Become Different and Irresistable

06 April 2010 Categories: Building a Brand, Competitive Advantage

Here's my latest blog post over at Talk 1300 called "Become Different and Irresistable".

I’ve been reading how high-growth companies, even in bad times, spend little time thinking about staying with their competitors. Instead, they make their competitors irrelevant. How? By continuously trying different things that will delight their customers, code name: customer service.

High growth companies—irrespective of their industry—all described what has been called the “logic of value innovation.” Firstly, don’t try to get better than your competitors. Instead, become different and irresistible. Look for new markets and find out what they want. Look to customers for the future rather than the present. Always thinking, what would my customers want?


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What Are You Doing to Grow Your Business?

01 April 2010 Categories: Building a Brand

Radio_show_iconHello friends,

Like many of you I find myself in the midst of change.

Like many of you I liked it the way it was—at least I thought so. Now is the time to try something new, take some risks and give it a try.

Like you, I’m meeting people, talking with my neighbors and finding new ways to be part of my community.

I want to share with you my venture into radio, a great local talk radio station; Talk 1300 AM (in Albany, New York and the Capital District) and Talk1300.com outside the area. The show is called Red Hot Customer Service : all about business and ways to improve your bottom line.

The show is from 10-11 every Sunday morning and archived after the show on Talk1300.com. It also includes a ½ hour guest spot for businesses who are making changes and finding new ways to connect with their customers whether it be through traditional means or through social media. Like many, they are forging new paths. Listen in and get some new ideas for your business.

If you’re interested in being on my show, or have ideas for me, call me at 518-495-5380. In any event, please tune in and let me hear from you.

As always, I wish you the best.

Lisbeth Calandrino

Red Hot Customer Service Promo Ad

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Not Knowing the Trends Will Kill Your Business

01 February 2010 Categories: Building a Brand

Nova-linea-bathroom-furniture-kos Lately I’ve received many calls from panicked customers along the lines of what should I do with my business, I don’t think I can make it? This prompted me to reach back into my 30 year-old Rolodex to make some phone calls.

Thirty years ago I knew who to call. Yesterday I wasn’t so sure. Much to my surprise, the contacts hadn’t changed. Planned Furniture Promotions, an affiliate of Gene Rosenberg Associates, is very much in business. Since 1962 Gene Rosenberg Associates has been considered to be one of most professional and best known promotional specialists in the country. My contact this time was Burt Homonoff, Partner and Vice President of Operations. With so many furniture companies going out of business, the last ones that came to mind for me were Levitz and Wickes Furniture. From what I’ve read, Levitz, at the time of their closing, had 80 stores and had been in business for 100 years.

I asked Burt if we might talk about the furniture industry; it seems like they’re in trouble. Here's my paraphrasing and additional thoughts based on what Burt shared with me.

The consumer has been changing over the past twenty years. Most furniture retailers just missed it. It’s been a gradual change, taking a little chunk out of business yearly. Consumers are using their homes differently. The American dream, a Cadillac in the garage (now it’s a Lexus) and a new living room and bed room set. First it was a media room, a work out room or spa, a game room and of course the in home office for their computers. Consumers are playing Guitar Hero or Wie and not sitting on their sofas.

And the competition has intensified.

According to Furniture Today, furniture in the United States used to be a producer-driven industry. Now, it’s turned into a quasi-buyer-driven industry. Driven by a rise in innovative branding, retailing and marketing, new trends like "life-style branding” are creating whole new niches at the retail end. With innovations in retail, low shipping and import costs, even small retailers are entering the furniture business with new designs and variety.

"It’s all about change," says Burt, "and many furniture retailers missed it."

Many furniture stores still look like the furniture stores of yesterday. They display the same furniture that was in style 10 years ago with the same accessories. They just don’t seem to see the trends or they are "mature" retailers who still think the customer is their age. 

Younger customers, different priorities.

Furniture has taken a low priority on the customers' "have to have" list. Remember when furniture used to be sold only in furniture stores? Now everyone has some type of furniture — from Walmart to Target. In the summer, the grocery stores carry outdoor furniture.

I’ve noticed that brides used to register for furnIture and the other day I saw a story about a couple (in the New York Times) who wanted money for a start up business and were giving “the investors” shares in their new venture! What happened to the brides?
Couples used to ask for bedroom sets, something substantial so they could hand it down to their kids. Then couples started moving around for better jobs and different types of lifestyles; nobody wanted to lug a bedroom set across the country. The same applies to the big dining room sets, very few people entertain on that scale these days. People are looking for furniture that is more inexpensive and disposable.

I see many more “rent to own” furniture stores; I thought they were just for people who couldn’t afford to buy and then I found some of my friends renting furniture. Are they taking market share?

Since this isn’t Burt’s niche I went to check it out. The rent-to-own is a $6.3-billion dollar business. The RTO continues to improve its business, customer service and pricing becoming a viable consumer option in the American economy. The unique rent-to-own transaction sprang up in the 1960s in response to a growing consumer need for acquiring the use of household products without incurring debt or jeopardizing the family’s credit. Rent-to-own customers come from all walks of life, desiring consumer durable goods in their homes without the long-term financial obligations associated with credit sales.

How does IKEA figure in the mix? Consumers rave about the Swedish meatballs and I see that they were serving free breakfast on January 9th. I was in one of the Chicago stores — it was quite impressive.

IKEA is noted for their trendy styles and their great price points. They cater to the new lifestyle, KD (knocked down) furniture, easy styles and definitely disposable. In addition they offer everything including the dishes. A one stop shop. IKEA’S interior design teams create functional and trendy room settings which make the products easier to buy.

Customers want the looks but don’t want to pay the price. They also know if they look long enough they won’t have to pay the price. The average sale has gone from $1500.00 10 years ago to $800.00.

What happened to “Made in the USA?”

As furniture factories have moved to China, their suppliers and related businesses have followed, making the country an exceptionally efficient place to operate. It’s said that labor represents 30% of the cost of production in the United Sates and in China it’s less than 7%. Because product is so cheap, they can easily follow worldwide trends.

Consumers want Toyotas and Lexus's these days, not Chevys.

What should a furniture store do if they’re having trouble and seeing their market share slip away?

  • If they’re going to survive and thrive they will have to change, and change quickly.
  • Think of the new consumer trends, it’s doubtful that the trends will go backwards. Consumers don’t want to spend money and want disposable furniture. You can’t change the trends and live in "the old days."
  • Move into other areas of home furnishings. Carry furniture that fits into consumer’s lifestyles, casual, trendier pieces.
  • Consumers don’t want to wait, so quick delivery is even more important. Don’t overstock but have access to a local distributor who can deliver quickly.
    Sounds like another industry needing an overhaul.

Remember, keep on top of trends. Style is constantly changing — sometimes even changing back to what it used to be.

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A Conversation with Interior Architect Phillip Jude Miller

22 January 2010 Categories: Building a Brand, Interviews

Big-1Southern Louisiana Influence, From Glamour to Good Taste

I’m fascinated with my cousin Rosalie’s 450 square foot condominium in Cambridge, MA. It’s amazing how spacious it feels, how unusual the design, and the surprise of elegance in every corner. Thus the magic and daringness of interior architect Phillip Jude Miller. Philip’s magic earned Rosalie’s condominium, Runner up: Home of the Year, in Metropolitan Home Magazine as well as a feature in Fabulous Floor Magazine, 2005, “Boston Going City Slic.”

I met Phillip briefly several months ago in his Cambridge shop, America Dural. It’s filled with antiques, mid-century furniture, art and many more one-of-a–kind items. Rosalie, a long-time friend of Phillip, is always telling me what wonderful pieces he has uncovered, their history and uniqueness. Curiosity and prodding from Rosalie led me to look at some of Phillip’s work.

I recently picked up a copy of New England Home: Celebrating Fine Design and Architecture and came upon an article, Gentlemanly Quarters, November/December 2009 which was the renovation of a Back Bay apartment done by Phillip, an extraordinary renovation combining the luxury of many centuries. This is design at its utmost: breaking all rules and adding new ones for design.

Who is this intriguing designer from Lafayette, Louisiana who breaks rules and creates his own? When I found out Phillip was from Lafayette, Louisiana, I knew we had something in common. Lafayette is one of my favorite places: it’s where I developed my love for Cajun cooking and music.

Imagine my surprise to find that Phillip would be visiting Rosalie and cooking Christmas Eve dinner! Oh dear, he cooks too? "A fabulous cook," says Rosalie. Hopefully I will get to know Phillip a little better.

After dinner I get to sit down with Phillip and his Manchester terrier dog, Otis. They are both very charming, but Phillip is doing the talking.

Phillip Miller photo How did you develop your interest in interiors and architecture?

I grew up in Lafayette, Louisiana, which has its own rich culture of southern Louisiana. The architecture and history of Louisiana is primarily from French history and had a considerable influence on southern architecture, primarily interiors and furniture. The Acadian culture is more visible in our food and the importance of nature in life. I was one of 8 kids and my parents didn’t have time for history and culture but my grandmother did. Southern Louisiana has a special place in history, with its Cajun and French influence. I was always intrigued with the area; it’s not like any other place in the country. I used to love to talk with my grandmother about her family history and experiences in the unique southern way of life in Louisiana.


How did being one of eight make you the Phillip we know today?

I was very quiet, with 8 kids you can hide away. I never really talked at all. When I was three I had a serious burn accident, had to be hospitalized and all of a sudden I started to talk non-stop. I think I had so much attention at the hospital it brought me out of my shell.


I’ve never heard of an interior architect, what does it mean?

In 1978 I started in the school of architecture at the University of Louisiana, but also loved design. In my school experience, architects purely focus on the structure without any interest in how it meshes with the interior furnishings. This would never have been the case with architects leading up to the early twentieth century; Henry Hobson Richardson and Stanford White being great examples. Stanford White (1853-1906), was noted for being the most famous architect of the Gilded Ages. The Bauhaus Movement (1919-1933), had an extremely negative and somewhat fearful reaction to this decoration and emphasized more modernistic architecture. I was never interested in building skyscrapers but realized my architectural and interior design background would be a good combination for my clients.

Luckily one of my professors, knowing my love for design, suggested I move into a new field, interior architecture. She said I could incorporate both design and architecture. At that time, the Architecture Program was 5 years and Interior Architecture/Design was 4 years and the pay for Interior Design was higher than Architecture. I realized I was capable of looking at a project from both sides – architecture and design and the program was a good fit. If I was going to rip the walls down, I was also going to design the interiors.


I know you love art, why do you think art is so important in a home?

Art is very personal; it’s an expression of one’s soul and uniqueness. People are their art. It tells you something about their deeper feelings, and adds another dimension. It also adds a special touch to a home, and with the right guidance, art of significant importance is more accessible than people think. Art can turn a space from simple to elegant and balance texture and mood. Lastly the owner gets to enjoy the beauty of the art; if one chooses the right art, it will increase in value. Every year I make a point to attend The Armory Show in New York City. The Armory Show is considered America’s leading fine art fair devoted to the most influential art of the 20th and 21st centuries. I like to use modern art in my designs and the show keeps me up to date with what’s new. 

What other passions do you have and how do you generate your ideas?

I love the placement of objects, their form and color. When I look at a project I look at it from every angle, inside and out. I don’t think of the rooms separately, I imagine the whole home as one, how it flows and how it feels. I get many of my ideas from the classics, the 1920’s or 30’s; I listen to the client and get a sense of who they are and what moves them. (The house a client chooses and its architecture is an important element that drives the design. One can go with the architecture or contrast it.) I use new and antique side by side. I enjoy opposites, traditionally detailed fabric on clean-lined furniture. I will often take a more formal chair with traditional forms and cover it with a very simple fabric such as burlap. This gives the chair what I call “star quality.” Each room should have something of star quality.

I adore Asian pottery but I’m less knowledgeable than I should be. Asian pottery brings exotic forms and magnificent glazes to the mix.

I’m fascinated with the world, and see new ideas everywhere.


How did you come up with the name for your firm, America Dural?

I struggled with the name of my firm. I wanted it to sound like a business but I wanted to express my identity. I juggled family names in my head and came up with the name of my nanny, America Marie Dural. America raised my mother from infancy and moved in when our family began to expand. She was a very reserved and independent woman of African-American descent who ran our house with a lovingly iron hand. I admired her strength; naming the firm after her allowed me to be closer to her and pay her tribute for all that she had taught me.


What would be the top 10 suggestions you would give to someone who is considering a renovation?

Here's what I think.

  1. Plan for the rule and not the exception. People say I want a sofa bed in case I need it. You ask them how many times in the last 20 years they needed a sofa bed and they’ll say never. I had a client with a piano that just didn’t fit in the room; it turned out the piano had never been played by anyone. Once we got rid of the piano, everything started to gel. 
  2. I say, love everything in your room but don’t put everything you love in the same room. If one puts every style which attracts them in the same room, it looks like a garage sale. Decide what's important, the antique dresser or the décor chairs. 
  3. Mixing style and time periods brings excitement to a space. It also gives rooms a sense of evolution. If mixing styles, they either need to be the same or very different. Don’t put two different camel back sofa styles together. Modern French next to antique English is better than antique French next to antique English, etc. 
  4. Always have an element of surprise. All of your favorites don’t have to go in the most obvious places. That favorite painting doesn’t have to go over the fireplace, maybe it’s better shown on the wall as your turn to go into another room. 
  5. Good design involves making choices. Any theme should be consistent, either the palette is bright and spring like, or more somber. A good designer can help you with these choices. 
  6. Be consistent in your planning by treating the whole home. If you like intense colors then be intense. Don’t paint one red wall because you think you “need” to add excitement. This will throw off the entire home. If you like subtle, then make everything subtle. Your home should have a unified statement which represents what you like. 
  7. A designer’s most important role is editing, knowing how to select and mix pieces you love which are compatible with the scale of the space, (or where they will sit, and what they will sit next to.) The home ultimately belongs to the client but the interior designer represents the expertise that the client seeks. Of course many of the ideas and thoughts may be beyond the scope of the client; this is how the interior designer can help. One of the designer’s jobs is to bring the clients sense of “uniqueness” within the elements of good design. 
  8. This may sound corny, but there must be a connection between the client and the designer. The designer must be honest with the client and this comes through their connection. Without a connection it’s hard to design what the client wants. Good designers don’t design for themselves, they design for their clients. The client should share their likes and dislikes with their designer as well as look at the designer’s portfolio. Hiring a designer is not like hiring an electrician. There is only one way to wire in a light fixture. Each designer or architect can offer a very different vision. Some might not be compatible with your own. Don’t assume that because someone has a title that it will be a good fit. 
  9. In the long run, less is more. If the project is a redesign, the client should share what’s staying and what’s going. Sometimes what you take out is as important as what you put in. Removing or editing what you have can be more effective than adding new pieces. Balance and scale are key.
  10. When bringing in colors to coordinate with an important accent in a room such as an area rug, choose the least dominate color in the rug, not the most dominate. This will make the room much more interesting and create that element of surprise. 

There seems to be more, Phillip has invited us up to his summer home in Maine. I’ve heard the gardens are magnificent. 

Want to see more of Phillip Jude Miller? Visit his site.

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Women, Women Everywhere!

29 December 2009 Categories: Building a Brand

P-membership-readyI picked up a copy of Time Magazine’s article What Women Want Now. It was an interesting eye-opener. 

The most interesting aspect was the difference between where women are now and where we (yes, I was one of them) were in the 70’s with feminism. It seems like women of the 70’s were trying to prove equality; we, of course, know that you are either equal or not, it’s pretty much in your thinking. I have been wondering "how do women see themselves, are we different, do we want different things?"

I write articles on business and also on what women want when it comes to shopping and buying. The data suggests that we like the hunting part as well as the buying but, different than men, the hunt can be as much fun as the capture—we don’t even need to capture to have fun! There have been many books written on us and our shopping habits; why so much on us? Because, as many of you know, we are the primary shoppers for almost every product. As the Time Magazine article points out, we also have the means to shop, with 40% of us earning more than our mates. With this statistic of 40% growing, it’s important to note the changes that have been gradually evolving in businesses over the past 10 years: children’s corners in retail stores, changing stations for babies in airports as well as nursing stations!
I know it’s tough when you work retail and realize your customer may be on a terminal shopping adventure.

Of course, not every female finds shopping that exciting and interesting. But, as noted in Retail Therapy, Life Lessons Learned while Shopping, Tammy Faye Baker Mesner put another point of view so clearly: "I always saw shopping as cheaper than a psychiatrist." All of these past articles somehow support the notion that one has to be crazy to like shopping. According to Barbara Pease, Why Men Don’t Listen and Women Can’t Read Maps, biological evidence seems to support the theory that men and women are quite different from birth and that it’s not easily “explained away” by social conditioning. Brought up on a desert island with no dolls or trucks, girls would want to cuddle and play with dolls while boys would want to compete with each other and form hierarchal groups. 

Bottom line—we’re different.

What does that mean heading into 2010? These questions spurred me to take a workshop from a group called Jness. My questions were: Are we still like we were in the 70’s, trying to prove our worth through our male counterparts? Do we still believe that something has been taken from us and we must prove our ability to fight? It didn’t seem like it.
Jness literature states their purpose as: "Jness is an international organization for women with a mission of providing a warm and inviting environment for women to gather together and discover each other as we find and express our voice in today’s world."
In speaking with one of the founders of Jness, Pamela Cafritz elaborated: "In a fun, social context like this Jnessence weekend, we endeavor to discover the truth, fallacy and humor behind our male society. We want women to be empowered, overjoyed and maybe even emboldened! We bring together women who, like you, want to create a more honorable and compassionate world, and have fun doing it. We think women possess the warmth, heart and vision to bring balance to the world."

I found the workshop to be very eye opening; inductive group exercises designed to examine our place in the world and our concerns for ourselves, our mates and our children. The group consisted of different age groups 30-60, from various countries, each with careers, families and playing many roles. The theme being, as female adults, what roles do we play in society and what are our responsibilities for world change. I know, pretty heavy topics, but we had two whole days to solve these issues…

What I found was an interesting group of women, comfortable with their feminine “skin” and wanting very much to respect others' differences and concerns. The issues of ‘should we work?’, ‘does it matter how much we shop?’, and ‘do you like to cook?’ seem to be a given—not issues to be debated or defended. It really didn’t matter. The participants were interested in camaraderie in the feminine sense as we see it and live it.

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The best part about the workshop was listening to other women share their concerns about life, and how that differed from our mothers and grandmothers. I related an interesting conversation I had with my 95 year-old female neighbor, Irma. It was Primary day and I wasn’t going to vote until I ran into Irma. She reminded me of "her time" when she was not allowed to vote; her statement: you have responsibilities to the world. I must say that woke me up.

As I think about my life on earth, which I do quite often, I wonder about my place and my commitment. I realize that I am able to make a difference by understanding others and supporting their beliefs that help them grow. By investing in myself and my learning I inadvertently help the world.

As Socrates said, know thyself.

My experience tells me that the best investment I can make for you and for me is to invest in myself. 

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Repairing the Tarnished Brand Called Tiger Woods

03 December 2009 Categories: Building a Brand

BrandI know you’ve heard it all and don’t know who to believe. Here’s what I think, and by the way, leave me your comments at the end of the blog and tell me what you would do to fix this nightmare.

Don’t get me wrong, I love Tiger Woods, he’s the reason I watch pro golf and the reason I got interested in golf. Maybe you feel the same way. Tiger represents all that’s great about pro athletes: persistency, focus and a willingness to work hard. He also has a beautiful wife, and two cute kids, I’ll stop here.

Okay, everything isn’t so rosy at home.

Supposedly he is surrounded by a force of “geniuses” whose primary job is to build, maintain and protect the brand called “Tiger Woods.” The question is, have they given him the right advice, did they act quickly enough or is Tiger just not paying attention? Does Tiger suffer from the “I know it all disease” off the greens? It wouldn’t surprise me. It isn’t that rare. I've known business owners that feel that because they're good at what they do, they must be good everywhere else, right?  Movie stars know how to stop wars and have opinions on everything, though usually loaded with inaccuracies. I remember Tom Cruise wanting psychiatry outlawed.

The Tiger Camp issued a statement saying that they didn’t know how to deal with Tiger; the whole affair threw them for a loop. My suggestion to Tiger: fire them! Businesses don’t hire experts for the easy stuff. He should have called his mother; she would have told him what to do—tell the truth.

Everyone has the right to privacy; and what you do in your own home is pretty much your own business. If you want to drive your car into your sofa who would care? Well your dog might care. But if you’re going to drive your car into a fire hydrant and back into a tree, the game has changed. And if you’re the biggest man on the greens, everyone cares. Helloooo… Tiger’s fans care.

NBC cares. According to the Wall Street Journal,  the TV ratings double when Mr. Wood’s plays. According to the Reuter’s blog, “Woods ratchets up television ratings whenever he competes and mentioning his name in a headline triggers massive interest by newspaper and online readers.” 

(Don’t worry too much about the sponsors, if there’s an audience deficiency, the advertisers are somewhat protected and will receive advertising credits towards other media buys.)

There are lots of unanswered questions. Where was he going at 2am, and how did all those things get in the way of his car if he was just backing out of the drive way? And could they really cause facial lacerations, bleeding, etc.? Is cool Tiger so shook up that he can’t do what he does so well—play golf? We hope not. Why did this even make the papers in this unflattering form? How important is Tiger’s reputation? My mom used to say all you have is your reputation; maybe Marie should have been Tiger’s marketing advisor. This didn’t have to be a problem. Was it poor management, poor advice or just panic in Tiger’s mind? So is it our business? Well no and yes. Simply enough, he hit the fire hydrant and you heard the variation on the rest. It’s not our business because he’s just a human being. It is our business because he’s chosen to make it our business. Tiger represents the best of what he does, the gold standard.

His life is no longer private; he has chosen to disclose the most intimate aspects. My advice: share the solution, his fans will stand by. His personal business is his business but it quickly became ours. Eventually we probably would have found out what happened. Okay so eventually we would forget most of it.

Okay so Tiger isn’t infallible, he’s real, and being real he becomes even more important to our society, if he “bellies up to the bar” as they say.

There are some important lessons for all of us concerned about our brands. Building a brand is hard; destroying a brand is a lot easier. So protecting your brand is important and takes a lot of work.

Tell the truth. Not telling the truth creates problems that don’t exist. Consult your confidants, your family, and your business associates before you issue any statements. When in doubt, call your lawyer. By the way, that was my ex-husband’s remedy for most events but I just figured it was because he was a lawyer. My ex-husband was right too. Remember you have loyal fans that wish you well, buy your products and sometimes wish they were you. By the way, we want our heroes to be good because we want to be like them.

Live by your ethics, breaching your ethics will always cause you and your loved ones pain. If your fans question your ethics your business will lose credibility.

Turn lemons into lemonade; look at the glass as half full, not half empty. These are wise words to live by.

Now that we know, share the solution.

A business owner told me his employee was drunk at a local bar and when the business owner confronted him the employee told him it was none of his business. He was drinking on his own time. Was it his business? You bet it was. But maybe he should have first discussed it with his lawyer before confronting his employee. You and your business are always on display. Several years ago I was traveling with an associate who decided to spout off about how stupid a prominent official was; of course his next-door-neighbor was sitting behind us.

I think Tiger and his marketing gurus should read the Velveteen Rabbit; have you read it? It’s a kid’s book written for adults. Maybe it will help them put a plan together. Here is a passage: If you want, you can have Meryl Streep read it, just click here.

"The Skin Horse had lived longer in the nursery than any of the others. He was so old that his brown coat was bald in patches and showed the seams underneath, and most of the hairs in his tail had been pulled out to string bead necklaces. He was wise, for he had seen a long succession of mechanical toys arrive to boast and swagger, and by-and-by break their mainsprings and pass away, and he knew that they were only toys, and would never turn into anything else. For nursery magic is very strange and wonderful, and only those playthings that are old and wise and experienced like the Skin Horse understand all about it.

"What is REAL?" asked the Rabbit one day, when they were lying side by side near the nursery fender, before Nana came to tidy the room. "Does it mean having things that buzz inside you and a stick-out handle?"

"Real isn't how you are made," said the Skin Horse. "It's a thing that happens to you. When a child loves you for a long, long time, not just to play with, but REALLY loves you, then you become Real."

"Does it hurt?" asked the Rabbit.

"Sometimes," said the Skin Horse, for he was always truthful. "When you are Real you don't mind being hurt."

"Does it happen all at once, like being wound up," he asked, "or bit by bit?"

"It doesn't happen all at once," said the Skin Horse. "You become. It takes a long time. That's why it doesn't happen often to people who break easily, or have sharp edges, or who have to be carefully kept. Generally, by the time you are Real, most of your hair has been loved off, and your eyes drop out and you get loose in the joints and very shabby. But these things don't matter at all, because once you are Real you can't be ugly, except to people who don't understand."

"I suppose you are real?" said the Rabbit. And then he wished he had not said it, for he thought the Skin Horse might be sensitive.

But the Skin Horse only smiled.

It looks like our Tiger is about to become real. I wish him the best.

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Differentiation Builds Your Competitive Advantage and Delivers Customer Service

20 November 2009 Categories: Building a Brand, Competitive Advantage

Differentiation Flaunt It Honey!

My definition of customer service is giving the customer more than then they expect, i.e. Red Hot Customer Service. That’s exactly what JetBlue did Friday, October 30th at JFK International Airport.

Customers going through the terminal dressed in costume could show off their dance moves at the first-ever silent Halloween Eve disco. Friday I receive an excited call from Elin, designer supreme at Leader Carpet telling me about the event in J.F.K. Airport.

Elin’s comment: “Isn’t that cool?” I asked her what made it cool and she replied “It just is.” She’s right, it just is.

Here’s how it worked: When you went through security you would be given a set of headphones. Through these headphones you could hear a deejay spinning music. Of course, no one else in the terminal would hear the music.

That’s why it was called the “Silent Disco.”
“Our Silent Disco is about giving customers and crew members the chance to tune in to some great music, to burn some energy before getting on a flight or to shake out the stress of the week,” said Kim Ruvolo, brand manager for JetBlue Airways.

The event was produced by JetBlue partnership with Super fly Marketing Group.

So what do Jet Blue’s customer s think? In order to find out, JetBlue took a poll:

Disco at JFK?

Would you dance in an airport lounge?

  • No: It is way too embarrassing
  • Yes: I’ve got it and I flaunt it
  • I don’t know: Depends if I’ve had anything to drink

I checked out the poll and 41% said yes and 37% said I don’t know.

So, 80% of the customers will dance for one reason or another.

I call this customer service at its finest; assuming they got to their destination on time, no foolishness like overshooting the run way by 100 miles, or losing some serious luggage. This is just doing your job or the price of admission to be in the airline business.

Customer service is delighting your customer, making them smile, going beyond the call of duty, or doing something that makes you unforgettable. The key, as brand manager Kim Ruvolo said, is to give the customer something different.

Being different can also build your competitive advantage—but only if the customer loves it. My friend in Boston told me about an experience she had with her hair dresser of at least 20 years. It seems she showed up at her regular appointment to find the usual docile German Shepherd guarding the couch. The closer my friend came to the couch, the more menacing the German Shepherd became. She said it really scared the wits out of her; the dog had never exhibited this kind of behavior. Eventually the owner came to her rescue and asked my friend if she had done anything to frighten the dog! My friend, a little in shock, eventually got her hair done and went home. On her answering machine was a call from her hairdresser.

“It’s a good thing she called,” said my friend. “She was about to lose a good customer.” My friend, however, goes on to say there was no apology, just more defense for the dog. The dog also has a stomach problem, making it even more questionable whether he should be at the workplace.

What’s next? My friend called to tell me she has a new hairdresser, and she’s done a marvelous job!
No amount of silent disco dancing could fix this problem.
What could they have done to make it better?

  • Leave the dog home; he’s obviously too sick to be at work.
  • Leave the owner at home, she’s obviously too sick to be at work also.
  • Stop defending the customer since the dog was already defending himself.
  • Give the customer a free trip to the Bahamas; I’m sure she would have invited me to go along.
  • Give the dog a gift certificate to the vet or
  • Get someone to take the dog to the vet.

What would you have done to make this right?

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Guns ‘n Hummers: Maybe Not Such Strange Bedfellows

03 November 2009 Categories: Building a Brand

Csiaward.05.400 According to everything I’ve read and heard, the automobile business isn’t doing well. Many businesses have to reinvent themselves if they are going to survive. 

How to do it? By being smart and creative. 

Lynch Hummer has been in business for 15 years, but these days it doesn’t matter how long you’ve been in business. For the past two years, the automobile industry hadn’t been kind to Hummer dealers and the “cash for clunkers” program wasn’t for their customer.

Also, unverified reports on gas mileage are anywhere from 8-12.5 miles per gallon. But does that really matter? People don’t buy Hummers because of the gas mileage; they buy them because they love them. 

After seeing Jim Lynch on CNN, I decided to take a chance and see if he would chat with me. I was a little amazed and delighted that he would talk to me. 

My question to Jim was: Why guns? 

"In order to thrive during these challenging economic times, I need to expand my business and find a product that will appeal to my customers," he says. "Many of my customers are big sportsmen, love skeet shooting, so why not add this product to my mix?" 

Lynch adds that Lynch Hummer sits on about 7 acres and has an additional off-road course of another 30 acres behind the building.

A natural for Lynch: guns and cars. Lynch had to get a license from the Bureau of Alcohol, Tobacco, and Firearms in order to sell the weapons but business is booming. Lynch also consulted with law enforcement and hired a gun expert. It is obvious that Lynch is serious. 

Guns you say, really? 

Sound foolish or a little strange? Let’s see, there’s Starbucks and music, that didn’t seem to make a whole lot of sense but their customers love it. Nothing is strange if you know your customer. Does it matter what you choose? Of course it matters, and Lynch is smart. He is building solid, customer loyalty built on solid marketing strategies. 

What’s the trick? Simple: find out what your customers want and give it to them. 

Lynch will win some and lose some but in business that’s the way it is. The key is to decide who your customer base is and go for it. Advertising is too expensive “to throw some against the wall and see if it sticks.” You know the old phrase, “50% of advertising works and 50% doesn’t, and the problem is which is which?" 

Making a move without discussing it with your customers can have serious effects on your business. Consider CEO of Whole Foods, John Mackey, who decided to voice his personal opinions about health care and now finds himself "a few customers short" according to ABC News. Not a problem if you have enough to support your bottom line, but still risky. In my book, “Red Hot Customer Service” I refer to a basic marketing strategy about how to talk to your core customers before making a change.  

So how does Lynch determine what's right for his business? 

  • Be creative, survey your customers: ask what they think, what additional products and services would they be likely to buy? 
  • Examine your own likes and dislikes; find something that you believe in and you like; remember, you spend a lot of time at work. 
  • Consult experts in the field; let your customers know you’re serious and you want to do it right.
    To be effective in business, you’ve got to pick your customers. The right customers will be loyal and refer you to their friends. 
  • Create your niche; the danger is that your niche is very narrowing and eliminates additional customers that you really want. 

Not a gun or Hummer advocate? It doesn’t matter; you’re not the right customer for Lynch Hummer!

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Architecture Meets the Brand and the Consumer: An Interview with Jennifer Magee

05 October 2009 Categories: Building a Brand

Logo2 This summer I decided to take in the GreenBuildingNY show at the Jacob Javits Center in New York City. I consider myself up on 'green' but I realized if I wanted to learn anything new, it was probably in New York City. I expected exhibits on anything connected with the building industry; what I hadn’t expected was chocolate companies exhibiting their energy efficient milk chocolate pieces and the cockroach-sniffing dog! It opened my eyes to the vastness of green.

Magee This is also where I met Jennifer McGee, CEO of UPworld — a site with approximately 15,000 members worldwide. In addition, Jennifer is president of UP-Market[ing] — a design and branding consultancy that works with retailers and business owners to create new and dynamic retail environments that increase sales and build customer loyalty.

I liked Jennifer and her UPworld concept. It’s a LinkedIn on steroids. The more information she gave me the more questions I wanted to ask. Jennifer is multitalented and everything just fits together. What makes Jennifer outstanding is her background in both architecture and marketing. She was also named one of Real-Estate New York’s Woman of Influence for 2008. An architect by trade, Jennifer has her own ideas about retail and buildings. 

As Jennifer so succinctly puts it, "A retail building must be more than a building. It should be a space molded around the people to enhance their retail shopping experience." 

Here's an interview I conducted with Jennifer on her ideas, and what she sees happening in the industry in the future.

LC: Jennifer I see that your background is varied, with a Bachelor and Masters of Science in Architecture as well as a Masters of Real Estate development, but somehow it seems to fit together. Exactly what do you do?

JM: My interest has always been in how the customer experience and the design of a space function together, not just in the creation of a building. My work is varied to include clients such as JP Morgan Chase, W Hotel, Searle, Saks Off Fifth, and more. Each of these businesses are interested in building a brand experience for their customers. Different environments should help support the experience of the customer and how the customers interact with the building. In architecture school we are taught how to build different types of buildings. What we don’t study is how the people interact in a space and does the building enhance the brand image of the business. 

I consider myself a retail consultant who can design both the building and the customer's experience.

LC: Were you always interested in building the brand experience?

JM: I started in high-end residential design, designing penthouses in New York City and then branched out into women's fashions. As I examined the businesses, I quickly realized that some designs supported the consumers connection to the brand. Other designs didn't support the buying experience – in fact they detracted. The key is to build an environment that makes the customer want to stay and buy.

LC: Can you give us an example of what you mean?

JM: I do a lot of work with furniture stores and you’ve probably noticed how stores have changed over the years. Furniture stores have been basically boxes with rows and rows of couches and chairs. Then along came Ikea, Crate and Barrel and all of a sudden it changed. We are an experience economy, customers want to be engaged, amused and above all, get ideas for their living spaces.  The box concept suggests lower value as well as prices. It doesn’t give you an exciting experience. If you think about it, a kids birthday party used to consist of a cake and ice cream, now it means a trip to Chucky Cheese product with lots of friends. If you want to build your brand, product alone won’t do it.

LC: What should retailers be thinking when they are designing their spaces?

JM: Many retailers or business owners go into business because the product is their interest or hobby, they just love it. Their interest sparks the building of the business rather than hard, cold research as to whether the concept is viable. They need to determine who their customer is and what will drive traffic to their store and what is the value proposition for their business. Liking coffee is not the best reason to open a coffee shop.

How the space is designed is determined by the type of customer. Dunkin Donuts' value proposition is get the customer in the store and get them out. The traffic flow is in and out. On the other hand, Starbucks has comfortable couches and chairs and invites you to stay. As the space is designed, the specific customer and your brand proposition should determine the traffic flow. 

Oftentimes the building is beautiful but doesn’t direct the experience.

LC: What about the buying experience?

JM: As the building is designed, the customer should be tracked through the buying process. Do you want them to stay or go? If you want them to stay, where will you put them? If you are not consumer driven and aren’t aware of your customer’s habits, you may be driving them from your store. The key is to understand how your space will drive traffic and help you build your brand. Are you promotion-minded or is yours a specialty store? How do you keep your product fresh and interesting for your customer. This encompasses both the design and marketing of the space and the business.

LC: Your business Upworld seems to connect to your business and would probably help your customers.

JM: Upworld was established to help industry professionals market themselves. We are an "invitation only" network and screen all of our applicants. These are high powered professionals that benefit from each other’s expertise and are capable of doing business all over the world. One of the reasons for its inception was to provide connections for my projects. I needed highly specialized sources and products so I started my own networking group. I saw it as a way to build my business as well as helping other professionals with their business. Upworld has been in business for two years and has over 15,000 members from the construction, design, real estate and trades industries. 

LC: How important is social networking and networking in general to someone’s business?

JM: The adage of "it’s not what you know it’s who you know," is still very true.  These days with social networking, a business needs a combination of traditional and online marketing. They have to decide the value of their web site: is it designed to promote and drive traffic or just provide information to the customer.  

Upworld recently co-hosted an event with YREPNY (Young Real Estate Professionals from New York)  and had over 300 people attending. We actually posted on Upworld the member’s names that showed and a little about each one of them. We try to give them ways to network and build their own businesses.

My friend Kevin Gamble, Partner of 332 Flooring, attended the YREPNY and had the following to say about the event:

"As a partner in a luxury vinyl flooring distribution company I am always looking for new ways to network.  The Web site was filled with architects builders and realtors, exactly the people I wanted to meet and the  event was more than I could have imagined."

LC: What advice should you give an entrepreneur just getting started?

JM: Hire someone who can help you determine your brand and what you are trying to build.

Be willing to step back and examine your motive for going into business. Ask the hard questions: do I really know what I’m doing. If I don’t know what I’m doing, am I willing to learn?

Remember that the customer experience and the design of the space go together; don’t do one without the other.

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Social Media Can Be a Stepping Stone for Businesses

15 September 2009 Categories: Building a Brand

Emily Cappiello of Floor Covery Weekly wrote a great article about how businesses can be using social media to promote their products and services. She interviewed me for the story and I’m happy to have been a part of it. Thanks Emily! The full article is below.

Social Media Can Be A Stepping Stone for Biz
by Emily Cappiello

Social networking is used every day by millions of people of all ages — it has become a part of their everyday lives. Being able to present your business on a social networking site can have many benefits; the sites are a source for active promotion of your name and brand and can drive sales by providing more exposure.

Michael Cheek, manager, Internet technology for Mohawk, said that social networking is important because it has become a primary way for people to communicate. “People are having the conversation anyway and we need to be a part of it,” he said. Cheek explained that there are some simple ways that retailers can really take advantage of social networking. First, reserve your store name — whether or not you will be using social networking immediately. This ensures that when you want to use it, your name is what you want it to be and also what customers recognize you as. Secondly, portray your work on social networking sites. “So much of what we do as an industry is visual and it’s a way for people to find more paths into your store,” Cheek said. Cheek also explained that social networking sites are a way to make sure that customers will share their experiences online — a modern-day version of referral business.

If created and used correctly, social networking also levels the playing field, said Lisbeth Calandrino, director of consumer research at Fabulous Floors. “You don’t have to be big anymore to have a marketing presence. You need to learn to use your computer,” she said. She explained that although people get nervous because of the transparency that comes with social networking sites, there are so many ways to still remain in control. “You can’t really make many mistakes. It’s really all about fun and building connections. I believe the ones that will make it will be the ones who conquer cyberspace. This is the movement from a flat, ad-based website to the web 2.0, which is the conversation and interaction between the retailer and the customer,” Calandrino said.

Calandrino suggests that retailers take advantage of all types of online networking tools — social networking sites as well as blogs — and link them all, but she also said that retailers have to make it interesting. “You don’t want it to be just about advertising; if you do, no one will want to come to your Facebook page. You need to add anything that is important for you, like a runner’s club if you like running, and build your own place. As for your work, try to get video or photo testimonials and invite your customer to comment. Post about what is going on, say if you are having a color and design meeting. Everyone has to realize that this is where the customer is, this is how you network these days,” she said.

Carpet Network, a franchise company that has tried to consistently have a presence on the Internet, has embraced social networking because the benefits have been realized. “[Social networking] has been an interesting challenge, but it is also paying off,” said Lenny Rankin, CEO. “It is hitting every segment of society today, so why not be a part of it?

Rankin explained that social networking sites are a non-invasive way to let people know what is going on while keeping your brand in front of consumers. “It is a piece of the puzzle with helping brand awareness and being there when people need you. We are in front of people and we are getting more exposure and if someone writes something like ‘good job’ or ‘excellent service,’ it goes to hundreds of people,” he said. Also important is the fact that social networking gives franchise members a chance to hear about what is new and provides a forum for discussion.

And retailers aren’t the only ones who stand to benefit. Betsy Amoroso, director of corporate communications for Mannington, explained that social networking can give a name and face to a manufacturer, which may boost sales in the long run. “I think social networking is critical for businesses today, because more than ever, consumers like to feel a personal connection with a company they choose to purchase from. Social networks allow that deeper level of communication that just wasn’t available before and it draws them into your brand very early on in the purchasing process,” she explained.

“We felt that social networking, in particular our new Facebook page, was a great way to make that personal connection; to show consumers that we are not just a company but people with families who share the same cares and concerns that they have,” she added.

The only issue she sees is the fact that networks are so open and the things written and communicated are not always able to be controlled. To that, Amoroso said companies have to be able to take the good with the bad. “One of the biggest pros and cons is the transparency this gives your company. You have to be ready to take praise as well as negative feedback and be ready to address anything that comes your way. That said, though, I still believe that consumers today appreciate that transparency, and respect a company that is willing to open itself up like that,” Amoroso said.

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