#1 (of 11): First Things BEFORE First Things: Conrad Hilton’s Commandment CONRAD HILTON, at a gala celebrating his career, was called to the podium and “What were.
Download ReportTranscript #1 (of 11): First Things BEFORE First Things: Conrad Hilton’s Commandment CONRAD HILTON, at a gala celebrating his career, was called to the podium and “What were.
#1 (of 11):
First Things BEFORE First Things: Conrad Hilton’s Commandment
CONRAD HILTON , at a gala celebrating his career, was called to the podium and asked,
“What were the most important lessons you learned in your long and distinguished career?”
His answer …
“
Remember to tuck the shower curtain inside the bathtub.”
You get ’em ’em in appointments. the door with “location, location, location”—and gorgeous You keep coming back * with the tucked-in shower curtain.
*Profit rarely/never comes from transaction #1; it is a byproduct of transaction #2, #3, #4 …
“EXECUTION STRATEGY.”
IS —Fred Malek
“COSTCO FIGURED OUT THE
BIG, SIMPLE
THINGS AND
EXECUTED
WITH TOTAL
FANATICISM .”
—Charles Munger, Berkshire Hathaway
Tom Peters’
RE-IMAGINE EXCELLENCE
!
Nissan North America 2015 Annual National Advisory Board Seminar Atlanta/27 August 2015 ( Slides at tompeters.com; also see our annotated 23-part Master Compendium at excellencenow.com)
#2: TGRs
& the “8/80” Fiasco: Towards “EXPERIENCES” That Rock!
Customers describing their service experience as “superior”:
8 %
Companies describing the service experience they provide as “superior”:
80%
—Source: Bain & Company survey of 362 companies , reported in John DiJulius, What's the Secret to Providing a World-class Customer Experience?
Conveyance: Kingfisher Air Location: Approach to New Delhi
“May I clean your glasses, sir?”
Conveyance: Southwest Airlines Location: Boarding flight to BWI, Albany NY
“May I help you down the jetway?”
L B Ts* > BB Ts “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.” —Henry Clay "Let's not forget that small emotions are the great captains of our lives." –—Van Gogh *Little BIG Things/#1 of 163
Get ’Em Away From the ATM and Into the Branches:
7X.
7:30A-8:00P. Fri/12A.
7:30AM = 7:15AM.
8:00PM = 8:15PM.
(+2,000,000 dog biscuits) Source: Vernon Hill, Fans, Not Customers (the story of Commerce Bank, the folks who revolutionized East Coast retail banking)
It
BEGINS
(and
ENDS
) in the …
PARKING LOT
* ** *Disney **Carl Sewell’s street sweeper—start the experience right
Don’t like it?
Don’t pay!
Source: Graniterock Co. (Baldrige winner)
“Experiences are as distinct from services as services are from goods.”
—Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage
Not A fact.
a “one liner.”
“At our core, we’re a coffee company, but the opportunity we have to extend the brand is beyond coffee.
IT’S ENTERTAINMENT.” —Howard Schultz “When Pete Rozelle ran the NFL, it was a football business and a good one.
TRULY AN ENTERTAINMENT BUSINESS.” NOW IT’S —Paul Much, Investment Advisor Boston Globe:
“
Why did you [Berkshire Hathaway] Jordan
’
s Furniture?
”
Warren Buffett:
“
Jordan
’
s is spectacular.
IT
’
S ALL SHOWMANSHIP.
”
buy
Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Source: Harley exec, quoted in Results-Based Leadership
All retail excellence is “entertainment based.” Sure, the product has to be good—especially over the long haul. But the “experience” is what lingers— AND drives word of mouth.
Beyond the “Transaction”/“Satisfaction” Mentality “Good hotel”/“Happy guest”/ “Exceeded Expectations” vs.
“Great Vacation”/ “Transformational Conference”/ “Operation Personal Renewal”
First Step (?!):
Hire a theater director as a consultant* (or FTE)!
*Carl Sewell and Stanley Marcus
#3:
TGRs/ LBTs*
*Little BIG Things ****************
Big carts = Source: Walmart
Las Vegas Casino/2X: “When Friedman
slightly curved
the right angle of an entrance corridor to one property, he was ‘amazed at the magnitude of change in pedestrian behavior’—the percentage who entered increased from nearly
one-third two-thirds.”
to —Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas
Machine Gambling “Pleasing” odor #1 vs. “pleasing” odor #2: +45% revenue Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas Casinos,” reported in Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas (66% revenue, 85% profit)
Walmart/120-oz container (mainly water) to ketchup-bottle size laundry-detergent concentrate (100% conversion): 1/4th packaging; 1/4th weight; 1/4th cost to ship; 1/4th space on ships, trucks, shelves. 3 years: 95,000,000 #s plastic resin saved, 125,000,000 conserved, 400,000,000 #s cardboard less gallons of water shipped, 500,000 fuel, 11,000,000 gallons less diesel #s less CO2 released) Source: Force of Nature: The Unlikely Story of Walmart’s Green Revolution, Edward Humes
METHODOLOGY (1) (2) (3) (4) (5) AMENABLE TO RAPID EXPERIMENTATION/ FAILURE “FREE” (NO BAD “PR,” NO $$) QUICK/INEXPENSIVE TO IMPLEMENT/ QUICK/INEXPENSIVE TO ROLL OUT HUGE (POTENTIAL) MULTIPLIER AN “ATTITUDE”/“CULTURE” (WTTMSW/WHOEVER TRIES THE MOST STUFF WINS) AN “ALL HANDS” GAME.
#4:
TGRs: 3 Minutes
THE PROBLEM IS RARELY/NEVER THE PROBLEM. THE
RESPONSE
TO THE PROBLEM INVARIABLY ENDS UP BEING THE REAL PROBLEM.
(OPPORTUNITY).
Relationships (of all varieties) : THERE ONCE WAS A TIME WHEN A
THREE-MINUTE PHONE CALL
WOULD HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RUPTURE.
* *Divorce, loss of a BILLION $$$ aircraft sale, etc., etc.
With a new and forthcoming policy on apologies … Toro, the lawn mower folks, reduced the average cost of settling a claim from 1991 to
$115,000 $35,000
and the company hasn’t been to trial in the last in in 2008— 15 years ! Source: John Kador, Effective Apology
#5/TGRs:
Women BUY
(Everything) !
Women BUY
(Everything)
!
$28,000, 000,000, 000
.
W
> 2X
(C + I)*
* “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as
$28 TRILLION
in the next five years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period.
In aggregate, women represent a growth market bigger than China and India combined— more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. And yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBR
“Forget CHINA, INDIA and the INTERNET: Economic Growth Is Driven by
WOMEN
.”
Source: Headline, Economist
Women as Decision Makers/Various sources Home Furnishings … Vacations … 92% 94% (Adventure Travel … 70%/ $55B travel equipment) Houses … 91% D.I.Y. (major “home projects”) … 80% Consumer Electronics … 51% (66% home computers) Cars … 68% (influence 90% ) All consumer purchases … 83% * Bank Account … 89% Household investment decisions … 67% Small business loans/biz starts … 70% Health Care … 80% *In the USA women hold >50% managerial positions including >50% hence women also make the majority of commercial purchasing officer positions; purchasing decisions.
“The GENDER MOST SIGNIFICANT VARIABLE in EVERY sales situation is the of the buyer, and more importantly, how the salesperson communicates to the buyer’s gender.” —Jeffery Tobias Halter, Selling to Men, Selling to Women
1.
2.
3.
4.
5.
Sales/After-sales Process Kick-off – Research – Women Purchase – Ownership – Women Men Women Word-of-mouth – Women Source: Martha Barletta, Marketing to Women: How to Increase Your Share of the World’s Largest Market
Selling to men: TRANSACTION THE MODEL Selling to Women: RELATIONAL THE MODEL
Source:
Selling to Men, Selling to Women , Jeffery Tobias Halter
“Women don’t ‘buy’ brands.
They ‘join’ them.”
—Faith Popcorn, EVEolution
Men: Individual perspective. “Core unit is ‘me.’ ” Pride in self-reliance.
Women: Group perspective. “Core unit is ‘we.’”* Pride in team accomplishment.
*Why the kindergarten teacher bought an F150!?
Source: Martha Barletta, Marketing to Women
2.6
vs.
Some Starter Ideas *Focus groups with women *Women-oriented dealership events * Zero-based” re-design of the “service experience” with women in mind * A goal of 25%-50% women salespersons within 36 months
I call it the “squint test.” The sales team should more or less mimic the prospect pool.
#6:
WOMEN RULE
!
“Research
[by McKinsey & Co.]
suggests that to succeed, start by promoting women.”
—Nicholas Kristof, “Twitter, Women, and Power,” NYTimes
“Women are rated higher in fully
12
of the
16
competencies that go into outstanding leadership. male strengths.” And two of the traits where women outscored men to the highest degree — taking initiative and driving for results — have long been thought of as particularly — Harvard Business Review/ 2014
“AS LEADERS, WOMEN RULE:
New Studies find that female managers outshine their male counterparts in almost every measure” TITLE/ Special Report/ BusinessWeek
For One ( BIG ) Thing … “McKinsey & Company found that the international companies with more women on their corporate boards far outperformed the average company in return on equity and other measures. Operating profit was … 56% higher.” Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimes, 1024.13
Women’s Negotiating Strengths *Ability to put themselves in their counterparts’ shoes *Comprehensive, attentive and detailed communication style *Empathy that facilitates trust-building *Curious and attentive listening *Less competitive attitude *Strong sense of fairness and ability to persuade *Proactive risk manager *Collaborative decision-making Source: Horacio Falcao, Cover story/May 2006, World Business , “Say It Like a Woman: Why the 21 st -century negotiator will need the female touch”
#7/TGRs:
We
(old farts like me)
Got the
$$$$$$
1/65/8/20
USA 1
BOOMER
turns
AGE
65 Every 8 For the next
SECONDS
20
YEARS
USA
>50: 109,000,000
Next 10 years:
>50: +19,000,000 18-49: +6,000,000
Half & Half
50@50:
“PEOPLE TURNING 50 TODAY HAVE
MORE THAN HALF
THEM.” —Bill Novelli, OF THEIR ADULT LIFE AHEAD OF 50+: IGNITING A REVOLUTION TO REINVENT AMERICA
Average # of cars purchased per (USA) household, “lifetime”: 13 Average # of cars bought per household after the “head of household” reaches age 50: 7 Source: Marti Barletta, PrimeTime Women
“In 2009, households headed by adults ages 65 and older ... had
47 times
as much net wealth as the typical household headed by someone under 35 years of age. In 1984, this had been a less lopsided 10-to-1 ratio.” Source: Pew Research/10.11
“ Marketers’ attempts at reaching those over 50 have been miserably unsuccessful.
No market’s motivations and needs are so poorly understood.”
— Peter Francese, founding publisher, American Demographics
“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers”
—David Wolfe and Robert Snyder, Ageless Marketing
>50 >50% spending
10%
marketing budgets
#8/TGRs: Social Business/ Customer Engagement/ Customer Control/ “Brand Ambassadors”/ “Brand Assassins”/ Social Epidemiologists/ Etc./Etc. …
“The customer is in complete control of communication.” “What used to be ‘word of mouth’ is now ‘word of mouse.’ You are either creating brand ambassadors or brand terrorists doing brand assassination.” Source: John DiJulius, The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the World
“I would rather engage in a Twitter conversation with a single customer than see our company attempt to attract the attention of millions in a coveted Super Bowl commercial.
Why? Because having people discuss your brand directly with you, actually connecting one-to-one, is far more valuable—not to mention far cheaper!. … “Consumers want to discuss what they like, the companies they support, and the organizations and leaders they resent. They want a community. They want to be heard.
“[I]f we engage employees, customers, and prospective customers in meaningful dialogue about their lives, challenges, interests, and concerns, we can build a community of trust, loyalty, and—possibly over time—help them become advocates and champions for the brand.” —Peter Aceto, CEO, Tangerine (from the Foreword to A World Gone Social: How Companies Must Adapt to Survive , by Ted Coine & Mark Babbit)
“Amy Howell [social marketer extraordinaire, founder of Howell Marketing] ignites epidemics. In a good way, of course. Epidemics of excitement. Epidemics of business connections. Epidemics of influence.” — Mark Schaeffer, ROI/Return on Influence: The Revolutionary Power of Klout, Social Scoring, and Influence Marketing
Going “Social”: Location and Size Independent “Today, despite the fact that we’re just a little swimming pool company in Virginia, we have the most trafficked swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, the answer would have been simple, ‘We build in-ground fiberglass swimming pools.’ Now we say,
are the best teachers … in the world ‘We
… on the subject of fiberglass swimming pools, and we also happen to build them.’” —Jay Baer, Y outility: Why Smart Marketing Is About Help, Not Hype
ZMOT
: ZERO Moment Of Truth/Google * “You know what a ‘moment of truth’ is. It’s when a prospective customer decides either to take the next step in the purchase funnel, or to exit and seek other options. … But what is a ‘zero moment of truth’? Many behaviors can serve as a zero moment of truth, but what binds them together is that the purchase is being researched and considered before the prospect even enters the classic sales funnel … In its research, Google found that 84% of shoppers said the new mental model, ZMOT, shapes their decisions. …” —Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype *See www.zeromomentoftruth.com for ZMOT in booklength format
55+ > 55-
Forrester Research: “[Age 55-plus] are more active in online finance, shopping and entertainment than those under 55.”
“
Caesars’ Entertainment have bet their future on harvesting personal data rather than developing the fanciest properties.” —Adam Tanner, What Stays in Vegas: The World of Personal Data—Lifeblood of Big Business—and the End of Privacy as We Know it
Yup, the customer and prospect data are worth more than the facility!
Q: Who needs a “Social Media Guru”?
A: E-V-E-R-Y-B-O-D-Y
!
8A/
Yes, but …
The vetting happens on line—but the service experience is an almost sure-fire route to overcoming premature selection via delighted customers and word of mouth associated therewith.
I am not diminishing Web-power. But the dealer does have a unique opportunity—the after-sale and service experience. If that experience is “off the charts,” word of mouth and likelihood of a “lifetime customer” will be off the charts as well.
#9:
People
“What employees experience, Customers will. The best marketing is happy, engaged employees.
YOUR CUSTOMERS WILL NEVER BE ANY HAPPIER THAN YOUR EMPLOYEES.”
—John DiJulius, The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the World
“You have to treat your employees like customers.” —Herb Kelleher, upon being asked his “secret to success” “If you want staff to give great service, give great service to staff.” —Ari Weinzweig, Zingerman’s, in Small Giants: Companies That Choose to Be Great Instead of Big, Bo Burlingham
“Business has to give people enriching, rewarding lives …
“Business has to give people enriching, rewarding lives …
or it's simply not worth doing.”
—Richard Branson
“The organization would ultimately win not because it gave agents more money, but because it gave them a chance for better lives.” —Phil Harkins & Keith Hollihan, Everybody Wins (the story of RE/MAX )
“Who’s on Second?” “ Nobody comes home after a surgery saying, ‘Man, that was the best suturing I’ve ever seen!” or ‘Sweet, the y took out the correct kidney!’ Instead, we talk about the people who took care of us, the ones who co-ordinated the whole procedure—everyone from the receptionist to the nurses to the surgeon.
And we don’t just tell stories around the dinner table. We share our experiences through conversations with friends and colleagues and via social media sites.” —from the chapter “What Does Come First?” in the book Patients Come Second: Leading Change By Changing the Way You Lead by Paul Spiegelman & Britt Berrett
EXCELLENT customer experience depends … entirely … on EXCELLENT employee experience!
If you want to WOW your customers,
FIRST
must WOW those who WOW the customers!
you
“The
4
most important words
in any organization are …
THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION ARE …
“WHAT DO YOU THINK?”
Source: courtesy Dave Wheeler, posted at tompeters.com
“The deepest human need is the need to be appreciated.” —William James “Employees who don't feel significant rarely make significant contributions.” —Mark Sanborn
“It may sound radical, unconventional, and bordering on being a crazy business idea. However— as ridiculous as it sounds—joy is the core belief of our workplace. Joy is the reason my company, Menlo Innovations, a customer software design and development firm in Ann Arbor, exists. It defines what we do and how we do it. It is the single shared belief of our entire team.” —Richard Sheridan, Joy, Inc.: How We Built a Workplace People Love
“Contrary to conventional corporate thinking, treating retail workers much better may make everyone (including their employers) much richer.” Source: The Good Jobs Strategy , by M.I.T. professor Zeynep Ton.
1996-2014/12 companies every year for 16 years/ 341,567 new jobs/jobs +172%: Publix Whole Foods Wegmans Nordstrom Cisco Systems Marriott REI Goldman Sachs Four Seasons SAS Institute W.L. Gore TDIndustries Source: Fortune / “The 100 Best Companies to Work For”/ 0315.15
“ “Profits & Growth Through Putting People First” Business Book Club Nice Companies Finish First: Why Cutthroat Management Is Over—and Collaboration Is In, by Peter Shankman with Karen Kelly Uncontainable: How Passion, Commitment, and Conscious Capitalism Built a Business Where Everyone Thrives, by Kip Tindell, CEO Container Store Conscious Capitalism: Liberating the Heroic Spirit of Business, by John Mackey, CEO Whole Foods, and Raj Sisodia Firms of Endearment: How World-Class Companies Profit from Passion and Purpose, by Raj Sisodia, Jag Sheth, and David Wolfe The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits, by Zeynep Ton, MIT Joy, Inc.: How We Built a Workplace People Love, by Richard Sheridan, CEO Menlo Innovations Employees First, Customers Second: Turning Conventional Management Upside Down, by Vineet Nayar, CEO, HCL Technologies Patients Come Second: Leading Change By Changing the Way You Lead by Paul Spiegelman & Britt Berrett The Customer Comes Second: Put Your People First and Watch ’Em Kick Butt, by Hal Rosenbluth, former CEO, Rosenbluth International It’s Your Ship: Management Techniques from the Best Damn Ship in the Navy, by Mike Abrashoff, former commander, USS Benfold Turn This Ship Around; How to Create Leadership at Every Level, by L. David Marquet, former commander, SSN Santa Fe Sm all Giants: Companies That Choose to Be Great Instead of Big, by Bo Burlingham Hidden Champions: Success Strategies of Unknown World Market Leaders , by Hermann Simon Retail Superstars: Inside the 25 Best Independent Stores in America , by George Whalin Joy at Work: A Revolutionary Approach to Fun on the Job, by Dennis Bakke, former CEO, AES Corporation The Dream Manager, by Matthew Kelly The Soft Edge: Where Great Companies Find Lasting Success, by Rich Karlgaard, publisher, Forbes Delivering Happiness: A Path to Profits, by Tony Hsieh, Zappos Camellia: A Very Different Company Fans, Not Customers: How to Create Growth Companies in a No Growth World , by Vernon Hill Like a Virgin: Secrets They Won’t Teach You at Business School , by Richard Branson
#10:
Training = Investment
#1
In the Army, 3-star generals function.
worry about training. In most businesses, it's a “ho hum” mid-level staff
Why (why why why why why why why why why why why why why) is intensive extensive training obvious for the army & navy & sports teams & performing arts groups—but not for the average business?
“No matter what the situation, [the great manager’s] first response is always to think about the individual concerned and can be arranged to help that individual experience success.” how things —Marcus Buckingham, The One Thing You Need to Know
“G-E-N-I-U-S” Getting more and more cantankerous (short tempered!) about this: Job #1 (& #2 & #3) is to abet peoples' personal growth. All other good things flow there from.
My idea of a gen-u-ine "genius“ "breakthrough" idea: If you work your heart out to help people grow, they'll work their hearts out to give customers a great experience.
What is the training?
#1
reason to go berserk over
What is the best reason to go bananas over training?
GREED.
(It pays off.) (Also: Training should be an official part of the R&D budget and a capital expense.)
#11:
AVOID MODERATION
!
Kevin Roberts’ Credo 1 . Ready. Fire! Aim.
2. If it ain’t broke ... Break it!
3. Hire crazies.
4. Ask dumb questions.
5. Pursue failure.
6. Lead, follow ... or get out of the way!
7. Spread confusion.
8. Ditch your office.
9. Read odd stuff.
10.
AVOID MODERATION!
*Basement Systems Inc. * (Larry Janesky/Seymour CT) Dry Basement Science (100,000++ copies!) *1990: $0; 2003: $13M; 2010: $80,000,000
Retail Superstars: Inside the 25 Best Independent Stores in America
—by George Whalin
JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH: “An adventure in ‘shoppertainment,’ begins in the parking lot and goes on to
1,600
cheeses and
1,400
varieties of hot sauce—not to mention 12,000 wines priced from $8-$
8,000 4,000
a bottle; all this is brought to you by vendors. Customers from every corner of the globe.” BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP 5,000 : 98,000-square-foot “shop” features
6,000
Christmas ornaments,
50,000
trims, and anything else you can name pertaining to Christmas. …”
Remember “entertainment”?
Or how about: “Shoppertainment” !
“BE THE BEST. IT’S THE ONLY MARKET THAT’S NOT CROWDED.”
From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin
The memories that matter—three guys at Pine Hill service station trying to inflate my 4-year-old granddaughter’s flotation tube!