Tuesday, February 26, 2008

Starbucks stores closing temporarily today….convenience versus loyalty?

I dropped by Starbucks yesterday and noticed the sign on the door stating that they would be closed today for several hours to train their baristas to make better coffee. Interesting I thought and of course my thinking cap started churning or was it my anticipated Starbucks caffeine withdrawal? Anyway, I thought it was somewhat of a risky move and wondered how many people would be affected by this, not necessarily the ones that knew about the temporary shutdown but the ones who were caffeine deprived walking in the day it was posted and did not notice the sign. Most of these people I bet would drop by tomorrow and be shocked that they were closed for that time and what if they also see employees in the store..yikes! I would have thought that Starbucks would have spent that time trying to improve on customer relations. I visited a Starbucks a few weeks ago to pick up a nice coffee cup for my mom and I asked at the time did they still give the 1 free drink coupons with a cup purchase and I was told no but I could purchase a card with at least a $5.00 credit on it which really ticked me off. I bought the cup but was grumbling over their new policy.

It looks like a great opportunity for the competition to grab some coffee bean share wouldn't you think? Companies like McDonald's, Dunkin Donuts, Seattle Coffee and other small providers could benefit by picking up some new customers. I read where Biggby Coffee in Wyoming is offering free coffee to everyone during that time for everyone as well as their current customers and may actually snag a few of the Starbuck loyal addicts. I wonder how many other coffee shops will be participating in trying to grab some market share.

It also started me thinking about convenience versus loyalty, of course a vast majority of Starbucks customers are drawn to the ambience of the store while many others cruise through the drive-thru for convenience so is it mainly loyalty or convenience? I wonder during the several hours that Starbucks will be close how many people will discover other convenient options for their caffeine fix.

I bet convenience is often mistaken as loyalty as I think of many situations where I use a product because of convenience. Of course if another convenient option appears and I am not legally bound (mobile phone service) I would also choose the convenient option.

Companies should take a look at that scenario and see what really keeps their customers; legal jargon or the fact that they focus on what their customers really want and offer a fair exchange as well as customer care. I think Starbucks will find out very soon, I do not think people are leaving them dissatisfied by the brewing of the coffee…they may be training on the wrong thing!

Suggestion to Starbucks, station people in your stores to observe, question and seek suggestions as well as offer up a free drink that may create loyalty!

Tuesday, February 12, 2008

The day the music (BlackBerry access) died....

There’s a line in the song American Pie by Don Mclean, “But February made me shiver”; how ironic in reference to the BlackBerry outage yesterday as well as the internet outage in the Middle East on February 1, due to a severed line.

Actually yesterday was a good day when I think about it, first I was frustrated by the silence of my BlackBerry asking it “why are you not talking to me?, was it something I said ?” After numerous service book pings I finally read that there was an outage and instead of taking the rest of the day off, I actually I was able to get more work done. The strange buzzing noise was gone and the phantom vibrations I have been feeling in my hips were gone as well. No, really….I could be totally away from my blackberry (which is rare) and I would feel these vibrations, I kid you not.

I am not sure how I would have reacted to an internet outage but I gotta believe I could deal with it without freaking out. I am sure a lot of us would wake out of the technical communication whirlpool with blank stares behind our monitors and miniature screens and actually look up and around. We probably would actually pick up the phone and actually call our customers or prospects and actually have a “live “conversation.

When you think about it how many of us actually have a backup plan to not being able to connect through cyberspace? Would we have un-tethered access to our vital data? Would we use it as an excuse or would we take it on as an opportunity? You could call a customer at the perfect time and be Johnny or Joannie on the spot letting them know that business goes on. I wonder how many frustrated customers and advocates you could pick up by still being there?

I often speak of being a “ GenTweener” a hybrid cross of an X and Y due to my early experience in technology, unlike a lot of the generation today I know how life and business carried on without a total dependency on technology. I do appreciate the advances of technology , “Yes, I said to my son I remember having just 3 television channels and no ATM’s….what did I do when I ran out of money?, I either went home or my friends and we pooled our money.” Technology is great but what happens when “Houston, we have a problem”, rears its challenging opportunistic head. The fact that I am a GenTweener allows me the benefit of both worlds and I draw on the way things use to be as a foundation to how I conduct business.

Here is what I remember:

·-- NO phone mobility (well, when I was growing up we had a VERY long coiled line so we could walk to the front door from the kitchen) also, mom could yell
·-- The clarity of cable was aluminum foil on the indoor antenna of our television
·-- My musical playlist consisted of how many 45’s (records) you could stack on the turntable, later my dad bought a reel to reel system..awesome
·-- Looking forward to the latest encyclopedias and the extra event edition
·-- My parents introducing me to the bank VP and opening an account (they really knew us) actually all of the stores in my city had that “know thy customer” theme
·-- Walking down to the playground to hang out with my community
·-- Face to face conversations
·-- Weekly trips to the Library and reading 30-25 book a summer to receive a certificate
·-- Musicians created music not manufactured it

Okay, I will stop, you get the point, technology is great and allows far reaching communications and relationships. It enables better efficiency, access and productivity, and it is required to be successful in business today. I have benefitted tremendously by technology and understand human progress and reach but I must say it is nice to think of simpler times where tasks were accomplished by the pace of the day. Patience or some relative degree of patience was required and I am sure all generations have versions of progress. Nostalgia is a good thing and can have some relevance in our lives today when there is a blip in technology. It can also remind of how important our relationships are in our business and personal lives.

I think it would be a great exercise to have a conversation in your office contingency plans around the lost of taken for granted technology like BlackBerry usage and the internet. A live phone call or face to face conversation could be the deciding factor in attaining and keeping your most valuable assets.

I have to go now; my BlackBerry alarm just reminded me that it is time to eat.

Friday, February 01, 2008

Yes….it is also all about me….today

Today is my birthday and no, I will not reveal my age but I am what some would say…seasoned. Anyway, other than my family wishing me a great day the first e-mail I saw in my in box was from Borders wishing me a happy birthday with a coupon. I know that it does not take a lot to collect and act upon data given but it is still a nice gesture and one of many good experiences I share shopping there. Last week I went into the local Borders seeking a book that was recommended to me and in my haste I left the coupon they most recently sent me in the printer bin. When I stepped up to the counter to pay I mentioned it and the gentleman waiting on me said no problem and pulled out a sheet that gave me a better discount than the one I received initially. It is not just one experience that defines my loyalty or advocacy but I continuously receive them from Borders and since I am an avid reader I receive a lot. Thanks Borders for thinking about me and thanks for instilling in your employees empowerment to make decisions that affect the customer. A lot of companies say they care from the top level but the "action" part is watered down all the way to the person who has the direct contact. Many I am sure are given strict "rules of engagement" and those rules may be firmly implanted in the technology. "I'm sorry our system will not allow that", breaking the human connection that is vital to the experience. Extending an extra discount does not always impact the bottom line if that action causes me to walk out with a satisfied smile and keeps me coming back thus adding to the bottom line.

During the rare times I do walk into Barnes and Noble, I walk up to the counter with angst knowing that they are going to ask me if I am a "special" member that I have to pay for! Unbelievable! My friend Brent Leary expressed it well in his blog last year: Barnes & Ignoble - Another Tragic Case of Customer Relationship Mis-management

So, Happy Birthday to me! I am off to Borders to pick up a book about dealing with Mid-Life Crisis.