Want More Customers, Stop Marketing!

Improve customer retention and enhance your bottom line by not spending money on your current marketing efforts. Stop throwing money at a low return in hopes of improving response over previous efforts. There is a better way to get a more significant ROI on marketing budgets.

Over the past few years, I had the pleasure of developing many visual concepts for B. Joseph Pine II, co-author of the Experience Economy and Infinite Possibilities. Many of the visuals that were created were from the very ideas from the books that Joe had written. The best part was—that with each drawing—I felt I was gaining a deeper understanding of every concept that Joseph Pine and James Gilmore had created. I was given a unique look into the world of modern economics, and I can tell you, there were many concepts to tackle and many sketches to create—over 500 to-date.

To carry out these 500+ illustrations, there was a lot of time spent discussing the meaning and history behind these ideas. Discussions and debates over how best to bring them visually to life. Granted, not every drawing that was created fit his presentation needs, but that’s a big part of developing a visual library around a well-known publication—conveying the concept visually.

It was during one of these discussions that Joseph presented a new concept around marketing. A concept so anti-tradition, I knew instantly that it would be controversial, and the push back from marketers and the business world would be great. The visuals needed to clearly support the idea. That idea, in his words, was ‘companies need to stop marketing, start customering.’

Stop marketing and start customering?

What is customering?

This idea is a dramatic shift in the traditional order of things. As Pine clarified, marketing was a process of pushing information out to the masses in hopes to attract customers. There’s nothing new about this process of marketing. Every company does it. It is typically the key way companies believe they need to communicate their brand message. His concept meant reversing the process of connecting with a better method called “customering.”

Much like the concept of human-centered design, customering was about seeing each customer individually and not stereotyping them into “market” groups or segments. His idea was that people want what they want—when they want it—and that each customer is unique. It is this uniqueness that marketing techniques fail to address successfully, and eventually accept low percentage returns on the effort. 

The Experience is the Marketing

Pine’s idea was to forego massive marketing campaigns and to direct your attention towards each customer you now have. Deepen the relationship through customized and personalized engagements. Stage experiences for them that are memorable and sharable. In Joseph Pine’s words “the Experience IS the Marketing.”

Every day the news reports another retailer shuttering, a bank merger, malls closing, and companies forced to close their doors because customers are no longer shopping as frequently in their stores. With the digital world expanding, more and more customers are buying online to save time and companies are faced with a surmounting dilemma of how to increase physical traffic. The solution is no longer in marketing, rather the solution is in customering—the staging of experiences in order to have customers spend time and create sharable memories.

Staging Experiences

The companies that stage experiences have a greater opportunity to capture the hearts and wallets of each customer they engage with. This engagement—or experience—also becomes the core of the stories the customer shares with their friends, family, and co-workers. Experiences create stronger brand connections that all the marketing dollars can ever produce. Experiences create customer loyalty. Again, as Pine says, ‘the Experience IS the marketing,’ and the customer becomes your brand ambassador.

If you want to learn more about the Experience Economy, staging experiences for your customers, and leveraging your marketing dollars more effectively, then give me a call.

Degression of Economic Value – Case Study Starbucks

 

Degression: a stepping or movement downward

A disclaimer. I have been a long-time “Starbuckian” and I have a minimum of 2 Grande coffee’s a week from my favorite Starbuck cafe. I enjoy the engagement of my local baristas and will continue being a patron of Starbucks in the foreseeable future.

Note of caution: Degression of economic value is driven by commoditization. When you reduce personalization and customization, you commoditize your economic offering. Progression is only achieved by making it more personal and customizable.

In the Experience Economy, Starbucks is, or was, an exemplar of how a Service provider could be an Experience stager. From the very begin of rolling out Starbucks Howard Schultz wanted to create a coffee lovers experience. As he even is quoted as saying, “Starbucks represents something beyond a cup of coffee.

By bringing the ideas of European coffee baristas and adding the elements of an experience, he created a unique and personal offering. In fact, Starbucks became the third place to gather in many people’s lives. It was much more than just a coffee shop it was a unique and authentic coffee experience. Howard Schultz believed this and even expressed this thought in a statement to the press, “People around the world, they want the authentic Starbucks experience.

Unfortunately, the fame and growth of Starbucks brings many challenges, especially from those willing to trim and standardize the custom experience. This was the beginning of the end of the Starbuck Experience as it was known. Over the years I observed many changes, some subtle some not-so subtle, but all impacting the experience.

The first noticeable shift was from the ceramic mugs to paper cups. I realize that it may have been about cost-cutting, cleanliness and consistency, but it was the first of many stones cast towards moving from the Experience to a Service model.

Next came the de-creativity and de-styling of the barista by introducing the practice of lidding the cup after creating the coffee. No more were there hearts and leaves drawn in the foam of the coffee, now there was just the plastic lid, the paper cup and the cardboard wrap. Speed became the critical factor. Move more coffee by reducing the time from purchase to acquisition.

Recently, technology has begun playing a role in this commoditization of the Starbuck Experience. Mobile apps and drive-up windows forced a control mechanism, the printed label. Quickly vanishing is the personalization and interaction of the customer and the barista for the speed and accuracy of customer’s drink pick-up. Clever hand-written names were replaced by mobile account names and printed mixes. Customers didn’t even have to engage the barista anymore. The experience is faded quickly away and been replaced by an expensive coffee service.

Finally, Starbucks has allowed the store design to seal the Starbuck Experience fate. The new cafe design actually creates the perfect assembly line production model. Four stations replace two all to improve the speed and efficiency. The first is the order station. Orders only please, no exchange of funds. Next comes the pay station. Then you verify your order with the barista, then finally, you wait at the pick-up station where you have to locate your order amongst the in-store and mobile orders that are stacking up in tiered racks. No longer is it about going beyond coffee and creating the third place. Its become about moving product as fast as possible.

Now I know there are those diehard Starbuckians like myself who would attempt to argue the issue, but one only needs to just stop, look and see that the Starbucks Experience that drew us in has been replaced by the Starbucks service.

With Howard Schultz away from the helm, an echo of warning to Starbuck’s future is not being heeded by those in control, “I am concerned about any attrition in customer traffic at Starbucks, but I don’t want to use the economy, commodity prices or consumer confidence as an excuse. We must maintain a value proposition to our customers as well as differentiate the Starbucks Experience. That is the key.

Can or will Starbuck’s regain the coffee experience it created inside the cafes excluding the Roastery? Only time will tell.

Time: The New Currency

Since the late 1950s, the history of branch banking in America has been all about being in the midst of the population. No bank could survive without being accessible in a timely fashion. Convenience became one of the prime factors for locating a branch. The focus was to reduce the time it takes to get from point A to the branch. If it was by car, banks planned around the flow of traffic. If it was a pedestrian environment, banks planned the location along the path. This was all about convenience of doing business with the bank and to ensure that the customer did not have to go out of the way. If a bank was in the path, it made sense for a customer to bank there—it was about how to better save time.

Enter technology. Now, being in the path of customers meant being readily accessible in their hands. Most transactions are performed—not in person—but online and through mobile devices. Technology quickly became the ultimate time saver. This opened the question, ‘”Where do you locate now and what should the branch become?”

The best way to address this question is to change the framework of the question. Before it was about doing something for the customer they could not do on their own, now banking needs to refocus away from saving customers time to creating places where time is well spent. The only way to do this is by going beyond services that are tailored towards doing for the customer to creating things to do with the customer. Stage an engagement that is memorable and sharable that the customer does within the branch.

Here’s the idea. Take some ‘thing’ that is usually used at a bank and create some activity around that thing. This is called “Ing the Thing”, a principle in the Experience Economy. Take a normal action of a thing and create an engaging activity around it that people come to do or watch others do. Now, exaggerate the idea to make it a spectacle.

Look at the classic piggy bank. The piggy bank is a great ‘thing’ to ‘ing’. First, make it really oversized. Now, stage an activity around the oversized piggy bank that generates interest. Maybe it squeals when people put coins in it. It becomes a photo-worthy opportunity for your visitors and becomes a great fund-raiser. “The Piggy Bank That Is Saving….” Use whatever best applies. Saving—the action word—now takes on a new meaning and purpose.

 

Cracking the Safe.

Any object or thing can be a source of an experience if you take the action related to it and leverage it as the activity. Now the branch becomes a stage for an experience and a place to engage customers and make memories. Then you change from time well saved into time well spent.

 

Need help ‘Inging the Thing’ send me an email and let’s see what we can do together.

 

Signature Moments

Have you ever wondered if there was something more you could do to extend your brand or message? Well, there is.

One opportunity that is usually overlooked is at the point of when your customers are exiting your business. Add a signature moment that adds that little punch to the engagement. As a Visual Translator, I find that taking photos of attendees at the wall acting as if they are doing the work, is a great piece of memorabilia and a signature moment for them. It also gives me another chance to communicate my brand and my work through various channels the attendee wishes to use. It’s both branding and a signature moment.

Take a look at your business. When is there an opportunity to add that moment outside of the normal business transaction? Now fill it with something that is uniquely you.

Attracting Customers Is Not Enough

generic-5es

In the Experience Economy, the authors use a flow process. Over the years of working with them, assisting clients with customer and employee journey maps, I realized that the first stage of most journeys begin with “Attracting”.

Attracting is good, yet the idea of attracting merely means you want them to notice you and nothing more. This term creates no call to action. Because of that and that I tend to never let an idea go, I rethought the whole initial process and change the beginning from Attracting to Enticing.

Look at an experience or business you have. Are you merely trying to attract attention or is it that you want people to enter your business? Me, I want to entice people inside. I want them to engage not merely notice. Enticing truly means you are actively generating interest that is sparking curiosity in the mind of your prospect in hopes to make them your customer.

If you would like to learn more or remap your customer journey, let’s chat.

Guided Change

I have written, tweeted and even presented a fair amount about change. Change in personal, business and organization environments. The one thing I have not shared is that desired change is guided.

change

Many speak about change as if it was a package you can just pull from the shelves, It’s not. Proper change is a guiding process which requires outside supporter, experts and journey guides. No desired change happens in a vacuum, we all need someone else to guide us along the path, because each of us travels at a different rate and course. There is no one single plan that can work for everyone.

Over the past many years I have worked with some powerful teams help clients with change. In every interaction, the clients that were the most successful had a clear picture of what change would look like and feel like. By creating what they wanted to become and mapping it out, could individuals, teams or whole organizations understand the path that they needed to take and the obstacles to overcome. Most importantly, they knew they had a guide to help them when they faltered or got off course.

Take as an example of personal hardship and eating disorders. a young woman who had fallen into a ritual of poor eating to fit in with the crowd. When she finally realized, after great pain and medical issues, that she needed to change, she found a guide coach who could help her change, not change her. Soon she was on the road to who she wanted to become, and not what others wanted her to be. Read her story here and see how she is now helping guide others along the path she once traversed. The Unpolished Journey.

The second thing I have rarely shared about change is that it is never over. Change is ever evolving as time passes and events unfold around the change that is happening. With change, you can only describe what you believe you wish to become, map the path and begin the journey. Change is not a destination, but truly a journey where new ideas and revelations are revealed that may take you even further. As with Morgan Blair, founder of The Unpolished Journey, her journey of change rippled out around her, changed her from traveller to guide.

Now let’s take an organization who needs and wants to change. Healthcare organizations are being forced to change. These organizations are being directed from external forces. This method of change is not good nor will they control their outcomes. This is a spiral down and not a journey forward. Companies like Starizon are gathering people to help make change a positive path. Even the team members that help the transformation are called Guides and the client as explorers. In change, we explore options and possibilities and our guides help us, never lead or dictate the paths taken.

Change is transformation. We move from one state of being to another. Transformation is the journey we take to self discovery and change. Just as illustrated below, change is only possible in the future state, the past is unchangeable. In order to cross the gap of change, We need to redefine our purpose of why, map the process of ‘How’ to achieve ‘What’ we want to become.

Change Deltasm

To learn more or chat about how mapping your bridge to the future, just contact me when you decide that you want to take control of your own change.