Monthly Archives: May 2014

Reviewing Reviewers

I’ve got criticism on the brain this Foodie Friday, not because I’ve been the subject of any but I read a restaurant review and it got me to thinking.

Workers in the kitchen at Delmonico's Restaura...

(Photo credit: Wikipedia)

There are certain elements to a restaurant review that are certainly objective.  The silverware either was or was not clean, the water glasses were or were not refilled on a regular basis.  Much of what one would talk about, however, is very much subjective.  What is good to the reviewer might not be very good to you at all.

At least with a professional reviewer, one can hope that in addition to a palate that’s been educated a bit they would demonstrate fairness and honesty and not just try to write a clever rip job for the sake of doing so.  The good ones have an appreciation that they are not in an objective field but they know that the critic’s job is to educate and illuminate and to give you a comprehensive view of the dining experience, hopefully making multiple visits to the eatery to form an opinion.  Today, of course, everyone is a critic – just spend 5 minutes on Yelp.  The standards I just mentioned don’t apply.

This would drive me crazy if I were a chef.  Then again, I think there’s a business point in it which can be helpful to all of us.  The smart cooks just go to work and present the best possible quality food every day and enjoy themselves while doing it.  They acknowledge that they’re being evaluated each time they present their product but they don’t let the criticism overwhelm them.  It’s a tool to help them measure themselves and improve and some is more accurate and valuable than others.  They review the reviewers in the context of their own skills and standards.

We forget that in business sometimes.  Satisfying 99.9% of 1,000 customers means someone is unhappy.  If they’re a loyal, long-term buyer then that review is based on multiple visits and is an informed opinion.  Listen and learn.   More importantly, ask if you put out your best product.  Have you set your standards high enough and commiserate with your abilities or are you slacking?  When your year-end review isn’t as good as you expect, is it an objective, fact-based listing of where you’ve come up short or is it a subjective rant?  Review the reviewer but don’t dismiss a bad one out of hand if it’s accurate.

We’re all evaluated each time we produce a product.  Listen and learn and present your best product.  When you do so with high standards, the reviews will be fine.  So will your sanity.

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Love The One You’re With

One of the ongoing discussions I have with clients is the need to balance acquiring new customers with servicing exiting ones.

First customers

(Photo credit: stavos)

Many of the businesses with which I’ve been fortunate to have worked over the last few years place a far greater emphasis on acquisition than they do on showing the love to those who are already in the fold.  One of my mantras has been that it’s almost always more cost-effective and profitable to retain a customer than to find a new one and I tend to work with my clients on finding good ways to service their existing bases while helping along new customer acquisition as a lesser emphasis.

That’s why I was happy to read a recent study of small business owners from the Manta folks.  In conjunction with BIA/Kelsey, they found..well, I’ll let them tell you:

In 2012, BIA/Kelsey reported that small business owners prioritized customer acquisition over customer retention at a 7-1 ratio.  Recently, a new trend is developing as 61 percent of small business owners surveyed report over half of their annual revenue comes from repeat customers rather than new customers and that a repeat customer spends 67 percent more than a new customer  (emphasis mine!). In line with this, small business owners are spending less time and money on customer acquisition; only 14 percent are spending the majority of their annual marketing budget to acquire new customers, and only 20 percent are investing most of their time and effort to acquire new customers.  This is a significant shift in behavior as small business owners have realized that existing customers play a more influential role in business success than new customers.

In other words, existing customers bring in more dough than new customers.  The question then becomes identifying and segmenting existing customers into group that you can address in a manner appropriate to their buying habits.  You need to be having different conversations with the person who hasn’t ordered in 3 months than the one who orders once every 10 days. Maybe you handle the top 10% of your customers differently or maybe you look at spending levels, purchase cycle, or even those folks with an affinity for a specific product you’re wanting to emphasize.

No matter whether it’s loyalty programs, special customer service agents or insider news and information, customer retention needs to be a focus of every business, something I think needs to be placed ahead of new customer acquisition.  You?

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Love It Hate It

We all have people with whom we have a love-hate relationship.

"No Mom, I can't explain this any more cl...

(Photo credit: colorblindPICASO)

Maybe that starts with our parents as we’re becoming adults or maybe it’s with that dear friend who constantly drives you nuts.  We extend this sort of relationship to inanimate objects as well; technology specifically.  I want to ramble on about people and tech for a second but I think you’ll find that it has implications for your business as well.

A question for you to begin.  If you left your cell phone at home and discovered you had done so, would you be willing to turn around and go get it or could you get through the day without it?  A survey by the USC Annenberg Center for the Digital Future and Bovitz, Inc. found that nearly one‐third of respondents said if they left home without their mobile device, they would return for it no matter how much time was needed to get it.  Only 23% said they’d never go back.  Technology has become indispensable in most of our lives.  We love it.  Turns out we hate it too.

Those same folks did another survey and found that

  • Thirty-one percent said technology has made it harder to separate their work and personal lives.
  • Twenty-six percent said they are stressed because technology has made them always on call for work.
  • Twenty-five percent report they struggle to figure out new technology.
  • Twenty-one percent said being accessible through a mobile device has made their lives more stressful.
  • Twenty percent said they frequently resent having to work at home because of what technology makes possible.
  • Sixteen percent said their personal lives have suffered because of technology in their work lives

Yet we’d go back for the phone.  It’s become an addiction of sorts although there are a lot of positives too.  People are able to do more in less time with their technology.  We have more time for family and friends because technology enables us to do work from anywhere.  The broader point is this.

If we can provide a product that offers benefits which far exceed the potential downsides, we’re going to be in it for the long haul.  One could argue that many pharmaceuticals stay on the market for exactly that reason despite a laundry list of nasty side effects.  Smoking is vanishing for the same reason – the downsides far outweighs the positives.  I don’t think the device manufacturers have figured that out yet.  A Harris Poll found that more people find technology too distracting than in prior surveys and fewer say they find it has improved the overall quality of their lives.  Fewer think technology enhances their social lives and the proportion who say it has improved their relationships with their family decreased.  Maybe they need to rethink marketing?

It’s ok to engage in a love-hate relationship with your customer provided, of course, that your product becomes as indispensable to their lives as mobile devices have.  How are you going to make that happen?

 

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