The Customer May Not Always Be Right, But You Had Better Listen Just The Same.

The other day I was sitting in my dentist waiting room, which surprising enough is one of my favorite places.  Yes, I do like being there.  Conversely I really don’t like being down the hall in one of the torture chambers equipped with a dental chair.

But I digress.  To get to my point the waiting room is full of great magazines that I personally don’t subscribe to, but love to read.  These magazines are full of wonderful photos and articles depicting the “good life”.

Even the ads are attractive in these types of publications.  And that was what had caught my attention.  On opposite pages were two ads for two very large companies.  Both at one time in recent history were dominant players in their industries.  The irony is that currently both these onetime best in class companies are now in deep trouble. How does that happen?  One day you are at the top of your industry and seemingly the next the vultures are circling?

A closer look at both ads revealed a fundamental flaw which may be the reason for both behemoths financial woes.  Though as I stated earlier both ads were visually appealing when I read the copy of the features offered by each company (which is the purpose of the ad) I was left uninspired, unmoved and certainly not called to action.

The result is that I, the reader, had no interest in what was being sold in the ad yet I am a consumer in both verticals.  Both companies were spending big bucks to advertise yet the offer left me cold and I must not be alone in this as both companies have slumping sales.

These two ads showed how disconnected from their customers these once industry leaders have become.  Sadly this is just a single example of what is happening to thousand of companies that are not listening to their respective customers.

Eric Ries, in his breakthrough book “The Lean Start-up” describes how hard his team worked at creating leading edge features for IMVU.  Features that were very difficult and expensive to program yet he found later that his customers could care less about his cool features.  What IMVU thought was game changing technology was not why customers used the software.  IMVU wasted time and money building stuff that did not drive sales.  This waste of effort and capital could have been avoided states Ries if they would have been asking the right questions of their customers and used their existing customer base to test and validate new features.

Eric Ries learned to give customers what they want.  A lesson both the big companies in the ads had not learned.  Today we are in the era of “Customer Experience”.  This represents a major paradigm shift.  In fact, Customer Experience (CX) turns the product development chart upside down.  It is now CX and UX (User Experience) that is driving adoption rates and even design aspects.

We are rapidly changing from an Information Age to a time of Customer Experience.  We are living in an age where we are surrounded with fantastic new products and services. There is no lack of newness.  So much so that as a society we are somewhat spoiled (but we will leave that topic to another blog) and therefore focus on attributes such as: ease of use, customer service and entertainment value as much as we do the actual product or service.  Having had an extraordinary CX with Zappos or Fab.com means, from that point on all other ecommerce sites will be judge at that high level.

The point to all this is that it makes no difference whether you are launching a start-up or have a mature business; that in order to be successful or to stay successful companies must continually not only monitor CX but get customers involved in designing the customer experience.  Customers are to a very large degree driving the train.  In today’s world gaining deep, rich customer data is essential.  Looking at your customers as not only consumers but a fundamental part of your sales process is imperative.

So, how do you talk to customers?  Let me count the ways.

1. Talk to them directly.  Get in front of your customers.  I prefer one-on-one discussions but certainly focus groups work.  You get the conversation started and then stop talking.  Your job is to listen.

These long interviews can be your most effect tool to making sure you are staying connected with an engaged customer base.

2. Blogs are a great way to engage a specific type of customer.  Customers that post to your blog are of two different types. 

The first is an evangelist.  This customer loves you, your product or service, your brand.  They get you.  This is a great group to solicit ideas for new products/service or changes you are considering.  They feel they are part of “the family” and should be treated as such.  They are a great resource and a great place to try trial balloons for new ideas to see how they resonate with your best customers.

The second group is on the opposite side of the customer experience spectrum.  These are the folks that do not like you.  They have had a negative experience with your brand.  These folks are very valuable to you.  Use their input wisely. 

First find out why they are making negative posts and then use them to craft solutions to those problems that work.  This hopefully will keep you from continuing to make the same mistakes which will save you money and customers.  And it just may revive and reconnect individuals that once liked you enough to become your customer again.  Many times this can be an inexpensive tool for customer retention.

3. Use automated survey tools, such as; Survey Monkey, to gather large amounts of customer input.  In general, surveys will not give you the same kind of deep, granular information that a long interview can provide.  But, you get a lot of data from across your entire customer base.  The real benefit comes from analyzing your large survey data against your smaller but intimate long interview data.  Look for points of intersection.  That’s where you will find the secret sauce.

As a founder or stakeholder in the company it is certainly your company.  But if you want to continue having a company you must stay connected to your customers.  Make listening to customers a high priority at your company.  Learn what they are looking for, and then find a way to give it to them.  Make them happy and they in turn will make you happy.

A Little Help From Your Friends

I recently had one of my best rounds of golf. I know that this is a small business blog and not a sports blog…or even Michael’s brag blog, but I have a point to this if you will stay with me.


Going back to this outstanding round of golf once again brings me to a few conclusions. The first is that I did not drive the ball off the tee and better than usual, my approach shots were not improved either. So why did I shoot a lower than usual this round of golf?


That is the second conclusion, simply because I putted, or “scored” better. In golf the strokes keep adding up, or another way of saying it is your results worsen the more strokes you take (mistakes made), the longer you play the hole. The score ends (goal achieved) when the ball goes in the hole.


Why did I put better then is the question? What influenced a change in my putting results?


The answer is that many times during that super round of golf I had the great fortune of having my ball close to a playing partner’s ball on the green. And, many times I got to watch that partner attempt a similar putt to mine. By observing someone else’s putt I got a great “read” on what the ball would do before I had to putt my own. Seeing the path to a successful putt did wonders to my performance. Someone else pioneered the road to success and I just followed or improved on it. I made less bad reads or mistakes and the resulting score was much better than what I would have done on my own.


That dear reader brings me to the lesson learned. To minimize your mistakes in business it is critical to model after successful entrepreneurs. It is even more crucial to have mentors and close associates that can share their experiences with you. Every pitfall you can sidestep because of an early, accurate read from someone who has been there before is a windfall.


If you truly want to play better golf, sorry….run a better business, enjoy more success…then find mentors and peers you can trust to give you that “read”. You will be vastly more successful. You will also experience a new camaraderie that can also be a game changer. But more of that in a future blog.


Score well my friends!

How I Spent My Summer Vacation.

I just finished a 2,200 mile, 7 state road trip and have a few observations I would like to share with you. Though I was supposed to be on vacation, my business instincts and observations never turn off. I am pretty sure to most business people, especially small business people this is a universal trait.

During this vacation we stayed in a wide range of properties. The highest rated 5 stars (Sundance) and the lowest was unrated. I found conclusively that customer service, quality of service and my overall satisfaction had nothing to do with stars, diamonds or any rating service. It also did not have anything to do with what we paid which was true for lodging and food..


My greatest disappointment was with the “world class resort”, Sundance resort, which was not. And my greatest surprise came from a small lodge in the mountains of Utah called Red Canyon Lodge.


The single factor that clearly ruled my thought process was how we were treated by the staff. Yes, Sundance Resort is a stunning property but there we felt like we were a necessary annoyance to a very large staff. At Red Canyon Lodge we were treated like very welcome guests by a much smaller staff. Attitude from Sundance...sincerity from Red Canyon. No contest.


It does not matter so much how many millions you spent building your business when it can all be changed by poor attitude from the staff.


Don’t let that happen to your business. We all need to make sure everyone on our team are properly trained, know what’s expected of them, and most importantly wants to be there.


So how did you spend your summer vacation?  Please share your story.

The Happiest Place on Earth

I recently spent the day at Disneyland, Anaheim, California, where it all started. We had a terrific day in the Park. The weather was great. The attractions were great. The food was great (I do have to admit here that we ate at Club 33 which was the reason we were at Walt’s world to begin with) and in general it was a perfect day. So I would also be inclined to agree that it was the “Happiest Place on Earth”. But why is that nearly universally held to be true?

I have studied the Disney affect for many years. As a retailer, Disney is a shinning example of how to retail right. I have studied their, visual display, merchandising, marketing and guest services all in the design to improve my own company. But why do the guests feel that they are truly in a magical kingdom?

I believe it is that Disney exceeds expectations. What ever it is, they go one better. The stunning gardens and vegetation is a very good example. The flowers and plants are always at peek. Why, because they are changed out at night so the next day’s guests are presented with the optimum floral effect.

Why is the staff so helpful and downright cheerful? They are called cast members for a very good reason. When they are in front of a guest they are playing a role. That role is carefully scripted and rehearsed to illicit the desired response from the audience/guests.

So how can this apply to your business? First, look at everything you put in front of your clients with a new vision. From your business card to your store/restaurant/vehicle/etc. does each component: A Carry your message, and B. Exceed expectations?

Secondly, can every person in your organization (including you) articulate your company culture, what your company stands for, what makes you special? And even more importantly do you and everyone on your team practice and rehearse to ensure a flawless performance each and every time you are in front of a client?

If you can do and continue to do these two things you will find that not only may your sales grow, but you will be much happier with your business, your staff and probably yourself. Indeed, you will be at the “Happiest Place on Earth.”

Comments?  Do you agree or disgree?

What Would You Do?

You are making a pitch to a new customer. You know that two of your most direct competitors have already been in a head of you. You know that your product is very close to the others and the buyer may not even discern a difference between the three. There is very little margin to play with.

The buyer has multiple locations in multiple states and has a single distribution center. The buyer has been in business a very long time and prides their selves as being the quality player in their arena.


Based on this scenario which of the following tactics will you use to secure the sale?

A. Under cut whatever price is on the table.


B. Offer to match the price on the table and freeze the price for 2 years.


C. Low ball the price but only if bundled with another product with margin.


D. Offer co-op marketing dollars.


E. Offer to drop ship at each location.


F. Pass.


G. Something else. Which is....


Please comment on these sales tactics or post your own solution to this sales quiz.

What Is A Good Deal?

What is a good deal? I guess that depends on a lot of things. When Secretary of State William H. Seward purchased Alaska from the Russians for $7.2 million he was branded a fool. Who would say today that he was wrong? Obviously, no one. It is much easier today to see the value proposition that it was in 1867.


Or, what about the stories of lawn sale or estate sale items that went for a few bucks and turned out to be rare and quite expensive pieces of art. I guess you would say that “Art is in the eye of the beholder.” No truer words have ever been spoken. Both buyer and seller looked at the same object and saw two totally different items worth very differing amounts to each. Each held a different value to be true.


And, to take this analogy even further afield....what about the value of a relationship? Yes I know there are many types of relationships. So let’s just focus on customer relationships. Do you have some customers that you do more business with than others? Most often that is the case. And it would most often also be true to say the customers that you do more business with you probably have a better relationship with as well. It sort of goes hand in hand. Give me more business and I in turn will give you more of my attention is generally the way it works.


So as you can see, there is also a value proposition to relationships. Good customers mean good relations. Pretty straightforward. But this is only part of the equation.


I would suggest that you strongly consider rethinking the axiom. I would suggest that if you really want to grow your business that you change the sequence. Reverse it. Good relationships mean good customers. Everyone would rather do business with someone they know verses a stranger, and the better you know someone and they know you, the more they can trust you, ergo: more business.


What I am saying is build the relationship first, the business will soon follow. You show you are worthy, your value proposition, and others will invest their trust in you. Give it a try; you might just be surprised at how many new friends and customers you will have gained. Now that is a good deal.

Do you agree or disagree with me?  Please comment.

Hey Jude...

Yes, I do mean the “Hey Jude” of Beatle fame. I went to a Beatle tribute concert tonight performed by a band named, The Fab Four. I liked the Beatles in 1964 and I still do. A quick look around the venue and it is obvious that I am not alone in my appreciation of John, Paul, George and Ringo.

The auditorium was crowded with a wide spectrum of age groups. This was definitely an 8 to 80 fan base. Personally I was very happy to see that I was not the oldest in the audience. Everyone was having a good time rocking out to tunes that were more than 40 years old. That included my good friends Ed and Helen who were my hosts for the evening. This was the eighth time they had attended a concert by this band. They told me they thought The Fab Four was the best Beatle tribute band out there.


I’m thinking they “really like this band” to pay to see them eight times. I have never seen the same movie eight times, let alone the same band eight times. OK, so maybe I did see Caddy Shack eight times, but that is different, isn’t it?


But, I was wrong, or sort of wrong. You see Ed and Helen do love going to The Fab Four concerts but they also have gone to Rain and other Beatle cover groups. What they really love is the music of the Beatles. And so did about a 1,000 others in the auditorium tonight. What I witnessed tonight were people reacting to the messages in the songs. Love songs, fun songs, touching songs about life.


Because many in the audience were not alive during the Beatle years it could not be a generational thing. It was the fact that the lyrics touched everyone there, no matter what their age. Everyone there could relate to the songs. Songs with emotion. Songs about people.


About now you are probably saying to yourself, “I thought this was a business blog? What gives?”

I will get to my point. I think it is vital to understand this lesson from the Beatles when it comes to communicating. Whether the message is crafted for your customers or potential customers I think that it must include emotional content. A sales message that is strictly about price or product specifics is missing the mark. No matter how high tech the product offering and no matter how attractive the price if you are not connecting with your customers on some emotional level you are falling short. You must remember that in the end it is about a human being making a decision to buy your product, try your restaurant or contact you for more information. Find a way to connect with people and you will find that price, product specs and everything else is secondary.


The Beatles said; “All you need is love.” Remember that the next time you create a message to you customers. Find a way to touch them and to show the human side of your company.


Do you have any examples of how you communicate with emotion?  Please share your examples by posting here.