Second Life is looking for it’s Second Wind. There.com isn’t quite there yet. The media hype that surrounded virtual worlds just a year ago has ratcheted way back. Real world companies who came in not understanding what they were getting into quickly faded away after they didn’t get what they were expecting.

But one demographic seems to be doing quite well in the virtual space: Kids. If you have one of these living under your roof, you probably know that they are actively participating in online virtual/social networking spaces. They are joining online social networks at increasingly early ages (pre-school in the case of Club Penguin) and in those spaces, they are forming relationships that are very real.

This high level of participation has made kid-oriented worlds like Habbo, Gaia Online, Neopets, Webkinz and Nicktropolis more successful that adult oriented virtual worlds. Disney’s launched Virtual Magic Kingdom in 2005 with a target audience of 8 - 14 year-olds. Seeing business opportunity in the virtual space, they paid $350 Million to acquire Club Penguin last year. This year, Disney launched Pirates of the Caribbean Online to attract a somewhat older, but still teen aged audience (mostly boys) and Pixie Hollow (targeted at girls) is set to be launched later this year. The longer range plan, according to Mike Goslin, VP of Disney’s Virtual reality Studio, is to “have a large number of virtual world for a range of different audiences… sort of like a theme park.” The strategy also includes making the different worlds “feel like a common experience” including the ability to move your social contacts between virtual experiences.

Last Week, Shel Israel posted an fascinating video interview with Goslin and other senior team members from Disney’s Interactive Studios.

In the interview, the Disney team talks about the differentiators that they bring to the game. The most interesting one for me was the idea of Context. Like physical playgrounds, Disney sees their virtual worlds as socializing environments. In them, kids are learning collaboration skills, communication skills and social skills, but as with most everything Disney does, these interactions and communications are done in the context of a story. Disney believes creating social environments and communities around a context adds value to both consumers and business. On the customer side, building environments around a theme drives engagement by communities of interest who are passionate about that theme (think “ESPN Fantasy Football”). This leads to large communities that are defined by their common interest as opposed to the relatively small number of people that may be in your friend list. Those large communities with common interests provides a context for a business model like advertising. Because the community is all there for the same reason, they will likely engage in predictable ways (i.e. minimize random and inappropriate behavior).

Conspicuously absent from the interview was any mention of Disney’s Virtual Magic Kingdom (”VMK”). VMK was launched in 2005 as part of the Disneyland 50th year celebration. In it, participants create rooms themed after Magic Kingdom attractions, play mini-games, collect inventory and make friends. Just seven months after launch, Disney announced the game surpassed one million players and over 1.3 million personalized in-game rooms. Last month, with no advance notice, Disney announced that they would be shutting the doors on this virtual theme park on May 21. Predictably, the outcry from the “community” has been loud and is growing as the date approaches. A number of petitions have collected thousands of signatures, boycotts are being threatened and one group, VMK Kids Unite, is organizing a protest at the gates of Disneyland on May 10 which may be covered by CNN and CBS. Obviously, adults are helping to organize these efforts, but the kids are the driving force. Kids who are already comfortable with the participatory web and who want to have their voices heard.

So here’s my takeaway. From the interview, its clear that Disney understands the business opportunity in Virtual Worlds & Social Networks. The also have a pretty good idea how to build communities through contextually engaging virtual experiences. On the other hand, Disney’s decision to shut down VMK demonstrates that perhaps they don’t really get the “social” component. In these social environments, Disney’s role is to provide the frameworks (architectural, security and creative) and the context, but the real content is created by the participants. In shutting down VMK, they aren’t just closing an amusement park attraction. They are throwing away the work of the thousands of dedicated, passionate kids who have spent countless hours building and sharing wonderfully imaginative experiences, and in the process, will be alienating many of their most dedicated and influential advocates.

What do you think? Is closing VMK “just business”? Will the kids get over it? Is this consistent with Disney’s brand?

Update: Per my daughter’s advice, here are links to http://www.savevmk.com and http://www.savevmktoday.com

Over the weekend, I came across a post from fellow Age of Conversation 2 contributer Chris Kieff which contained a wonderful video from Charles Leadbeater, a well known leader in the innovation and creativity space. As Chris points out, the video does a great job explaining one of the key concepts behind The Age of Conversation. It also highlights the power of applying social collaborative concepts to innovation and points out how companies organized hierarchically are unable to adapt to this new way of doing things.

So what are your key takeaways for you from this video? What would be your elevator pitch if you were trying to share the key concepts with an executive at a traditionally organized company?

An recent study commissioned by a Burlington, MA-based provider of voice-recognition solutions found that 72 percent of respondents used social media to research a company’s reputation for customer care before making a purchase, and 74 percent choose to do business with companies based on the customer care experiences shared by others online. The online study of 300 volunteer respondents doesn’t qualify as statistically accurate, but it is informative from a directional standpoint.

59 percent of the respondents said they regularly use social media to “vent” about their customer care frustrations. Readers of this blog know that I occasionallyventhere and so do many others that I follow. Michael Arrington’s recent Comcast experience is a high-profile example which has received a fair amount of discussion in social media circles. If you haven’t heard the story, ends up with an executive at Comcast contacting Arrington because of a Twitter post that he had made about how frustrated he was with Comcast.

Two thirds of the study’s respondents felt that companies don’t take online complaints seriously. Think about that for a minute. Empowered by the powerful online search capabilities, customers have grown accustomed to instant access to information and have developed increasingly high standards for customer service. They no longer need to be tied to a company. Add in Social Media, where the customer has a global voice and you now have citizen marketers who can potentially impact a company’s reputation for good or bad.

Nick O’Neill over at Social Times recently asked if a large brand like Walmart could monitor all the comments made about them on Twitter and contact people that had a poor experience in their store. After measuring the volume of Tweets pertaining to Walmart at around one every half hour, O’Neill suggested that the answer is Yes. Of course, companies are skeptical about the need to participate in social media. How much of a difference will reaching out to a couple dozen irritated customers a day (most of whom are nowhere as influential as Arrington) make? I would have to say that today it’s probably not as impactful as many of us in the Social Media Echo Chamber would like to believe.

On the other hand, intercepting and satisfying a pissed-off Michael Arrington can go a long way in preventing a social media comment from escalating into a much larger public relations issue. Moreover, as Millennials. for whom social media is a typically a natural extension of their lives, move from consumers to customers, it’s going to become increasingly important for companies to be listening and engaging in these channels. These customers aren’t going to be letter-writers like their parents were. They are going to be vocal about their experiences, expectations and frustrations as customers publicly and on-line. Companies who learn to listen and engage now (and I don’t mean using Social Media as another one-way marketing vehicle) will be better positioned to compete for these new customers in the future

<via ClickZ>

Doug Fleener over at Retail Contrarian has reposted his list of 50 ways to be more customer focused. Take a look and see how many you and your team do on a regular basis:

1. Open the door for your customer whenever possible. This is especially important if her hands are full.

2. Don’t just hand your customer his product, “present” it to him.

3. Keep the store temperature at a setting that is comfortable for customers. Most retailers set the thermostat at what’s comfortable for the employees.

4. Acknowledge your customer’s children.

5. Offer to gift-wrap purchases if you already know it is a gift. Don’t wait for your customer to ask.

6. Always suggest accessories and other items that will enhance a customer’s purchase and his/her life.

7. Offer to carry your customer’s purchase, however big or small, to her car.

8. Send handwritten thank-you notes. Come on, do you really do it?

9. Smile.

10. Introduce yourself to your customer.

11. Ask your customer her name. Use it.

12. Compliment your customer on his purchases. This is especially effective if he is another staff member’s customer.

13. Don’t give your customer too many choices. You’re the experts, so recommend a product based on what you learn from him/her.

14. Tell her why a product isn’t right for her.

15. If you can’t fulfill a customer’s need, suggest another company that may be able to do so.

16. Never ever say something negative about another company.

17. Act just as happy to see a customer with a return as you are one who walks into make a purchase.

18. Make it easy for customers with returns. Almost all customers are honest and should be treated as such. If you have to give a customer a refund, end the conversation with “I’m sorry this product didn’t meet your needs but we will welcome the chance to serve you again.”

19. Warmly welcome every customer who comes into your store.

20. Loan umbrellas on rainy days for customers to get to their cars. Ask them to either drive up to the sidewalk where you are waiting to receive the umbrella back or to bring it back on the next visit. Most customers will turn you down but you score major points for offering.

21. Don’t interrupt the customer to talk. Talk - listen - talk - listen. You get the idea.

22. Do whatever you can - within reason - to keep an unhappy customer. What you’ll lose on the one transaction you’ll make it back because he will tell his friends and family how wonderful you are.

23. Refrain from visiting with a colleague when he/she is with a customer. It’s distracting to both the customer and the colleague.

24. Never rush customers out at closing time. Gently let them know that you’ll be closing in a few minutes. Never flash the lights or sound the air horn. (I’m joking.)

25. Offer to teach your customer how use the products. Clothing and home goods retailers might show their customers how to accessorize the items he/she have already selected.

26. Never blame the company for a policy or decision. You are the company.

27. When a customer says “Thank you,” say “You’re welcome.”

28. Add “It’s my pleasure” after you say “You’re welcome.”

29. Provide written details of frequently asked questions.

30. Don’t coach or reprimand an employee or colleague in a customer’s presence.

31. If you’re on the phone with a customer and you absolutely must put him on hold, tell him approximately how long he will have to wait.

32. Don’t interrupt an employee with a customer unless it’s extremely important.

33. Create a children’s craft area in your store so the kids can create art while their parents shop.

34. Give your customer your undivided attention when she is talking. Everything else can wait.

35. Accept responsibility when the store has made a mistake. Too err is human. To not admit it is stupid.

36. Empathize with upset customers. Say you’re sorry.

37. Offer free drinks to your customer.

38. Give a gift for no reason. Even better, give a gift for being such a great customer.

39. Have the owner or manager personally call a high-ticket customer and thank her for her purchase if the sale was made by another staff member.

40. Loan books and other resources at no charge. This positions you as an expert and creates repeat traffic.

41. Ship a replacement to a customer with a defective product before you receive the original back.

42. Open the doors early when customers are waiting outside.

43. Provide seating for customers and offer to bring them product to look at.

44. If you’re busy and a customer is waiting for help, give him an estimate of how long he’ll have to wait for someone to help him.

45. Stop cleaning and doing busy work when customers are in the store. They’re less likely to ask for help if you’re doing other things.

46. Partner with restaurants and other stores to present exclusive discounts and offers to your customers. (A win-win-win. The other company gets incremental revenue, your customer saves money, and you’re the nice person doing it for both of them.)

47. No checking email or text messages on your phone when customers are in the store. It makes you look bored and nobody wants to shop in a boring store.

48. If you have to walk away from your customer to go to the backroom or counter tell her what you are doing.

49. Always offer to contact your customer when a product she wants comes in. Never tell her to call and check.

50. Always thank as many customers as you can for coming into your store and invite them back.

51. Always go above and beyond for every customer.

You can download the 50 Ways to Improve Your Customer’s Experience article that’s formated as a handout from Doug & Matt’s website .

(Image courtesy of Becky Carroll)

In February, I wrote part one of this series in conjunction the Re-Experiencing Starbucks project started by Becky Carroll and Jay Ehret. Over the next year, Becky and Jay are going to write a series of posts which analyze the current Starbucks experience, make suggestions for improvement, and then compare at the end of the year. Readers are invited to contribute with comments and suggestions.

It’s been nearly two months since Starbucks closed all of their stores for a nationwide in-store education and training event and reopened promising to transform the customer experience with newly energized partners.  I can only speak for my local stores, but I have not seen any difference.  My grande sugar-free vanilla breve latte tastes pretty much like it always did, which is to say that it’s generally good, but with occasional inconsistencies, depending on which barista makes it.  Ok, so perhaps the event was in fact a PR event.  Starbucks certainly got lots of free publicity as a result.

Last month at their annual meeting, Starbucks announced a laundry list of new initiatives designed to transform the customer experience including a new brewing and espresso machines, a rewards program and a new unique coffee blend (Pike Place Roast) which will be hand scooped and ground in store.  Starbucks also took a page out of Dell’s playbook by launching MyStarbucksIdea.com.

Involving Customers in the Innovation Process

Like Dell’s Ideastorm, MyStarbucksIdea.com is an online community idea market where customers are encouraged to suggest and vote on ideas for improving the Starbucks experience.  A team of 40 “Idea Partners” is responsible for reviewing, commenting on and consolidating the entries and for presenting “most popular and most innovative ideas that are the best fit for Starbucks” to key decision makers.

I’m a big proponent of Open Innovation.  Inviting your customers to help design the experience gives company insiders fantastic perspective on real customer needs and desires.  It also goes a long way in helping to ensure that the ideas and innovations that are selected are ones that will resonate with customers.  The reason most companies haven’t eagerly adopted an Open Innovation program is that it requires giving up control.  If a company asks for feedback and customers speak loud and clear the brand needs to be prepared to act.  If they don’t, they risk damaging the relationship with their most engaged customers.

GoodNews / Bad News

The good news is that Starbucks is asking customers to participate in the process.  The bad news is that the site looks like a collection improvements that are already in the their marketing plan.  The “Ideas in Action” section lists those ideas that are being taken forward.  Almost every idea listed in this section is either something that Starbucks announced when they launched the site (Wi-Fi, Rewards, Pikes Peak Roast) or already had in test markets (Splash Sticks, Bite-sized pastries).  Authenticity is what’s lacking.  I applaud Starbucks taking the bold move of involving customers in conversations about the experience.  They need to resist trying to control the conversation if they want to be seen as genuinely caring about what the customer has to say.

The Blogger SocialitesIt was billed as a weekend to remember and it clearly lived up to expectations. Over eighty marketing bloggers from all over the world jumped at the opportunity to go beyond the confines of their social media tools for one weekend and have face-to-face conversations with their peers. After months of planning, CK & Drew threw the most incredible party this past weekend in New York City.

Social Media is all about building relationships. Those who don’t participate in Social Media sometimes have trouble understanding the real, meaningful relationships that can develop through Social Media interaction. Social Media removes the barrier of distance making it easy to connect and engage with like-minded people who share common ideals, interests and passions. From that interaction, virtual communities evolve to share ideas, offer support and encouragement, and to do good things.

Meeting your digital friends in person is an unusual and somewhat surreal experience. You recognize them from the pictures they share on-line and you know some things about them from their writing. When they walk into the room, you get that “Hey, great to see you again” feeling, only you’ve never really seen them, spoken face to face, exchanged a handshake. Nevertheless, the conversations start up easily as if you are old friends. Prior to this weekend, I had experienced this only once before when I met three Valeria, Geoff & CC for dinner last fall. That meeting was wonderful, but with 80+ digital friends in attendance, Blogger Social was an emotionally overwhelming experience.

Digital friendships can be can be very strong, but lack a sensory component. I can read a post, watch a video or listen to a podcast, but that just can’t compare with hugs, dinner conversation, silliness, jagerbombs, shared laughter, cigars, hearing a voice for the first time, karaoke at 4:00am……. Blogger Social was all that and so much more that it’s virtually impossible to adequately describe. Many others have tried this week and do it much better justice than I do so check out their posts.

If you are a more visually-oriented person, check out the Blogger Social Flickr group. With 1300+ and still growing, that’s worth about 1.3 Million words, which is still not enough to really describe that Magic that was Blogger Social.

zm_fdxknks.jpgTomorrow morning, I head to New York City for Blogger Social ‘08. A few months ago, I told the organizers, CK and Drew, that I would be happy to help them with some of the duties and was assigned the task of being in charge of event photography. We’re going be capturing images from all of the planned events, but also want have the “Socialites” capture pictures as they travel around the city for the many “meetups” that are being organized. Last week, we decided to print up little posters that feature the Blogger Social badge and give them to all the attendees so they can create some promotional shots around the city (hey, they’re marketers).

On Sunday, I went to my local FedEx-Kinkos and shipped the posters to CK in NYC. They were supposed to arrive on Tuesday according to the clerk at my local store, but they didn’t. Checking the website, I saw that I dropped them off after the Sunday pickup. (Strike 1).

On both Wednesday and Thursday, FedEx failed to deliver the package (recipient not home) even though I had specifically indicated on the shipment that signature was not required. I spoke to a Customer Service Agent on Wednesday evening who even placed a message into their system specifically instructing the driver to leave the package. (Strike 2).

When it Absolutely, Positively Has to Get There?

The posters absolutely, positively had to be there for tomorrow’s first event and I could not risk FedEx not leaving them again tomorrow, so I called the customer service line again to find out what happened and to find some resolution. The Customer Service Agent was pleasant, but unable to reach anyone at the depot to see about sending the package back out today. She did speak to a dispatcher who said it would be sent out again tomorrow. I complained that that would not be acceptable and was escalated to “Kelly”, a FedEx “Customer Advocate”. Kelly was very understanding and asked me to hold while she contacted the depot. When she subsequently connected me with “Cosmo” at the depot and dropped off the call, I assumed that she had already worked out a solution. I was very much surprised when Cosmo asked me how he could help and, after I explained the problem for the third time, was told that there was no one available to deliver the package until tomorrow. So much for having a “Customer Advocate”. (Strike 3, you’re out!).

We’re FedEx-Kinkos, but We’re Really Not

At this point I had no choice but to go to a local printer (UPS Store or Kinkos???) and get the posters reprinted and carry them with me to New York. I had done the originals at home, but I work out of town. To have them redone at a local printer was going to cost some money. Given their total ineptitude, I felt it only fair that Fedex-Kinkos pick up the tab. I called the Customer Service line again and managed to get back in touch with Kelly. She greeted me with “I guess Cosmo was not able to help?” to which I not so calmly affirmed “NO”. I then told kelly that I was going to go to a local FedEx-Kinkos to have the posters reprinted at their expense and I wanted to know how that would be arranged. That’s when Kelly informed me that they had no way to do that because the FedEx organization is separate from the Kinkos organization. It was at this point that I just about lost it. I told Kelly that I could care less about their internal organizational barriers. I shipped the package at a FedEx-Kinkos store and from the customer’s perspective, they were the same organization and needed to solve this problem.

Bridging Barriers

Kelly was then able to establish a conference call with someone from Kinko’s corporate office and I explained the problem once again. This time, Kelly remained on the line while  the Kinko’s person explained that there was no way to credit me for the cost of the posters since they were not originally printed at Kinkos (I don’t think they really understood the problem).  When I said that was unacceptable, she offered that I could take it up with the local store, but that it would be up to the discretion of the local Kinkos manager to reprint the posters at no charge. After some more discussion and insistence, Kelly instructed me to go to the store and then have the manager call her.

At the Huntersville, NC store, I met Adam, the store manager, explained the problem (again) and put him in touch with Kelly.  After a few minutes on the phone, he hung up and went to work printing my posters.

Bad Experience Salvaged, but Still Bad

So FedEx-Kinkos was able to salvage the problem, but only after significant effort on my part. Clearly, they have some significant Customer Experience opportunities:

  1. The don’t have documented processes for dealing with Customer Experience problems like this.
  2. Their operational systems and procedures are ineffective (messages not received or read, customer’s instructions not followed).
  3. They operate as independent companies despite marketing themselves and an integrated organization. Those barriers need to be broken down when the get in the way of delivering a great experience.

textbuyit1.jpgWhen you are shopping over the web, its very easy to compare prices through multiple browser tabs, but comparison shopping is not so easy to do in a brick & mortar store. Browsing e-commerce sites using most cell phone browsers is a painful experience. Text messaging on the other hand is a very easy task on most cell phones and for younger cell phone users, “texting” is the primary method of communication.

With that as the backdrop, Amazon is once again showing that it “gets it” and in the process, has created a new competitive advantage against traditional retailers. TextBuyIt is an innovative new service which lets people text the name of a product, its description or its UPC or ISBN to 262966 (that’s “Amazon” on the keypad) from anywhere their cellphones work — including from inside physical stores.

If Amazon stocks matching items, the service returns two results at a time. Shoppers can immediately buy one of the first two the selections by texting back the number “1″ or “2,” or they can ask for more by texting the letter “M.”

New TextBuyIt customers will be prompted to enter the e-mail address associated with their existing Amazon account plus a shipping zip code. The service then calls them and walks through the checkout process using an automated voice system. Shoppers get confirmation by text message and e-mail.

From there, the customers can check on order status on Amazon’s website.

Why This is Disruptive

Say you’re out shopping at the mall and see some new, expensive thing that you just gotta have. Historically, you have had no way of knowing whether the price is good or not. By allowing you to send a simple short text message to initiate an order, Amazon has just empowered you with comparative price information to make a fact-based decision about the purchase in the physical marketplace and in the process, have inserted themselves into the middle of your purchase process in hopes of steering your dollars in their direction

This is a clear “Make It Easy for Me” differentiator targeted squarely at younger, text-message-oriented consumers. It is also a wake up call for traditional retailers already impacted by the information empowered consumer. Your competitor is now actively competing with you inside your four walls.

 

[From USAToday]

teenagers2web.jpgWill Richardson over at the education-oriented blog Weblogg-ed had an interesting post today about a recent FastCompany interview with Gartner researcher, Tom Austin. In the interview, Austin makes a pretty compelling argument for implementing and using social tools in the workplace and suggests that the real value from IT departments of the future will come not so much from their technology knowhow, but rather from an ability to facilitate relationships (the fundamental element of business) through social tools.

The interview gets into a number of topics regarding the changing structures in some corporations (and not in others) and Austin suggests that Facebook and MySpace will become models for business interaction.

Look at teenagers today. They’re teamagers. They work on projects as a group and think nothing of doing it that way. I expect to see that kind of thing percolate through the enterprise as an unstoppable force over the next two decades.

Will Richardson asked his readers if they thought today’s teenagers have group collaboration down as a part of the way they do their business. Speaking for my on teenager, I would say yes, absolutely.  What do you think?

social_bum_rush.jpgWhat happens when you give 100 of the world’s leading marketing professionals, writers, thinkers, innovators and bloggers a book title and an invitation to write about that topic in 400 words or less?The Age of Conversation happens. The collaborative project organized by Gavin Heaton and Drew McLellan started as an off-hand comment, grew into an e-book and ultimately a printed book, The Age of Conversation takes the individual musings of 100+ authors from all over the world, many of whom have no connection other than shared belief in the power of social media, and turns them into a collection that overflows with creativity and insight.

And just for today, March 29, The Age of Conversation is more than a book. It’s part of a social media experiment. And you can be part of it.

Join the Age of Conversation Bum Rush on March 29thThe idea is to generate as much web and Amazon activity as possible on a single day, both to drive the book’s ranking on Amazon upward and to create momentum for the book’s sequel (more about this in a moment…hint: I’m involved). If you use this link to buy it today, you’ll create a win-win-win:

  1. You get a terrific social media and marketing book.
  2. The book’s editors and contributors get the thrill of seeing it sail up the Amazon charts.
  3. Variety, the Children’s Charity receives all proceeds, including those from the book’s Amazon affiliate link.

The momentum’s important, because editors Drew McLellan and Gavin Heaton are at it again. And this time I’ll be one of the contributors! I’m excited to be one of the 275 marketing and social media writers and bloggers selected to be part of The Age of Conversation ‘08, now in the works. I hope you’ll click on some of the other names in the list to see the diversity of backgrounds and experiences represented:

Adam Crowe, Adrian Ho, Aki Spicer, Alex Henault, Amy Jussel, Andrew Odom, Andy Nulman, Andy Sernovitz, Andy Whitlock, Angela Maiers, Ann Handley, Anna Farmery, Armando Alves, Arun Rajagopal, Asi Sharabi, Becky Carroll, Becky McCray, Bernie Scheffler, Bill Gammell, Bob Carlton, Bob LeDrew, Brad Shorr, Bradley Spitzer, Brandon Murphy, Branislav Peric, Brent Dixon, Brett Macfarlane, Brian Reich, C.C. Chapman, Cam Beck, Casper Willer, Cathleen Rittereiser, Cathryn Hrudicka, Cedric Giorgi, Charles Sipe, Chris Kieff, Chris Cree, Chris Wilson, Christina Kerley (CK), C.B. Whittemore, Clay Parker Jones, Chris Brown, Colin McKay, Connie Bensen, Connie Reece, Cord Silverstein, Corentin Monot, Craig Wilson, Daniel Honigman, Dan Goldstein, Dan Schawbel, Dana VanDen Heuvel, Dan Sitter, Daria Radota Rasmussen, Darren Herman, Darryl Patterson, Dave Davison, Dave Origano, David Armano, David Bausola, David Berkowitz, David Brazeal, David Koopmans, David Meerman Scott, David Petherick, David Reich, David Weinfeld, David Zinger, Deanna Gernert, Deborah Brown, Dennis Price, Derrick Kwa, Dino Demopoulos, Doug Haslam, Doug Meacham, Doug Mitchell, Douglas Hanna, Douglas Karr, Drew McLellan, Duane Brown, Dustin Jacobsen, Dylan Viner, Ed Brenegar, Ed Cotton, Efrain Mendicuti, Ellen Weber, Emily Reed, Eric Peterson, Eric Nehrlich, Ernie Mosteller, Faris Yakob, Fernanda Romano, Francis Anderson, G. Kofi Annan, Gareth Kay, Gary Cohen, Gaurav Mishra, Gavin Heaton, Geert Desager, George Jenkins, G.L. Hoffman, Gianandrea Facchini, Gordon Whitehead, Graham Hill, Greg Verdino, Gretel Going & Kathryn Fleming, Hillel Cooperman, Hugh Weber, J. Erik Potter, J.C. Hutchins, James Gordon-Macintosh, Jamey Shiels, Jasmin Tragas, Jason Oke, Jay Ehret, Jeanne Dininni, Jeff De Cagna, Jeff Gwynne, Jeff Noble, Jeff Wallace, Jennifer Warwick, Jenny Meade, Jeremy Fuksa, Jeremy Heilpern, Jeremy Middleton, Jeroen Verkroost, Jessica Hagy, Joanna Young, Joe Pulizzi, Joe Talbott, John Herrington, John Jantsch, John Moore, John Rosen, John Todor, Jon Burg, Jon Swanson, Jonathan Trenn, Jordan Behan, Julie Fleischer, Justin Flowers, Justin Foster, Karl Turley, Kate Trgovac, Katie Chatfield, Katie Konrath, Kenny Lauer, Keri Willenborg, Kevin Jessop, Kris Hoet, Krishna De, Kristin Gorski, Laura Fitton, Laurence Helene Borei, Lewis Green, Lois Kelly, Lori Magno, Louise Barnes-Johnston, Louise Mangan, Louise Manning, Luc Debaisieux, Marcus Brown, Mario Vellandi, Mark Blair, Mark Earls, Mark Goren, Mark Hancock, Mark Lewis, Mark McGuinness, Mark McSpadden, Matt Dickman, Matt J. McDonald, Matt Moore, Michael Hawkins, Michael Karnjanaprakorn, Michelle Lamar, Mike Arauz, Mike McAllen, Mike Sansone, Mitch Joel, Monica Wright, Nathan Gilliatt, Nathan Snell, Neil Perkin, Nettie Hartsock, Nick Rice, Oleksandr Skorokhod, Ozgur Alaz, Paul Chaney, Paul Hebert, Paul Isakson, Paul Marobella, Paul McEnany, Paul Tedesco, Paul Williams, Pet Campbell, Pete Deutschman, Peter Corbett, Phil Gerbyshak, Phil Lewis, Phil Soden, Piet Wulleman, Rachel Steiner, Sreeraj Menon, Reginald Adkins, Richard Huntington, Rishi Desai, Beeker Northam, Rob Mortimer, Robert Hruzek, Roberta Rosenberg, Robyn McMaster, Roger von Oech, Rohit Bhargava, Ron Shevlin, Ryan Barrett, Ryan Karpeles, Ryan Rasmussen, Sam Huleatt, Sandy Renshaw, Scott Goodson, Scott Monty, Scott Townsend, Scott White, Sean Howard, Sean Scott, Seni Thomas, Seth Gaffney, Shama Hyder, Sheila Scarborough, Sheryl Steadman, Simon Payn, Sonia Simone, Spike Jones, Stanley Johnson, Stephen Collins, Stephen Cribbett, Stephen Landau, Stephen Smith, Steve Bannister, Steve Hardy, Steve Portigal, Steve Roesler, Steven Verbruggen, Steve Woodruff, Sue Edworthy, Susan Bird, Susan Gunelius, Susan Heywood, Tammy Lenski, Terrell Meek, Thomas Clifford, Thomas Knoll, Tiffany Kenyon, Tim Brunelle, Tim Buesing, Tim Connor, Tim Jackson, Tim Longhurst, Tim Mannveille, Tim Tyler, Timothy Johnson, Tinu Abayomi-Paul, Toby Bloomberg, Todd Andrlik, Troy Rutter, Troy Worman, Uwe Hook, Valeria Maltoni, Vandana Ahuja, Vanessa DiMauro, Veronique Rabuteau, Wayne Buckhanan, William Azaroff, Yves Van Landeghem

[via mediatortech.com]

handshake-recruiting-sepia.jpgIn a recent post on her excellent blog, “Customers Rock!”, Becky Carroll told a tale of two experiences. The last paragraph of the post focused on how “Little Things“  can make all the difference in a customer experience; a concept I have discussed here on several occasions. Becky said:

I heard an interesting quote on the radio today which sums this all up: “The little things aren’t a lot - they are everything.” Little things like looking a customer in the eye, greeting them, smiling, and carrying on a human conversation go a long way towards marketing a company/store as friendly and welcoming. And it is cheaper than all those advertisements, right?!

Right! So why is it that, generally speaking, the larger the retailer, the larger the spend on messaging and the smaller the spend on the human capital who interact directly with customers and can have the biggest impact on the experience?

In large retail chains, store and call center employees are usually viewed as expenses that must be closely managed. The experience that results from a focus on cost vs quality is often inconsistent and usually unremarkable (unless of course it’s really bad). Some companies recognize their experience problem and try to address it with training and/or initiatives to “change the culture”. But when you have turnover of 40 - 50%, the results of those initiatives quickly fade. The old adage “you get what you pay for” certainly holds up here.

Treat Me Like I Matter

Contrast this with the individual proprietor who’s competitive edge comes from their ability to deliver a more personalized experience. Finding and keeping quality employees who can deliver the same experience as the owner is the top priority. They don’t have the time or the budget to replace and retain employees every couple of months so they often pay a little better and treat the employees like family resulting in lower turnover.   More importantly, the relationships those long-term employees build with customers over time are a big part of the loyalty equation.

Without long term employees interacting with customers every day, it’s very difficult for big retailers to build those personal relationships. They try to compensate with CRM systems and loyalty programs, but in the end, “personalized” marketing is not substitute for the personal touch.

Fellow Blogger Socialite Greg Verdino shared a new video explaining Twitter from the Common Craft gang. This is a great way to explain your Twitter Addiction to your friends and co-workers.

If you are already on Twitter, you can follow me here. If not, what are you waiting for? It’s fun and if you are worried that others won’t understand it, send them the link to the video along with an invitation.

nodlink2.jpgMy D-Link wireless router died this past weekend. Again! and I’m not a happy customer.

I purchased the D-Link DIR-615 router last September after a lightning strike took out my cable and just about everything attached to it. After mail-in rebate, it cost about $50.00. Two months later, it stopped working. I tried to return it to Office Depot, but was that told that they only accept returns within 15 days of purchase and that I would have to call D-Link to get it repaired or replaced.

I worked with a D-Link technician to troubleshoot the router and eventually a Return Authorization was issued. I was then told that I would have to ship the defective modem back to them at my expense. I tried to argue that they should send me prepaid UPS tag, but did not prevail. I sent the router back costing me about $12.00. A week later, I had my replacement.

Fast forward four months to this past weekend. The replacement dies and I start the process all over again. After roughly two hours on the phone, the Return Authorization was issued. When I asked the support rep about getting D-Link to pay for the return this time, I instructed me to call Customer Service.

I tried several times starting last Saturday to get through to D-Link’s Customer Service, but they were either closed or left me waiting in the queue for over 30 minutes (I refuse to wait any longer than that). If the wait times are any indication, D-Link has lots of customers with product issues. I finally got through to a Customer Service rep today after a 20 minute wait. I explained that my router was dead for the second time in six months and that I didn’t think it was fair for me to have to pay shipping a second time.

I was told that D-Link will pay for shipping only when the product is diagnosed as defective within the first 15 days. I explained that I understood the policy, but that considering that this was the second failure, perhaps they could make an exception. The CSR replied that she understood, but then restated the policy.

At that point, I asked to speak to a supervisor. I was told that the supervisor would give me the same answer, but after I insisted, the CSR transfered me. Sure enough, after pleading my case to the supervisor, I was politely told that D-Link would replace my router, but that I would need to pay for the shipping. I expressed my disappointment in having to pay nearly half of the purchase price in shipping costs for in-warranty repairs and ended the call.

When a customer needs to buy a wireless router, the best deal often wins. There are lots of choices in residential wireless networking products and there isn’t much differentiation in terms of price, quality or technology. In a marketplace with these characteristics, brand loyalty is difficult to maintain, but the ability to deliver an experience that exceeds expectation can make a customer for life. In my case, D-Link had the opportunity to turn a dissatisfied customer in the a happy one. The cost would have been less than $10 (volume shipping discount). In return I would be writing a very different blog post right now. I would not have told friends and co-workers about my bad experience. I would not have told followers on Twitter not to buy D-Link products (OK, maybe that was a bit melodramatic).

Perhaps D-Link does have some larger quality issues and the cost of paying for return shipping for all that defective product would be cost prohibitive. I don’t know. I do know that I’ll never purchase another D-Link product.

temkin.jpgForrester Analyst and all-around smart guy Bruce Temkin commented on a CRM Daily article called “Customer Service’s Gap Between Intention and Reality”. He expanded on the article’s point by detailing six distinct gaps between intention and reality that companies need to pay attention to: If your company has customer service issues (and which one doesn’t), this is a great tool for identifying where those problems might lie.

checkout.jpg

A year and a half ago, Wal-Mart and marketing partner Edelman took a fair amount of heat from the social media and marketing communities for the fake blog “Wal-Marting Across America”. Another Wal-Mart blog, “Working Families for Wal-Mart” was also criticized as being nothing more than an extension of retail giant’s PR department. They were high visibility examples of the importance of Transparency.

Wal-Mart learned a valuable lesson from those failures: If you can’t be Authentic, you shouldn’t blog at all.

Despite the missteps, Wal-Mart seems to be committed to blogging. A NY Times story published today describes an active program in which various Wal-Mart merchandise managers (a.k.a buyers) are maintaining blogs. More importantly, the new corporate bloggers are openly encouraged to speak openly and honestly about their products and their lives, even it the result is not always complementary:

Microsoft is one of Wal-Mart’s biggest suppliers. But that did not stop the Wal-Mart employee in charge of buying computers from panning Microsoft’s newest operating system, Vista.

“Is it really all that and a bag of chips?” he wrote on his blog. “My life has not changed dramatically — well, for that matter, it hasn’t changed at all.”

His public burst of candor was not isolated. On the same blog, a video game buyer for Wal-Mart slammed a “Star Wars” film as a “debacle” even though Wal-Mart still sells the movie.”

This is really Wal-Mart? Yes, that was my reaction when I first read the article, but considering that Wal-Mart has always been a retail leader, it really isn’t all that surprising.  I also think this signals an important change in the traditional corporate approach to blogs and expect others to follow.

Wal-Mart isn’t the first to have corporate blogs, but historically they have been highly polished, filtered, lawyer-approved messages, ostensibly from CEOs and top executives. What’s different about the Wal-Mart blog site, called Check Out (checkoutblog.com), is that it turns that traditional model on its head. Instead of channeling high-level executives, it is written by little-known buyers, largely without editing.

The result is a much more personal look into the lives, opinions and tastes of the people who decide what stuff you can buy at the nation’s largest retailer:

“We are real people, and that gets lost in the to and fro of business,” said Nick Agarwal, a Wal-Mart communications official who helped develop the blog. “It puts real personality out there in a real conversation.”

…and that after all is the whole point isn’t.  Put a human face on your cold corporate exterior.

You should check out Check Out and then let me know what you think about it’s value.

Next Page »