyond for customer satisfaction?

Bottom line and marketing takeaway:

You need to figure out where you land on the value / maintenance matrix.  When I say figure it out . . . it’s not your opinion as a brand that counts.  It’s customer perception that counts [A study by Bain & Company revealed that 80% of the 300+ companies surveyed believed they delivered a "superior experience", but when customers were asked about their own perceptions they rated only 8% of those companies as truly delivering a superior experience] .  Not only is it important to see where you fall, but to see where you land relative to your competition (see Today’s Lagniappe below).  Strive to get into the ‘target zone’ with your customers and profitability will follow.

Today’s Lagniappe (a little something extra) – I’m a big fan of Forrester’s Bruce Temkin.  Bruce’s blog ‘Customer Experience Matters’ is a must read.  Bruce and his team have a yearly study called the CxPi.  Forrester asks more than 4,600 US consumers about their interactions with a variety of companies, gauging the usefulness, ease of use, and enjoyability of those experiences. Based on these consumer responses, they calculate the Customer Experience Index (CxPi) for 133 firms in 14 different industries. Here is a link Bruce’s post on the 2010 CxPi index.

Bruce mentioned in his latest post that his research reports have been downloaded the most of any Forrester analyst.  This marks the 13th straight quarter this has occurred.  Maybe the title of Bruce’s blog is starting to become a mantra.  I sure hope so.

Back in college I used to have a theory when determining if a co-ed was girlfriend material.  There were two basic criteria that created a basic x/y matrix:  value and maintenance.

The ideal scenario was someone who was high value and low maintenance.  On the matrix that was the second quadrant.  The worse case scenario was the dreaded quadrant 4 . . . low value and high maintenance [Everyone can relate to this . . . if you can't, you are low value and high maintenance].

The more I think about marketing lagniappe, the more I keep coming back to the value / maintenance matrix.

Here is my breakdown of both:

Value – What are tangible and intangible benefits that your service or product provides?  (Note: Price factors into value, but only as it relates to the level of benefits and how effective the product or service is.)  What is the level of design, craftsmanship and service?  Is the product or service fulfilling its brand promise?  Does the product or service go ‘above and beyond’ your expectations?

Maintenance – What was the buying experience like?  Do you enjoy working with the brand or service provider?  Do they make things turnkey or simple?  Are they responsive to problems / issues?  Do they demonstrate initiative and the ability to go above and beyond for customer satisfaction?

Bottom line and marketing takeaway:

You need to figure out where you land on the value / maintenance matrix.  When I say figure it out . . . it’s not your opinion that counts.  It’s customer perception that counts.  Not only is it important to see where you fall, but to see where you land relative to your competition.

Lagniappe defined: A marketing lagniappe, i.e. purple goldfish,  is any time a business goes above and beyond to provide a ‘little something extra’. It’s that unexpected surprise that’s thrown in for good measure.

How do you stand out in the sea of sameness? How do you win repeat customers and influence word of mouth?  Are you Giving Little Unexpected Extras?

What’s Your GLUE?

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