Keenan 411

In Sales Reality Doesn’t Matter

Focusing on reality just doesn’t matter.   All that matters is what your customer thinks.

It doesn’t matter if you’ve won JD Power customer service award 10 years in a row.  If your customer thinks it’s terrible, it is.  It doesn’t matter if your product has more features than your competition, if the prospect doesn’t think so, it doesn’t.   It doesn’t matter if you implemented the project one week early, if the client felt it was late, it was.

In sales, what you think doesn’t matter.  It’s what the customer thinks.

In sales there are two choices.  Sell to perception or accept your customer is wrong and walk away.

What you can’t do is convince them they are wrong.   That’s a fools errand.

In sales perception is reality.   Address the customers perception, regardless of how different it is from yours.

When your food sucks it doesn’t change your mind to hear Wolfgang Puck prepared it with fresh seafood, flown in today, using the best cutlery forged by hand.

All you know is your food sucked.

Addressing the fact your customer thinks their  food sucked will get you somewhere.  Addressing why it doesn’t will get you somewhere too, just not the sale.

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Customer Needs First

Nothing drives me more crazy than when companies don’t appear to know their customers. You’d think this wouldn’t happen too often, because those that don’t wouldn’t last too long. Unfortunately it happens more than you think, which just amazes me.

One of these places is Gordon Biersch in the San Jose Airport. I fly in and out of San Jose a lot. Gordon is right next to Gate 10. Gate 10 is where United flights to Denver depart, so it’s not uncommon for me to get some grub from Gordon Biersch before my flight. They are convenient enough that I am the Foursquare mayor. Despite their location being convenient, their service is anything but.

People in airports are coming or going. They have time constraints. Any shopping or eating must function with in those constraints. Leisure is NOT the mindset people in airports are working from. They are transitory. They need to get in and get out. They have a plane to catch.

Understanding this, everything a restaurant or store in an airport does NEEDS to operate from this perspective — in, out. The check out process, items for sale, the menu, the preparation process, the staff, the layout, everything must operate from the understanding that your customers are under a time constraint.

Gordon Biersch doesn’t seem to get this concept. Every time I’ve eaten there it takes just as long to get my food as it does in a non-airport restaurant. Sometimes it takes even longer. It can take 20 minutes to get your food. This is too long. Today I had 30 min before I had to board my flight. From hello to the time my food came took 30 minutes. I had to take my food to go. This is too long for an airport restaurant.

If I break down the process it went like this:

1:15 Sat myself
1:16 Waitress greeted me and asked what I needed (this was great, but unfortunately not the norm, usually I wait at least 3-5 min before I’m greeted)
1:16 Waitress takes my drink order, I ask for a few minutes to look at the menu.
1:19 The waitress returns with my drink and I give her my order.
1:33 The waitress let’s me know my food will be out shortly. I ask her for it to go, as now I don’t have time to eat it there.
1:35 I ask the waitress if she could check me out now.
1:37 She takes my credit card, and checks me out.
1:42 My food arrives in a to go box. I ask for a to go for my soda and the waitress tells me they don’t have to go cups. (really?)
1:43 I walk out, still haven’t eaten and no soda to drink with my meal.

Almost nothing about Gordon Biersch at San Jose airport is structured for speed. They aren’t structured to get you in and out, the most important thing for most people in an airport.

There aren’t a lot of options at SJ Airport, especially near gate 10. I have to believe that is why they can get away with it. But just because they can get away with it, doesn’t mean they have to.

The best companies build business that fit their customers.

A play place for kids in my neighborhood has little tiny toilets in the bathrooms. Everything in Build-a-Bear is kids eye view. These places understand who they sell to.

Build your business with your customers perspective in mind. The product or service is only part of it. It doesn’t matter if Gordon Biersch has the best food on the planet if I don’t get time to eat it.

I’m the Foursquare Mayor of Gordon Biersch. Yet, I’m not a big fan. It takes too long to get my food. It feels like they don’t really care about what I need . . and that’s food fast.

United Airlines and WITCE (What is the Customer’s Experience?)

One of my favorite new improvements at United Airlines are their new gate screens. United has rolled out large flat screens at their gates which display the departure time, the destinations weather, the arrival time, the standby list and most importantly for me, upgrade information.

In the past, the line at the gate counters would be a mile long with people wanting information. We’d all file in waiting patiently to find out if the flight were on time, were we on the standby list or if we had been upgraded. The majority of gate agent inquiries were for information. The requests weren’t actionable.

There was no need for this. It just clogged up the line for people with actionable needs, like seat changes, flight change requests etc.

Even worse, it creates a terrible customer experience. I hated waiting in line just to ask a simple question. I know I’m not the only one. How many times have you been in a really long line when someone cuts to the front and says; “I only have a quick question.” I hate it, but it is legit, why wait in a line for 20 min. for something that can be answered in 5 seconds.

United’s new screens are great. I can walk up to the gate, see the if I’ve been upgraded, where I am on the list if I haven’t been and most importantly, if I have a chance in hell of being upgraded. I can see the weather of my destination and how long the flight is. It’s great. I almost never talk to a gate agent anymore. I almost miss them. ;)

If I’m not talking to gate agents anymore neither are others and that is good for United. Gate agents can now focus on serving people with actionable, pressing needs. I don’t know much about gate agent scheduling, but it wouldn’t surprise me if they can now schedule fewer agents per flight saving on labor costs.

The new information screens are win- wins for everyone– those of us who don’t want to wait in line for information, those who had to wait in line to change a flight and for United.

Focusing on WITCE is always a win-win.

WITCE is a question. One start-ups and Fortune 500 companies should ask regularly.

As a mentor to a few start-ups, it’s one I will ask more often. By asking about WITCE answers are found and that moves the business ahead and that’s good for everyone.

Who ever at United asked about the gate “WITCE”; thanks! This customer loves your answer.

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WITCE: What is the customers experience? Is a term I learned from Rob Strickland former CIO of T-Mobile USA. He built WITCE into the culture of the IT organization and it was at the core of such efforts as 5 minute activations. It’s a powerful question.

Six More Weeks of Winter . . . I Think

Yesterday was Groundhog Day and the little guy saw his shadow. Therefore; it means we have 6 more weeks of winter. I think.

As a kid this made no sense to me. It was confusing as hell, actually. To me, the logic was backward. If the groundhog saw his shadow, it meant the sun was out. If the sun was out, it was warm. If it was warm, spring must be close.

From my point of view, being from Boston, it was cloudy and cold all winter and sunny and warm in the spring. Therefore, the idea that seeing his shadow (made possible by the sun) meant spring was further away was backward.

Selling is similar. Often what makes complete and logical sense to us, is the complete opposite of how the customer sees it. We need to make sure we understand how are customers are looking at the problem. Their point of view my draw very different conclusions.

Don’t be quick to assume your customer is following what you’re saying, they maybe just as confused as I am with Groundhogs Day.

Can anyone explain to me why if he sees his shadow, spring is further away? I still don’t get it.

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It’s Attitude and Acknowledgment

Customer service is an attitude not a check list. Just because we offer to help, say thank you, return the food, provide a refund or fix the problem doesn’t mean we’ve provided customer service.

People want to be acknowledged. People want to be heard. They want to believe you understand them and their situation. Customer services is the connection between you and your customer. It’s the emotional engagement. Check lists can’t create emotion.

Training your employees to say thank you, have a nice day, or how can I help you, isn’t customer service. Creating automatic return policies or having a good refund process isn’t good customer service either.

Taking back a broken toy with a bad attitude only makes the problem worse. Getting a customer who didn’t like their food a different meal with a sarcastic attitude just makes the customer more angry.

The problem is no response will solve the problem without genuine acknowledgment and a positive attitude. The problem created a negative emotional response. To fix you need to create a positive emotional response. A smile, acknowledgment, and a genuine connection to your customers is where your customer service starts.

Customer service is like any type of relationship. People want to be heard, they want to be validated.

To provide good customer service don’t create checklists. Don’t teach your employees what to say. Get them to emotionally connect and that starts with a genuine smile and acknowledgment of their feelings.

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Reward Your Best Customers, It’ll Pay Off

255_UnitedAirlinesMy friend Seth Levine of the Foundry Group is flying to DC today. He’s flying to DC, laying over for 47 min. then flying home. No work, no family visits, no vacation, no luggage, nothing. He’s flying to DC and back to get his 1K status on United.

He’s paying approximately $400 dollars and spending his day on a plane to get United rewards. If you travel, getting to 1K is absolutely worth it. I’d say this is a good investment on his part.

I fly United because of their frequent flier program. They are the main carrier in Denver. I travel 50K to 75K miles a year (haven’t hit 1K yet). I will pay a bit more to fly United to get my points. It takes a lot for me to go with another carrier. United’s frequent flier program is sticky.

I get inundated with special customer deals all the time. But, the truth is they rarely have substance. They are not compelling and do nothing to get me to alter my behavior.

If you have a rewards program, make it worth something. Don’t insult your best customers with an additional 5% off. Don’t create a program that looks like a state fair carnival game, where your “best customers” spend $10,000 bucks and get enough points for a free $250 I-Pod.

If they are your best customers, treat them that way. Create a program where they will spend money they don’t have to just to be a part of it.

Seth’s on a plane right now, the day after Christmas. He doesn’t have to be. He wants to be, that’s how good United’s 1K program is.

How good is your rewards program?

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The Problem with ROI

vs-at-nightLast year Vail and Beaver Creek started using RF scanners to check lift tickets and passes in line. I like the idea because it improves the customer experience. The RF Scanners allows lift tickets and passes to be scanned through ski jackets and clothing. It’s convenient not having to dig through your clothes looking for your pass to be scanned. Faster lift lines and less hassle in the line improves the customer experience.

It’s a good differentiator. But does it have an ROI (Return on Investment?)

I found myself asking this question after being scanned through my big puffy jacket. I can’t imagine replacing the existing scanning system with RF scanners could produce a compelling ROI. Lift lines don’t create revenue, the tickets have been purchased. The time in line, may be shortened, but not enough so that skiers would notice. So, how does a decision like this get made without a compelling ROI?

I have been part more of than my share of new idea discussions. Almost every discussion turns to ROI. It’s a fair question. An investment requires a return on that investment. The problem is, in most cases, it’s how ROI is calculated that is the problem. Far too often, companies look to calculate an immediate return. If we invest in the scanners, how much money will we make on that investment. I think this is the wrong way to look at it. I’ve watched too many great customer experience, customer focused ideas go down the crapper because a measurable ROI can’t be calculated.

Companies need to consider calculating ROI differently when it comes to customer service, customer engagement and other types of experienced based investments. They should consider aggregating a number of customer experience projects into one ROI calculation. For example, rather than trying to calculate ROI on one investment, create a budget of a number of customer experience projects and calculate a ROI on the collection of efforts. Customer service is rarely experienced via one engagement but by the collective experience. It should be measured and invested in the same way.

Does Vail and Beaver Creeks RF Scanner system create a strong ROI all by itself? I doubt it. However, when combined with the skiable terrain, the abundance of high-speed lifts, the back bowls, the outstanding service, the world class ski school it absolutely does. Vail and Beaver Creek are two of the best and most prestigious ski resorts in the world. They got this way because of decisions like putting in RF scanners

When it comes to customer experience and engagement ROI isn’t always an easy calculation. But that shouldn’t keep you from doing it. Your customers don’t care about your ROI, they care about what they get for THEIR dollar and it’s more than being scanned through their ski clothes.

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Receipt Deceit

I had lunch at the Vail Marriott Mountain Resort and Spa yesterday. I had a philly and a Diet Coke. It was a pretty uneventful lunch. It was just me. I played on my I-Phone and relaxed.

receipt
The problem came when I got my bill. It was 12 dollars. I gave the waitress my credit card and when she returned I noticed the above. The tip, “gratuity” was included.

It was just me. It was a $12.00 dollar lunch. It wasn’t a party of 6, with a 150 dollar bill.

Tipping in the United States is optional. Automatically including the tip is foolish on Marriott’s part. It does nothing to improve the customers experience. It provides no additional value. It doesn’t improve service, (I’d actually suggest it makes it worse, because the staff isn’t incented to do a better job). This is simply a self-serving policy.

Sometimes companies can’t get out of their own way. They get too internally focused and compromise customer relationships for their own internal needs. I don’t like this. It’s deceitful.

Don’t force your customers to give you money, give them reasons to want to. Good reasons are sustainable, force is not.

I wonder if I would have had to pay it? Hmmm?

It’s Simple. Make It Easy.

pizza-hut-iphone-food-app-1 Pizza Hut has announced it has generated $1,000,000 dollars through it’s new I-Phone App.

That doesn’t surprise me. Pizza Hut has made it fun and easy to do business with them. It’s not the technology, it’s the fact that Pizza Hut has given its customers an easy, fun way to buy.

Tear down the barriers, be connected to your customers and make it easy to business with you. If you do you’ll sell more stuff.

During the past few decades, making it easy to do business with you meant getting a good, easily accessible, location. It was extra staff so no one had to wait in line. It was a cool, easy to remember phone number, like “303-8-stuffed.” It was home delivery. Making it easy to do business with you today is putting your customer in control. Making sure they have the information they need, in the format they want, using the devices they use.

This story is not about ROI. It’s not about technology. It’s not about web 2.0 or mobile applications. It’s about making it easy for your customers to do business with you.

If you want to sell more don’t over complicate it. Create a great product, listen to your customers and just make it easy to buy. It’s simple.

The Two Types of Sales Organizations

There are two types of sales organizations.  There is the sales business and then their is the sales team.   They are similar in that they both are responsible for driving revenue. After that, there isn’t much more commonality. The difference is sales teams are driven by their needs. Sales Business is focused on the customer.

Sales Teams ask;

  1. When are you going to close the deal?
  2. Can you sell them more?
  3. Can you bring that into this quarter?
  4. What else can we sell them?
  5. What if you cut them a deal, will they buy today?

Sales Teams Focus on;

  1. The short-term
  2. Their quota
  3. The transaction
  4. The product
  5. Themselves and their company
  6. Getting to yes
  7. Winning and losing
  8. The chase, the competition
  9. What’s in it for them

Sales Businesses Ask:

  1. What are you trying to accomplish?
  2. What do you need to be successful?
  3. How will the customer benefit?
  4. Can we provide more value?
  5. How does this help?
  6. Why?

Sales Businesses Focus on;

  1. The long-term
  2. The market and industry trends
  3. The solution
  4. The deal
  5. The customers business
  6. The relationship
  7. The outcome
  8. The business
  9. What’s in it for the customer

Sales teams are about the transaction.  They are motivated by the money and what they get.   Sales teams are rarely around after the sale.  They ignore the data, if it doesn’t help their cause.  Sales teams can drive a lot of revenue  but often leave a big wake while doing so.

Sales businesses are about the solution.  They are driven by the outcome.  They measure their success on the benefit the customer received.  They allow information to guide the sale, and bet on the long term.  Sales businesses drive a lot of revenue, but they also drive a lot of business.

Who do you want selling to you?

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