Tuesday, November 17, 2009

REI and Customer Loyalty

In an never ending search to bring you interesting information about world class companies, I wanted to share the story of REI (Recreational Equipment Inc); a chain of sporing goods stores with over $1.4 billion in annual sales employing over 9500 employees. REI has been ranked in the top 100 Companies to work for in the United States by Fortune Magazine since 1998, which earned them a place in the Fortune Magazine's "Hall of Fame". REI ranked as #12 in 2009.[3]

Lloyd and Mary Anderson founded REI in Seattle, Washington in 1938. The Andersons imported an Academ Pickel ice axe from Austria for themselves, and decided to set up a cooperative to help outdoor enthusiasts acquire good quality climbing gear at reasonable prices. However, in the 1980s, with changes to its Board of Directors, the emphasis shifted toward family camping and branched out into kayaking, bicycling, and other outdoor sports. Clothing, particularly "sport casual" clothes, also became a greater part of the company's product line. Although the company is still a cooperative, providing special services to its members, the "co-op" moniker has been dropped from much of its literature and advertising as it solicits business from the general public, even if they are not members.


Now here is the twist and here is how they develop a VERY loyal following


There is a one-time fee of $20 for lifetime membership to the co-op. REI normally pays an annual dividend check to its members equal to 10% of what they spent at REI on regular-priced merchandise in the prior year. The refund, which expires on December 31 two years from the date of issue, can be used as credit for further purchases or taken as cash or check between July 1 and December 31 of the year that the dividend is valid. Summaries of the financial statements are mailed with the member's dividend statement and are posted on the REI website.

Members are able to buy returned/used/damaged goods at significant discounts. Other benefits of REI membership include discounts on rentals and shop services, as well as rock wall access at locations that feature indoor climbing walls.

How can you apply this kind of marketing strategy to you bowling center or entertainment center? A store that gives money back to its customers for future purchases. If you think this is a great concept and you would like to implement something like this for your entertainment center or bowling center go to "www.bowlingrewards.com" and see for yourself what the future of bowling/entertainment marketing looks like.

Thursday, November 12, 2009

Is E-mail Dead?

Clara Shih, author of "The Facebook Era," says social networks are slowly replacing email. I know you're saying, "Fred, I just figured this email thing out and now you're saying its dead?" No it's not dead, but it is being replaced by Facebook and Twitter for "social communications". Email will always leave a "paper trail" and will be perfectly acceptable for business, but from a social standpoint, that's another story.

Here's what Clara Shih's take is:

"Over 300 million people on Facebook, up 153% from last year
. But not only are they signing up they are logging in. In fact, people are spending over 8 billion minutes a day on Facebook. That's an incredible amount of time and whatever business we're in whatever role or function we may play we need to be where our audience is.

We need to communicate through the channels preferred by those audiences whether it's internal audiences with our employees or external audiences with our customers. Twitter and IPhone show similar spectacular growth. 58 million users on Twitter today and nearly the same amount on the IPhone and so the question is is email dead?

I spoke with a lot of younger people in college and high school in researching while I was writing the Facebook Era and I was astonished to learn that many university students say just don't use email. They'll use email occasionally to communicate with their parents, or professor, prospective employer, other so called adults but with each other they're using Facebook, Facebook wall posts, Facebook messages and they're using SMS and that has real profound implications for how we as business leaders communicate.

Young people between the ages of 18 and 25 still comprise the largest group - 29% - but you'll see that the group 26 and 34 isn't far behind and the fastest growing group is actually people between the ages of 35 and 49 and surprisingly the second fastest growing group are women over the age of 55".

In a time when we are being cautious about the economic recovery and slow to expand our budgets again, the one area that is growing for people is social media and that's where the big boys are spending their money. Check out Disney or MGM or any major Theme Park on Facebook and you will see what Clara is talking about.

Monday, November 9, 2009

Everybody is Nobody

How much time do you and your staff spend on trying to get everyone to come bowling? After the flier is made, what happens next? Do you speak to everyone who comes into the center? Do you go to businesses in the area and distribute fliers?

If you are trying to go after everybody, you are going after NOBODY and unfortunately that's who usually responds to your offer. With open play being soft this fall, you have to be more precise in your marketing effort and go after specific segments; groups of people who have a greater possibility to buy your product.

Here is an example. Suppose you are trying to build a weekday 9pm open play program. The prime candidates for that product would be the 18 to 34 audience with a core group of 21 to 25. To reach this group, we hope you have a data base of emails of former customers with birthdays. This should be your first line of attack. Second, put the offer up on your web site. Third, send a 4 color postcard to a mailing list of 18 to 34 yr olds; send it 2 or 3 times.

Fourth, listen to various radio stations or cable TV and see where the local bars are advertising; then buy radio or cable on those networks or radio station (call the local "bar who is advertising" and ask them if their advertising is pulling results. then contact the media people and get their input. make them prove who their audience is. Make them show you results from other advertisers and do NOT ever buy a schedule that gives you the whole day (ROS schedule). It is not a targeted campaign and you will be wasting dollars...big time.

You need to find the right person to spread the word, to carry your message, to love your program and willing to tell other people. If you don't discipline your business to target the right "someone", you might end up with no one...and that will be expensive.

Friday, November 6, 2009

Zappos for Bowling

THE ZAPPOS PHILOSOPHY

Finding the right people is difficult. Keeping them is even more challenging.
But, would you pay someone to leave your company?

This is exactly what Zappos.com does. Haven't heard of Zappos? They are an Internet retailer that sells shoes (even bowling shoes). They are known for their customer service. Internally they have a saying: "We are a service company that happens to sell shoes. And apparel. And handbags. And accessories. And eventually anything and everything."

Zappos offers $1,500 to anyone who wants to quit. The firm actually offers to buy their new employees out of their jobs. (Between 2-3% of the people accept the offer.)

You see, Zappos only wants people working there who want to be there. They have an incredibly successful company, and realize that it is not about selling "stuff," but creating an experience that people love. No matter how great their website is, or how great their products are, their people back up the entire customer experience.

According to Tony Hsieh, CEO of Zappos.com, "...in addition to trying to WOW our customers, we also try to WOW our employees, and the vendors and business partners..." And, they do.

Zappos has created a culture that has employees saying, "I love working here." How do they do it? First, everyone knows the "mantra." Second, Zappos trains well. Third, there are really cool perks that WOW the employees. No, not the usual corporate perks. They have pot-luck lunches, bowling parties, haunted houses at Halloween, holiday decorating, karaoke, picnics, go-carting and much more. The culture is fun. Most important, they have an environment where people can just be themselves.

All of this is a lesson on taking care of your internal customers so you can better serve your outside customers.


ZAPPOS' CORE PHILOSOPHY IS:
1. Deliver WOW through service.
2. Embrace and drive change.
3. Create fun and a little weirdness.
4. Be adventurous, creative, and open-minded.
5. Pursue growth and learning.
6. Build open and honest relationships with communication.
7. Build a positive team and family spirit.
8. Do more with less.
9. Be passionate and determined.
10.Be humble.

Tuesday, November 3, 2009

We Have Been Down This Road Before

We have been down this road before. Its early November and we are hoping the weather will turn and our open play business will pick up. So we send out a bevy of emails, direct mail, facebook and twitter communiques and maybe even use some traditional advertising and "hope for the best."

What if it doesn't pick up? What will you do now?

The answer is not simple but rather it involves the word "better". Better is relative. Are you better than your competition, better than you were yesterday or better than you expected?

The real better is to get "better customers, better prospects and find better people who believe in your product" and will buzz 25 other people about your product and how much fun they had at your center.

Customers who see the value of your product; customers who understand that it doesn't have to be cheap to be a good experience (In fact, it doesn't have to be cheap at all) are customers who are better. Simply because they are different. So stop treating all customers the same. Is there a gold level of service and appreciation for your most gold level customers?

Some of your league bowlers are better customers because they come to your center so often, and in their way, appreciate your facility and the fact that you are providing a quality recreation experience for them. The trick is to find those league bowlers that really love your product and cater to them; hug them if you have to! Just treat them differently.

League bowlers are hardly ever spoken to outside of a quick "how you doing?" When was the last time any of them spread the word for you? When was the last time they really invited some other person to bowl with them in another league or in their existing league? And if they did, did you know about it and thank them, reward them or show your appreciation for their effort? Do you know who they are?

There may also be some open play bowlers out there as well that are loyal and happy about your product. Find these people and find them now; treat them differently because they are better. Cater to them. Appreciate them. Love them

And stop worrying about the weather turning.

Saturday, October 31, 2009

Ducks Quack - Eagles Soar

My friend and client Willis Johnson of the Tivoli Movie Chain in Downers Grove Illinois preaches customer service. His chain of movie theatres and his bowling center are the epitome of great service. If you get to Chicagoland, be sure to catch a movie in one of his theatres or go bowling at the Tivoli Bowl, a great little center that has a unique selling proposition . It’s called “hometown feel”. It doesn’t pretend to be anything it isn’t. It reflects Willis’ personality. Straight to the point. No BS. What you see is what you get. So when he sent me this article, I just had to share it with you.

No one can make you serve customers well....that's because great service is a choice.
Harvey Mackay tells a wonderful story about a cab driver that proved this point.

He was waiting in line for a ride at the airport. When a cab pulled up, the first thing Harvey noticed was that the taxi was polished to a bright shine.. Smartly dressed in a white shirt, black tie, and freshly pressed black slacks, the cab driver jumped out and rounded the car to open the back passenger door for Harvey.

He handed my friend a laminated card and said: 'I'm Wally, your driver. While I'm loading your bags in the trunk I'd like you to read my mission statement.'

Taken aback, Harvey read the card.. It said: Wally's Mission Statement: To get my customers to their destination in the quickest, safest and cheapest way possible in a friendly environment....

This blew Harvey away. Especially when he noticed that the inside of the cab matched the outside. Spotlessly clean!

As he slid behind the wheel, Wally said, 'Would you like a cup of coffee? I have a thermos of regular and one of decaf.' My friend said jokingly, 'No, I'd prefer a soft drink.' Wally smiled and said, 'No problem. I have a cooler up front with regular and Diet Coke, water and orange juice..' Almost stuttering, Harvey said, 'I'll take a Diet Coke.'

Handing him his drink, Wally said, 'If you'd like something to read, I have The Wall Street Journal, Time, Sports Illustrated and USA Today..'

As they were pulling away, Wally handed my friend another laminated card, 'These are the stations I get and the music they play, if you'd like to listen to the radio.'

And as if that weren't enough, Wally told Harvey that he had the air conditioning on and asked if the temperature was comfortable for him. Then he advised Harvey of the best route to his destination for that time of day. He also let him know that he'd be happy to chat and tell him about some of the sights or, if Harvey preferred, to leave him with his own thoughts...

'Tell me, Wally, my amazed friend asked the driver, 'have you always served customers like this?'

Wally smiled into the rear view mirror. 'No, not always. In fact, it's only been in the last two years. My first five years driving, I spent most of my time complaining like all the rest of the cabbies do. Then I heard the personal growth guru, Wayne Dyer, on the radio one day.

He had just written a book called You'll See It When You Believe It. Dyer said that if you get up in the morning expecting to have a bad day, you'll rarely disappoint yourself.. He said, 'Stop complaining! Differentiate yourself from your competition. Don't be a duck. Be an eagle. Ducks quack and complain. Eagles soar above the crowd.'

'That hit me right between the eyes,' said Wally. 'Dyer was really talking about me. I was always quacking and complaining, so I decided to change my attitude and become an eagle. I looked around at the other cabs and their drivers.. The cabs were dirty, the drivers were unfriendly, and the customers were unhappy. So I decided to make some changes. I put in a few at a time. When my customers responded well, I did more.'

'I take it that has paid off for you,' Harvey said.

'It sure has,' Wally replied. 'My first year as an eagle, I doubled my income from the previous year. This year I'll probably quadruple it. You were lucky to get me today. I don't sit at cabstands anymore. My customers call me for appointments on my cell phone or leave a message on my answering machine. If I can't pick them up myself, I get a reliable cabbie friend to do it and I take a piece of the action.'

Wally was phenomenal. He was running a limo service out of a Yellow Cab. I've probably told that story to more than fifty cab drivers over the years, and only two took the idea and ran with it. Whenever I go to their cities, I give them a call. The rest of the drivers quacked like ducks and told me all the reasons they couldn't do any of what I was suggesting.

Wally the Cab Driver made a different choice. He decided to stop quacking like ducks and start soaring like eagles.
How about us? Smile and the whole world smiles with you.... The ball is in our hands!
A man reaps what he sows. Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up... let us do good to all people.
Ducks Quack, Eagles Soar.

Have a nice day, unless you already have other plans.

Tuesday, October 27, 2009

Words To The Wise

Lately I have been falling a bit behind on some books. My Kindle has about 20 books on it (can hold 2,000 I am told!) and I have been reading three or four simultaneously. It makes for interesting multi task actions, but also one where, unlike hard cover books or paper back books,it requires a more focused approach to reading and understanding.

So with that in mind, here are some of my recent and favorite reads that I hope you will like.

1. "How To Sell When Nobody's Buying" by Dave Lakhani
If you have ever had to sell to a group of decision makers or just make some outside sales for your company parties or fund raisers, then this book is for you. It will also give you some very specific ways to up sell, down sell your prospects. Its an easy read on "adapting to newer strategies like social media or video presentations

2. Word of Mouth Advertising - How Smart Companies Get People Talking by Andy Sernovitz, Guy Kawasaki and Seth Godin
T
he book is a quick read - 4hrs total, give or take, and it's packed full not only of WOM theory and a bit of history, but also with some concrete ideas from real WOM marketers and a checklist or two to boot. I love checklists!

3. Sway: The Irresistible Pull of Irrational Behavior by Ori and Ram Brafman
T
he Brafmans do an excellent job showcasing the irrational behavior all around us. Whether you're a doctor, venture capitalist, teacher, or even a college football coach, there are subtle psychological cues driving you to engage in irrational behaviors that can have a significant negative impact on your life. Reading the anecdotes, one might wonder 'how can anyone ever do that?' The book's close inspection of many different situations shows us that we all do it, and in fact, most of us are guilty of irrationality every single day. 'Sway' lifts the mystery behind these subtleties of irrational thinking and allows us to be more critical of ourselves so we can understand really what is driving the decisions we make day in and day out. It will provide an insight into some irrational customers you may face

Read On!