Membership Has Its Benefits

How can you show auxiliary benefits of being a customer? According to “For Card-Carrying Members, Lounging at the Mall” in The New York Times, The American Express Members Lounge, at the Mall in Short Hills, provided respite to holiday shoppers between November 7, 2006 and January 14, 2007. Ralph Andretta, senior vice president and general manager of membership rewards for American Express explained that “this [was] a test, our way of demonstrating why it’s important to keep that card in your wallet.” This was American Express’s first attempt at "customer-coddling,” outside a trade show venue. This way-station gives American Express members a second wind for shopping.

Build a stronger business by meeting the secondary needs of your clients.

Hotels Remembering Your Preferences to Gain Loyalty

Ritz-Carlton:

* System: New database called "Mystique" catalogues employee observations about guests for all of the company's 60 hotels. Replaces an old system that couldn't share information as easily between hotels.
* Comment: Ritz doesn't ask guests to fill out a form - it instead relies on hotel staff to notice what guests like and dislike, and tailor services accordingly.

Marriott

* System: "Rewarding Welcome" system asks guests for their preferences in pillow type, bed type, room location, extra towels or refrigerator. It now shares the information with eight brands, and 2,600 hotels.
* Comment: Guests fill out a form to participate, so the system is entirely optional.

Hilton

* System: This year Hilton's guest recognition technology is being expanded to include in-room preferences, such as pillow, blanket, need for a crib or rollaway and early or late check in.
* Comment: In 2007, the hotel company hopes to roll out RFID-tagged cards for frequent guests to carry so that the hotel can track them around the property. Example: If the guest walks into the bar, the bartender can have his favorite drink ready before he has to ask. The company is also testing a way for its TVs to greet guests with a customized message when turned on.

Hyatt

* System: In April, Hyatt is rolling out an "e-concierge" system so that guests can tell the hotel in advance about their preferences for amenities life golf, spa and restaurants.
* Comment: Hyatt has a centralized guest history system that captures preferences like room type, amenity type, bed type and location near or far from an elevator. It has special codes employees can log into the system for preferences such as a guest who prefers grapefruit peeled and sliced in a certain way.

Starwood

* System: Starwood (which includes brands like W Hotels, Westin, and Sheraton) doesn't have a tracking system other than its Starwood Preferred Guest Loyalty program.
* Comment: The properties on its more luxurious end, like W, have internal guest-recognition systems. If a guest expresses a love for a certain sports team, the welcome desk will always provide that guest with a game schedule and a list of TV channels on which the team is playing. W asks guests if they want information about preferences to remain with one property, or expect it ot be honored throughout the chain.

Build a stronger business by paying attention to your customers and showing that they matter when they return.

Reflexive Reactions Happen in a Flash

Why do some people seem to sneeze every time they walk out into bright sunlight? According to a new study reported in The Wall Street Journal in February, it's because one in four people have a "photic sneeze reflex". This reflex, caused by an extra-sensitive visual cortex, triggers the tendency to sneeze when suddenly exposed to sunlight or other bright light.

In business, you sometimes encounter strong, unexpected reactions when dealing with people, both inside and outside your company.

Build a stronger business by recognizing that some of the people you deal with have reflexive responses you may not experience yourself.

Is Social Media Valuable for Entrepreneurs?

It may seem like a no-brainer: these days, businesses should use social networking tools like Facebook and Twitter as part of their marketing strategy. As reported in The Wall Street Journal, in 2009 social-media adoption by businesses with fewer than 100 employees doubled to 24% from 12%. If you're not addicted to social networking yourself, you're bound to know plenty of people who are.

But social media may not be as useful as we think. A survey of 500 small-business owners found that just 22% made a profit last year from promoting their firms this way. A lot of time and energy can go into maintaining the company's presence on social sites, and rewards in sales - if they come - can be slow to arrive. Indeed, using social media "could harm you if you end up inadvertently saying something stupid, offensive or even grammatically incorrect," says Larry Chiagouris, professor of marketing at Pace University's Lubin School of Business.

In order to see benefits from this kind of marketing, you have to be patient, dedicated, and consistent. Stephen Bailey, of John Fluevog Boots & Shoes Ltd., says his company saw a 40% increase in online sales in 2009, the first full year they consistently engaged in social media marketing. There are several free services available to help companies track Web traffic from social media sites, including Hootsuite, Google Analytics, CoTweet, and Lodgy.

For some businesses, social media makes sense. Like everything else, though, it's not a silver bullet. Build a better business by using a smart marketing mix.

A New Way to Pay

If you're ten years old, you can't use your own credit card to buy dog food at the local store. But now you can buy digital dog food for a online pet in much the same manner - using Kwedit. As reported in The New York Times, a new payment option has just become available to anyone, no matter how young they are. In the new system, a "Kwedit Promise" is used to buy items in games by FooPets and Puzzle Pirates. The items can be paid off later using a regular credit or debit card; with cash sent in a provided mailer; or by printing a barcode, taking it to your local 7-Eleven, and paying cash there.

FooPets, which has over a million active members and signs up 20,000 to 25,000 new members each day, lets users adopt lifelike digitally animated pets and then buy virtual goods for them - everything from a bag of puppy chow for $3 to a bungalow for $333 - using Kwedit. "Buy now, pay later" is always a seductive marketing tool. Users are encouraged to pay the actual funds they owe by the fact that they accrue a Kwedit score, similar to a regular credit score, and more Kwedit is extended to each user based on his or her history of repayment. But since the marginal cost of virtual goods is negligible, there's no serious risk of major financial loss if the promise is not repaid.

Like FooPets and similar systems - considered "nurturing games" that encourage responsibility and other adult lessons - Kwedit is a way to introduce young people to important ideas in a relatively safe environment.

You can build a stronger business by applying the "nurturing games" concept to your customer service.

Making Web Site that Fit Your Phone

Companies are increasingly turning to Web communities to build their brand, provide customer service, and unveil new products. Online forums, which often allow costumers to address a problem before they have to call a service line, have saved millions of dollars in deflected calls. A unique challenge is arising for these companies, however, as more and more people choose to access the Web on their mobile phones. Web sites created for computers usually don't load as well onto phones, so many companies, including Hewlett-Packard, are discussing ways to build new Web sites specifically for wireless users. "We definitely have work to do to get our Web site mobile friendly, [and] we know our customers want it," says Lois Townsend, H-P's directory of community.

There's an upside to creating content for cellphones, however: it provides a greater opportunity to be interactive with customers. Lithium Technologies Inc., plans to create a platform this year through which companies can draw feeds from services like Facebook and Twitter onto their own sites. It will work on any phone. Phillip Soffer, Lithium's vice president of product marketing, says that "because the community is active and based on addictive behavior, it's the kind of thing that works well on mobile phones." Other companies are also seeking to bring large corporate sites to the mobile Web. Jive Software Inc., which currently powers communities for companies like Nike, is working with a program designed specifically for the iPhone. In focusing on smart-phone users, Jive is hoping to tap customers with a desire for deeper functionality.

Build a stronger business by building and cultivating an online community that's as convenient as a cell phone.

Our Environment's Unacknowledged Influence

We all let social cues from the people we eat with inform our own portion size. A recent study at the University of British Columbia, however, shows that even the body type of the other person eating has an effect on our choices. Study participants were asked to serve themselves some M&Ms before settling down to watch a video. A researcher posing as another participant took M&Ms first; though the amount taken by this confederate was always the same, the confederate was sometimes a size zero and sometimes a size sixteen. The results:

• 2.05 ounces of candy were taken by subjects when the nearby eater was obese.
• 2.62 ounces of candy were taken by subjects when the nearby eater was thin.

Build a stronger business by being aware of your environment.

Please Fire Me

Here is a letter from a frustrated customer featured in The Philadelphia Inquirer:

Sprint Nextel, you win. Please fire me. I am very upset that I was not included in your recent firing of customers who called your customer service too often to complain. Why not me? I have spent countless hours every month calling to have my bill adjusted. I have called your customer service more than my friends and family. You should have a plan that offers 10,000 minutes for customer service and 1,000 minutes for friends and family.

I beg you, please release me, let me go. You don't need me anymore. I am a bad customer like thousands of others and deserve to be terminated. Thank you.
Tom Froschle Ridley Park

When customers feel frustrated and unable to communicate with someone who can make a difference, they resort to sarcasm and cynicism.

Pay attention to customer feedback when building a stronger business and you'll avoid PR nightmares like this one.

Customer Service Experience

A reader of the The New York Times submitted the following letter about a recent experience with customer service:

Dear Diary:

While I was waiting for the L train at Union Square, a performer started singing the Beatles hit: "All My Loving," with just one problem:

Close your eyes and I'll miss you
Tomorrow I'll kiss you....

After he finished I dropped a dollar in his guitar case and told him I thought the lyrics went:

Close your eyes and I'll kiss you
Tomorrow I'll miss you...

He shook his head, smiled, and said, "I knew it didn't sound right." He then reached down into his guitar case and gave me back my dollar.

A.J. Jerome

Does a street musician have you beat in delivering customer service?

Being responsive and collaborative with your customers is a sure way to build a stronger business.

Prosperity Made Easy with YouTube

"Using YouTube For Prosperity" in the Wall Street Journal explains that many senior citizens are seeking to preserve their legacy through videos showcasing their famous recipes or hobbies, on YouTube.

Seniors ages 65 and older are the fastest growing segments of the online population, according to Jupiter Research. 39% of all seniors in the U.S. will regularly access the Internet by the end of 2007.

By 2010, half of the U.S. senior population is expected to be online. In response, Internet companies are launching services targeted at older online viewers.

Some grandchildren in their 20's are intimidated by the process of creating an online video so it is not surprising that grandparents are seeking their help with this process. Millie Garfield, 81, decided to feature herself in a series of videos documenting her son's pet peeves -- namely, her persistent requests for his helping opening coffee cans, rethreading dental floss, or opening tightly sealed bottles. Her son has helped her film and post the series on a blog, Mymomsblog.blogspot.com and on YouTube.

When you open your experiments up to the general public, like Google has done with YouTube and Blogspot, you find uses that you might never have imagined within your own company. When you spot trends like this, you gain the opportunity to build a stronger business.

Listen, Then Speak

In The New York Times article, "Read My Ears", Thomas Friedman explains why President Bush needs to do less talking and more listening, particularly when visiting Europe.

After George Bush's image in Europe became severely damaged as a result of the Iraq war and U.S. Foreign Policy, Friedman suggests that his priority to Europe should be listening to their complaints, rather than making speeches.

Friedman suggests that only once he hears and understands Europeans' view of America as a once welcoming, optimistic country turned into a hostile, aggressive one, should Bush consider speaking.

Even the most experienced of us can make mistakes.

Listening to customer complaints with an open mind, is an essential part of building a stronger business.

Online Ads

In the New York Times article "Online Pitches Made Just For You", it describes techniques used by Alaska Airlines that many consumers are most likely unaware of. Alaska Airlines is introducing a system on the Internet to create unique ads for people as they cruise the web.

This is slightly different from direct mail or telemarketing because companies do not know the consumers name; instead, consumers are identified by their computers, using cookies.

Alaska Airlines uses a range of information to select the ads for each individual consumer surfing the web, including the person's geographic location, the number of times they have seen an Alaska Airlines ad, whether the person visited the company's website, the persons purchase history with the airline and their experience with lost bags, delays and flight cancellations.

Since Alaska Airlines is a small operation,it is important that its ads narrowly aim at people who might actually fly to the particular areas they service. The first phase of the new system even offers different flight prices to different people by analyzing how price sensitive certain consumers seem to be. Another data practice used at Alaska Airlines is called "re-targeting" which records who visits the web site and then turns that information over to the airline's ad delivery company. Next, when those people are elsewhere on the web, they are shown the ad. This means that people who visit Alaska Airlines' site receives ads that are different from those seen by people who have not.

Tracking individual actions and responding intelligently is a sure way to build a stronger business.

More About Business Travel Blogs

Business travel is now the subject of many blogs. BoardingArea.com is a directory to blogs that address issues of interest to business travelers. Tracy Gamble, VP for business development at Propylon, reads three or four travel blogs regularly, including the Informed Traveler, CloudTravel and Gridskipper. Also, J.W. Marriot Jr, chairman and chief executive at Marriott International, began a blog called Marriott on the Move. He loves reading the customer responses to posts. Starwood, the hotel chain, started a blog TheLobby.com to provide information to customers in its loyalty program.

Blogs can also be a quick way to gauge customer reaction to policies. Southwest Airlines has a blog, Nuts About Southwest. A schedule planner wrote in a post that the airline sold its inventory only three months in advance; however, after an outcry online it changed its policy and now sells inventory four months in advance.
Delta's blog, blog.delta.com, has posted proposed screen shots for its self service kiosks on the blog to get feedback from travelers.

Bringing the voice of your customers into your company is another way to build a stronger business.

More Choices for Cell Phone Customers

When most people buy a cell phone, they are also locked into the carrier providing service for that phone.

According to The New York Times article, "Locked vs. Unlocked: Opening up Choice", Apple's iPhone has caused much controversy lately as customers who purchase the phone are immediately locked into AT&T's service.

As a result, Apple claims nearly one in every six iPhones sold in the U.S. were bought with the intention of unlocking it.

Despite updating their operating systems, Apple has been unable to stop programmers from unlocking the iPhone, calling into question the legal limitations of such a practice.

Some say unlocking a phone violates the company's warrantee, while others imply that it is illegal. Yet no one knows for sure, as the laws surrounding the issue are unclear.

According to Kyle Matthews, 25-year-old co-founder of ModMyiFone.com, unlocking an iPhone is very simple, requiring less than an hour to complete.

The amount of attention iPhone unlocking is receiving, is a good thing according to legal scholar, Professor Susan Crawford. It will allow Americans to see the choice they have when it comes to cell phone service providers.

When customer demand turns to customer revolt, leaders who want to build a stronger business find ways to adapt and be flexible rather than break.

Shopper Calculations Often Wrong

According to The New York Times article by Alex Mindlin, “A Math Test for Bargain Hunters”, 59% of bargain hunters incorrectly compute sales percentages.

In a study by Florida researchers, shoppers were more likely to buy an item on sale for the second time, than the same item on sale for a higher, but equivalent amount.

A product on sale for 33% of a 25% discount would attract more shoppers than a product with a 50% discount. Although they are both offer half off, shoppers incorrectly added the first sale to be a 58% discount!

Taking advantage of customer perceptions help you build a stronger business.

Free Online Service for Commuters

According to the article, "Email traffic alerts aid N.J. commuters" in The Philadelphia Inquirer, commuters traveling between New Jersey and Philadelphia will be able to check their email, cell phones or PDAs for up-to-date traffic jams and late trains.

The free online service will be provided by the Delaware River Port Authority, and a similar program is being developed for SEPTA.

The PATCO train line, run by the Delaware River Port Authority, will also provide uniformed "ambassadors" to assist commuters traveling at night and on weekends.

Providing information in formats and on devices that make life more convenient for your customer is a sure way to build a stronger business.

Recycling Can Save Your Life

According to the Men’s Health article, “Energy-saving lightbulbs”, government scientists believes compact fluorescent bulbs, which contain mercury, could one day poison us.

Apart from standard recycling to prevent soil and water contamination, Ikea is also accepting bulbs at their store for free.

Visit http://lamprecycle.org for more information.

Perception Matters When Building a Business

In order to make her small real-estate and property management firm look larger than it actually was, Angela Ford invested in an answering service. Instead of reaching Ms. Ford, her customers would first speak to a live operator, who would only direct their calls if she was available. Her company's revenue has more than doubled every year since it began.

According to The New York Times article, "Making a Little Company Look Big" part of building a successful company includes creating the image that you are more successful than you initially are. Besides paying for an answering service, entrepreneurs can also rent office space and design a sophisticated Web site.

Evan Carmichael, a chief executive of small business, had his friends dress in suits and work diligently in a borrowed office space when a local television studio asked to interview him. After the segment was broadcast his Web site went from 150 visitors a day to almost 1700 a day.

People who build a stronger business realize that perception matters and take advantage of technology tools and marketing techniques to put their best foot forward.

Online Rating System: Help or Hindrance?

In The New York Times article, "On Second Thought, Let's Just Rate all the Lawyers", criminal defense lawyer John Henry Browne, sites his reasons for filing a lawsuit against Avvo.com.

Avvo.com allows regular people to find the kind of lawyers they need in their location. After typing in a zip code and specialty, a list of lawyers come up with a rating out of 10 points.

Unfortunately for Mr. Browne, his first visit to the site ranked him at a 3.7, in the site's "caution" zone. He claims to have lost two potential clients because of Web site.

Avvo appears to generate their rankings from public records including disciplinary reports and factor in education, experience and specialization help. Lawyers are allowed to add information to their profile after providing Avvo with a valid credit card number.

They will not disclose exactly how much each record factors into their ratings, but claim lawyers could temporarily increase their scores by inputing minor prizes and awards. After typing in positive information about his career and experience, Mr. Browne watched his score rise to a 7.4.


When you're building a stronger business, focus on the metrics that matter rather than getting caught in an arbitrary rating game.

The Perils of Customer Involvement

Malibu Caribbean Rum recently sponsored a contest from its user-generated advertising site. They offered either a prize of $25,000 or a personal banana grove in a tropical location to the contestant who submitted the best original advertisement for the product.

According to The New York Times article "Outcome of an Ad Contest Starts an Uproar on YouTube", Malibu encouraged participation from You-Tube users and said they would consider their votes when making the final decision.

But when a winner was announced even before the final contestants were posted, many YouTube users became upset. Message boards were filled with complaints, and one user even created a short conspiracy theory video about the situation.

The uproar shows how user-generated promotions can backfire with some consumers.

Beware of the risks associated with customer involvement. You must not only be trustworthy, but transparent when building a stronger business.