Wide Angle

On Monday, Fortune came out with a long, in-depth piece on the success of Trader Joe’s – the wildly popular small gourmet grocery store. The chain, owned by German grocery conglomerate Aldi, has experienced dynamite growth in the last 15 years, expanding from its base in Southern California to over 200 stores nationwide. Their sales numbers ($8 billion in 2009) are similar to those of semi-competitor Whole Foods, and their sales per square foot are an estimated $1,750, more than double those of Whole Foods.

Fortune spends a lot of ink (or pixels, I suppose) analyzing aspects of Trader Joe’s success. It’s a good article, but what has made TJ’s such a cultural phenomenon isn’t too difficult to discern. I’d separate it into a few key buckets: Read More »

What are the limits of the Nature vs Nurture debate?  Was I really a St. Louis Cardinals fan at birth?  (of course).  One friend of mine seems predisposed towards the Jersey Shore.  Is it in her nature?  (well, she is from New Jersey).

I’ve even heard echoes of the debate when members refer to their employers:

“It’s our nature to follow very specific processes”

“Our culture hasn’t changed in 85 years”

“Our leadership believes that our go-to-market strategy from 2002 is still relevant”

“Our brand personality mirrors one thing: our company’s history”

In other words, some members claim that Nature trumps Nurture.  That the innate qualities of a firm’s culture, leadership, brand personality and politics (Nature) eclipse the impact of externalities and experiences (Nurture). Read More »

Sometimes the cornucopia of plenty in American grocery and general merchandise stores can be, well, a bit monotonous. The bread aisle is a monochrome light brown (occasionally accented by, oddly enough, brown shelves), the dairy case a washed out sea of white plastic bathed in a pale fluorescent glow, the men’s undershirts an undifferentiated mass of white, brown and light gray. It’s no wonder, then, that consumers crave a little variety in packaging and presentation. It’s not just to make the scenery a little less boring; it also makes products dramatically easier to find. Read More »

WD-40, the famed degreasing and rust-preventing agent, is widely known for its versatility.  As the story goes, it was originally designed and marketed in the aerospace industry to aid in airplane maintenance. But through the years, thousands of new applications were found and problems solved.  Everything from lubricating door-hinges to de-squeaking bedsprings to freeing tongues stuck to frozen metal in wintertime.  The value of a can of WD-40 has undoubtedly increased in the mind of consumers as its perceived utility increased.

The reality is, most B2B companies are much more capable of doing something very similar.  One example that we’ve found is from Dow Chemical.  Like many B2B companies, Dow has a broad array of products and services and interacts with their customers in many different ways.  But, through surveys and conversations with their sales reps, they’ve found that there are often pockets of customers within every customers segment that tend to value a particular part of Dow’s offer far more than other customers in the same segment. Read More »

Here in Washington, the community is abuzz with news that Wikileaks, a non-profit organization dedicated to providing whistleblowers a safe place to publish sensitive information, has released a gargantuan store of documents related to the war in Afghanistan. The documents paint a picture that is decidedly at odds with more official portrayals of the war.

The same day, the Library of Congress’ Copyright Office determined that “jailbreaking” the iPhone – a process that allows users to access apps not available in Apple’s App Store – does not violate copyright laws. Apple contends that jailbreaking can harm the phone’s user experience, and leave it vulnerable to viruses; the company voids warranties of jailbroken phones. The Copyright Office, however, said in its ruling that jailbreaking is “innocuous at worst and beneficial at best.”

Regardless of your opinion on the war in Afghanistan, the ethics of leaking sensitive information to the public, or the use of products in ways that weren’t intended, these examples serve to illustrate one principle of the changing information economy: You are not in control. Read More »

Big brands are often the last to catch on to changing consumer behavior.  There are few industries where this is more visible than airline travel, where frazzled consumers have long begged the major players to deliver an experience that exceeds the “punishment for a crime you did not commit” bar.

Iconoculture recently reported on an unsettling trend in consumer travel—as airline innovation fails to keep pace with consumer demands, consumers are either rewarding smaller players like Suite Arrival (who delivers TSA-friendly personal items from popular brands directly to travelers’ hotel room) or inventing their own “DIY” approaches to make travel less frustrating. Read More »

Jeff Hayzlett, former CMO of Kodak, keynoted at MLC’s opening executive retreat last week. Arriving in his signature cowboy boots, Jeff shared his fittingly defiant approach to leadership in the “Wild West” of social media. He also shared insights from his new book, “The Mirror Test”.

Adversarial Leadership

Jeff opened by saying:“my job as CMO is to create tension,” and explained how he challenged the status quo and broke the rules to get action on social media at Kodak. He once asked Legal how many people he would have to annoy before he got fired. When they said a third of the company, he decided he still had plenty of leeway to push his plans through.  Similarly, when we asked how to deal with Legal’s approval processes for social media, he answered “You’re in marketing, be creative.” Read More »

Last year at Blogwell, Nick Ayers, Interactive Marketing Manager at Home Depot, shared his perspective on how the company is using social media to revitalize its customer service reputation.  Check out the video below for extra details.

Video: You Can Do It, We Can (Still) Help

Slidedeck: You Can Do It, We Can (Still) Help

The Opportunity:

Home Depot found that previously overlooked “passionates” that sat outside the brand’s historic target audience were engaging with the Home Depot brand online.  The company would try to capitalize on this organic interest to use social media as a way to differentiate itself from competitors with the goal of recapturing a group of consumers they lost during the customer service slip. Read More »

Best Buy’s Twitter-based customer service tool has created a lot of buzz over the last year. We asked John Bernier, Best Buy’s Social Media Steward, what makes it work behind the scenes. John is the Digital Product Line Manager and Social Media Steward at Best Buy. He develops digital products and tools for Best Buy employees and customers, while shepherding social media initiatives, such as Twelpforce.  He has worked at Best Buy since 2004, playing a variety of roles in marketing communications and marketing strategy. We spoke to him early last month. Read More »

This week marks the official release of the Customer Effort concept into the “wild” with the publication of our article, entitled “Stop Trying to Delight Your Customers,” in the July/August issue of Harvard Business Review. If you haven’t seen the article, feel free to download a complimentary copy. You will also find some cool podcasts and our Customer Effort Audit tool available to download.

As you’ll read in the article, our research shows that “delighting” the customer—in other words, going above and beyond—yields only marginal additional loyalty from the customer.

We also found that customers are four times more likely to leave a service interaction disloyal as compared to loyal, and the primary thing companies can do to mitigate this disloyalty in the service channel is to focus on reducing the effort customers must put forth to get their issues resolved.

Put succinctly, loyalty in the service environment is a matter of reducing effort, not delighting the customer. Read More »