Apple store lavishes service on disgruntled iPhone user
The customer enters a teeming Apple store one week after the release of the new iPhone with a head of steam built up over a seven-day period of unalloyed product frustration. “I want my money back,” the customer says to the first associate by the door. “This phone is a complete failure on every level. And don’t even try to tell me I’m holding it wrong.” The associate in harm’s way, a maybe-at-most-23-year-old woman, changes her bright smile into a look of sorrowful concern. “That’s terrible you’ve been having trouble. I’m so sorry. Let me help you right here if you want to return it and get your money back,” she says. “One thing, though--you don’t have to, but would you mind telling me what’s been going on with it? I’d really like to know.” This initial rejoinder is a pitch-perfect response. She apologizes before doing or saying anything else. She is immediately acknowledging there is not going to be an argument or hoops for the customer to jump through to get satisfaction—in this case wanting his money back. She then does a quick verbal pirouette to express genuine interest in what the problems have been. After the customer finishes his description of dropped calls, email issues, lost data, and more, the associate again apologizes, sympathizing with the customer’s plight. “I know that must be really tough when you’re on a business call or sitting waiting for an important email,” she offers. “If you have a minute, there’s something I can do that might help quite a bit by just resetting the connection—you won’t lose any data—want me to give it ...
When execs come to visit the store: what’s real and what’s typical?
Parents’ Day at summer camp is usually a kid’s first lesson in the art of spin, optics, presentation, veneer and varnish. This is the day the food is better, cabins are swept, and everyone’s smiling. As soon as the last car leaves, the gussied-up, rustic Eden reverts to its usual repose as juvenile hellhole. It’s still shocking how many times we’re in the field on store visits with retail executives and hear how great this particular location is—only to see later the abyss that it truly is when we’re reviewing video that’s been captured with “mom and dad” not around. When a regional manager happens to be in the store, customers are magically lavished with help and praise and good cheer. There’s a bustle about the store, with purposeful professionals doing the Lord’s work of selling and stocking and just being busy and fussy. Products are laser-lined on every shelf. It’s all quite—what’s the word?—lovely. Until it isn’t. Which is usually the next day. We see lots of non-sales winning behaviors as soon as stores return to “normal.” The customer greetings are weaker, contact interactions on the floor are less effective, and products look sloppier. Rote recitation often takes hold, where associates go through the motions. It’s no wonder when we’ve asked retail executives how much time they believe their associates are in direct contact with customers, giving assistance, the answer is sometimes in excess of 40 percent—a belief the staff is spending almost half its time attending to the needs of the shopper. This is their experience, and may well be what’s occurring when they’re in the field observing. But when we show them the day-in and day-out reality—sometimes at 12% or less—it’s an eye-opening experience. Kind of like sneaking a peek at camp the day after Parents’ Day.
The Pleasant Shopper
A casually dressed but stylish woman enters the store with her pre-teen daughter and stops to say hello to the associate who’s stationed near the entrance. She’s extremely friendly, and has a large shopping bag of items from a neighboring store. She tries on many things during her hour-long visit. This woman is quite a shopper! She leaves her daughter in the store to run out to the car because she had forgotten her checkbook. During her visit, she approaches a salesperson at the cash wrap several times with questions about various items, and asks about returns. When we looked at the videotape, it was clear she had stolen five itemsduring this visit, totaling about $350. From the moment we saw her cross the lease line, she sold herself repeatedly and extremely convincingly to the store associates. Unlike most customers who are greeted at the entrance but keep walking to some real or imagined destination point within the store, she actually stopped to return the salutation and exchange pleasantries. She carried her shopping bag proudly – almost flaunting it to make sure it was in full view of everyone, as if to say you have nothing to worry about with me or my bag or my previous purchases or even my credentials as a spender. She sold herself by speaking with three different associates -– for her, there was no hiding or skulking around in the aisles like somecommon shoplifter. With more than a dozen cameras positioned throughout the shopping environment, we caught her every move. We watched as she waited to see where the associates were positioned, biding her time to make sure two of them were occupied with other customers. We watched her use the empty boxes in her shopping bag to conceal each item she stole. We watched her leave the store with ...
Mmm, mmm, Soup Shopping
Last week, The Wall Street Journal ran “The Emotional Quotient of Soup Shopping,” an interesting behind-the-scenes piece on Campbell’s redesigned soup labels. Campbell, in an effort to connect with customers (and boost sales), uses new neuromarketing techniques to measure physiological reactions to their marketing. A few years back, the company uncovered the idea that customers’ reported reactions to ads bore little relationship to actual soup sales. Campbell is hoping that biometric tools measuring factors like perspiration and heart rate, combined with deep interviews, will more accurately measure the effectiveness of the company’s package design and advertising. Based on this new research, Campbell will hold onto the iconic red and white label for its three biggest sellers, but other varieties will feature “larger, more vibrant pictures of soup.” We’re a little skeptical about the benefits of neuromarketing research alone, since it measures emotional intensity without content or context. However, Campbell’s is onto something here. By combining biometric data with carefully crafted deep in-store interviews and store observations, they have been able to zero in on how customers really perceive their cans. As Campbell and other companies are increasingly realizing, there is no substitute for in-store research and moment of truth observation, questioning, and analysis. After all, when asked why they eat more soup or not, people tend to “say they don't think of it,” according to Doug Conant, Campbell's chief executive. Other methods, like focus groups and surveys can also provide valuable information, but they often need to rely on the shoppers’ unreliable short-term memory or their projection of future behavior and intent. When companies rely too heavily on focus groups and survey data and neglect to closely observe how shoppers interact with their designs in the store, like Tropicana did with their short-lived redesign, they run the risk of damaging their brand and alienating ...
Want to do something fun? Sorry not today.
We’re a few snowy days from February 27, otherwise known as Open That Bottle Night. The night was invented by the two Wall Street Journal wine columnists -- in their words, “You know that bottle of wine you've been keeping around for that special occasion that never arrives or because the wine is always going to be better tomorrow? Open that bottle!” Curious, because you might think we wouldn’t need to be prodded into taking part in something as pleasurable as a bottle of wine. A recent New York Times article by John Tierney explored the surprisingly widespread human tendency to procrastinate pleasure. We wait to use gift cards, wait to redeem frequent flier miles, and endlessly put off visiting our own hometown tourist attractions. According to a study conducted by Suzanne B. Shu and Ayelet Gneezy, professors of marketing at the University of California, Los Angeles, and the University of California, San Diego, people who have moved to Chicago, Dallas and London visit fewer local landmarks during their first year than the typical tourist visits during a short stay. The only time Chicagoans run around visiting local attractions is just before they are about to move out of town. The same professors gave people gift certificates for movie tickets and French pastries. Some of the certificates expired in a few weeks, while others didn’t expire for two months. The people who got the longer term certificates were more confident they would redeem the gifts, but less likely to actually pull the trigger. It turns out we overestimate how much free time we’ll have in the future. And we become overly focused on imagining idealized scenarios, in which we paint pictures of achieving maximum value and pleasure from miles, gift cards, or bottles of red—without acting to turn these “magical thinking” thought processes ...
Agape in the Aisle
It all became clear in an interview a few years back with a man namedSherwood Schwartz, the television producer who created the dubious passel of 1970s-era comedy shows like Gilligan’s Island, Beverly Hillbillies, and the Brady Bunch, among others. The interviewer asked him to explain why every one of his shows always began with an expository theme song---a song that would explain in vivid detail the premise of the show (“So this is the tale of the castaways….” and “Come and listen to my story ‘bout a man named Jed….” and “Here’s the story of a lovely lady…”). Schwartz said he believed this was the essential week-in-and-week-out ingredient to the success of his television comedies because, as he put it, “the puzzled cannot laugh.” Cut to the aisle of your local supermarket. We use video systems to capture and code shopper styles and behaviors in retail stores. This lets us see thousands of repeated behaviors, many of them eye-opening to ourselves and our clients. But whether the study is about diapers, dog food or analgesics, we too often see a hidden segment of shoppers perhaps best described as “the puzzled.” These shoppers stand perfectly still. They stare at the shelf and—I’m not kidding—their mouths are usually open. When it seems like divine Providence will not explode off the shelf to help them find the brand answer they seem to be looking for, the following sequence usually takes place: they reach for a product, they heft it, they turn it over in their hands, they return it to the shelf, they reach for a competitive brand and go through the same “heft, read and regard” routine before putting it back. Then they walk away, shaking their heads ever so slightly (this is one of the reasons we also do intercepts—a way ...
Fiddling While Commuters Rush By
A young musician is in a Washington DC metro station. He wears jeans, a long sleeved T-shirt and a Washington Nationals baseball cap. It’s Friday morning. A violin is in his hand. The case is open at his feet. A few coins and dollar bills are inside as seed money to stimulate contribution. At 7:50 am, he begins playing. He continues for 43 minutes. During this time, he plays through six classical pieces, including the stunning Bach Partita in D minor. His music resonates through the entire metro arcade. About a thousand people pass by. Almost all ignore him. Twenty three of them glance momentarily and wait. Seven people stop to listen for more than a minute. He collects a total of $32.17. The violinist is Joshua Bell. He is one of the great musical virtuosos of our time. He sells out concert halls. He plays to capacity audiences all over the world . Now, here he is, in the Washington Metro, playing an 18th century Stradivarius violin, and just seven people stop to listen for more than a minute. (Interestingly, according to Washington Post reporter Gene Weingarten, who concocted this Pulitzer-prize winning experiment, every time children walked by the performance, they tried to stop and listen. And each time, a parent swooped them up and kept walking.) What does this experiment show us? It depends on your perspective. Are we too busy to appreciate beauty? Was Bell just a bad busker? One lesson to draw from the story is how much we can learn from well-designed, rigorous real-world experiments. When the reporter first proposed the experiment, he anticipated that the music would draw a throng, perhaps even create problems with crowd control. Instead, he learned that only a very few classical music fans (and children) would stop to enjoy the music. No focus ...
Hyatt’s Random Walk Down Service Street
Last month, Hyatt Hotels’ C.E.O., Mark Holamazian, announced that Hyatt Hotel employees will be performing “random acts of generosity” for some customers, such as comping a bar tab or waiving charges for a family breakfast. Bloggers have noted that conducting a publicity campaign around gestures hardly seems random, and runs the risk of angering those who don’t receive the largesse. Rob Walker’s Consumed column in this week’s New York Times Sunday Magazine points out that the Hyatt campaign is an effort to leave the customer grateful. Walker cites a coming paper in the Journal of Marketing which argues that a customer who is made to feel grateful is likely to become “enduringly loyal.” Humans enjoy reciprocating out of gratitude, and we feel guilty when we don’t, which is a phenomenon that businesses can exploit. But, as Walker writes, in order to inspire gratitude, favors must be performed “as a function of free will,” not merely in service of company rules. Loyalty programs sponsored by hotels and airlines do not automatically inspire gratitude; instead, frequent customers feel entitled to the free flights and hotel nights, andstrategize to gain the most generous rewards for the points they’ve earned. It’s not wrong for Hyatt to be ramping up customer service, especially now. Service has always driven loyalty, especially when customers are giving more thought to how they spend each dollar. One recent studyfound that nearly half of all customers feel service has declined since the recession started, and more than that said they’ve recently cut ties with a company due to a service lapse. It’s no coincidence that Nordstrom, with its legendary customer service, has recently trouncedcompetitors such as Macy’s and Saks in terms of sales and stock performance. But we question whether Hyatt’s scattershot, random approach is the best way to go. ...
Saturday Morning at the Hardware Store
I walk in and a clerk approaches to ask if I need help. I tell him I need a flashlight, just something basic. He walks me to the appropriate spot in the aisle, and begins describing the selection. “We’ve got your Eveready. $3.95. Not the greatest, but does the job,” he says, starting at his lowest price point. “Then there’s this Energizer. Better grip. $6.99. Or we’ve got a Sylvania. Good for the garage. It’s $12.99.” He takes a step to the right, moving toward something else, as if he’s signaling that we’re about to enter a special new universe. “Of course,” he tells me with a knowing look, “you could get this.” He begins hefting a powerful looking cylinder of silvery black metal and then starts thwacking it slightly menacingly on the palm of his other hand. “This,” he pronounces, “this is the one the cops carry.” Of course, he had me at the product demo, but the law enforcement piece put me all in. I buy two of them……at $49.99—each. There are a number of lessons here, not the least of which is the incalculable sales value of story in the store. This was a pitch-perfect bravura performance, and in case you’re thinking today’s workforce isn’t trainable in this skill, you need to know that this associate was not some old-timer hardware store guy—but a 20-something “kid.”
Starbuck’s goes “sophisticated and upscale”…..?
In the you’ve-got-to-be-putting-me-on file, MSNBC and Starbucks just announced the launch of a special marketing initiative between the two companies whereby the Seattle chain will become a name sponsor of the cable news programmer’s “Morning Joe” show, with Joe Scarborough. The deal allows for on-air Starbucks brand plugs, announcements, and visual references within the body of the weekday news-and-talk program. Future remote broadcasts may take place within Starbucks locations around the country. Starbucks CEO Howard Schultz, in commenting on the deal, said the “Morning Joe” show makes great sense for his company, calling the audience “sophisticated and upscale.” Let’s get this straight. With its business suffering in profound ways, with hundreds of stores closing, with its reputation as the place where the urban elite go for lattes, with millions of consumers forced to cut back on even small indulgences and others avoiding even the hint of conspicuous consumption as bad manners in a reeling economy, with the company doing everything it can to say its $4-per-cup image isn’t deserved, with all that……they’re now ballyhooing a deal to reach the posh and polished? I'm only slightly kidding to wonder if they'd be better off doing a deal with NASCAR.
