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Right Attitudes

Ideas for Impact

Customer Service

The #1 Thing Top Salespeople Do

July 8, 2021 By Nagesh Belludi Leave a Comment

It is astonishing how many salespeople aim for nothing and hit it every time.

Average salespeople often don’t have a written “game plan” for every sales call. They may have only a vague idea of how to go about their sales call. They usually wing it and hope for the best. They fail to plan and thus plan to fail.

Planning a sales call is vital because it gives you a framework to understand your customer’s buying motivations. You can have “value summaries” at hand to evoke her interest.

  • Establish the call objectives. What do you want to accomplish? Review your Customer Relationship Management (CRM) system, meeting notes, or whatever method you use to manage interactions with customers. Reexamine what was discussed the last time you met with the customer. What are her pain points? What might she need that she’s not asking for?
  • Develop a list of questions you’re going to ask. These questions should guide the “needs analysis” phase of the sales process—they shape her buying criteria. Being ready with prepared questions help minimize the amount of close-ended questions you’ll ask your customer.
  • Review what you can “value add” to your customers to incentivize getting more business from them. A “value add” could be anything from extending warranties, training staff, selling pre-assembled products, customizing products, providing financing, etc.
  • Think through what resistance you may anticipate. List possible objections that could stall a sale: bad timing, budgetary constraints, new leadership, market uncertainty, etc. Develop a go-to response for each challenge. Ask yourself, “How can I help the customer get past this resistance?”

Planning a sales call helps you get in the shoes of the person you’re trying to sell to and sell it from their perspective.

Idea for Impact: Always have a plan for a sales call. No matter how rushed you are, how well you know a customer, or how routine the call might be, plan the call. Never wing it. Great brands aren’t measured by units sold but relationships built.

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  5. Creativity & Innovation: The Opportunities in Customer Pain Points

Filed Under: Effective Communication, Sharpening Your Skills Tagged With: Asking Questions, Conversations, Customer Service, Persuasion, Problem Solving

Don’t Try to Convince Every Potential Customer

June 16, 2021 By Nagesh Belludi Leave a Comment

Many entrepreneurs believe that their innovation is so unique and valuable that the whole world will want it, and if a potential customer won’t get it within seconds, it’s only a question of hammering it into their heads.

Don’t try to convince every potential customer to buy your product or service. If they get your innovation within, say, three minutes—excellent. If not, move on.

As you go about selling your product or service in the early stages of your business, you may find specific customers who will get what you’re doing. They’ll cheerfully buy your solution if they could be convinced that your solution can solve a problem they have (or if you can help them recognize a problem that they have but don’t see it yet.)

If you’re starting out, such customers will be your early adopters. At this stage, they’re the ones that are your biggest fans (or critics) and can be an enormous asset for gaining traction by word-of-mouth.

Idea for Impact: Instead of misusing your marketing efforts on convincing all those who don’t get it and may never get it, laser-focus on identifying, courting, and engaging the early adopters.

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  4. Learning from Amazon: Getting Your House in Order
  5. Creativity & Innovation: The Opportunities in Customer Pain Points

Filed Under: Leadership, MBA in a Nutshell Tagged With: Creativity, Customer Service, Entrepreneurs, Innovation, Thinking Tools

Putting the WOW in Customer Service // Book Summary of Tony Hsieh’s Delivering Happiness

July 30, 2020 By Nagesh Belludi Leave a Comment

To keep your customers in the present day, you can’t be content just to please them. If you want your business to thrive, you have to produce enthusiastic aficionados—customers who’re so keyed up about how you treat them that they want to tell stories about you. These customers and their cult-like loyalty become a key element of your sales force.

'Delivering Happiness' by Tony Hsieh (ISBN 0446576220) American entrepreneur Tony Hsieh built the online retail store Zappos on the fundamental idea that great service is not a happenstance. It starts when leaders decide what kind of experience they want their customers to have—and articulate that approach in a clear mission and vision. As in the case of luxury hotel chain Ritz-Carlton, leaders keep the mission alive by empowering their employees to go the extra mile for the customer. Above all, when it comes from the heart, great customer service keeps customers coming back over and over.

In Delivering Happiness: A Path to Profits, Passion, and Purpose (2010,) Hsieh discusses the importance of cultivating happiness as a launch pad to better results for your business.

How Zappos Profits from The Happiness Business

How Zappos Profits from The Happiness Business

Hsieh did not create Zappos. He was one of the startup’s initial investors but got sucked in to help the original founder after six years. Zappos operated in survival mode for a while. As it began to outlive its financial struggles, Hsieh and his leadership team went about building an intentional corporate culture dedicated to employee empowerment and the promise of delivering happiness through a valued workforce and devoted customers.

Over the years, the number one driver of our growth at Zappos has been repeat customers and word of mouth. Our philosophy has been to take most of the money we would have spent on paid advertising and invest it into customer service and the customer experience instead, letting our customers do the marketing for us through word of mouth.

Hsieh tells his entrepreneurial life experiences, often presenting biographical stories to make his line of reasoning. Many great entrepreneurs got started early, and Hsieh is no exception. He started with worm-farming (age 7,) button-making (elementary school,) magic tricks involving dental dams (high school,) burger joint (college,) and web-consulting (post-college) before having considerable financial success with the internet advertising firm LinkExchange (sold in 1998 to Microsoft for $265 million.)

In 2009, Hsieh sold Zappos to Amazon for $847 million under pressure from Sequoia Capital, a major financier of Zappos. As a point of reference, Hsieh later recalled,

Some board members had always viewed our company culture as a pet project—“Tony’s social experiments,” they called it. I disagreed. I believe that getting the culture right is the most important thing a company can do. But the board took the conventional view–namely, that a business should focus on profitability first and then use the profits to do nice things for its employees. The board’s attitude was that my “social experiments” might make for good PR but that they didn’t move the overall business forward. The board wanted me, or whoever was CEO, to spend less time on worrying about employee happiness and more time selling shoes.

How Zappos Fostered a Culture and a Business Model Based on the Notion of Happiness

Delivering Happiness - Tony Hsieh of Zappos Zappos’s corporate culture is guided by ten core values, which aspire to empower employees, create a sense of community in the workplace (employees are encouraged to “create fun and a little weirdness” in the office and build personal connections with colleagues,) and serve a higher purpose beyond bottom-line metrics.

  • Zappos’s core values include: deliver WOW through service (#1,) be humble (#10,) do more with less (#8,) be passionate and determined (#9,) and create fun and a little weirdness (#3.)
  • Zappos wants only those employees who really want to work for the company. All new employees attend a four-week training program that immerses them in the company’s strategy, culture, and customer-obsession. Zappos offers $2,000 to walk out at the end of the first week, and the offer stands until the end of the fourth week. Only a small number of new employees take the offer.
  • Zappos challenges all employees to make at least one improvement every week. Allowing employees to improve the tasks they’re doing and enhancing the processes that they’re responsible for executing allows them to make their jobs more meaningful.
  • Instead of measuring call center efficiency by the time each call center operator spends on the phone with a customer, Zappos developed its own scorecards. Zappos quantifies such things as the personal and emotional connections operators make with customers using measures such as measuring the number of thank you cards.

Zappos is Obsessed with Impressing Customers

By focusing on company culture, everything else—such as building a brand with sustained revenue growth, fast turnaround times at warehouses, and passionate employees—fell into place.

Happiness is really just about four things: perceived control, perceived progress, connectedness (number and depth of your relationships,) and vision/meaning (being part of something bigger than yourself.)

Recommendation: Read Tony Hsieh’s Delivering Happiness. This insightful tome is brimming with practicable ideas on customer service, building a positive company culture, best hiring practices, how to motivate and train your team, and setting business goals and values. The core elements of Zappos’s DNA—purpose, happiness, culture, and profits—are an effective framework for making happiness a business model.

Wondering what to read next?

  1. From the Inside Out: How Empowering Your Employees Builds Customer Loyalty
  2. How Starbucks Brewed Success // Book Summary of Howard Schultz’s ‘Pour Your Heart Into It’
  3. How Ritz-Carlton Goes the Extra Mile // Book Summary of ‘The New Gold Standard’
  4. Job Crafting: Let Your Employees Shape Their Roles
  5. Employee Engagement: Show Them How They Make a Difference

Filed Under: Business Stories, Leadership, Leading Teams, Managing People Tagged With: Books, Customer Service, Entrepreneurs, Goals, Human Resources, Likeability, Motivation, Performance Management, Persuasion

How to Develop Customer Service Skills // Summary of Lee Cockerell’s ‘The Customer Rules’

July 13, 2020 By Nagesh Belludi Leave a Comment

Becoming great at customer service doesn’t require you to excel at a zillion things. You’ll just need to identify the core principles and get the basics right.

“At the end of the day, everything a business leader does is in the service of customer service … the customer always rules, and there are Rules for winning customers, keeping customers, and turning loyal customers into advocates and emissaries for your business,” writes Lee Cockerell in his prescriptive manual on The Customer Rules: The 39 Essential Rules for Delivering Sensational Service (2013.)

Cockerell is a veteran of the hospitality industry and an eminent corporate trailer. He spent eight years with Hilton, 17 years with Marriott, and 16 years with the Walt Disney. Before retirement, he was the executive vice president of operations at Walt Disney World in Florida and oversaw the resort’s 40,000 employees at 20 hotels, four theme parks, and two water parks.

Non-obvious Customer Service Insights

Cockerell structures his guidebook along 39 tips to serve customers with consistency, efficiency, creativity, and sincerity. He glosses over everything—hiring right, communicating a clear and relevant customer promise, fostering a customer-oriented culture, and creating a superior employee experience. Those employees can deliver a great customer experience, respond to complaints, and practice verbal skills to express empathy.

  • Make customer service every employee’s responsibility. Everything every employee does can have tremendous repercussions on the service your customers receive, and therefore your bottom line. “Pay close attention to every decision you make, every policy you announce, every procedure you introduce, every person you hire, every promotion you award, every e-mail you send, every conversation you have, every hand you shake, and every back you slap.”
  • You win customers one at a time and lose them a thousand at a time. Satisfied customers will spread the word only if they’re truly blown away their experience. Angry customers are “far more motivated to shout about their feelings, and furious exposes get a lot more attention than glowing testimonials. Humans are wired to pay more attention to the negative than the positive.”
  • Anticipate your customers’ needs. Discover what customers aren’t getting from your competitors and give it to them. Customers’ problems are a good source of business innovations. “Great businesses stand out by being different from the rest in the right way: by finding customer needs that are going unmet and figuring out a way to meet them.”
  • Keep an eye on your competitors. Be a copycat. Look outside your industry for great ideas and tweak them for their own purposes. “Don’t just imitate; pay attention to everything around you, spot the best ideas, and then find a better way to apply them.”
  • Treat customers the way you’d treat your loved ones. “First and last impressions have a tremendous influence on a customer’s lasting impression. A cheery hello and a sincere good-bye can leave a customer with a memory of a positive experience, regardless of what happens in between.”
  • Treat every customer like a regular. Familiarity breeds repeat business. “Do whatever you can to make regular customers feel like family and new customers feel like regulars. Remember the theme song from the TV series Cheers? Don’t you want to go “where everybody knows your name, and they’re always glad you came”? Make all your customers feel that you’re really glad they came.”
  • Prioritize WIN, “what’s important now,” your customers’ immediate needs, desires, and concerns. “Even a nod, a gesture, some brief eye contact, a pleasant “I’ll be right with you. Please make yourself comfortable”—that’s all it takes. People want to be acknowledged.”
  • Surprise your customers with a little extra when they least expect it. Neuroscientists have confirmed that the human brain “craves the excitement of surprise. The region of the brain called the nucleus accumbens, aka the pleasure center, experiences more activation when a pleasurable stimulus comes unexpectedly than it does when the same pleasure is predictable. “So if you get a present for your birthday, that’s nice. But you’ll like it a lot more if you get a present and it’s not your birthday.””
  • Don’t try too hard. “Being excessively solicitous and eager to please is annoying.” It makes you seem phony. “Think how annoying it is when a server at a restaurant stops by your table every five minutes to ask if everything’s okay with your meal.” No one likes to be pestered constantly. “If your customers have to stifle the urge to scream, “Go away!” or, “Leave us alone!” you’re trying too hard.”

Recommendation: Read Lee Cockerell’s The Customer Rules. With plenty of anecdotes, experiences, and very short no-nonsense chapters, this book is an enjoyable summary of the many simple—but often overlooked—first principles of building a customer-oriented culture and delivering great customer service.

Wondering what to read next?

  1. How Ritz-Carlton Goes the Extra Mile // Book Summary of ‘The New Gold Standard’
  2. Putting the WOW in Customer Service // Book Summary of Tony Hsieh’s Delivering Happiness
  3. From the Inside Out: How Empowering Your Employees Builds Customer Loyalty
  4. How to Promote Employees
  5. Fire Fast—It’s Heartless to Hang on to Bad Employees

Filed Under: Career Development, Mental Models Tagged With: Coaching, Courtesy, Customer Service, Human Resources, Likeability, Performance Management

Why Is (Was!) Airline Boarding a Mess?

June 11, 2020 By Nagesh Belludi Leave a Comment

Prescript: I drafted and pre-scheduled this article late last year … who would have imagined that life, and the airline industry specifically, could be utterly derailed by a lethal virus?

Boarding an airplane is one of the most inefficient aspects of flying.

There’s no money to be made when a plane is sitting on the ground. Little wonder, then, that airlines have attempted for decades to improve the boarding process—usually with little to no success.

Airlines and airports have engaged industrial engineers, logistics experts, and university researchers to study how to get passengers into their planes in a timely fashion. They’ve experimented with back-to-front, window-to-aisle, every-other-row, and many seating combinations thereof. The improvements have turned out marginal at best.

A Little Too Theoretical to Work Well

No airline seems to have cracked the code for efficient boarding because of the same old reasons—much of the sequencing models and organizing tests are a little too theoretical for reality and are reductive about human behavior.

All the boarding methods have an implicit assumption that passengers are orderly and don’t create frustrating bottlenecks. But, when it comes down to it, passengers simply can’t lend themselves to the airline’s preferred boarding order. Passengers don’t show up at the gate on time and organize themselves precisely in the airline’s prescribed sequence. Once onboard, they don’t place their carryon bags into bins promptly and clear the aisle swiftly.

To make matters worse, airlines need to treat some passengers preferentially—the highest paying customers, loyal frequent flyers, military personnel, people with special needs, and families with young kids must board before general boarding. Then there’re complications arising from making passengers pay for carryon bags. Passengers with bare-bones tickets are not only given middle seats but also inconvenienced enough to board in the end and then scramble for overhead bin space for their bags.

All these complexities add a significant burden on gate agents and flight attendants, who, while making every effort for an on-time departure, must monitor passengers boarding when they must, carrying paid-for carryon bags, and using overhead bin space near their seats.

Basic Human Nature is the Inhibiting Factor

Given the not-so-orderly-and-decorous tendencies of humans, no one boarding method has statistically proved to be consistently and reliably better than others. As a result, airlines fall back on a variety of general boarding schemes, usually some combinations of back-to-front and window-to-aisle arrangement.

In my experience, the “free-for-all” seating that Southwest Airlines operates appears the fastest. Southwest’s passengers don’t get assigned seat numbers, so they have the freedom to sit anywhere they want. They line up for boarding in the order they check-in and reach the gate. Once onboard, they move quickly to find the best available seats and keep out of each other’s way. Southwest is also helped by the fact that passengers tend to have fewer and smaller carryon bags because Southwest doesn’t charge for checked luggage.

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Filed Under: Mental Models Tagged With: Aviation, Customer Service, Discipline

5 Crucial Tips for Writing Polished Email Marketing Copy

May 20, 2020 By Nagesh Belludi Leave a Comment

So here you are with a great product, service, idea you’d love to offer to the world. You have, everything is ready, you are ready to start and declare about it to the world. You know your next step should be a brand new email campaign. Though the creation of a strong and unique marketing copy is not an easy task. Where should you start? How to create the context? How should it look like? All these questions are piling up before you have even touched your keyboard.

Fortunately, you don’t have to start from scratch on your pursuit. The art of email marketing copy has been exciting for decades now. You don’t have to be an expert to master this technique. Of course, it is constantly changing and evolving. Though, the key ideas are ever the same. So here are our five tips on writing polished email marketing copy.

5 Crucial Tips for Writing Polished Email Marketing Copy

Know Your Audience

First and foremost, you have to decide who your target audience is. If you try to make your email copies appealing to everyone they will most likely fail. Why? An email copy that tries to lure in a wide range of people is never personal. It plays safe, the text is too abstract and the appeal is too weak.

Now, you actually define who is that person you want to sell your idea to. This way you’ll know how to speak directly to that person. This is your target audience now. You need to customize your emails in accordance with the needs and interests of your audience. You are expected to use the language that your audience uses and images that will speak to them directly. Honestly, it is not that hard to do once you have the image and full understanding of the people you are speaking to. Know who they, what they like, what they do and see how your product/idea of service can benefit them. If you sincerely believe that your offer can make their life better, they will feel it in your emails.

Work on that subject line

Once you know who you are addressing your emails to, you are good to write. But here is the trick. No matter how well written, shiny and pretty the body of your email is, people may not even see. Why? Because there is always a chance they will not open your email, to begin with. A person may see a new unrecognized email address in their box and just delete it or send it to spam right away.

People these days are very particular with their time, they don’t like wasting it for no good reason. So, to prevent this from happening to your emails you gotta have a killer subject line. People usually do not look further than that. Thus, your subject line is the key to your success – us it wisely. Create a line that intrigues people. It should promise them a positive outcome, a reward for trusting you in opening the email. You can play with people’s fear to miss out on a good opportunity. Ensure them that their life will benefit from the email that is only one click away. Of course, perfecting subject line writing is a tough job but it requires nothing more from you than time, patience, and practice.

Writing Polished Email Marketing Copy

Don’t Neglect the Preview

On the same not here, be sure to think of the preview text. Usually along with your subject line a.person can see the first few words of your text so keep that in mind. It will tell your potential clients about the context of your email. A few words can give away your written style, the tone for the conversation, and much more. So don’t lose this opportunity for empty words. Start your email nice and strong, leave your readers wanting for more.

Make it Bright and Shiny

Once you have the attention of your readers of is important to maintain it. Even if you have convinced them into opening your email nothing stops them from deleting it within the first few seconds. There are many reasons why this can happen. First, bad grammar and poor language. Nothing looks more unprofessional than that. Second, they are simply not interested in what you are offering. Thirdly, the email does not appeal to them or it is hard to read. That doesn’t take much to fix this issue. All you need to do is to set the right tone for the conversation. Pick an appropriate style, for instance it can be a formal style for a business offer or conversational for other occasions. The body of the email must be short and sweet; with nothing extra but yet thoughtful and well designed. Your paragraphs should be short. Each of them must carry its own main idea and conclusion. Just find a minute to check your text on plagiarism, this plagiarism checker is a game changer. Don’t forget to use it for a better result. Also, try to use strong verbs and active voice. This indicates confidence and reassurance.

Set the Goal Right

Once the email is open and read (by the way, congratulations on this victory) your potential customers should be left with the feeling like they know what to do about all the information they have just received. This means that you need to include an instruction to their further actions. Though before you can do that you need to settle in what goals you are pursuing with this email. Do you want them to buy something? Do you want them to learn more about your product/service? Do you want them to spread the word? What is it exactly that you want from them and why are you writing this in the first place? These questions have to be answered once you start writing.

It will be such a shame to lose customers whose interest you have sparked all due to some confusion in further actions. You must gently guide your readers into the next phase of your marketing strategy. Thus, set the right goals before you start writing and insert it in the summary of your email. That can be a link to your website, a button for subscription, or anything else you want them to do.

Conclusion

We hope you have enjoyed our brief take on the email marketing tips. We know how challenging it can be to start your own business. Though we can assure you that with the right product and good marketing strategy anything is possible. The power of nice and polished email marketing copy is hard to overestimate. A good email can work wonders on your sales as long as you write with a full understanding of why and how you are doing it. So don’t be hesitant to start! Go on, grab your pen or a laptop, and give it a go. We wish you good luck in all your beginnings!

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Filed Under: Effective Communication Tagged With: Communication, Customer Service, Email, Personal Finance, Thought Process, Writing

Make ‘Em Thirsty

May 6, 2020 By Nagesh Belludi Leave a Comment

Sony’s Akio Morita, like Apple’s Steve Jobs, was a marketing genius. Morita’s hit parade included such iconic products as the first hand-held transistor radio and the Walkman portable audio cassette player.

Key to Morita’s success was his mastery of the art of the pitch. Morita pushed Sony to create consumer electronics for which no obvious need existed and then generated demand for them.

The best marketing minds know how to create a customer—previously unaware of a problem or an opportunity, she becomes interested in considering the opportunity, and finally acts upon it.

Coca-Cola marketers are but creating a thirst by showing the fizzle a freshly poured glass in Coke ads. “Thirst asks nothing more,” indeed.

The marketing guru Seth Godin has said, “So many people are unhappy … what they have doesn’t make them unhappy. What they want does. And want is created by the marketers.” Recall the old parable,

A sales trainee was trying to explain his failure to close a single deal in his first week. “You know,” he said to his manager, “you can lead a horse to water, but you can’t make him drink.”

“Make him drink?” The manager sputtered. “Your job is to make him thirsty.”

Idea for Impact: Whether you realize this or not, you’re in marketing, as is everybody else. You’re constantly pitching your ideas, skills, time, appeal, charm, and so forth. Study the art of the pitch. Master the art of generating demand for whatever it is you have to offer. Learn to “make ’em thirsty.” Marketing is everything.

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Filed Under: Mental Models, Sharpening Your Skills Tagged With: Creativity, Customer Service, Innovation, Marketing, Parables, Persuasion, Problem Solving, Skills for Success, Thinking Tools, Winning on the Job

How Ritz-Carlton Goes the Extra Mile // Book Summary of ‘The New Gold Standard’

April 13, 2020 By Nagesh Belludi 1 Comment

Psychologist Joseph Michelli’s The New Gold Standard (2008) describes how luxury hotel chain Ritz-Carlton has programmed its organization to foster customer-centric behavior in employees at all levels.

Ritz-Carlton’s clearly-defined and well-implemented cultural principles, called “Gold Standards,” enable the company’s employees to deliver the exceptional service that its refined customers have come to expect. Ritz-Carlton’s brand recognition is so deep-rooted that such phrases as “ritzy” and “putting on the ritz” have become part of the lexicon.

Values First

Ritz-Carlton propagates its customer-centricity goals by making a compact trifold “Credo Card” part of each employee’s uniform. These cards describe the “ultimate guest experience,” and they are shared with guests eagerly. Michelli writes, “Ultimately the value of the Credo or any other core cultural roadmap is the opportunity it affords those inside the business to realize how the ideal customer and staff experience looks and feels.”

Service Principle #10 of Gold Standards states, “When a guest has a problem or needs something special, you should break away from your regular duties to address and resolve the issue.” Irrespective of rank and title, every employee can spend as much as $2,000 per day per guest without a supervisor’s approval to solve a guest’s problem. This distinctive policy not only permits the employees to fulfill their guests’spoken and implied needs but also empowers employees to use their best judgment to create memorable and personal experiences for guests.

While some might think that this type of empowerment is both ill advised and financially irresponsible, leadership at Ritz-Carlton has determined the trust they place in employees is well founded. Rather than being extravagant with the resources entrusted to them, the employees tend to be very cautious … the advantage of the $2,000 staff empowerment is that the employees don’t have to delay a service response by taking it up to the next level in the organization, and they can take the initiative to enhance guest experiences.

Empowerment through Trust

Guided by co-founder Horst Schulze’s oft-cited business principle, “Ladies and gentlemen serving ladies and gentlemen,” Ritz-Carlton selects, trains, and cultivates a dedicated workforce of outstanding professionals who are just as deserving of respect as Ritz-Carlton’s upscale guests.

Ritz-Carlton’s customer-centric principles and culture inform its hiring and training processes and preside over the rewards and promotion systems. Managers use every opportunity to go over the company’s values and remind everybody to polish up on caring for guests. For example, at the start of each shift, everyone—from laundry staff to executives—participates in a 15-minute “lineup” to talk about the nitty-gritty of the Gold Standards.

Michelli observes, “When it comes to the Gold Standards, Ritz-Carlton leaders and frontline staff alike can appear, from an outsider’s perspective, to be teetering toward the fanatical.” No wonder, then, that Ritz-Carlton has become a paradigm for the highest level of sustainable customer experience. In the year 2000, the company launched the Ritz-Carlton Leadership Center to offer courses and to consult for anyone interested in its cult of customer service. In 2001, when Steve Jobs and Ron Johnson were preparing to launch Apple Stores, they sent executives to Ritz-Carlton’s leadership program to learn about offering the best customer experience. Apple’s notion of anticipatory customer service and the concept of Genius Bars originated from Ritz-Carlton.

Delivering Wow!

During the “lineup” meetings, Ritz-Carlton managers and leaders also reinforce the customer-service principles by sharing “Wow!” stories of delighting guests. The internal communication department collects such stories each week and publishes them in the in-house newsletters. “Positive storytelling. The ability to capture, share, and inspire through tangible examples of what it means to live the Credo and core corporate values.”

The New Gold Standard includes many anecdotes from hotel guests, employees, managers, and executives to explain how Ritz-Carlton has “going above and beyond the call of duty” embodied in its culture.

  • A breakfast waiter scurried to a neighborhood grocery store to buy a guest’s preferred grape jelly when the dining room did not have it on hand.
  • At the Ritz-Carlton Dubai, a manager and a staff carpenter built a temporary access ramp made of wood boards to allow a guest and his wheelchair-bound wife to access the sandy beach, dine by the ocean, and watch the sun go down.
  • When a guest called the Ritz-Carlton Naples to notify that she had run out of gas, a doorman filled up a few five-gallon gasoline containers and drove 40 miles to help out the stranded woman and her children.
  • During Hurricane Katrina, employees of the Ritz-Carlton New Orleans pushed laundry carts loaded with luggage and guests through flooded streets to get them to safe locations.

Lest the reader dismisses these as cherry-picked examples of “overdoing it” in Michelli’s laudatory narrative, these cases in point are demonstrative of the Ritz-Carlton DNA. The employees feel thoroughly invested in and trusted by their employers. And Ritz-Carlton recognizes that customer loyalty is dependent upon the frontline employees who administer such sophisticated service daily.

Idea for Impact: Foster a foundation of customer-centricity

Speed-read Joseph Michelli’s The New Gold Standard. It offers ample insights into establishing your own gold standards for achieving excellence in customer service.

  • Create a customer-centric culture that identifies, nurtures, and reinforces service-excellence as a primary guiding principle. “Leadership often involves fostering the environment in which everyday creativity emerges in response to the needs of specific customer groups.”
  • Foster a culture where employees take up personal accountability for resolving customers’ problems.
  • Train employees to anticipate and fulfill the unmet—even unstated—needs of customers.
  • Reiterate that providing a ‘wow!’ experience should be each employee’s goal during every interaction with a customer.

Wondering what to read next?

  1. How to Develop Customer Service Skills // Summary of Lee Cockerell’s ‘The Customer Rules’
  2. Putting the WOW in Customer Service // Book Summary of Tony Hsieh’s Delivering Happiness
  3. From the Inside Out: How Empowering Your Employees Builds Customer Loyalty
  4. General Electric’s Jack Welch Identifies Four Types of Managers
  5. Fire Fast—It’s Heartless to Hang on to Bad Employees

Filed Under: Business Stories, Leadership Reading, Managing People Tagged With: Coaching, Courtesy, Customer Service, Human Resources, Likeability, Performance Management

The Myth of the First-Mover Advantage

February 20, 2020 By Nagesh Belludi Leave a Comment

If you’re an entrepreneur entering a new market with a product or service that nobody else offers, you’ll seek the first-mover advantage.

  • You’ll move quickly to get established as a market leader. If your business idea has the potential to succeed, other entrepreneurs are possibly working on it at the same time or will be quick to emulate when they see what you’re doing.
  • You’ll validate your concepts quickly by identifying and partnering with a few enthusiastic “guinea pig” customers who can test your product or service early on and give you feedback regarding what customers really want.
  • You’ll create some barriers (“establish an economic moat” in Warren Buffett-speak) to inhibit other aspirants from entering the market—you’ll secure patents on your intellectual property, lock-in key locations, or negotiate longer-term contracts with customers.

Alas, many first-mover advantages are not sustainable, and many first-movers are as successful as what the superstars will have you believe.

First-to-Market is often First-to-Fail

New ventures have higher failure rates than more established businesses.

Creating market awareness, sustaining market acceptance, fending away aggressive competitors are often easier said than done for many new ventures, not to mention lining up suppliers and distributors. Besides, unless you’re well-capitalized by patient investors, you’re likely to face higher-than-foreseen marketing costs on top of lower-than-anticipated sales.

Instead, if you are the second—or later—entrepreneur to market, you’ll stand a better chance of success by learning from the forerunner’s mistakes. You’ll also earn better credence from your customers, suppliers, distributors, employees, and investors to help create a better product or service.

Idea for Impact: There’s an American adage that “many pioneers died with arrows in their backs.” The best time for an entrepreneur to offer a new product or service is after others have already gotten there and laid some groundwork.

Wondering what to read next?

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  3. Many Businesses Get Started from an Unmet Personal Need
  4. Creativity by Imitation: How to Steal Others’ Ideas and Innovate
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Filed Under: Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Creativity, Critical Thinking, Customer Service, Entrepreneurs, Innovation, Luck, Thought Process

Your Product May Be Excellent, But Is There A Market For It?

July 24, 2019 By Nagesh Belludi 1 Comment

Akio Morita, the visionary co-founder of Sony, liked to tell a story about recognizing opportunities and shaping them into business concepts.

Two shoe salesmen … find themselves in a rustic backward part of Africa. The first salesman wires back to his head office: “There is no prospect of sales. Natives do not wear shoes!” The other salesman wires: “No one wears shoes here. We can dominate the market. Send all possible stock.”

Morita, along with his co-founder Masaru Ibuka, was a genius at creating consumer products for which no obvious demand existed, and then generating demand for them. Sony’s hits included such iconic products as a hand-held transistor radio, the Walkman portable audio cassette player, the Diskman portable compact disk player, and the Betamax videocassette recorder.

Products Lost in Translation

As the following case studies will illustrate, many companies haven’t had Sony’s luck in launching products that can stir up demand.

In each case in point, deeply ingrained cultural attitudes affected how consumers failed to embrace products introduced into their respective markets.

Case Study #1: Nestlé’s Paloma Iced Tea in India

Marketing and Product Introduction Failure: Nestle's Paloma Iced Tea in India When Swiss packaged food-multinational Nestlé introduced Paloma iced tea in India in the ’80s, Nestlé’s market assessment was that the Indian beverage market was ready for an iced tea variety.

Sure thing, folks in India love tea. They consume it multiple times a day. However, they must have it hot—even in the heat of the summer. Street-side tea vendors are a familiar sight in India. Huddled around the chaiwalas are patrons sipping hot tea and relishing a savory samosa or a saccharine jalebi.

It’s no wonder, then, that, despite all the marketing efforts, Paloma turned out to be a debacle. Nestlé withdrew the product within a year.

Case Study #2: Kellogg’s Cornflakes in India

The American packaged foods multinational Kellogg’s failed in its initial introduction of cornflakes into the Indian market in the mid ’90s. Kellogg’s quickly realized that its products were alien to Indians’ consumption habits—accustomed to traditional hot, spicy, and heavy grub, the Indians felt hungry after eating a bowl of sweet cornflakes for breakfast. In addition, they poured hot milk over cornflakes rendering them soggy and less appetizing.

Case Study #3: Oreo Cookies in China

Marketing and Product Introduction Case Study: Oreo Green-tea Ice Cream Cookies in China When Kraft Foods, launched Oreo in China in 1996, America’s best-loved sandwich cookie didn’t fare very well. Executives in Kraft’s Chicago headquarters expected to just drop the American cookie into the Chinese market and watch it fly off shelves.

Chinese consumers found that Oreos were too sweet. The ritual of twisting open Oreo cookies, licking the cream inside, and then dunking it in milk before enjoying them was considered a “strangely American habit.”

Not until Kraft’s local Chinese leaders developed a local concept—a wafer format in subtler flavors such as green-tea ice cream—did Oreo become popular.

Idea for Impact: Your expertise may not translate in unfamiliar and foreign markets

In marketing, if success is all about understanding the consumers, you must be grounded in the reality of their lives to be able to understand their priorities.

  • Don’t assume that what makes a product successful in one market will be a winning formula in other markets as well.
  • Make products resonate with local cultures by contextualizing the products and tailoring them for local preferences.
  • Use small-scale testing to make sure your product can sway buyers.

Wondering what to read next?

  1. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  2. Find out What Your Customers Want and Give it to Them
  3. The Myth of the First-Mover Advantage
  4. Make ‘Em Thirsty
  5. Creativity & Innovation: The Opportunities in Customer Pain Points

Filed Under: Business Stories, Leadership, Managing Business Functions, MBA in a Nutshell, Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Biases, Creativity, Customer Service, Entrepreneurs, Feedback, Innovation, Leadership Lessons, Parables, Persuasion, Thought Process

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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