Our Customer Experience team - 'Being Real'

Another interesting question posed by the Australian – everyone is looking for the get quick rich scheme – and the reality is that there are none – unless you don’t mind a bit of hard work… here is my response to the question “How to make money online?”.

This century is all about transparency and authenticity – people want to know that you are real. But having a great product that appeals to people and will get them talking is where real success lies. I have always asked myself the question – ‘who really gives a damn?’ We might think it is the best idea ever, but really we need to get over ourselves, a bit. Sometimes when people share with me their ‘fantastic’ business ideas – the first question I ask is ‘why?’ Why are you doing this? It might be your passion but are there other people who agree – more importantly are there millions of them?

Don’t be fooled into thinking RedBalloon was an overnight success – it was two months and 4 days after the site launched in 2001 before we made our first sale! In almost ten years we have taken that number to over 1.1million experiences sold. Hard work, dedication and expelling the word failure from your vocabulary is key.

One of the biggest difficulties in running an online company is trying to connect with a customer who you will never have a true face-to-face relationship with. We try to combat this by ensuring each and every opportunity we have to engage with a customer – whether that be by phone, email or the physical delivery of an experience – ends in a great memory. In the early days a woman called me saying she was just about to purchase online with us – but she wanted to know if we where ‘real’. I answered “well you are talking to the CEO”. She responded but how do I know that, you could just as easily be the janitor (the reality was that I was the janitor too – I wore most hats in those early years). In that moment I knew that I had to build trust for my fledgling online business – I had to let people know that there was real people behind the brand. Hence with every opportunity we attend trade shows, conferences and seminars. We get out from behind the website and eye ball our customers. I personally find myself speaking at many events – this is all part of the plan to make sure people can really know us… so we are real to people…. (and it is one of the reasons for being a blogger)

Step number one in making money online is to be real, be yourself and be accessible. (Most of the promotional photo’s you see on the RedBalloon website are either of team members or were taken by team members). The next step to making money is about having a clear sense of purpose – and let people know what you stand for.

In the case of RedBalloon, it was about identifying our key audiences by considering “who would want to buy experiences” and “what sort of people want to make a difference in the lives of others”? I quickly came to the conclusion that RedBalloon would appeal to both the corporate and consumer world. Mums and dads, brother and sisters as well as businesses who put budgets aside for rewarding and recognising the efforts of their employees.

Yes, we are a business, and a key objective for a business is to make a profit. We make no secret of that. But some recent research from Travis Carter and Thomas Gilovich* really cemented that we’re on the right track with what we are do here at RedBalloon – to change gifting in Australia and NZ forever with meaningful experiences, because we believe that the most important gift is the gift of shared experience. The research showed that it’s not wealth that causes happiness, but what and how money is used that contributes to our sense of well being. The more aligned a purchase is to ‘shared experience’, the greater the sense of happiness. This deepens relationships. Interesting that the research tells us that we adjust our memories over time to ‘edit’ the bits we did not like about the experience – and we only remember the good bits – whilst the luster of a material gift will continue to fade over time.

Another critical ingredient to being profitable is not to waste money. When I started the business at home I used second hand computers, shared resources and did almost everything myself (except cut code). Whilst it might not have been the most professional or best return on my time – it meant that every dollar earned was invested in growth – rather than administration – and that we made a nominal profit from day one which could be reinvested. (RedBalloon is completely self funded) My philosophy has not changed. You do need to spend money to grow (no-one has saved themselves into growth), but the reality is that most business growth comes through building unbreakable customer relationships. And to get unbreakable customer relationships you need people who are completely committed and passionate about what they do. So a dollar invested in your people is worth far more than splashing money around on expensive bill board advertising. Advertising has a place – but it is to remind people of the relationship that they have with your brand… not to create a relationship. It takes people to do that.

So to make money online is very much about knowing what you stand for and sharing the story – having a fabulous team who share a deep commitment to a sense of purpose. The purpose simply cannot be ‘to make money’ – making money is to business what breathing is to life – it is essential, but I didn’t wake up this morning just to breath. I remember years ago when I worked in a professional services firm and the partner said something to the effect of “work harder make me more money and one day you could be here too”. Very uninspiring. If you are in business just to make money then the road is likely to be far harder, than being in business to do something to make the world a better place.
In summary

1. Be real
2. Sense of purpose
3. Invest in people

* Carter, Travis J and Gilovich, Thomas, Enjoyment of experiences and possessions

My colleague Phil, Having a great time at work - AND being a great Mum - it is possible to have it all

Last week I was posed the question by the Australian newspaper “what are the difficulties of being a digital woman?” I share with you my response which appeared in full in the paper on Monday 29 August 2011.

“Being a women in the business world (online or offline) is very normal to me – but I am kind of like an Ostrich with my head in the sand. I don’t really know what I miss out on – the rugby games or the beers after work that I don’t get invited too. When I read studies[1] that give the principle reason for gender inequality in leadership positions and pay as employers discriminating against women for “simply being female”,  it’s clear that something needs to change. And I believe that this has to start at the top – we need role models. More women on boards and in executive roles would be a first step.

This is a community issue – not a women’s issue. One thing we need to consider is “why do women choose to leave the workforce?” – I know I did – because when I had children I wanted more flexibility – and in the senior marketing role I held – it just was not possible. Women may choose to leave the workforce for life style reasons, parenting, or simply that they no longer want to work endless hours and not be appreciated. The result of thethousands of reasons of why women leave the workforce has resulted in more than 50 per cent of women over the age of 45 have less than $8000 superannuation – as a result women will be dependent in their old age, either to a partner, family or the state.

Something must be done. Flexible work places might be a start, and tax deductions for childcare.

I’m glad that at least now there is 18 weeks parental leave. But I think there is a bigger issue. Parenting is an eighteen-year job, and that’s being conservative! What are we doing to support parents for the next two decades? Paid parental leave isn’t the answer to encouraging women to return to work. It’s what we do to make childcare accessible and available to people all the time, without prejudice, whether it’s a mother, father, foster parent or guardian. I understand that women are more likely to leave the workforce after the birth of their second child…

One of my colleagues with young children who works part-time at RedBalloon and freely admits that she is a far better wife and mother because she is able to work, contribute and exercise her creative brain with her peers each day.

RedBalloon thrives because of its great team. Part-time roles, the flexibility to work from home or take time-in-lieu are not ground-breaking or innovative on our part. Yet the spirit in which all these are offered may well be. Right now I am on the hunt for child care places close to the office. Everyone’s contribution here is valued equally as highly, no matter the hours they work, or whether they are working virtually.

So we need leadershipfrom the top, from government and with more women on boards. How do we create truly family-friendly workplaces? Many women are missing out of the non-critical, yet still beneficial, aspects of work – the seminars, the conferences, the networking events, the breakfasts – because who is going to do the childcare and get the kids to school?

It’s important to recognise that it’s not simply a women’s issue, it’s a community issue and one that needs structural economic reform. We’re number one on the planet in terms of educating women in tertiary institutions – yet the participation rate ofthose women in leadership roles is dire. Simply, we’re not getting the return out of our highly educated people because these women are not able to easily contribute back to society, no matter how much they wish to.

We can’t all run online businesses so we can have the lifestyle, flexibility and fun we need to fulfill on the varied roles we play – as parents and business leaders.”

[1] National Centre for Social and Economic Modelling (NATSEM)

Meet the brand...

It seems that lately I am being approached by many people who are asking a similar question, “How did you do it?”.  Obviously I write this blog so that I can share what I have learned which also means that people can dip into what they think is relevant for them whenever they choose.

My initial reaction when people ask “how did you do it?” Is that it wasn’t ‘I’ … it was ‘we’. I have been fortunate that I have surrounded myself with great people all completely passionate about our vision and committed to what we are doing.

If I was to take ownership for one thing … it would be that I did bring to the start up RedBalloon a corporate background in marketing. When I started the business I was completely passionate about building a brand online. Which was no insignificant task back in 2001 because the internet was in it’s infancy. My marketing background had taught me that to create a brand is to build relationships – and being online we didn’t have the opportunity to meet our customers in person..  So in response to the question “How to build a brand online?” I responded for The Australian newspaper with these three lessons:

1. Don’t hide. It is like any other relationship – people want to get to know you. When I am buying online I like to know who is behind the business – I cannot stand those ‘about us’ pages that say nebulous things like “we are the greatest solutions provider blah blah blah”. Many years ago in the early days I had a woman phone saying I’m just about to make a purchase on your web site – “how do I know you are real?” I responded” I’m the CEO” and she retorted “But you might be the janitor for all I know”. The irony of course was that I was the janitor too.

The principles behind building a strong and enduring brand remain the same whether online or offline. It’s all about building great relationships – with your customers, your suppliers, your clients and especially your employees as they’re the greatest brand ambassadors you have! Shared experiences create and strengthen relationships.

2. People create brands – brand reputation is about who you associate with. Online it is important to hang out with a good crowd. It is important to know who , how and where any links or advertising might appear. Brand association is critical online – in exactly the same way as a retail store – you want to know who your neighbors are. It is the same online.

3. Brands are built in the hearts of our customers and employees through the relationships they have with that organisation. Every touch point adds or detracts from that relationship, because a brand is not advertising, but how people experience and feel about an organisation. It is the people they meet, the stories they hear, what they see on social network sites that form opinions about a business. People question if they can trust or believe the story. And it is no different in building an employer brand.

You have to listen to your customers, clients and employees so you can deliver a positive experience every time they engage with your brand.  At RedBalloon we also know that a high level of customer service starts with happy employees who are more willing to go the extra mile to ensure a positive customer experience every time, and that’s why our company values are fundamental to everything we do. Each and every “RedBallooner” lives the values of integrity, generosity, leadership, having sense of humour and fun, and probably most poignant given our growth and position in the Australian gifting landscape, being a little dog with a big dog personality!

This is why employees are the new customers. Each employee has a voice (and could be a personal publisher). As such it is up to leadership teams to stay vigilant and committed to the employee experience – because that will mirror the customer experience, and ultimately the brand itself.

So the reality is that building a brand online follows similar principles to building a brand offline – it is all about relationships.

James shares his insights into RedBalloon

We are fast approaching RedBalloon’s tenth birthday, with that it mind I wanted to check in with the team ‘What does it mean to you to be a part of the RedBalloon story?’ The answers were delightful and insightful… but this particular answer from one of the newer RedBallooners is very worth reproducing in whole.

If you were to ask the similar question in your organisation, you too could get a great insight into the ‘mood’ – think of it as a ‘culture check’.

R Recognised. Continual recognition day to day has been very important in my short time here. Knowing that all my efforts are acknowledged, appreciated and are of value to the business in achieving the goals we collectively aspire to, gives myself and everybody a huge sense of unity in where we are heading.

E Experiences! Such a unique trait to my role and being a part of my story is fulfilling so many dreams for so many people. Not many people I know can say the consequences of their daily tasks will live in the memories of others forever!

D Dynamic. I am buoyed by how I can personally contribute to our visions and challenges for the future. If I want to make a suggestion of change or improvement, the big red door is always wide open. All that is required of me, is imagination.

B Belief. Having the people around me who are not afraid to get out there and make things happen because they believe in the cause. No objectives are too big, because where there’s a will, there’s a way. We are all role models.

A Aspiration. Reaching the One million milestone and the ‘RedBalloon Story’ I believe is directly attributed to the investment in the people along the journey. Being a part of an ever improving, expanding organisation who actively encourage personal development and achievement will, in my mind, only motivate the story into achieving even bigger ‘hairy audacious goals’ in the future, and it feels good to be a part of that.

L Love. For what we do and how we work.  To me the story is based up a culture of passionate, driven people, which can only have a ripple effect on each other and associates alike.

L Learning. The story of the RedBalloon journey is anything but one dimensional, and the opportunities for learning to benefit myself and company co-inside with the RedBalloon ride. Only limited by the wind in my sails.

O One-on-one. Anyone involved in the RedBalloon story can approach anyone at anytime. Two heads are better than one! Be it personal or otherwise, it is well practiced and there is always someone I can to turn to.

O Opportunity. Seizing the opportunity! The story for me has told me to not be afraid in grasping an opportunity. Flexibility in my role is great and I can go about that how I like, which permits outside of the box thinking. Which reminds; “Most people think inside the box, great visionaries think outside the box, geniuses don’t see a box!”.

N Next steps.. the future

James R…. Corporate Team

Does this mean Ernst and Young will be getting a call asking them to cease and desist in their global entrepreneur award, and spin off publications? And I had to laugh when I discovered that E&Y actually did receive a letter from the publisher back in the late 90s.

The global Entrepreneurs Organization of which I participated and received much benefit from the organization – with it’s 7,500 members world wide… has nothing to do with the Entrepreneur Magazine – does this organization have to change it’s name?

Now, I’m no expert on trademark law, but Mark A. Lemley, a distinguished professor of intellectual property law at Stanford Law School says, “Trademark law doesn’t give anyone the exclusive right to common English words, much less all variants of those words.”

The latest attack has been on Daniel Castro, founder of EntrepreneurOlogy, who has also filed a federal lawsuit against the publisher. Good on him for standing up for the rights of entrepreneurs everywhere to use the term entrepreneur.

There is the obvious irony of a magazine making its advertising bucks and writing articles to support entrepreneurs, leveraging its resources to attack businesses using the word entrepreneur. (Biting the hand that feeds you).

@LizWiseman

Plus this sort of behaviour is so UNentrepreneurial. Being entrepreneurial is about being nimble. About moving fast and embracing change. Not being a bullying behemoth.

Surely it must be a publicity stunt – well I for one have no intention of reading the publication. I’ll stick to Inc. and Harvard Business Review for my US fix on business.

Q1: You say on your website that “life is the sum of our experiences, not our belongings”. So can we have some thoughts on another sort of experience, the experience of buying a home to live and raise a family. What can you tell us about your experience of the first home you purchased?

A1: I bought my first home [flat] before I was married – back in 1988 had saved the deposit over 3 years. It cost $80,000 – which was a lot of money. Interest rates shot up to 16% – ouch. It was so hard financially that I had to take in a border and I could only afford to eat at home, I lived on boiled eggs. There was an upside to all this hardship however, when I sold the property a several years later, the price had gone up and I had created a small nest egg that was the deposit for the family home. In some ways that property was like forced savings.

Q2: One essential belonging is having a roof over your head but reaching that goal can be very stressful. With continual mortgage strain, do you think a new experience, family fun or bit of indulgence can provide some relief?

A2: Good times don’t have to cost a lot – and it is important to balance hard work and determination with joy. A fun thing to do is to create the family dream list – things that you want to do or experience together as a family. So whilst you are paying off the mortgage you are still planning and looking forward to other family activities. One of my favorite sayings is ‘Even if you are on a diet you can still read the menu’ – it is important to imagine, dream and plan. Have some small things on the list – and make sure you do them.

Q3: What are some experiences you could recommend for these people, to help them with mortgage relief or give them more quality in their family time?

A3: Children don’t want to be entertained – they want your time and listening. Shared experiences are the basis of all relationships. Having everyone in the kitchen cooking the meal, or everyone researching the family holiday means that everyone has a voice. [The family that plays together..] Giving someone a gift of something they have always wanted to do and sharing that joy creates fabulous family connection.

Q4: You were a winner at the National Telstra Business Women’s awards, we have a large female audience and the results of our recent survey concluded that females are the most active online seekers in the home loan market. What words of advice could you give these women who maybe trying to juggle a career and/or motherhood as well as a home?

Q4: There is no right answer – we all just muddle through the best we can. Each day with a family and career is a day of logistics and planning. My trick is just to be truly present at what ever I am doing in that moment. If I am with my children then I am in their world and playing their games. And it is the same at the office. It is not the quantity of time that we spend with our family it is about our connection with the moments we have.

Q5: Your favorite experience?

A5: How could I have a favorite - That would be like choosing between your children. There are perfect experiences for different moments. Sometimes you want to put people out of their comfort zone – other times you want to pamper them or give them a treat. That is why RedBalloon has more than 2,500 different activities. There is something for every occasion and personality – the easiest thing is to use the gift finder.

Presenting to 150 fifteen year old girls is probably one of the tougher gigs that I have had. Not helped by the fact that my daughter said just before I left home… ‘Don’t be embarrassing – and they really aren’t interested in all …

I looked at these young women and thought what would I have liked to have known all those years ago? I showed them a photo of my girlfriends and I at the same age. This started the conversation – instead of a mother, CEO and old woman – they now saw that I too had started my journey in the same place they are now.

I shared with them about the difference between accountability and responsibility. I gave them vivid examples of leadership versus management. But more than anything, I wanted to leave them with the message of persistence. Of not giving in.

I’ve met people throughout my journey – all of which have added to who I am now. Even the most horrendous manager taught me how I did not want to be. I said: “When I’m running the show it will be different.”

Entrepreneurs are like clown punching bags – we keep getting dealt a blow (we never know where from) but up we get and keep going. We never give up. There is no option of when should I quit. We have only one way forward – towards achieving our purpose.

Our purpose engages others in what we are up to. It is the people around us that will make it happen (as my colleague Megan said to me yesterday – “I’m the detail in your devil”). Persistence is a key ingredient. And being passionate about what we do everyday is a given. (Going into business just to make money is not very inspiring to anyone).

These young women were eager to hear my story, and had many questions. But I left them with one thought. To follow their dreams single mindedly, that it is wonderful to bring our femininity to whatever we choose to do… (we don’t need to act like blokes). That by the time they are my age I would like to see that the public company boards in Australia are representative of the communities they serve.

Perhaps some of the young women I met today, will be part of that amazing revolution yet to take place in the board rooms of Australia (I just hope we don’t have to wait 30 years to see it happen).

Giving an acknowledgment, or thanking someone authentically can be a great gift in itself. It usually comes back to the intention of the gift. Is it given from love, kindness and generosity or is it given hoping for something in return, to buy a favor, or to coerce someone.

A gift or a thank you needs to be given purely out of generosity and to show that the recipient is cared for. Then it will enhance the relationship. It is the same with gifts given in business. What you give someone is just as important. A gift can often be met with cynicism if it comes with an agenda. A great gift will be relevant to the recipient, something that is of worth to them.

At RedBalloon we’ve found that more than 50% of Australian businesses give their employees a leaving gift – yet less than 1% give them a welcome gift (and a uniform does not count as a welcome gift). A new employee will feel great when you congratulate them for joining an organization. It will set the tone of acknowledgment at the commencement of their employment journey.

A gift reinforces our status, and supports the basic need of being a part of something important. Ideally you want to give them a gift that they are proud of, that they want to talk about – that shows that you know that person. I think one of the reasons why experience gifts are so popular is because people get to choose from thousands of activities – something they have always wanted to do – and they get to share it with those people who are important to them, a spouse or friend for instance.

I remember once in a speaking engagement where I had been sharing how important it is to acknowledge an individuals contribution to an organization, in a personal and authentic way – and that this must be done regularly (according to Gallup employees have forgotten within 7 days an acknowledgment received). A question came from the audience –“but what if you say thank you to some one – or give them a gift, or acknowledge them with an award, and then a month or two later they do something that is ‘against company policy’ or detrimental to the business.“ At the time I was surprised by the question. As a parent do we not acknowledge the good things our child does because we know very shortly they are likely to do something naughty?

I have always found that if you authentically acknowledge someone – they feel so good about themselves that they wont want to let you down. People by nature will respond positively when they know that you really do care. It becomes person.

Here are three steps to authentic gifting:

1. Know the intention of the gift and be real when you deliver the message. That is, thank them specifically for what they did for you, or the relationship you have with them.
2. What impact does that person have on you personally (as well as the organization) eg ‘without your contribution the project would not have shipped on time’
3. Let them know why you selected that gift for them. eg ‘I know that you have always wanted to learn sushi making – you might like to choose that for yourself and partner.’

We are all busy – but the power of delivering a great gift with reap more rewards than you can ever imagine…Not just because of the way you made them feel. But the way it made you feel when you gave the perfect gift.

I was at a sales convention some months ago and one of the delegates was excitedly sharing that he could purchase media so cheaply… "this downturn is fantastic he said – if you’ve got some dollars, media advertising has some real bargains to be negotiated."

It got me thinking – "Who’s watching?" Maybe the affordability of advertising has nothing to do with the downturn – but more a fundamental shift in media in how we consume information (a restructure of an industry). 24 out of 25 of the largest newspapers in the world have a significant decline in circulation. My children would never consider going to the library or buying a newspaper to find out what is going on. They simply consume online… and on their mobile devices.

I remember in 1996 I would get about 1 email a week – I wondered why I’d bothered setting up an account. In 2000 I thought I was too old to understand the internet and would leave it to the young marketers. Lucky I stuck with these mod cons.

The lesson that I’ve learned is simply to explore – twitter, facebook, flickr might not me here in 5 years time – but they will definately play a role in getting us to the next thing. So hang on for the ride – it is a journey… to be enjoyed where ever it takes us.

We are impatient! There is so much we want to achieve and we are clamoring to do so. We want millions of people to have amazing experiences with their friends and family and through that we will have changed the way people gift forever. However, we’ve grown extremely quickly in the past eight years and we’ve learned some important lessons about how to grow. It’s all about growing with strength and continuing to grow our intellectual capabilities. It’s not just about achieving our BHAG (Big Hairy Audacious Goal) it’s about creating new opportunities, career development for the team and having fun. (You cannot change the world without the means..)

Simply we must keep attracting new customers, new partners, suppliers – and to support all this we continue to upgrade and innovate our technology.

We need a vision to be able to grow rapidly.

I often say to my General Manager, who’s now been on this journey with me for six years. “If only we knew back then what we knew now”, or “if only we had not implemented it that way, we wouldn’t be having to do it again now!” but to be honest, we grew fast, we did what we thought we needed to do, made decisions on the fly and I wouldn’t change a thing. We’ve always stayed true to our vision and values and that’s what counts.

We need great people to be able to grow.

The economic recovery poses challenges and opportunities. People will become more scarce – we have been able to recruit amazingly talented people at RedBalloon. But amazing talent will become increasingly hard to find. Again we may have to begin to source skilled professionals from anywhere on the planet.
 
We need great customers who want to share the story to continue to grow.

Our number one referral of new customers is word of mouth, it has been that way for eight years now and has now gone into overdrive, particularly in the social media arena. Our key strategy is obviously to continue to perpetuate our story via word of mouth, so we have to “give them something worth saying”, about  the experience of dealing with us and their feelings after participating in an experience.

We need amazing suppliers to be able to continue our growth game.

The most satisfying aspect of running RedBalloon is watching the passion for the brand become catchy, I genuinely believe in the power that experiences have in connecting people and creating stories that people will tell and continue to tell. People join RedBalloon because they believe it, customers buy from us because they believe it and we support an amazing community of experience suppliers (small, medium and large businesses) who get to deliver what they love doing to more people because of us. Each of those businesses in turn grow as we grow.

Kind of nice really an Australian business supporting Australian businesses.

Growth is catchy.. and good for the whole country.