Friday, October 19, 2007

A lost opportunity

I went to a presentation recently on marketing strategy, a topic I am very interested in. The speaker was touted as an expert and had recently published a book on the topic. I was looking forward to hearing what the individual had to say and learning a few nuggets to help me as I create and update my marketing plan.

I was disappointed. The individual had a prepared presentation but no cohesive message. He asked questions of the audience but didn’t seem to relate his story to their responses. He had a PowerPoint presentation with numerous word filled slides containing boxes and arrows. He had an 8 point plan that actually expanded to a 16 point plan because most points had a number of sub-points. He made general comments such as you need “collective engagement with management” but no concrete examples of how to accomplish this. He didn’t offer me anything I felt I could use to help my business today. Lots of talk and glitz but nothing memorable.

Bottom line - I enjoyed the networking opportunity, the group was a gathering of marketing professionals from small to medium sized, high growth companies, but I could have passed on the presentation and speaker. I’m sure this guy knew his stuff and has been successful with clients but he didn’t present his case very well. It was a lost opportunity.

So how do you deliver a memorable presentation?

Stephen Gray, a partner at Rockford Gray a media relations company based in Denver, says you should ask yourself 5 questions before you put your pen to paper.
  1. Who is my audience?
  2. What is my objective?
  3. What visual tools do I have?
  4. What questions am I likely to hear?
  5. What is my “call to action”?

Kevin Eikenberry in his book Remarkable Leadership offers these comments.

  1. The presentation is not about you (the presenter). It is about the audience.
  2. Open with impact - set the context, set your objective, provide the audience a WIIFM ("what is in it for me")
  3. Close with action - summarize what was said. Leave your audience on a high note.
  4. Then design the body. Kevin adds don't include any new information or Q&A in the summary.

When I was in the Navy the presentations were straightforward. The presenters told us the learning objectives were up front, they explained the topic, answered our questions and then summarized what they told us. Many times the topic was dry but you always knew why you were there and what you were supposed to remember.

So what makes a memorable presentation? A common thread in these three approaches is to plan your presentation in advance. Simplify the key messages. Make it personal. Tell a story. Engage your audience. Summarize in a memorable way. Remember the audience is focusing on you, keep the focus there – don’t depend on PowerPoint or other technology to deliver your message. Finally I would suggest asking a sample of the audience privately how they liked your presentation and what they learned. Did they take away what you wanted them to remember? If so, congratulations you have succeeded. If not, figure out how to deliver your message in a more personal way and keep experimenting.

Until next time – all the best!

RolandB

Thursday, October 11, 2007

Don't lose your customers

I was talking to a business associate this morning and eventually we diverged into customer service. His wife had recently been in an automobile accident and he was extremely frustrated with the process that his insurance company was taking him through to pay for his car and medical claims. The accident was not his wife’s fault which complicated things because his insurance was not liable for most of the damage. He had not spoken to the other insurance company. No one had explained to him the process he needed to go through and/or how to get a vast amount of details sorted out. He felt that no one was looking out for his interests.

Here is a customer in need of help but no one was stepping up to help him.

It seems to me that some organizations just don’t get it. A dissatisfied customer will tell 10 of their friends how unhappy they are. Those 10 individuals may not use the company’s product(s) and may tell others not to use them. Right or wrong the company that is perceived to be at fault will need to spend a good deal of money to replace those potential customers with new ones. Much heartache could have been avoided if the organization had a plan in place that empowered their employees to make it right. The now satisfied customer may tell 5 of their friends how customer friendly the company is. The empowered employee will be satisfied knowing he or she helped a customer. Tomorrow the cycle may repeat itself.

The following article came across my desk today. John Tschohl does a nice job of suggesting actions that may turn a customer losing situation into one that will show your customers how much you care. His suggestion to act quickly, take responsibility, be empowered and compensate the affected customer may turn a one time customer into a lifelong one.

When airlines had customer service
I remember many years ago I was taking a flight on Republic Airlines from Chicago to Minneapolis on December 23rd. When I got to O’Hare I realized it was a mess. There was an ice storm in the upper Midwest and many of the flights into that area were cancelled or postponed. Our flight was supposed to leave at 7:00 PM. Around 9:00 PM the agent said that our flight was cancelled due to ice but anyone that wanted to could ride a bus up to Minneapolis. Many of us got on the bus which left at 9:30 PM. It took a while, there was a lot of ice on the road but at around 6:00 AM the bus pulled into the terminal at Twin Cities Airport. I made it home for Christmas. I thought that was the end of the story. About two weeks later I got a check in the mail from Republic for the entire cost of the trip. I didn't ask for it - it just showed up with a note apologizing for the delay.

Well I was hooked. Whenever I could I flew Republic. I told my friends this story and I’m sure some of them flew Republic. Everything changed when Northwest bought Republic, customer service went downhill and the airline lost my loyalty.

I think my ticket to Minneapolis was $150. I don’t know how much renting the bus cost them that icy night. All I know is that over the next 10 years I probably gave them thousands of dollars in business.

Now if only there was an airline with that type of customer service today. My friend’s insurance company doesn’t need to buy him a new car but could they provide an advocate to help him through the process. I think so.

Empower your people & give them the resources to make life a bit easier for your customers. The payoff is big.

Until next time – all the best!

RolandB


What to do when you’ve made a mistake.
By John Tschohl
Tuesday, 9th October 2007

http://www.4hoteliers.com/4hots_fshw.php?mwi=2443

You arrive at the restaurant 10 minutes before your 7 o'clock reservation and forty-five minutes later, you are finally seated.

The maitre de doesn’t offer an apology, and you are upset. Do you have a right to be? Absolutely. Will you return to that restaurant? Probably not.

Scenarios such as this occur at businesses every day and more often than not leave owners and executives wondering why their repeat business is taking a nosedive.

Instead of taking a good hard look at the reasons those customers are defecting, they invest hundreds of thousands of dollars in advertising to attract new customers—customers who also will defect when they experience poor customer service. And the cycle continues.

John Tschohl, in his book Loyal for Life: How to Take Unhappy Customers from Hell to Heaven in 60 Seconds or Less, takes readers through a step-by-step process in service recovery.

“No matter how good a company or organization is in providing customer service, it’s almost a given that at one time or another they will make a mistake,” Tschohl says.

“How they handle those mistakes is what separates them from the rest of the pack and keeps customers loyal for life.” Service recovery, Tschohl says, “is putting a smile on a customer’s face after you’ve screwed up.

It’s solving a customer’s problem or complaint and sending her out the door feeling as if she’s just done business with the greatest company on earth. And it’s doing so in 60 seconds or less.”

Tschohl, who has been preaching the gospel of customer service for 346 years to organizations throughout the world, has developed four techniques for providing quality service recovery:

1. Act Quickly. “You must acknowledge the mistake immediately,” Tschohl says. “The employee at the point of contact is the person in the best position to successfully implement service recovery. When problems and mistakes are moved up the chain of command, they not only cost the organization more in time and money to deal with it the time delay increases the customer’s level of frustration and anger.”

2. Take responsibility. “No matter who is at fault, you must own the mistake and sincerely apologize,” Tschohl says. “Don’t place the blame on someone else; the customer doesn’t care whose fault it was, he merely wants it rectified. It’s also important to thank the customer for pointing out the problem and for giving you the opportunity to correct it.”

3. Be empowered. “Employees are not making empowered decisions because they’re afraid they’re going to be reprimanded, fired, or have to pay for whatever they give the customer,” Tschohl says. “But empowerment is the backbone of service recovery and organizations that truly want to serve the customers and retain their business must not only allow, but insist, that employees bend and break the rules in order to keep those customers coming back.”

4. Compensate. “You must give the customer something of value, something that will impress the customer and give her the feeling that you really do value her business,” Tschohl says. “Every company has something that doesn’t cost a lot but has value in the eyes of the customer.

An airline can upgrade a passenger to first class. A ski resort can give a free lift ticket. A computer repair store can extend the customer’s warranty by a year.” Service recovery, Tschohl says, can have a major impact on an organization’s bottom line. It can reduce the need for expensive advertising, replacing much of it with word-of-mouth advertising as customers tell their family, friends, and coworkers about the exceptional service they received from you. “Service recovery puts the ‘wow!’ in service and generates word-of-mouth advertising you couldn’t buy if you wanted to,” Tschohl says.

So what should that maitre de have done when you were seated 30 minutes after your reservation time? “He should have apologized and offered you something that had value,” Tschohl says. “That could be a round of drinks or a free dessert, which would have cost the restaurant a few dollars but carries a perceived value of $20 to $25. The magic in service recovery occurs when a frontline employee solves a customer’s problem and does so in 60 seconds or less.

Acting quickly, taking responsibility, making an empowered decision, and compensating the customer will result in customer loyalty that will increase your sales and profits and help to ensure your success in an increasingly competitive world.”

John Tschohl is an international service strategist and speaker. Described by Time and Entrepreneur magazines as a customer service guru, he has written several books on customer service, including Loyal for Life, e-Service, The Customer is Boss, Achieving Excellence Through Customer Service, and Ca$hing In: Make More Money, Get a Promotion, Love Your Job. John also has developed more than 26 customer service training programs that have been distributed and presented throughout the world. His bimonthly strategic newsletter is available online at no charge.

Friday, October 5, 2007

Cooperation in Medicine

I enjoy attending trade shows. It gives marketers a chance to talk to key customers away from the distractions of their office. Customers are motivated and are usually thought leaders. Many of the players (companies) in a given industry attend so it provides a relatively easy way to see what others are saying in your industry and, maybe more importantly, how they are saying it.

I am currently at the American Academy of Family Physicians (AAFP) annual meeting in Chicago. There a number of hot topics here. Many sessions discuss the role of the family physician as the coordinator of care. The discussion is as medicine becomes more specialized and a patient sees a growing number of specialists for various ailments he or she needs one doctor responsible for looking after the patient and coordinating their care. Many doctors here feel that coordinator role belongs to their family physician. The AAFP wants a role. The heated discussion is around who pays for this coordination.

The feeling is that the cardiologist, oncologist, (you name the specialty)ologist don’t communicate effectively with each other, the patient and their family. This is hurting patient care.

Another big topic is what should the AAFP position be on “retail health clinics”. These are clinics set up in a pharmacy, food store, or as independent businesses to help patients with minor ailments. They usually have longer hours than a doctor’s office and accept walk in patients. A doctor or nurse practitioner at the clinic treats the patient and will send a report to the patient’s regular doctor if asked. Some AAFP members see this as competition. Others see it as a continuation of overall care.

In the end the organization adopted a resolution stating “AAFP does not endorse retail health clinics and believes that such health care delivery could interfere with the medical home.”

What does that mean? Are AAFP delegates in favor of seamless coordination of care or are they trying to protect their perceived turf?

There appears to be a need. People are getting sick at irregular hours and find it hard to get in to see their doctor if they have one. Family Practice doctors are overworked. I’m sure Walgreens, Kroger and other innovative companies will continue to offer and expand the service. Retail clinics are not going away.

Seems to me that organizations like AAFP should find ways to work with and help retail clinics. In return there are ways retail clinics can help a doctor grow her or his practice. The winner would be the patient. The pie is big enough for both and will only get bigger.

Until next time – all the best!

RolandB

Wednesday, October 3, 2007

Die Easy (part 2)

I sent a short note to Sears yesterday with a link to my post about my DieHard experience. I was curious how they would respond. This morning I received the following;

Dear Roland Bydlon,
Thank you for your recent e-mail correspondence regarding our DieHard battery warranty.
Please be assured that we understand your frustration, and sincerely apologize for any inconvenience you have experienced.
By sharing your concerns, you have enabled us to address the issues and provide feedback to the appropriate person. Your remarks provide feedback that will enable us to improve our processes and customer experience.
We appreciate your business, and value you as a Sears’ customer. We certainly hope you will continue to make Sears your choice for quality and value
Again, we thank you for taking the time to contact us with your concern.
Beth G.
Sears Automotive Online Customer Care
1-888-819-6963


I must say that while I appreciate Beth G. and Sears sending me a reply they really did not answer my question about why their batteries do not last. If I had a complaint about a washing machine I probably would get the same response with "washing machine" instead of "DieHard battery warranty" in the first line. Maybe when the "appropriate person" reads my message I will get an individualized response.

Lesson: If you compete on service (and I think Sears wants to) then make sure your customers feel you care.

Until next time - All the best!

RolandB

Monday, October 1, 2007

The Die Easy

The battery in the van died this weekend. Well, almost died. I got the call from my wife “Roland the car won’t start, can you look at it?” I put the key in the ignition and it slowly turned over but I knew something was wrong.

My 2.5 year old Sears Die Hard battery had a 6 year warrantee. I took it back to Sears. Sure enough, the battery was shot. They replaced it and gave me a bit over 50% credit on a new one. The sales associate explained that a “normal” battery lasts for 3-5 years but life can vary based on how the car is used. They replace the battery for free for the first 18 months. After that it is prorated.

Now this is a Die Hard battery. I can still remember the commercials that were on when I was a kid. A frozen lake in International Falls Minnesota. 50 cars all with their lights on. Hours later only one car starts – of course that was the car with the Die Hard. The message was simple and powerful, you got a Die Hard and you never had a problem.

Time marches on. Manufacturers and designs change. Now the battery is “maintenance free”. It never needs water but for some reason it doesn’t last. They still call it Die Hard. Too bad it can’t live up to its name.

Today my Die Hard doesn’t last for 50% of it’s warrantee but Sears has me hooked. I need to go back to get 50% off of a new one. An interesting but costly strategy. So much for Die Hard. They might want to rename it The Die Easy.

Until next time – all the best!

RolandB

Thursday, September 27, 2007

Let’s Lead!

I went into a pharmacy the other day to buy some allergy medication. The form for $4.00 off of the Claritin brand was still not working (see my last post) so I ended up buying the generic. The product I purchased was a decongestant containing pseudoephedrine (Sudafed). It is now restricted and stocked behind the pharmacy counter. I had no problem finding it though. I went to where it should be on the shelf and there was a card that told me exactly where to get it. The pharmacist gave me the product and scanned the barcode on the back of my driver’s license. I paid for the product and was on my way.

It wasn’t always this way. A number of years ago Claritin-D and other decongestants with Sudafed were sold in front of the counter like aspirin. Pseudoephedrine is a key raw ingredient in methamphetamine, a very addictive drug. People began making methamphetamine (meth) in their bathtubs. They would buy a couple of months supply of decongestant in 5 to 10 different stores to get enough raw material for meth production while not raising suspicion they were doing something illegal. They sold the meth or used it themselves. The methamphetamine was killing people and meth production was polluting everything it touched. Much of the production was being done in rural areas such as Indiana farm towns where law enforcement was not equipped to handle the problem. Something needed to be done.

Law enforcement and civic leaders suggested that the State regulate decongestants. they suggested that purchases be recorded and individuals could only buy a reasonable amount of medication that they could use over a 30 day period. Any person buying over a certain amount would be placed on an alert list.

The push back was huge. It seemed everyone found something wrong with the new proposal. Manufacturers did not like it because they thought they would sell less product. They claimed people would not buy their product if it was controlled. Pharmacies did not like it because they would be tasked with keeping records of individuals who purchased the product. Many called it an unfunded mandate. Some in government did not know what to do with or how to track the data that would be created. Some people did not like it because they didn’t want government telling them what to do. Organizations lobbied their political officials. Politicians took a "safe" approach. Nothing happened and the meth problem got worse, much worse.

As time went on meth production affected more counties and more individuals. Families were ruined. Law enforcement was overwhelmed. The cost to clean up the problem, catch and convict the offenders and rehabilitate the addicted back into society was staggering.

A title wave had hit and something had to be done.

Store chains such as Target, Wal-Mart and CVS heard the outcry and began to restrict the product. Eventually politicians could not ignore the problem any longer and 30 states passed laws requiring that products containing pseudoephedrine be restricted. Finally the Federal Government passed a similar law in 2006.

So a law passed and the rules changed. You would think that everyone would take pseudoephedrine out of their products. Most had argued that they could not compete with a regulated OTC product. Some manufacturers did.

Only one problem though – the pseudoephedrine product worked and consumers wanted it.

Manufacturers like Schering Plough, the producer of Claritin-D, decided to keep their formula and vary other things to keep market share. Bright marketers put on their thinking caps and figured out how to keep shelf space and make it easy for customers to find their product.

Forward thinking pharmacies tasked their IT departments to develop scanners to take personal information (and conform to federal requirements) off of a driver’s license automatically.

In the end we found that we can have our cake and eat it too. The nay sayers had it wrong. A good product is still on the market with a minimum of inconvenience to the consumer and a deadly misuse has been controlled.

The reality is that industry did not change until it was forced. Voluntary unilateral change doesn't work. The process never would have happened without government intervention ……….

Now I am not a supporter of excessive government regulation. I feel the private market can and should be able to do most things better than government but sometimes, as in the Claritin-D example, rules need to be made to encourage the market to compete in innovative ways and improve society as a whole.

So what are some other examples of how government can encourage industry?

How about increased fuel efficiency in cars and trucks? We all know we need to decrease our dependence on foreign oil. What if the government would set a goal of 80 miles per gallon by a certain date (2017) and give manufacturers tax incentives for meeting those goals. The goal needs to be a breakthrough – not incremental. If we could get a man to the moon in less than 10 years in the 1960’s my hunch is we could come up some fantastic fuel efficient cars in 10 years. If the carmakers really set a priority on making a fuel efficient and powerful car for the US market I think we could do it. These cars would sell not only in the US but lead the world. Take that Iran!

Another area may be carbon reduction. We know carbon levels are increasing and also know a major source is the burning of fossil fuels. Some people ignore the problem or suggest very minor reductions. Why not go for a real breakthrough target and ask for a 50% reduction in carbon emissions over 20 years. There are processes available today that will take carbon out of the air. We need to make them cost effective. There are resins available now that are sprayed on or molded into precast concrete that cause dirt to react with sunlight and disappear. It is self cleaning concrete! How about a similar resin that when exposed to sunlight will convert carbon to something else? How about a carbon converting resin that can be applied to the blade of a fan. Every household’s air conditioner compressor can now become a pump to pull carbon out of the air. Manufacturers could get tax incentives from the government for building and using these carbon reducing fans. If a company invented such a technology their products would be in high demand. They would hire lots of people. We need to make sure it is a US company, with US workers.

A key strength of the United States is our ability to solve problems. Let’s set some challenging goals, create an environment for innovation and solve them before anyone else. It can be done. Let’s lead.

Until next time – All the best!

RolandB

Tuesday, September 18, 2007

Make sure your website works

I was doing some research yesterday and needed to look up the ingredients in Claritin-D. I googled Claritin and went to the Claritin website. Schering Plough must have spent a ton of money on it. There is an animation containing 3D pictures of simulated characters telling their stories. All animations direct one to a button that says “take the Claritin-D tour.” This brings up a pop-up window with a bunch of text with another button that says “ask your pharmacist now” but the button doesn’t do anything.

I’m still trying to find out what is in Claritin-D! It took me a few more minutes but finally I found a “read the box” link and got the answers I needed. Whoever designed this site must not feel that the ingredients of the product or the directions for use are a priority.

I see another button “Get a $4 off coupon” Well OK, I buy allergy medicine and occasionally buy Claritin or a generic. I click on the button, get a new screen, and fill out my name, email and mailing address. Under “State” the form has a dropdown menu but no individual states are listed and I cannot type in a state. There are two more buttons “usual brand” and “also tried” and both of those buttons are similarly designed. No brands are listed and there is no way to provide the information. I clicked the submit button and got a reply that my request could not be processed because I have not provided all of the information.

Attractive site, interesting graphics but the information I needed was hard to find. Even then Schering Plough got me to in type my name and contact information but I could not submit it. My time was wasted. Instead of a positive experience I now have a negative experience with the brand.

I wonder how long this form will be posted before they figure out that no one is completing it. What is the return on investment of a negative sales number?

Bottom line. Write down what you want your customers to do on your website. Figure out the simplest way for them to do it. Document how you will know the website is performing up to your expectations. Test it then test it again before it goes live. Once it is live tell your friends. Hopefully one of them will tell you if it doesn’t work.

Until next time – all the best!

RolandB