The Hidden Power of Your Customers: Book Review

Becky Carroll's new book, The Hidden Power of Your Customers: 4 Keys to Growing Your Business Through Existing Customers, is a must read for any business person serious about growing his or her business. Why? Because Becky focuses intensely on how to build customer loyalty. If you're serious about the success of your business, you need a loyal customer base.

[See The Hidden Power of Your Customers, Becky Carroll Interview for my blog interview with Becky.]

Becky, author of the Customers Rock! Blog, is passionate about customers. As she writes in Announcing my first book: The Hidden Power of Your Customers:

"The Hidden Power of Your Customers is based around the principles of Customers Rock!, and the sections of the book follow the ROCK acronym:

R: Relevant marketing – Organizations need to market to their customers in a way that is relevant to them, including recognizing them as customers, using their language, and meeting their needs.

O: Orchestrated customer experience – Every place a customer interacts with a company needs to provide a consistent, planned experience for the customer that is beneficial to both parties. We can’t leave the customer experience to chance.

C: Customer-focused culture – We can’t just expect that a company will become customer-centric because it hires a few great customer service personnel or states that it cares about customers in its marketing. We need to ensure that customers are part of everything that our company does so that customer-focus becomes part of the company DNA.

K: Killer customer service – Companies need to take customer service to the next level, and it needs to be an integral part of the customer experience. Customer service is where the rubber meets the road, as many buying and renewal decisions are based upon this critical touch point. It has to ROCK."

In addition to detailing the ROCK framework, the book offers guidelines for listening to and determining the customer point of view. Becky then integrates all of the elements to demonstrate how a ROCK based approach to business drives growth.

I particularly enjoyed the range of examples of customer-focused companies that Becky includes in her book - from well known and lesser known companies. Case studies explore best practices from Teradata, Sanuk, Marriott Rewards, Lexus, Urbane Apartments, EMC, Southwest Airlines, Salon Radius and Mighty Fine Burgers representing a wide range of industries and specialization. In addition to these in-depth case studies, she weaves in throughout the book references to other best practices, including ones based on personal experiences. Some of those include Beaver Creek Resorts, Ravenswood, Disney, Spiceworks, Jones Soda and Verizon to name just a few.

With each example, Becky highlights tips and advice on how to unleash the power of your customers. Be human. Be sincere. Listen to your customers. Internalize a customer focused attitude to inspire you and your organization! The methodical format means that you can readily figure out what's broken and how to fix it so you can delight  customers and grow your business.

Two quotes from the book to think about: "it can take up to 12 positive interactions to overcome a single negative one," from page 200 and the Golden Rule for Customers: "it's not who's right, it's what's right" from page 205. Doesn't it seem a lot easier and more productive to focus on the hidden power of your customers and delight them intensely?

Let me know what you think.

To order Becky Carroll's book, click on The Hidden Power of Your Customers. 

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Other posts about The Hidden Power of Your Customers that you will enjoy:

• Hidden Power of Your Customers - Interview with Becky Carroll
• Becky Carroll on The Hidden Power of Your Customers - Connection Agent Steve Woodruff does a video interview with Becky
• Video interview with Becky about The Hidden Power of Your Customers with Michael Brito
• Lisa Petrilli in The Hidden Power of Your Leadership to Create Raving Fans used The Hidden Power of Your Customers as the backdrop for a #LeadershipChat discussion with Becky.
• Four Keys to Unleash the Hidden Power of Your Customers
• From the Spiceworks Blog, see SpiceRex gets a mention in The Hidden Power of Your Customers 
You’ve got a bird in your hand. Now what? by Drew McLellan

Note: Becky forwarded me a free copy of her book. She also included me in the book's acknowledgements.

Martin Lindstrom's Buyology

Have you considered the notion of "Buyology" or - as Martin Lindstrom, global branding expert, characterizes it - "the subconscious thoughts, feelings, and desires that drive the purchasing decisions we make each and every day of our lives?"

That is what Martin Lindstrom does in Buyology: Truth and Lies About Why We Buy. It's a fascinating read that draws you in, and has you wondering about and appreciating how sophisticated brand marketers create rich sensory rituals [that "help us form emotional connections with brands and products" and "make the things we buy memorable"] around their products to encourage purchases.

Given that I spend considerable time thinking about how to improve the consumer's flooring retail experience, I was intrigued when Martin Lindstrom contacted me in October - literally as I reached for his previous book BRAND sense: Build Powerful Brands through Touch, Taste, Smell, Sight, and Sound - with an invitation to review Buyology.

Take the brands that I hold up as examples - Apple, Starbucks and Anthropologie... They forge amazing customer experiences by fully and consistently integrating every sensory element at their disposal to create an emotionally engaging, almost religious, experience. Buyology looks at successes and failures [documented via intense neurological studies] and has you thinking about how to improve on what your brand offers.

The book also generated questions about the retail experience, flooring and social media which, despite his insanely hectic schedule, Martin was kind enough to answer for me.

1. Since releasing the book, what reactions have you had from traditional marketers?
We've had an amazing reaction - many stating - finally there's a solution to our problem, other saying: This makes sense - and yet again others saying: Where do we start? Few have questioned the ethical side (which is a topic on top of my list to address whenever I get the chance) and very few have criticized Buyology. There are currently more than 7,000 blogs talking about Buyology - less than 1% are critical.

2. What about from non-traditional marketers?
There's not a lot of them - I mean really non-traditional marketers - but those who are out there in general have said - this is an obvious evolution of marketing - and possibly a revolution of research.

3. What is the best way to increase our Buyology given what you have learned?
We've learned that some of the fundamental rules (and guidelines) used in the world of marketing, advertising and communication are dated. We've now finally been able to confirm that the logo doesn't work - and that brands instead should focus on developing indirect logo signals - sent via smells, sounds, shapes, colors ... you name it. We've learned that product placement (in it's current format) doesn't work - it needs to be integrated - and most importantly of all contextual. We've learned that religion is likely to become the main point of inspiration for brands - adapting rituals, enemy pictures, storytelling, mystery - you name it. We've learned that sex doesn't sell - but that subliminal advertising does. There's a lot of stuff to change in order to increase our Buyology.

4. What about with product categories like flooring [or carpet]?
Just like a manufacturer of drills isn't selling drills but holes - or rather holes helping to hang up beautiful pictures of your loved ones - a flooring or carpet manufacturer isn't selling that - but rather homes for long lasting memories. If you see it in this light, the opportunities are endless.

Your category is all about storytelling - telling amazing stories - engaging people to build an emotional relationship with the product. It is also a sensory product - great floors have great smells, amazing tactile sensations, sounds and looks. This means selling flooring or carpets needs to engage the senses. We did experiments brewing coffee, playing classical music and decorating with flowers in houses for sale. Every time we included those sensory touch points - the sales went up more than 15%. The same would be the case for your category.

5. How can the retail experience benefit our Buyology? What should retailers start doing and stop doing?
Retailers should make it a true sensory experience visiting the retail stores - make people feel "at home" - we know from Buyology - if you as a consumer feel at home - you not only spend more time there, you also spend more money - faster. It all comes down to trust. Imagine your store as a very (I mean very) cozy home, imagine that you're serving coffee, you're playing the type of music reflecting the type of flooring you're selling - in short - tell a sensory story.

6. There's a struggle between traditional brand marketers and retailers whose own brands are becoming more important to consumers [particularly given the economic conditions]. How does that struggle fit in with our Buyology?
Private labels will see an enormous increase over the next couple of years - mostly because they're cheaper - and because consumers trust them (as they represent the values their favorite store has). We know that this trend will continue over the next 3 years - then it is likely to fade off. This means that private label owners have an amazing opportunity to build powerful brands right now.

Ordinary brands (so non-private label brands) do however represent something private label brands don't have: Focus - they're able to build a great attention independent of retail, they're able to talk about their "own" values rather than the retail stores values. In short - this (often) means that the emotional ties non-private label brands can create tend to be stronger - and thus enabling them to charge higher prices.

7. How does social media fit into what you have uncovered?
Buyology introduced the concept of Mirror Neurons to the marketing world. Mirror Neurons; in short empathy - has shown to be incredible powerful - and most likely one of the main drivers for YouTube and other online community sites. Brands are now starting to learn from the theories of Mirror Neurons - understanding the fact that we feel what we see - i.e. if I'm scratching my head - and you're observing me - you'll feel you're scratching your head (we can see this by scanning your brain - the same regions are activated) this amazing observation - is what's driving brands - I observe another person online - and often imitate.

We've also learned from Buyology that powerful communities have a lot in common with religion - and as we discovered in Buyology powerful brands almost activates the same regions in the brain as religion does. As controversial as it sounds this means that the fundamental pillars creating powerful religions will begin to be adapted to the world of branding - and online brand building. One of these pillars are storytelling, evangelism, sense of belonging - in short - elements which for thousands of years has been driving religion - those ingredients are now begin used to create strong online brand communities.

8. How do you see marketing changing as a result of your research?
Marketing will now enter the next generation of communication where subconscious communication will begin to drive our focus. 85% of everything we do every day is taking place in our subconscious mind - indicating how important this focus is in order to build brands -- a dark room marketers haven't been able to understand and reach before now.

9. Any last thoughts for an audience interested in marketing, the retail experience, social media and the customer experience?
Retailers own one essential strength which no-online store owns - access to a true sensory experience. The Buyology study shows that our senses are substantially more important than first thought. In fact we learned that the most important sense to build brands are the sense of sound, followed by smell - then sight. The right usage of a sound or tactile sensation makes us change our mind about quality. Heavy means high quality, flimsy sounds - cheap products. Those signals needs to be understood and leveraged in order to increase the perceived quality. For retailers this means that they need to create an amazing sensory experience - and build emotional bonds with the consumer which in many cases is able to beat any online media.

Thank you, Martin Lindstrom!

Comments? Reactions? How would you modify the elements of your brand to improve both the customer's retail experience and their Buyology?

Related articles:
+ ChangeThis Manifesto: This is Your Buyology
+ AdAge Martin Lindstrom Buyology Video Reports
+ AdAge How Apple, Others Have Cultivated Religious Followings [registration required]
+ From Neuromarketing, Buyology Roundup
+ DDI Magazine Buyology

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Book Review: Threshold Resistance by A. Alfred Taubman

In my last post, A. Alfred Taubman: Overcoming Threshold Resistance, I didn't get a chance to explore with you Taubman's book, Threshold Resistance: The Extraordinary Career of a Luxury Retailing Pioneer. I will do so here.

First off, this book is a fascinating read. It captures a truly extraordinary career, during an extraordinary time. Taubman describes a Wild West of retailing and business that puts where we are today into better perspective.

I particularly enjoyed the retail experience related parts of the book. They reinforced many of the points Taubman made in his presentation.

More specifically, these chapters caught my fancy.

Chapter 4 - The Evolution of the Arcade
It offers an historical perspective on malls - from fabric bazaars in Isfahan, the bazaars of Istanbul [also see Authenticity At Retail], the Galeries de Bois of the Palais Royal in France, Milan's Galleria Vittorio Emanuele II, to London's Burlington Arcade and the Philadelphia Arcade.

He introduces the concept of the "people pump" [e.g,. churches at mass-time, train stations, department stores] that efficiently draw concentrated groups of people in as potential retail consumers, and explains that the "earliest department stores were born as arcades" where "the landlord would take over the space to make sure all merchandise categories were represented sufficiently"... "offering customers the resulting advantages of consistent return policies, predictable hours of operation, and store wide promotions."

Chapter 5: Creating 100 Percent Locations
Taubman's 100% locations consist of locations that can "count on the highest level of pedestrian traffic passing by their front doors day after day, and benefit the most from impulse buying." These are prime retail [i.e., high rent locations] spots. According to a Leonardo da Vinci study "a person feels comfortable walking only about three blocks, or 1000 feet, from his or her home for discretionary trips. Beyond that, one senses a need to return home." Isn't that fascinating?

He also brings up Townscape [or The Concise Townscape] by Gordon Cullen as a critical influence for mall interior design. More specifically, he describes the notion of "serial vision in planning productive, stimulating spaces" that draws the visitor in because not only does it show existing views, but it also allows glimpses of "emerging views" that turn into existing views. I immediately thought of Disney World's Main Street and how perspective and architecture effectively move visitors through to the Magic Kingdom.

According to Taubman, "the objective [in a mall] was to give every retailer a good chance of attracting the shopper into the store, to make every location a 100 percent location." The chapter addresses all of the mall elements [creating multi-levels, opening the levels to draw the eye to the other floor, parking lots, ring roads around the malls, adjacencies, surface and flooring decisions, ceilings, lighting...] and how they together facilitate interaction between customer and merchandise. They encourage shoppers to spend time, relax and buy. Appealing to every sense ranks high!

I love the attention to details like adding a tenant to the shopping center which is like "mixing a new element into a chemical formula. The addition changes the experience for the shopper and the merchants. That's one of the reasons the Taubman Company negotiates the shortest leases in the industry... Lease renewals always mandate store renovation, and if a retail concept has lost its appeal, we want the store out of the center...." These are critical to the success of a mall, but often aren't strategically managed.

Chapter 8: Minding the Store
Lots of good advice in this chapter: "Every good retailer understands that the customer... lacks confidence. ... While this inherent insecurity contributes to threshold resistance, it also presents the good retailer with a golden opportunity. By earning the trust and confidence of your shoppers -- through product knowledge, service, taste level, and consistency -- you can win a customer's loyalty for life."

He further describes how much more fun shopping is "if you are guided and supported in your decisions by a professional, courteous salesperson who wants to help you... And it's even better if the store in which you are buying the apparel stands for something important to you and meshes with your self-image." [Note: replace apparel with flooring, or carpet.]

Here's another gem: "A clearly defined brand bolsters a customer's confidence. So does a good salesperson."

Chapter 9: Fashion Statement
Taubman states that "it's difficult for department stores and other large retailers to compete if they stake out the middle ground." This brings to mind the Trading Up and Treasure Hunt world that Michael Silverstein describes where the middle ground has disappeared!

He refers to luxury retailers and how they have grown and expanded [see my interview with Chris Ramey]. In fact, Taubman's organization has made a point of appealing to that luxury retail customer and specifically ensures that Taubman malls only feature 'fashion' retailers [e.g., Neiman Marcus and Saks Fifth Avenue vs. Sears or JC Penney].

He says that "the fundamental quality that elevates anything into the fashion category is design. Not just any design: good design that appeals to your taste. Fashion is added-value through design."

This is not limited to apparel. It certainly includes flooring, as well as tea pots [think Michael Graves at Target] and citrus squeezers [like the one from Williams Sonoma] or even an Oxo mango peeler!

The focus on fashion and design elevates all categories. The only ones to lose are those focusing entirely on price .

Chapter 12: Selling Art and Root Beer
This chapter offers Taubman's four personal precepts presented during a Harvard Business School session.

1. "Our consumer society, not driven by the satisfaction of basic needs, is fueled by the fantasy, flight, and excitement of a possible purchase..."

2. "You can sell almost anything once. But repeat business is built on consumer confidence, perceived quality and value, excitement, and a rich mix of customer opportunities, as well as convenience and service."

3. "The biggest mistake you can make is to price your product or plan your development based on what others are doing, rather than on how you see the opportunity. Study the consumer. Work for that part of the market that's there for the taking, with a creative new idea or an old idea made better, not just different."

4. "Become an expert in one fundamental area of your market or business. No one starts out as a generalist. In my case, I started as a store planner and learned the basics of successful retail design. Through that discipline, I sharpened my understanding of the customer."

Lots of wisdom there relevant to delivering a better retail experience for today's consumer!

I haven't touched on Taubman's effect on Sotheby's and the auction house world. Nonetheless, the success of that venture illustrates the benefit that comes from bringing integrity and transparency to a process and industry, creating an exciting experience and opening it up [i.e., breaking down that "Threshold Resistance"] so that all feel welcome within.

Which is what today's retail experience is all about.

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Book Review: Beyond Buzz

The notion of "Conversational Marketing" makes tremendous sense given The Age of Conversation.

It makes even more sense after reading Beyond Buzz: The Next Generation of Word-of-Mouth Marketing by Lois Kelly, a wonderful guide to converting traditional one-way marketing into a two-way conversation that invites and welcomes customers into a relationship with you. It's a concept that comes out of The ClueTrain Manifesto since markets are now conversations.

I was particularly interested in reading Lois' book when Nettie Hartsock, Hartsock Communications contacted me [yes, she sent me a complimentary review copy] and I realized that I knew this author! I had heard Lois speak on a panel at the Columbia Business School/Corante Innovative Marketing conference Marketers' Forum in June 2006.

[This is the conference that rocked my world and got me to start Flooring The Consumer. Imagine being in the same room as John Moore, Johnnie Moore, Bryan Eisenberg, Max Kalehoff, Tish Grier, Craig Newmark, Joe Jaffe, Shel Holz, Larry Weber.... and Lois Kelly. Even David Churbuck! And, there were more... It was electrifying!]

[By the way, Toby Bloomberg wrote up Lois' blogger story in Diva Marketing's Blogger Stories.]

Going back to Beyond Buzz - it's practical and filled with valuable guidelines on how to make the elements of buzz and word-of-mouth marketing more relevant to the kind of relationship building that consumers demand of us. Definitely worth reading, highlighting and referring to frequently.

I was struck by how many of the elements Lois describes are ones that marketing-to-women experts emphasize. The one-way, hard sell, traditional push approach is a losing proposition. Much better to listen, build relationships, and actively engage consumers in a conversation through which we both learn from one another. It's about building rapport [vs. report-like talk]. It's about establishing trust, and being authentic. It's about getting as far away as possible from transactional communications where consumers remain detached and disengaged.

From the press kit: "The first book to focus on the message - not just the mechanics - of conversational marketing. [It] provides practical advice, tools, and techniques for listening in new ways, creating fresh ideas to talk about and re-designing marketing roles and functions."

Some of what I found particularly valuable:
Great marketing is now about meaningful communication. It engages marketers and brands with end users in interesting discussion using both new and traditional channels to build understanding, trust and excitement that keeps customers talking about what you're selling. Consumers are now in control, so it's time to be interested in their world and how to add value or meaning to their lives, rather than focused solely on our organizations and perspectives. In so doing, we can build trust with them and become more relevant.

People talk to and believe those they trust. If they are interested in what a friend tells them, they'll ask to hear more.

Unfortunately, traditional marketing and communication tools don't naturally encourage people to talk. Advertising and direct marketing promote; websites and public relations inform. Neither really engages consumers. With Web 2.0 technology, we can now engage in conversation with large numbers of people, regardless of geography or time constraints.

The challenge is that we must have something interesting to talk about, relevant to a consumer's life, meaningful to him or her, and that helps make sense out of the dizzying array of options and conflicting information available. Too many choices and too much information can paralyze.

This sense making or 'making meaning' that Lois describes is a function of relevance, context, pattern making, and emotion. The goal is to get people's attention, then make sure we make sense [i.e, they understand what the value is to them], so they can process our information, and ultimately remember it.

She describes 3 steps to creating interesting, relevant conversations:
1. Research in new ways, listen more closely, and see new patterns

2. Create conversation themes based on points of view [beliefs or aspirations; David vs. Goliath stories; avalanches about to roll; anxieties; counter intuitive or contrarian perspectives; personalities and personal stories; 'how to' advice; glitz and glam; and ideas associated with seasonal events. [These points of view remind me of Mark Hughes and How Do You Create Buzz? Also, visit Guy Kawasaki's review titled The Nine Best Story Lines for Marketing.]

3. Finally, identify someone to be responsible and accountable for it.

Making meaning helps overwhelmed consumers make sense out of too much information; if we've listened carefully enough, we are able to frame the information in a way that is relevant to the audience. We enable consumers then to make decisions; we help them understand the benefits to them; we increase the relevance of making the decision.

This I found intriguing: marketers help people see patterns or relationships between ideas. People can then connect the idea with the context, allowing them to see value. If they don't see the value, then the idea is meaningless or irrelevant to them.

But, if the idea relates to a pattern, then it is more likely to connect to emotions and feelings we have around that pattern. Emotions strongly influence whether a person will believe or take action. Including negative emotions linked with insincerity, indifference or lack of interest.

Some of the best ways to make meaning for consumers has nothing to do with listings of facts and product attributes. Rather, they can show relevance [and, ideally, emotion] by:

- explaining why/why not the product or idea matters
- doing so briefly with short sentences
- describing cause/effect
- using analogies to help understand
- telling stories [storytelling is extremely effective and allows you to demonstrate relevance to the listener]
- using disruptive ideas and language to get attention
- promoting newness [in ideas or experiences] since people get bored
- focusing on simple rules
- keeping a perspective; using humour

Remember that we are trying to establish trust and be authentic to engage in conversational marketing. Which means that we must give people reasons to believe in us. Kelly describes 10 characteristics of an effective point of view. These 4 are essential: being engaging, true, relevant and genuine. The rest strengthen the point of view: being fresh, connecting the dots, being memorable, talkable, leggy [through multiple channels], and likeable.

If you feel uneasy about engaging in conversational marketing, consider that the goal is to communicate to customers that we are truly listening to them [which echoes the thoughts in Book Review: How To Talk To Customers]. It's comparable to the common courtesy shown toward individuals we respect: we recognize their existence; we actively listen to and acknowledge them; and then by accepting their perspective as valid, we endorse them.

Mind you, endorsement does not automatically indicate that a company agrees with a customer's perspective or that it must take the requested action. Rather, it expresses recognition and respect for the individual, and acknowledges the legitimacy of the perspective.

To build loyalty, though, we must explain why we don't take the action recommended.

Language and style play an important role in building loyalty and making meaning for customers. Jargon must be banished. Out with the buzzwords! Instead, communicate in a conversational style [this is conversational marketing after all!] using human language. Make it relevant, be authentic and sincere.

Why? Because consumers pay attention to companies that express an interest in them and what they want to know or understand. They remain loyal when they feel emotionally connected to a company.

Making it critical to think from the consumer's perspective rather than that traditional internally-focused, product centric company perspective. Making it critical to ask questions to better understand why a customer isn't interested.

This is marketing as the voice of customer service. Marketing as teaching, where the more empowered employees are, the better the opportunity to delight customers and engage them in an ongoing conversation.

Conversational marketing makes marketing be about making our products and organization meaningful to potential customers. It requires that they feel appreciated and listened to, and that we feel comfortable discussing ideas, issues and points-of-view with them. Only then will they get involved, make purchases, become advocates and tell everyone they know about their wonderful experience!

That goes way beyond Buzz!

Do also listen to BuzzMarketingForTech's Podcast with Lois Kelly, which also features a link to this article by Lois Kelly and David Maister outlining several of the premises that Beyond Buzz develops.

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Unwrapping Jonathan Tisch's Chocolates On The Pillow

If you remember from Book Review: Chocolates On The Pillow Aren't Enough, I had followup questions for Jonathan Tisch author of Chocolates on the Pillow Aren't Enough: Reinventing The Customer Experience. He addresses those here:

How has the book affected the evolution of the Loews Hotel customer experience? Did some examples/case studies hit home more than others? Which ones?

Since my father and uncle opened Loews Hotels 65 years ago, we have seen so many trends come and go. We’ve also seen the industry expand to one of the most popular around the world as part of the growing travel and tourism industry. But the more things that have changed, the more things have stayed the same.

In light of changing trends and expanding industries, we have always prided ourselves on our customer service record and understanding the needs of those who choose to stay with us, whether they are traveling by themselves or with their families, on a business trip or on a vacation.

But we also have spent a great deal of time understanding who our customer is and what the brand Loews Hotels means in the minds of consumers. We discovered that we are known for our service and hence we have taken initiative to find ways to upgrade the service that our coworkers can offer. We instituted training programs, such as Living Loews and Genuine Personal Engagement, which give our coworkers the tools necessary to do their jobs. We are continually looking at other ways to support the brand and any brand extensions that can come from the Loews Hotels name.

RE: the chapter on diversity. Some hotels have made a big effort in recognition of women's changing roles in business [and increasing work-related travels] to attract them. How is Loews reacting? Has that caused any friction and how have you addressed that? What about other non-traditional groups?

We have always tried to ensure the safety and security of our customers while also understanding that, in this post-9/11 world that we live in, transparency has become a very important issue. So as it relates specifically to female travelers, we do everything we can to offer them the accommodations to make them feel comfortable and give them the opportunity to accomplish their goals for that particular trip.

We also have broadened our understanding of the diverse nature of our customers by offering programs such as Loews Loves Kids, where we encourage our travelers to bring their families on business trips, in addition to vacations. We were also the first in the industry, in terms of a chain-wide program, to encourage the traveler to bring along their favorite pet through the program we call Loews Loves Pets.

Consumers' value equations are changing across categories including hospitality. They expect more for less money, and are getting it. How is Loews reacting?

The consumer today is so well-educated and understanding of their specific needs that value can be delivered at any price point. For example, there are some consumers who are interested in getting a $100 room per night who also expect $100 worth of value.

But as this global expansion continues in our industry, there are those consumers who are willing to pay $500 to $600 a night for their room and also want a specific return in value. As a value proposition is really in the mind of a particular traveler, it is incumbent on us to offer that value or even expand on that value when someone stays at a Loews Hotel. While price is an element, customers can differentiate between price and value. They understand that a great customer experience adds value and are willing to pay a premium for it.

There are so many travelers aware of what’s cool, hip and chic who are going to college and shopping at the Gap and going to Ikea and Target that we are seeing a very well-educated consumer today who wants value, but once again that value might be at a very different price point.

What are the various tools that Loews uses to monitor consumers and changes in the marketplace? Which are most valuable? How do you manage all of these tools? How do you transfer the insights to the organization? How do you keep the process fresh?

We ask our senior managers to always be aware of what they are hearing in their lobbies and hallways. We also seek out customer feedback, and really try to monitor the trends in the industry.

It also comes from my extensive traveling, seeing what our competitors are doing and reading lots of trade magazines, online publications and blogs. General consumer publications are also helpful, in terms of where the traveler wants to be located and which amenities she desires.

We also do a variety of focus groups, in addition to requesting direct feedback, which we have now migrated to doing electronically because the consumer is much more comfortable filling out a questionnaire with a few clicks than using a pen. With these methods in place, we have a pretty good idea of what the consumer wants.

Quite candidly, one of our challenges is that with only 18 properties we do not have representation in all major U.S. cities. The individual guest or meeting planner who is happy with a Loews hotel might want to use one of our properties in a city in which we’re not represented – it is a bit frustrating for us because we are very proud of the Loews Hotels brand and our record for serving the needs of our customers independent of locality.

Wow! Great food for thought. Thank you, Jonathan! Thanks, too, to Rachelle Lacroix of Fleishman-Hillard.

In addition to these two posts, I hope you've had a chance to experience an in-depth perspective on the book and the author made possible through the blog book tour. It took place the week of May 21st at the following blogs:

Brand Experience Lab, including a report from a live presentation by Jonathan in NYC
Customers Rock!, with questions submitted by Becky's readers
The Engaging Brand, Anna Farmery's podcast
Conversion Rate Marketing Blog, two-part podcast with Bryan Eisenberg
Vacant Ready, Q&A with Chris Clarke
Lipsticking, Q&A with Yvonne Divita
Experience the Message, Q&A with Max Lenderman
Customer Experience Crossroads, Q&A with Susan Abbott
Chocolates On The Pillow Aren't Enough: Blog Book Tour and her podcast interview with Jonathan addressing touch points, Living Loews, partnerships, the criticality of human interactions, and other valuable nuggets.

Now that you've experienced Chocolates On The Pillow Aren't Enough, are YOU ready to reinvent your customer experience? Have you taken advantage of these unbelievable opportunities to stretch your mind so as to figure out new ways to truly enhance the experience you offer your customers?

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Book Review: Chocolates On The Pillow Aren't Enough

How seriously committed are you to reinventing your customer experience? If you aren't, you may want to reconsider as Jonathan Tisch's latest book titled Chocolates on the Pillow Aren't Enough: Reinventing The Customer Experience offers many compelling reasons to do so.

"Today's consumers are looking for something more - a relationship with an organization that will truly enrich their lives." That means providing them with experiences that are "unique, memorable, delightful, comfortable and deeply rewarding" - something that an accomplished hotelier like Tisch is committed to!

We've certainly heard before how many of the tried and true ways of doing business just don't work anymore. We live in a world where consumers feel diminishing loyalty towards many brands, increased price sensitivity, and innumerable choices. Furthermore, she's newly empowered, armed with information and greatly suspicious. No more taking customers for granted. No more assuming they will be satisfied. No more assuming they will stay with us 'til death do us part!

Not only does traditional mass advertising no longer work, but our traditional methods of keeping track of our customers' attitudes [i.e., intrusive surveys, focus groups and diaries] are simply ignored. After all, who has the time?

However, IF we craft customer experiences of such caliber and amazement that our consumers willingly return for more and zealously promote us via word-of-mouth recommendations, they will then generously offer their opinions, suggestions and attitudes. So why not focus on creating better experiences to forge stronger and longer lasting ties with our customers?

So explains Tisch using a multitude of wide-ranging examples.

Tisch refers to Proctor & Gamble's efforts to better understand how consumers live, and identify their frustrations/irritants. Armed with that information, they can develop products that absolutely delight consumers. This article from the May/June 2007 issue of THE HUB titled Moments of Truth focuses on Dina Howell at P&G, and the company’s shopper marketing efforts. It discusses efforts to not only understand how people live, but also how they use products. Note the reference to 'shopper marketing'.

Tisch's emphasis on the total consumer experience delights me. If you refer back to STORY Brings Brands to Life, and the statement 'it may not be my fault, but it is my problem', you start to capture the mindset that the book describes. Refer, too, to Stephanie Weaver and Customer Experience Definitions - Finale. The opportunity is to transform the thinking about customers into considering them as guests. Which means that we need to act like HOSTS and welcome our guests at every opportunity.

As I read the book, I can't help but have flashes of Paco Underhill's insights... Luckily, Tisch refers specifically to Paco in a section about the Art of the Welcome. However, before that section he makes points about the need to be a consumer [or a retail anthropologist for that matter] and pay attention to how you interact with your experiences. In other words, become totally customer-centric; understand every aspect of your experience, including those of your employees. After all, they are the ones to deliver the experience to customers.

Here is the wide range of companies that Tisch highlights: In N Out Burger, Dell Computers, Tufts University, Sephora, and Commerce Bank. He touches on the reinventation taking place via Lifestyle Centers and the influence of New Urbanism [see Southlake Town Center: A Lifestyle Center, Atlanta's Atlantic Station - A Lifestyle Center and An Architect's View of Better Lifestyle Centers]. He addresses healthcare transformation with new models like Virgin Life Care, and Revolution Health that borrow successfully from hospitality to offer patients a more holistic approach.

He considers spaces that welcome referring to Morris Lapidus and the Fontainebleau Hotel in Miami Beach. Here is how Tisch codifies Lapidus' rules:
- eliminate corners
- use sweeping lines
- create unusual effects with light
- use plenty of color [my personal favorite]
- create a sense of drama
- keep changing the floor levels
- keep people moving
- remember that people are attracted to light [the moth complex]

About Paco Underhill he says: he captures the "fascination with the challenge of creating great public spaces and an intense curiosity about people, their emotions and behaviors." Tisch brings up: Urban Outfitters, Anthropologie, and Free People all retail environments that are "less about selling to customers than about welcoming them and enveloping them in a world that is relaxing, engrossing, surprising, and rich."

He examines the news world, made familiar through his experience with Open Exchange. CNN has successfully challenged viewer assumptions. The Harrisburg International Airport, Target with their new approach to prescription drug packaging, and Microsoft's focus on security have all successfully anticipated users' needs.

EZ Pass, NYC 311, TripAdvisor, and FlyerTalk represent examples of organizations that not only facilitate the dissemination of information, but also are transparent in how they make information available. In fact, the transparency eases the dissemination.

Examples of companies that have embraced customization include Tc2 or Textile Clothing Technology Corporation, Land's End and My Virtual Model, PhotoStamps, and Build-A-Bear Workshop. In so doing, they delight their customers.

Models for community building [which by the way leads to unbelievable loyalty and word-of-mouth endorsements] include Harley-Davidson and its HOG members, eBay and PayPal, MySpace, and politics as exemplified by Howard Dean and the Democratic Party's site.

Tisch talks about the publishing industry and it just so happens that the New York Times ran this article titled The Greatest Mystery: Making A Best Seller By SHIRA BOSS on 5/13/2007. There's an opportunity waiting to be discovered!

The museum industry also represents opportunity to redefine the customer experience The Children's Museum of Manhattan [interestingly, in the Tisch building], as do Starbucks and HearMusic.

Here are some of the followup questions I submitted to Mr. Tisch. I will post his responses when I receive them.

+ How has the book affected the evolution of the Loew's customer experience? Did some examples/cast studies hit home more than others? Which ones?

+ Re: the chapter on diversity. Some hotels have made a big effort in recognition of women's changing roles in business [and increasing work-related travels] to attract them. How is Loew's reacting? Has that caused any friction and how have you addressed that? What about other non-traditional groups?

+ Consumers' value equations are changing across categories including hospitality. They expect more for less money, and are getting it. How is Loew's reacting?

+ What are the various tools that Loew's uses to monitor consumers and changes in the marketplace? Which are most valuable? How do you manage all of these tools? How do you transfer the insights to the organization? How do you keep the process fresh?

The book title generates discussion. When I brought it with me to a dentist appointment, I wound up in an intense discussion with my dentist's sister who had been an avid viewer of Now Who's Boss? [this is a program transcript CRM Mastery E-Journal].

Chocolates on the Pillow is an excellent read, filled with non-traditional and wide-ranging examples that will definitely get you thinking about the customer experience in general, and your customer experience specifically.

For other perspectives on the book consider the following:
+ Customers Rock! Are Chocolates On The Pillow Enough?
+ Customers Are Always Jonathan Tisch Helps Reinvent
+ Experience Manifesto's Chocolates On The Pillow and Amazon.com: Chocolates on the Pillow
+ Converstations' Review Chocolates On The Pillow
+ The Orlando Sentinel Chocolates On The Pillow
+ Ad Age's Bookstore Review of Chocolates On The Pillow.

Finally, this Forbes Magazine from 2004 provides a background on Tisch's previous book, "The Power of We".

Disclosure - I received a free review copy of this book.

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