Customers look different now

This week we have seen the demise of Fletcher Jones and the opening of Top Shop. My 15 year old daughter texted me, saying ‘I’m even more excited than when Zara opened – it is British and I love it – when can we go?”

Many Australian retailers are left thinking “what happened – where did our customers go?”. We are in the peak of Christmas season and there is not one retailer in Australia who is not holding their breath and ‘hoping’.  As we know however ‘hope’ is not a strategy.

From the online world I can see so clearly what is likely to happen over the next few years. But I don’t have a massive infrastructure or team – I don’t have to move a mammoth organisation into the position of competing against global players.

Think of the traditional retail customer experience: we battle the traffic, search for a parking spot, deal with lousy weather – and then try to find someone to serve us– when we finally do find someone to assist we discover that the retailer does not have the color, quantity or size you need. No wonder people are choosing online… it is soooo easy.

I’d hate to be in the business of having to have all the right stock in all the right places at all the right times – being served by all the right people… how hard is that?

What can retail businesses learn from the entertainment business?

What if retail outlets became show rooms – where as a buyer once your color and style are determined you have your item delivered at no extra cost direct to you the very next day. Not schlepping your purchases from store to store – wasting hours, with hurting feet – that would be an experience.

Retail in Australia is about to make a massive shift and not all will make it. I hate to say it – but it is all about the experience. In speaking to the MD of  Chanel Australia he says that their concept stores go from strength to strength – people love being immersed in the brand – and you just simply cannot achieve the same experience in a department store.

Fletcher Jones did not grow with it customers. I have just come from a business lunch in the city – half the attendees were wearing jeans….

Please retailers – wake up  – listen to your customers and give them something worth fighting for. I understand that the reason why Top Shop is opening stores here – is because they have been shipping so much product here via their website they realised what a fantastic market it is.

Bring innovation back to retail… for instance young Eliza Roberts (11) has started her first business  – in the northern beaches of Sydney she has started a Pet Birthday cake business… in the first month she sold 30 cakes. She knows her market, she provides fab service – and people are very much getting the ‘entertainment value’ of being able to talk about the experience of their purchase.

Retailers it is time you gave your customers a ‘good time.’

Alan Joyce at the eXcel Qantas Awards night

As I sit to write my regular ‘Coming up this week’ blog it is not as simple as looking in my calendar and preparing myself for what lies ahead.

Last week was a complete whirlwind – three speaking engagements, two entrepreneurial workshops and one EY entrepreneur of the year judging… which were in addition to my usual meetings and appointments. I thrive on being this busy… however, I probably could not maintain last weeks frenetic speed for more than a few weeks, and I am so grateful for weekends with family.

This week may or may not pan out how I expected. I am supposed to be in Perth in the back end of the week. I have a feeling of deja-vu.

I was working for Ansett during the pilots dispute of 1989 (which does seem so very long ago). I remember when the pilots first chose to strike (some weeks before they ultimately resigned on mass) – each day I would go to work and wonder what would happen. It was very different back then. Firstly the dispute was industry wide and the result was Australia had NO aviation industry for about nine months. (At least the other airlines are still flying.)

As I sit here and wonder what my next week will be like – I remember the feeling of “surely this will only be a few days… surely someone will see sense”.

I know Alan Joyce personally; in fact we were at Ansett together during the pilots dispute of 1989. He more than anyone knows what this means to both Qantas; as an institution and to the Australian travelling public.

Qantas’ rivals do not have the same militant unions to contend with. As an entrepreneur with a clear vision I cannot imagine how hard it must be to deliver upon the customer experience when all parties are not aligned. I have had the privilege of working with Qantas over many years with its eXcel people recognition program, as well as being a ‘peoples choice panelist’. I have experienced first hand the Qantas leaders commitment to great service through recognizing their people.

Qantas eXcel Peoples Choice Award winners 2011

But the playing field is not level… Qantas is responsible for delivering shareholder value and as such must be competitive.  The very tragic thing is – I had believed that we as a business community had moved into a new world where all employees would align to the vision of achieving something great. It appears that nothing has changed in 20 years since I left the aviation industry out of frustration with archaic business practices.

(I had once presented to Ansett management a piece of work that had taken me months to complete – management pointed out that to achieve the service enhancement they would have to speak to 11 unions. My project was dismissed with the statement “you go and worry your pretty little head about something else.” – I was devastated at the time because I could not understand in my youthful exuberance why all employees would not be as passionate as I was about the customer experience.

I remember that very scary feeling of going to work every day ‘hoping’ that the pilots would fly again – and they never did. Surely we learned something 20 years ago.

There is no doubt that aviation must go through wholesale restructure – and that the Qantas board has known this for a long time – and now the showdown has commenced.

As a result of course – I am back to where I was 20 years ago – wondering what I will be doing this week – and ‘hoping’ the plan comes together quickly

This week I was at the AICD course and one of the female participants said she was desperate to get a new handbag and wallet as hers were ‘falling apart’. I was going to the top of Collins street anyway so we went together. This woman told me she wanted a Gucci handbag and matching wallet, because ‘they last’.

We were both completely underwhelmed by the brand experience. The attendants were wearing ill-fitting brown uniforms that looked terrible (and they had wires hanging out of their ears – the effect was to make them look like security guards – not women of style selling to women of style.

My friend selected a wallet, and the sales assistant said ‘you don’t want that one it has been on display’ I will get you a new one in the box.  My friend opened the new box, the wallet looked the same, but she then opened the actual wallet only to discover it had a different internal design. She was a little put out, said she wanted the original style she selected. There wasn’t a ‘new one in stock’. They could put one aside in another store and she could go there… (My friend’s time is scarce) she said – can’t you have it delivered to me…’No’… so my friend said can’t you sell me the display one (implying with a small discount)… the sales assistant’s English was not good – and she did not understand the subtly of what my friend was saying.  My friend ended up leaving without a wallet.

She did however purchase a handbag. When we arrived at the course the very next morning – this woman held up her bag (I thought so I could admire it.) Alas no – the handle had broken. (Ironic given she only purchased at Gucci because she thought the bags lasted).

My friend called and asked the Gucci store to deliver a replacement bag to our location. That would not be possible, as the bag might have to go for ‘repair’. By this time my friend was exasperated. I heard her say ‘So you mean I have to come all the way back to the top of Collins street – this is actually your problem yet I have to do the running around to fix it’.

At the time she was on the phone I was flicking through the beautiful Fin. Review Magazine fashion edition – and noted the very expensive Gucci ad, which promised ‘glamour & luxury’ and implied customer experience. My friend just rolled her eyes when I showed her it.

We traipsed back to the top of Collins Street. When we entered the store a shop assistant instantly stated ‘a repair is it?’ As though this happens a lot. My friend stated her case in no uncertain terms, this was a new bag and she was not going to settle for a repair (quite frankly I think she would rather a full refund and never to return to the store – except she then would have wasted more time looking for another bag… and a wallet that she still did not have.)

This was my first (and only) shopping experience at Gucci – and it was not even my purchase. If these luxury goods businesses have such high margin’s I wonder how much training their staff receive. My friend would have received far better service if she had purchased online. Traditional retailers need to consider carefully why people choose to purchase in a store.  Perhaps it is so that they as a consumer feel that they have ‘touched the brand’ or been a part of something, felt glamorous for a few moments.

Anyway we get to vote with our feet. But these ‘old’ businesses need to get over themselves and come into the new world where the customer does have a choice – we want to be part of a brand experience when we visit a retailer.

It is true though that I have often spoken about ‘employees as the new customers’ – but there is a subtle difference in language compared to the term ‘internal customers’. I consider my fellow RedBallooners as my ‘colleagues’ and that we are all very much equals – with every person contributing ideas and energy towards achieving our purpose. Employees as the new customers – means to me ‘that I am all ears.’ Also I think that the term ‘internal customer’ implies one person is ‘serving’ another. And that is not the case at RedBalloon… we work side by side, supporting each other. All food for thought though.

So I agree with Verne – that there is no such thing as an ‘internal customer’, but I do think we can have more than one customer group.

This week – is all about preparation for a very busy few months.

Sunday: RedBalloon is on Kochie’s Business Builders 10.00am Channel 7

Monday – Tuesday – One on One meetings and preparations for end of trimester.

Wednesday – Working on a new project (doing some planning and forecasting)

Thursday – Speaking engagement for Westpac Private Bank on Customer Experience.

Friday – Touch base with the Customer Experience team at their weekly meeting

‘I can no other answer make, but, thanks, and thanks’. William Shakespeare.

As I just complete my tenth Christmas at RedBalloon – I experience a sense of overwhelming gratitude. I have been truly humbled to see how RedBalloon has captured the imagination of so very many people.

In my wildest dreams ten years ago I never thought that we would make such a profound difference in all sorts of ways.

I thank the businesses and organizations that believe in what we do – and believe in their own people and choose to recognize them with a RedBalloon gift.

I thank the experience supply community who every day deliver experiences and fulfill on our promise of providing fabulous things to do.

I thank our other suppliers, like Bluefire, PwC, Westpac, Qantas and Telstra (and many others)– these big businesses who’s services mean that we operate smoothly and efficiently.

I thank the many marketing partners and agencies we work with – who understand our vision and believe in the dream

I thank our retail distribution partners including Australia Post, Coles, Woolworths, Myer, Big W and Target who are trying something different in store

I thank the 300,000 customers who came on-line in 2010 and purchased an experience gift for someone special (and reduced the clutter on the planet in the process.)

I thank those who are dear to me; my family, friends and fellow business leaders who never tire of my enthusiasm and energy.

I thank most deeply my colleagues past and present – who make RedBalloon the vibrant, fun and amazing place that it is to be.

And I thank the RedBalloon leadership team who constantly steer the ship – executing the plan and keeping all aligned – tirelessly.

Together we have created something… The dream of changing gifting in Australia forever is well on track….

Thank you! Thank you for believing moment by moment that it is absolutely possible; that what people want more than anything is special moments with those people who are important to them.

“For your thoughtfulness and generosity, from you I have learned much of life’s philosophy – Thank you sincerely.” – Author Unknown

We learned that lesson the hard way – years ago when RedBalloon used to put the persons first name in the header of our email campaigns. That was too intimate – because we might write ‘Jane, what are you giving your mother for Christmas.’ Only to get a very terse response – ‘if you knew me well enough you would know that my mother passed away last Christmas.’

This lesson has progressed with us at RedBalloon into social media – though of course we have not got it perfect – who does. Social media is definitely not about perfection – it is about being real.

We covered five main ideas that we covered:

1. The emotional power of response: Social media isn’t about just having a presence, it’s about using the platform to talk to actively engage and talk to consumers. Don’t underestimate the power of a personal response!

RedBalloon found that whilst it is a marketing tool – it is not a ‘push device’ like other media – for the first time in history we have a chance to really listen – in real time, to pose a thought or idea and demonstrate the we are just a bunch of people that have all come together with a collective idea of ‘changing gifting in Australia forever’.  A conversation is born.  We also get RedBallooners speaking as individuals to interact as much as possible, and when they comment it helps create a REALLY personal response.

2. It hurts, but prioritise engagement over reach: ‘When it comes to social media communities, size isn’t everything – I’d rather have 100 highly engaged fans on a Facebook page who actually share and discuss content than 1,000,000 fans who aren’t active at all.’ According to Graeme Boyd  Consultant Community Manager / XBOX EMEA

There was some debate about this – I was quite envious of the shear quantity of fans that Hamish and Andy have – but the reason it works is still the same for us – they are doing the work and really responding to their ‘fans’ – The business we are in lends itself to sharing experiences online – it is our job to facilitate it.

3. Start with an insight, not a media plan: DON’T adhere to the ‘Dude we should do philosophy’ – i.e. ‘Dude we should do Facebook, dude we should do Twitter etc’. Identify the key insight first, considering who it’s relevant for and where they spend their time doing what, before deciding on platform/media.

In the early days of RedBalloon social media we ran a poll on our home page asking which platforms our customers used the most. We also paid close attention to the level of engagement we got on different platforms and focused our efforts accordingly. There’s no point blasting away on a platform when no one who cares is going to hear or interact with you.

4. Be prolific rather than precious: Success in social media is about relinquishing control – letting people dictate the ebb and flow of a given initiative. Things happen fast on these platforms and you have to be ready and willing to get stuck in and talk to consumers – not waste time agonizing over every last irrelevant detail.

Real world communities are not predictable, they are not formulaic, so your approach to social media cannot be either. So for us it’s more about being dynamically engaging – become relevant by giving the community what they want and remain relevant by being flexible enough to realize when the way they want to interact with you has evolved. We are always testing and posting different conversation starters or announcements, but not at such a prolific level that we are bombarding feeds like the annoying person who continues to talk over the top of you while you’re trying to have a conversation with your mate. It’s a delicate balance. And sometimes our content doesn’t always hit the mark. Over time on facebook for example, we’ve gauged engagement via likes and comments on our various topics. Sometimes it’s the least likely topics that get the most interaction… topics that may never have been tried had we been too precious about before posting.

5. Look at what it does and ONLY then use it: Social media is only tricky if you try to retro-fit or shoehorn existing campaigns/strategies. It can be a simple as working out what people use a given platform for and building a campaign around THAT. It’s why previous example of Best Buy’s Twelpforce works so well.

We started off with a social media strategy, outlining different approaches for each platform. However once we embarked on the journey we found that the social spaces took on a life of their own. The direction changed a little, and this was all dictated by the user. People behave differently on Twitter than on Facebook, so you need to tailor your approach to fit in with this.

Since our earliest days, word of mouth worked best. The impact of RedBalloon experiences is often such that they not only make a lasting impression on the individual, but they also often evoke rich stories that we share with our family and friends. Social media has always been about conversation and inter-personal connection. So the fit for us was natural. Our social media strategy became merely a platform, a facilitator, of the stories that we already knew were being shared both outside and inside this space.

So at the start our approach was simply to get to know our community, share funny posts and communicate as RedBallooners with names – building a connection. Since then, we’ve built a community where members actively share their stories (good and bad), whether it be on facebook or twitter. Having said this, we’ve learned that our approach must be tailored slightly to the specific channel. We learned early on that behavior was slightly different on twitter than facebook. On twitter the format is much more instantaneous and often one-to-one, whereas facebook is much more conducive to a longer chain of interactions across many more individuals.

I enjoyed being on the panel with Andy Ridley – Earth Hour, Simon T Small on Jetstar, Emily Rayner Austereo – and our chair person Gual Barwell from Contagious Magazine

Real cut through comes from the authentic experience someone has of a brand.

At RedBalloon we just figure that rather than making ‘promises’ and ‘ trying to sell’ stuff – we will just let people know what we stand for.

I was very chuffed to read this blog post (well done team)

http://maloneyonmarketing.com/2010/08/10/using-real-australians-in-your-advertising-redballoon-vs-qantas-frequent-flyer/

Really, we are just a bunch of passionate people who are all focused on making sure that we deliver amazing experiential gifts…. We so understand that people have a choice and we are so appreciative when people choose us.

Marketing has come along way from the 1950’s – but the premise is the same – “I want to know that I am dealing with someone real – and what you stand for”

He talks about customer happiness with religious zeal. The culture of the business means that there is not a department accountable for customer care – the whole company is. Every employee has at least 2 weeks on the phone with customers as part of their induction training. No matter what role have joined the business for, being with customers if everyone’s job.

At some point in the book – Hsieh poses the question – ‘As leaders are we asking the right questions?’. I ask myself – how do we know what are the right questions?

Recently RedBalloon for Corporate wanted to find out – not just if RedBalloon was delivering on it’s promise (ie customer satisfaction) – we wanted to gain real insights to assist us ask the ‘right questions’ and determine future activities.

We know to be successful we must be truly transparent with our customers – acknowledge our commitment to customers – but also appreciate that sometimes things do go awry.

If we are not asking the right questions –and listening to customers, more often than not, we also won’t even know if things get out of kilter. Establishing listening posts with customers is also a great source of innovation and development of how we can grow and better support our corporate clients.

94% of the corporate customers said that we were friendly, knowledgeable and professional… (Whilst no one said we were extremely bad at these things) what is it that the 6% of people who are ‘on the fence ‘were expecting ? How could we either better manage expectations or create a better approach for them? RedBalloon has close to 2000 corporate customers  so a short fall of – 6% represents – 120 people – which is a lot of clients who we are not serving the way they want us to.

94% of people also rated the experience suppliers approach in the same way. This gives us an opportunity to drill down more into what people expected and how we could make that smoother for them.

We discovered that only 5% don’t know the impact that the RedBalloon for Corporate has on their business – whilst 91% claimed that RedBalloon was successful or very successful in achieving the business objective of using us.

Satisfaction is a subjective term – and depends on an individuals perceptions… so what we wanted to discover was whether our customer talked about us to others and are advocates of what we do… I was delighted to see that 91% of people are strong supporters and tell others about us. – and 92% have recommended us to others…which of course support the theory that word of mouth is the best marketing strategy of all.

As RedBalloon progresses it’s customer excellence program – this is the first time we have surveyed our corporate customers. Thank you so much to the hundreds of people who took the time to help us listen.

We appreciate it – and look forward to delivering.

And we both believe the company’s culture and the company’s brand are really just two sides of the same coin – As we say at RedBalloon Happy People = Happy Customers = Happy Profits

In Tony’s book he outlined his 10 beliefs in customer service. It can almost act as a check list to customer experience success.

Zappos.com 10  ways to Instil Customer Service into your Company

1. Make customer service a priority for the whole company, not just a department. A customer service attitude needs to come from the top.
2. Make WOW a verb that is part of your company’s everyday vocabulary.
3. Empower and trust your customer service reps. Trust that they want to provide great service… because they actually do. Escalations to a supervisor should be rare.
4. Realize that it’s okay to fire customers who are insatiable or abuse your employees.
5. Don’t measure call times, don’t force employees to up sell, and don’t use scripts.
6. Don’t hide your 1-800 number. It’s a message not just to your customers, but to your employees as well.
7. View each call as an investment in building a customer service brand, not as an expense you’re seeking to minimize.
8. Have the entire company celebrate great service. Tell stories of WOW experiences to everyone in the company.
9. Find and hire people who are already passionate about customer service.
10. Give great service to everyone: customers, employees, and vendors.

Every new person at Zappos (no matter there role in the business) has at least two weeks on the phone to customers as part of the induction program. There is no better way to know a business than have time with customers.

Thanks for the reminder to be vigilant, zealous and addicted to the customer experience. We’ll see how we stack up using this score card.

I have connected my twitter account and this blog so that it automatically feeds what I’m talking about into LinkedIn and I have been pleasantly surprised that this network has created a different sort of debate. LinkedIn is very much a business application.

It seems like a good place to start a discussion. Creating a Group for our corporate clients gives us access to what they are learning and discovering in the area of incentives, or reward and recognition. It means that we have broader access to those impacted by what we do – the participants of programs for instance are able to join the conversation.

This century is all about transparency… we started this business by listening and responding to customers. This Group gives us another listening post – Join the RedBalloon Corporate Group and have a say – or connect to me.