Category Archives: customers

Matalan – Sometimes, all it takes is the basics.

I’m subscribed to more on-line retailers and loyalty programmes that I can remember these days, but I never cease to be amazed at how badly these companies manage their data.  Its been years (I mean more than twenty) since I started getting my clients to build relationships with their customers by acknowledging dates like birthdays that are important to them, but I can’t remember ever receiving a birthday reward from anybody other than MoonPig and then, of course, it was someone else’s birthday they were reminding me of.

I was reassured therefore by my mother’s delight at having received a £5 shopping voucher for her birthday this week from, of all people, Matalan.  I’ve always wondered why the retailer didn’t appear to do anything much with the data they collect when they register their customers.  Especially as you are strong-armed into subscribing to their loyalty programme at your first visit to one of their stores.  It seems that having hit rock bottom in recent years the retailer has addressed issues well beyond their dowdy stores and stock.  Well done Matalan for showing UK retailers how its done!

Customer Loyalty – Stop trying to buy it and start earning it!

Yesterday I came across a great piece by Luca Paderni on iMedia Connection entitled “Why Your Brand Loyalty is Failing”.  Luca covers pretty well all the angles and raises many important issues, but there’s no escaping the underlying truth that kept surfacing among the other well-made points – customer loyalty is simply a product of customer satisfaction.

I run many workshops on this subject with businesses around the world and I’m used to receiving a torrent of ideas from delegates for programmes and initiatives designed to reward loyalty.  Sadly I get fewer ideas for ensuring that the brand promise that brought customers to the point of purchase in the first place is delivered. If my delegates are indicative of the people driving marketing these days, its hardly surprising that the focus of so many businesses appear to be trying to buy rather than earn customer love.  And they do this regardless of the fact that it’s a ludicrously expensive and extremely short-term way to run a business.

These days loyalty is the dominant business driver.  With most customers already claimed/assigned to vendors (apart from in emerging markets there are few emerging customers) the return you’ll get on acquisition investment is always going to be limited and its hard work.  The future lies in selling more stuff to your existing customers and they’ll only buy if they love you.  The problem is there seems to be confusion among marketers over what drives these brandships.

Sure customers will appreciate add-ons and freebies, They’ll add to the customer experience, but they only have value if you have already given your customers what they came for and simply will never be an alternative to simply delivering your brand promise.  My advice to any business that asks me about customer loyalty is to start by measuring customer satisfaction.  There’s only one way to do this and that’s by measuring your performance against your brand promise and the pillars that support it. (see the tab for Brand Discovery above for definitions.

Yes, there is no escaping it.  It’s back to my old favourite, the Brand Model again, because that’s where everything in any successful organisation has to start and it’s why my Brand Discovery programme places so much up-front emphasis on this vital business tool.  If you have set about creating your Brand Model correctly and placed the appropriate emphasis on marketing it internally, if you have developed the right briefing processes and checks to back it up, everyone (and I do mean everyone) in your organisation will be focussed on delivering your Brand Promise and none of your customers will be disappointed.  THEN the rewards that everyone seems so keen to give away can make sense.

When customer service is more about internal marketing than training

Because, unlike most other countries, when a bank holiday coincides with a weekend, we Brits nominate the nearest weekday a public holiday, today (Monday 2nd May) was Mayday bank holiday in the UK.  As a consequence, I caught “Don’t Get Done Get Dom” on daytime TV where, cheeky chappie Dominic Little champions the consumer cause.  The object of his ire this week were the retailers Currys and PC World and Dom had a mailbag full of customer service complaints that he set out to resolve with the retailers’ parent Dixons Stores Group.

Over the last few years the consumer group Which have consistently highlighted DSG’s customer service deficiencies, its surveys revealing a customer satisfaction rating of something in the region of 30%, so the state of affairs can’t be news to DSGI management.  It’s bemusing therefore that, if they have done anything at all it’s had little or no impact on the end product, which frankly appears as bad as ever.

How can it be that a big organisation like DSGI can firstly deliver such poor customer service and secondly fail to address the fact when its pointed out to them in such irrefutable fashion?  Well, it could be that it’s a strategic choice.  I’ve heard of organisations before that had made the conscious decision to set their customer service rating target low because they had calculated that the cost of raising it above that point would not be recouped.  Putting aside the many and obvious flaws in that argument, I can’t imagine that a 30% rating would be acceptable to anybody, so I have to assume that this state of affairs is rather more an accident than a plan.

The feedback Dom received from DSG management was confusing.  Their comments suggested that they view inconsistencies in customer handling skills as an inevitable consequence of their rapid pace of recruitment and accepted that limitations in training capacity would result in new employees arriving on the shop floor with limited or no training.

I don’t buy any of this.  Firstly training may be an issue, but the fundamental problem here is clearly internal marketing.  The reported problems had far more to do with the willingness of customer-facing staff to disappoint or even upset customers than it did with processes, which it seems were largely not at fault anyway because all the customer issues were resolved once Dom had escalated them.

It seems obvious to me that the focus of DSGI employees is miss-aligned.  They seem to act on the assumption that customer satisfaction was secondary to adherence to processes (which they misunderstood anyway).  Yes, training would help them get to grips with the processes, but internal marketing is the tool to set customer satisfaction as the priority.  Once that’s established, when an employee can see that they are in danger of disappointing a customer they’ll realise that the process, as they understood it, is leading them down the wrong path and put the brakes on.

I don’t accept that employees find themselves on the shop floor without first receiving training either.  Training like this doesn’t have to be process-based.  In fact, the priority should be a culture-based induction that can be undertaken by the local manager, on-line or in a classroom, depending on time and cost pressures and there are many ways in which this process can be policed.

Over the years I have devised and run numerous training and internal marketing programmes, for retailers, who have witnessed improvements despite high volume recruitment.  In fact internal marketing, linked to a clear brand model reduces employee turnover, so volume demands are usually reduced too.  The evidence of Dominic Little leads me to suspect that DSGI are making a fundamental error in thinking that training holds the solution to their problems.  My belief is that they need to take a step further back.  Their customer service issues and a number of their other problems are, I am sure, all down to the lack of a clearly defined brand model and the internal marketing programme that makes it live and the sooner they recognise that and address it the sooner they will stop finding themselves the focus of programmes like Don’t Get Done Get Dom.

Is your customer support a bit of a let-down?

Most businesses these days understand that they are driven by Brandships.  Many appreciate that Brandships are built on trust and few would fail to recognise that if their words and deeds are in any way inconsistent, either with each other or with their Brand Promise, they stand little chance of establishing the level of trust that success is built on.  So where is it going wrong?

Having acquired this wisdom, organisations around the world now devote a great deal of time and invest heavily in initiatives designed to represent their brand values consistently at every touch-point.  Getting every communication to say the same thing is the essence of integrated communications.

Because customer acquisition for all the reasons I’ve explored here in the past, is getting horribly expensive, Brandships are more valuable than ever, which is why businesses are increasingly seeking to improve their customer support,  a factor that is accentuated by the growth in e-tailing where the incidence of customer complaint is, as I mentioned last month, a bit of an issue.

I’m encouraged by the increase in the number of businesses who, instead of trying to make customers with a complaint feel like Oliver Twist asking for “more gruel”, have adopted a no-quibble replacement or compensation policy.  It seems that,  at last, the penny has dropped on this one (Although you’ll note from my earlier post on this subject that Halfords still don’t get it!).  However, you can have the best complaint resolution policy in the business, but it ‘aint worth a hill of beans if your customers have to navigate a maze of on-line and telephone obstacles to get to it!  There’s no more telling evidence of a genuine commitment to Brandships than an organisation’s on-line or call-centre process and it’s certainly taken by customers as a pretty good guide to brand values.  So why do so many businesses get it wrong?

My guess is that they simply don’t recognse what’s happening.  I’ve been advising senior execs lately to call up their own customer support line from time to time, rather than rely on the KPIs they get every month.  Whether your process is automated or not, the way you handle after sales contact with customers can be pivotal to the success in Brandships.  This isn’t just about damage limitation (because nearly all the calls you receive are going to be potentially damaging), many businesses have demonstrated that you can actually reverse the momentum, turning a potentially damaging situation into one that strengthens Brandships, if you handle them correctly.  For most this is nothing more than aligning the process to the brand model, which, sadly, few businesses do well.

In recent weeks I’ve experienced both the best and the worst in customer call handling.  The worst being the episode with Halfords that I reported on here last week and a more recent still, an encounter with HP’s customer dis-service process that starts with their un-navigable web site, designed to send you round in circles until you screw yourself!  Yes HP seem intent not to engage with you unless they absolutely have to, which is a pity, because if you can get around the system and actually manage to speak to the person you need, the response (in my case anyway) was exemplary.

I was also disappointed when re-visiting a brand that I have been happy to deal with for years.  I have never before had cause to complain about Polar UK, The local distributor for Polar, who manufacture heart-rate monitors for athletes, but I’ve called and spoken directly to their service people in the UK a number of times.  Such an old-fashioned process may have been a little at odds with their global positioning, but it was very reassuring and, overall, it worked.  Sadly, they have succumbed to pressure to automate their calls handling, but in their case the band-waggon has a wheel missing.  In fact, its possibly the most bumbling and poorly conceived process I have come across for a good while and the antithesis of everything that I have come to expect of the Polar brand.  This takes me right back to the principles of Full Effect Marketing – individual marketing elements, which because they are neglected, neutralise some of the brand building benefits of higher-profile elements that the business is investing in.  In other words … waste!

The up-side of my engaging with customer service processes has been a discovery I made of a business that specialises in designing models that actually contribute to brand development.  Brand Audio in Edgware, North London, will study your brand (even work with you to help you profile it if you haven’t already) and then bring it to life in navigation, messages and music.  Just what every business needs in fact.  This isn’t about hardware or programming (although I’m told they can provide that too), its pure brand development and while I am sure they are not alone in this space, it made me feel good to know that there is someone my clients can turn to for this kind of specialist help.  Brand Audio work with a host of leading brands who recognise the need to prioritise their customer handling processes.  At least, one route to great Brandships (and therefore a healthy business) is in the way you interact with customers on-line and on-phone and I recommend to every business to address this area of their marketing before its too late.

Footnote: Brandships, as it suggests, is the name I use to describe the relationships we have with brands.  Enter the world of Brandships at www.thefullblog.com or follow me on Twitter @thefulltweet.

Halfords’ customer service sucks – well, it would if I had my way!

I’ve never had anything against Halfords.  In fact, I could refer to various supportive comments that I have made over the years.  They seems to have carved a niche for themselves in the bike sector, they triumphed in a deal to distribute Boardman bikes, they were smart enough to partner with an auto service business and now fit the products they sell to motorists and cyclists alike and they made the forray into Poland and the Czech Republic.

Their staff in the UK at least, while nothing to write home about, are certainly, if Mary Portas is to be believed, as good as you would expect from a multiple specialist retailer these days.  On the down-side, their on-line performance leaves a lot to be desired and dealing with their head-office at any level is a bit like wading through porridge, but its my recent experience of their approach to customer support that has sent my overall personal satisfaction rating way into the red.

OK, so Halfords aren’t having the best of times at the moment.  Like-for-like sales are down and despite all the usual excuses – recession, weather, cost of car ownership etc – that always has something to do with the way you treat your customers.  You’d be right to point out here that, last we heard, profits were up, due in part to a concerted effort to drag their back office, logistics and pipeline into something approaching the twenty-first century – Oh, and a quick reverse out of the Czech Republic and Poland.  Nevertheless, I still hold on to the idea that if you treat your customers well you’ll succeed whatever the size the market may shrink to.

Halfords has never gone out of its way to make customers feel wanted.  It wasn’t that long ago that they undertook to respond customer-support e-mails …  wait for it …”within eight days”!  Communication has been a bit quicker lately, but that’s not a lot of use if they aren’t being helpful.  Someone should point out to them that making statements like “we value your custom” and “we pride ourselves on our customer service” is all very well, but until you actually resolve issues its only “lip-service”, not “customer service”!

If you drop your Tesco shopping on the way to the car, Tesco will replace any broken items.  They don’t have to, it’s just their way of making you feel good.  You may consider this as giving 110%, but, let’s face it, it costs Tesco tuppence and the value to them in customer satisfaction ratings is worth far more than that.  Yes, every little helps!  In contrast, telling you they make every effort to make you satisfied, is “job done” in Halfords book!

Last weekend I bought a four-litre plastic container of concentrated screen-wash from Halfords, along with a bunch of other stuff.  I placed it in the passenger foot-well of my car and drove home, only to discover, when I arrived, that the foot-well was now an inch-deep in screen-wash and the container was almost empty – no doubt where that had come from then!

I took it back to the store where the manager pointed out that the seal that should have prevented the cap from coming off the container, had been broken, presumably by someone in the store, which he added, was not unusual.  He replaced the purchase, but I still had a screen-wash lake in my car and thick-pile carpets that don’t come out just like that.  On his instructions I e-mailed Halfords’ customer service to seek recompense for the cost of having my car bailed.  And after a couple of days I received a reply.  Apparently, they don’t see that its anything to do with them and suggested that if I had taken proper precautions while transporting the screen-wash I wouldn’t now have an on-board swimming pool, steamed-up windows and a very smelly car.  I get the impression they think that by explaining this to me they resolved my issue.  I’m sure I just went into their customer service database as another satisfied customer, but right now I feel as though the customer service manager should personally suck the screenwash out of my carpets!

They may be making a profit, but with an attitude to customer service like this, in a shrinking market I wouldn’t put my money on this lasting long!

Music – The High Street retailer’s secret weapon in the battle with e-tail brands

Is the shine wearing off the on-line retail gem?  Customer service has always been the Achilles heel of on-line retailers and it seems as though it’s a problem that’s not going away.

In November, Nick Robertson of ASOS and Mark Newton-jones from Shop Direct told delegates to the Skillsmart Retail Parliamentary reception hosted by the Deputy Speaker of the House of Commons, Nigel Evans MP, that on-line retailers need to learn customer service from traditional retailers.  On-line customer complaints are high and margins are stretched when the e-tailers try to up their anti.  However, this week Mary Portas has been taking the High Street to task for what she says is “crap” customer service.  So, like most things, it seems its not that simple.

What this boils down to is the age-old marketing fundamental of playing to your strengths.  Internet retailers are never going to have the same opportunities to foster “Brandships” that a high street retailer has, so if the traditional players fail to leverage that now, I for one, won’t be sympathetic to their future cries of “unfair” when their business is left in the dust of the smart young things of e-commerce.

The Internet is a cold and impersonal place.  You have to work much harder than you might on the High Street to achieve anything close to that warm cuddly feeling you get in your favourite store.  To a customer, feeling “at home” with a retail brand is everything (actually, feeling at home with any kind of brand is the key to business success) but achieving this requires the ticking of a lot of boxes.  Some of these boxes are purely practical, like availability, delivery, ease of use, customer service, which is where the Internet brands can compete.  Sure they are failing on customer service right now, partly because the business model that remains viable when the levels of returns and complaints that this channel is prone to has yet to be found, but they’ll get there.  Meanwhile, the “trads” need to wise-up and start polishing up the soft elements of Brand Promise that are tougher for the e-shops to influence.

I’m thinking environment.  Sure you can make an on-line environment comfortable and inviting to customers and it’s not beyond our capability to even modify the on-line environment of a single e-retailer to fit different customer types, but the trads definitely have more scope.  My readers will know that I’ve been focusing on in-store music recently and that’s because its one of those great untapped opportunities of retail brand building.

Shoppers love in-store music when its right.  Give them what they want and they’ll visit you more often, stay longer, spend more and tell all their friends, or so the gurus at MusicWorksForYou.com  tell us.  Retailers know they can influence behaviour of shoppers and staff with the right music and store staff say the right music makes them feel more energised, so you’ll take care of some of Mary’s customer service issues too.  Put all this together and you can’t fail.  But, the onus is on the words “the right music” and that’s where the work needs to be done.

It seems we all know music works, but the secret of quite how it does so are held by only a very few.  People like Bruno Brookes and the rest of the folks at Immedia Broadcast who have been creating bespoke live radio for some of the High Street’s biggest brands for the past ten years.  However, you don’t have to own a multi-million dollar radio station to add something extra to your brand or even drive sales, because with the right play-list a simple music stream will do both and that’s what Immedia are doing right now with their new Dreamstream offer.  Retail marketers need to disabuse themselves of the belief that they know what music works with their audience and hand the job over to the experts who know what “tailoring” really means, then perhaps we’ll be able to wave goodbye to the ubiquitous local radio station (that actually can do more harm to trade than good) or repetitive CD’s of nearly-bands playing covers and start hearing more in-store music that reinforces the brand and fosters real “Brandships”.  Then the High Street will really be able to show the e-tailers a thing or two about brand-building.

Blue may be the new green, but does it suit your business?

So, the debate is pretty well done and dusted – the Green movement is dead. A victim of the same monarchical culture that has buried so many other great ideas and business over the years.  Adam Werbach pointed all this out to us in his speech “Eulogy for the Green Movement” at the Commonwealth Institute in San Francisco way back in 2004.  The mistake he made then was not to offer an alternative and as a result he was vilified by old Greenies, the press and a bunch of other people with no imagination or brains to work it out for themselves.  As he said, people don’t like being called “dead”!  So, he returned to the same venue in 2009 with the missing pieces, which he has called “The Birth of Blue“. Yes, without a doubt, Blue is the new Green, so start adapting your wardrobe.

In fact, Blue isn’t anything new.  Just as the demise of Green followed the familiar path beaten by Communism, a few religions and other movements that relied on compliance under threat rather than a voluntary embrace.  Adam isn’t alone in what has done, but where he scores the bonus is in introducing an imaginative and practical solution, in this case, by adapting a proven approach to a different problem.  I say proven with the certainly of first-hand knowledge, because along with all the other initiatives, cultures and institutions that have successfully adopted this kind of strategy, I have been following it for years with my programme of brand transformation that I call Brand Discovery.

History couldn’t possibly give us more conclusive proof that a culture based on strict rules will fail, yet its not surprising that governments worldwide have adopted a heavy-handed approach to getting us all in line behind the sustainability thing.  When you throw old ladies in jail for putting paper in her rubbish, or stick tracking devices and chips in wheely-bins you really can’t expect anything, but resistance from folks.  The same applies to any community, brand or organisation.  If you make a community welcoming, comfortable and rewarding enough people will want to be a part of it.  Conversely, if you want to drive people away from a place you make it threatening and unpleasant.  Maybe if we gave less thought to prisoner’s rights and conditions incarceration might represent more of a disincentive to criminals?  However, I digress.

Green failed because it didn’t welcome people to its community and brands fail for the same reason.  What constitutes “welcoming” is another discussion and will vary from one brand or community to another, but what I want to do now is focus on the process involved. Its simple really.  You firstly need to lay out all the facts and associated issues in a clear and unbiased way (something that governments just don’t seem capable of).  You then fuel debate and discussion and LISTEN (something that few organisations of any kind find natural). People will work out their own relationships with the problem or issue at hand and if you really are listening, you’ll discover that they are writing your strategy for you.

Sustainability, affects us all.  It influences communication, travel, jobs, in fact pretty well everything in everybody’s life.  As our schoolkids are learing (and these future customers are way ahead of us on this see Graeme Codrington’s Hanna’s Rules) nobody can avoid it, so its really just a matter of helping people understand how it affects them individually.  Then you can start to offer them suggestions of things that they can do to help, if not themselves, their kids, avoid a future that’s far less inviting than that which we have today.

Brand Discovery encourages brand stakeholders to nominate things that they can each do to ensure that they are contributing to a bigger shared objective – the delivery of a brand promise.  Blue takes the same approach by asking people to nominate a DOT – Do One Thing – that will bring them closer to living a sustainable life.  What Blue also realises is that entire national populations are too large to work with successfully, so it relies on dividing nations into smaller work-groups.  They, cleverly chose businesses … large ones.  Their first candidate was Wal-mart, a community of almost two-million employees, not to mention partners and suppliers (I’ve visited countries with smaller populations!) where the approach has proven to be a great success.  More including Morrisons and Sainsbury’s in the UK are following their lead.

The issue isn’t going to disappear by itself and the emerging generations of customers and consumers place sustainable living far higher on their list of priorities than we or our forbears have so its not difficult to see the attraction for a corporation of engaging in sustainability.  In fact, businesses that don’t embrace the cause are going to suffer big-time in the future.

However, if you think it’s just a case of flying a sustainability flag outside your corporate HQ you are wrong.  Apart from their understanding of the importance of sustainability, emerging consumers have inherited a realisation from our generation and they just mistrust pretty well anything that the corporate world tells them, so you are seriously going to have to walk the talk.  What we are talking about here represents a significant change for most organisations.  You are going to need a strategy and there are few organisations around with the perspective and in-house resources to tackle this alone, but before you even find your partner to help you with this you need to understand that blue really is your colour and be ready to trust in your chosen Gok Wan.

In the coming months I will be working on this with my clients, testing out, ideas, introducing initiatives and all the time doing all I can to live sustainably.  Next week I’m off to Marketing Week Live in London and, as I try always to do, I’ll be minimising my carbon footprint by travelling by train.  I’ll be tweeting as I go and hopefully producing a bit of audio on Twaud.io or Cinch.com from the show.  Among the questions I’ll be asking of the people I meet there will be how their organisations are rising to this challenge.  So follow me on Twitter @thefulltweet and make your own contribution.

Social Networking – a force for good

Liam Anderson just Tweeted a link to a TED talk on social networking by a very smart guy called Nicholas Christakis. You should take a look. His bottom line seems to be that, primally speaking, social networking drives the good in society.

This is a subject that I have pondered many times.  As you will probably know, I see brands as communities and this perspective drives all that I do as a marketer.  In the talks I deliver I often highlight the parallels between housing communities and brand communities.  You move into an area because you feel it reflects your standards and values, you aspire to fit in, or it is comfortable, which, by definition means that you have something in common with everyone else who lives there – even if that’s just that the place feels right.  However, every facet of your life is not replicated in every other local resident.  You have hobbies and interests, values and habits that are unique to you in that community and so in joining it you are also enriching it.

Take my son as an example.  He has an amazing network of friends.  Its a very close network of guys and their girlfriends who he has encountered at various points in his life in many different places.  Nicholas suggested in his talk that there are two distinct types of networks those where the “friends” are independent of each other and don’t know each other, their relationship being confined to the “host” and there are others where the friends are inter-connected, they know each other through the network.  The catalyst in both cases is the host who is either gregarious and introduces his friends to each other or is insular and protective of his relationships and keeps them separate.  Each type of network has its plusses and minuses as Nicholas points out and who is to say which, if either is right or wrong.  The important thing is that we recognise the difference.

It’s fair to say that my son’s friends’ lives have all been enriched by the network.  Each has shared their individual interests with the others and as a result there are sub-groups that go rock-walling, others play squash, a big group  hangs out in one guy’s big garden all summer grilling, drinking and playing volleyball.  The more they do together the stronger the community becomes and the broader its interests and the interests of the individuals.  From time to time members of the community have had a tough time and I’ve been amazed at the way the others, even the fringe members, have gathered around to offer support and practical help.  As Nicholas says, a force for good.

Because I see brand communities in the same way, its important to me that my clients provide opportunities for their community members to interact with each other and not just the host (my clients), but while most organisations these days do the social networking “talk”, very few indeed get around to the “walk”.  Brands have to be gregarious to be successful, they have to stand out, be communicative and above all confident enough to introduce their community members to each other.  Organise events like Saturn the US car-maker who each year take their customers on a tour of the factory, Harley Davidson, or the cycle manufacturer Yeti (my favourite bikes in the world) who organise events around the world for their owners to come together race, chat and party.  I blogged last week about Apple’s new dating site, which is another example.

Brand guardians should always remember that their community members will also be members of other communities (buy other brands) where their other interests and values are better represented, but the the successful brands are those that are central to their members lives and achieve the balance between keeping themselves and their products front-and-centre while maintaining a broad church.  What are you doing to build Brandships in your brand community?

Keep it fresh – the recipe for restaurant brand success

I was chatting yesterday with a chap who runs a load of restaurants … and I mean A LOAD!  Among the topics of our conversation were the “good old days” when the sophistocated man-about-my-neck-of-the-woods, out to cut a dash, took his “bird” to a Berni Inn.  In those days of course there were, by today’s standards, limited options for the young stud out to impress  – Wimpy, Berni Inns, the local pub where you might get that French delicacy “chicken-in-a-basket”, one of the emerging Chinese restaurants, and independents from Joe’s Caf to the more aspirational, Gino or Carlo’s.

By comparison, today’s aspiring roue is spoilt for choice.  Not only has there been a proliferation of independent eateries of all palates and ethnicities, the number of restaurant chains is enough to set plates spinning and because each one is desperate to establish a point-of-difference, today’s eating experience has become as much an entertainment as the date – especially if you have my luck!

I used to frequent Alastair Little’s restaurant in Frith Street, Soho where the man himself once told me that the average restaurant had a life of around three years, after which you had to reinvent yourself.  These days that rule of thumb at least hasn’t changed.  If you watch Gordon Ramsey’s antics on TV, you’ll know that the key to restaurant success is to devise a unique theme and then exploit it to the full.  This lesson has been adopted by all the big chains since TGI Friday’s, who recognised that while a new restaurant format will always add novelty value to an entertaining theme, for the punter, even the most compelling theme is great for two, or maybe three visits.  After that, unless something changes, you’ll find them asking “so what now?”.  If the answer is “nothing” they’ll be beating a path to the next food entertainment experience.  The “novelty effect” may also compensate for a few deficiencies, which gives you a narrow window of opportunity to iron out those niggly operational issues, but “narrow” is the important word here.  Pretty soon, its back to reality.

What we are talking about here is brand development and I love the restaurant business because it offers one of the clearest demonstrations of the concept of “brand community” and “brandships”, which has been my personal cause celebre for many years.

For a restaurateur this isn’t just a case of introducing new things to the menu, although that plays its part, you have to continually tweak other elements too.  Data management comes into play here as you define your segments and start to manage them.  You’ll have customer-segments, day-segments and seasonal demands that will probably all be heading in different directions out from your central theme and the devices you use to manage your community will be as diverse as these segments.  Starbucks discovered early on that day-segments demand different music and its a no-brainer that restaurant day-segments require different food, but that’s not only to accommodate the traditional meal variations, but different customer types – for instance, pensioners and young moms in the morning and groups of youngsters in the evening.

Its also not enough just to make changes, you have to make sure everyone recognises them.  I was in a chain restaurant recently that had a number of USPs and had introduced new items to its list, but none of them were highlighted.  That’s an ommission no operator can afford to make, but the ways in which you publicise development are as many and varied as your segments.  I don’t belive that Face book and Twitter are the panacea that some marketers suggest they are, but we are talking social networking here and while grannies don’t Tweet much, (unless you squeeze them really hard!) if you have a “youth” segment you can use this medium intelligently to drive awareness of the changes and maintain the freshness of your brand.  Press Relations and grass roots events will play their part in heightening awareness of your brand and its freshness, as will viral, personal appearances, demonstrations and good, old-fashioned advertising and PoS, plus, don’t forget your floor staff – dif’rent folks, dif’rent strokes!

Like any brand community a restaurant brand is a constantly evolving thing with opportunities for maximum customer involvement and engagement at every level that no operator can afford to miss.  Who do you think is making the most of their community?

e-tailing has it Made.

If you ever doubted that there is a future for retailing on-line there’s a new kid on the block that might just convince you that retail clicks!

The thing that I have always enjoyed most about retailing is the involvement that exists in the “brandships” between stores and customers.  Retailers have, often inadvertently it must be said, always been avid brand builders and the fortunes of the most successful are set in a history of establishing and building relationships with customers that pre-dates the acronym CRM, which is now on everyone’s lips.

I have always felt that retail was the first sector to recognise the element of community in brand-building, but when you take the store or meeting-place out of the equation there’s always a danger that you could be throwing the baby out with the bath water.  Not if Made.com have anything to do with it!

This isn’t a first by any means, but I really like the way they have used the scope of on-line to involve their customers.  This is real brand-building (in other words community).  Its a limited range, but I see no reason why that shouldn’t expand, which can only be good.  Customers, get a real sense of involvement in design and there’s a pioneering spirit about the individuality of the range that provides the essential community ingredient that is further enhanced by the opportunity customers have to vote for designs.  The people at Made.com clearly don’t need me to tell them where the opportunities lie, they are screaming at us all over this concept.  I particularly like the potential for a clicks and mortar model that’s similar to one I have in a bottom drawer right now.

Of course e-tailing isn’t the panacea that a lot of its evangelists make it out to be.  I’ve raised issues of customer service overheads in other posts and I’ll be interested to see how this essential element is handled by Made as time goes on, but Made is an idea, and we can’t have too many of them in the new economy.  Ideas are what will set the world spinning again and these people may just have it made!