Monday’s Startup Junkie Underground featured ZenMango President Arjun Sen on “Winning Big in a Down Economy.” Sen, bringing experience from retailers including Einstein Bagels and Papa John’s Pizza, began by highlighting the core mantra of his consulting firm: “Guest experience enhancement.” Sen’s overall thesis was that through considering and optimizing every aspect of the customer’s experience businesses can maximize their returns. While the talk was focused on a down economy when consumers are tightening belts, the general lessons seem equally applicable across the economic spectrum.
Sen used Starbucks as an example where people gladly fork over $3 for a $0.50 cup of coffee due to the unique experience provided. Upon entering a customer is greeted by the aroma of coffee, shelves full of high-end coffee gear, and other customers with whom they self identify. The order is then offered to a “barista” who, standing before an array of complicated machinery, delivers the steaming drink to a high shelf. In this carefully orchestrated experience, Starbucks has recognized the desires and mindset of the customer – something that many businesses fail to do.
What each customer asks is that a business “recognize [his] needs,” but frequently businesses may be misinformed about what is actually the most valuable to a customer. For example, while businesses may think customers are entirely focused on price, in some cases service may be the difference maker. Sen then urged combining a transaction-level focus on providing great service with recognition of a customer’s lifetime value to the business. Businesses must see each transaction as unique because, taken together, a satisfied customer will deliver an order of magnitude in purchasing to a business during the lifetime of the relationship.
Sen went on to highlight five areas where businesses may falter in providing an optimal experience to customers.
- Knowing the customer – Business people must “become mini-shrinks” to understand the mentality and needs of customers and recognize that there are likely different segments of clientele. Sen recommended being “a guest in you own business” to help evaluate areas for improvement.
- Unit level breakdowns – These mistakes occur when the point of view of employees is not aligned with that of customers. While employees may see a customer as “one of many” in a seemingly endless line, a customer must be treated as if he is the one and only.
- Marketing and operations are not aligned – While marketing focuses on being effective, operations is entirely efficiency focused. To Sen neither alone is sufficient which has led him to coin the new term “Marperations,” as only through good marketing and execution does the customer really win.
- Stop at failures – Customers will have experiences that fall short. The goal is to make “your failure greater than [your competition’s] success.
- No customer experience mantra – Sen distinguished this from the long complicated mission statements of many corporations. Instead of turning to the plaque on a boardroom wall for an example, Sen cited a line from Julia Roberts in Pretty Woman “I’m gonna treat you so nice, you’re never gonna let me go.”
Sen ended his presentation calling those in the audience to action based on his 3 to 7 day rule – if you don’t act on information within a week, you are unlikely to ever do so.
The evening event concluded with a panel moderated by Mike Cote, where Sen was joined on stage by Brent Green and Herb Rubenstein. Cote focused the conversation on how new media may influence marketing and the overall customer experience. Green noted that new media now cross demographic lines and allow consumers to “take doses [of information] as [they] want it.” Rubenstein noted that while brands may have less time to send their messages since the “conversation is fleeting,” new communication tools make experimentation easier – or test early and readjust strategies as necessary. Sen was less concerned with the specific medium noting it is irrelevant unless “you have something to say that someone wants to hear.”
The DaVinci Institute produces a variety of events designed to share the knowledge of most talented thinkers and seasoned veterans who have fundamentally changed the business landscape. Upcoming events include a Career Strategy Bootcamp on April 25 and Night with a Futurist, featuring Tom Tancredo on “The Future of Politics” on May 5.
