Thursday, June 19, 2008

How To Survive in This Economy

I was reading one of my weekly newsletters and came across this article that I thought relevant enough to share with everyone. While it has a sales orientation, the message is quite poignant. It reinforces all that I have been hammering you on about brand identity (they say the true test of a man's intellect is how much he agrees with you - this guy is BRILLIANT!). He uses a restaurant for his example which only serves to reinforce the value of understanding your brand and insuring that all that you do works to augment who and what you are. I hope you enjoy it as much as I did.


HIGHER GROUNDS
A Simple Recipe: Crafting Your Brand's Reputation
by: Brian Parsley

Do certain childhood memories evoke a cozy feeling within you? It's actually branding in disguise.

Some of my favorite memories were the visits to a down-home restaurant called The Farm Table in West Virginia. It was Southern food done right in nothing more than a small family-owned space. The home-cooked meals and "everyone is family" aura had people lined up out the door seven days a week. I've never forgotten their amazing food, made with love, that was often delivered with a hug. At The Farm Table, there was always a smile and acknowledgement that made you feel like you just got home.

Now, as a business professional, I reflect on how they built their brand and reputation. From what I can remember, they didn't advertise. There were no coupons or weekly specials. The decor and architecture was "hole-in-the wall" meets "backwoods." And the restaurant's location was not prime. It got me thinking that maybe a business doesn't need fancy campaigns to build a solid brand. Simplicity, quality, and a genuine interest in customers are the foundation of a company's reputation. It builds their brand.

The Farm Table didn't have to advertise to get new customers; their consistent delicious food, fair prices, and excellent service did it for them. These are the ingredients that created their recipe for brand success. It boils down to the daily interactions you have with customers -- those interactions will determine whether your reputation will be positive or negative.

Let me give you a perfect example of how service levels can create or destroy the brand cornerstone of a company's reputation. A few months ago, I had my oil changed and the technician advised me that I had a nail in my tire. He offered to fix it for free. After he finished, the manager approached me and said, "Sir, I just want you to know that we will NOT guarantee that your tire won't leak. He should have never helped you with that." That single interaction of just a few seconds put that brand's positive reputation in the dumps for me.

Your reputation yields your business outcome. Your revenues, number of customers, and bottom-line profitability are the result of how well you have been able to build a reputation around what customers value the most. Your sales are a direct result of your ability to generate repeat business and attract new fans. Yes, advertising does create awareness for your business, but it is not the whole strategy. Taken alone, advertising can often cost more than it's worth, especially if you give bad service when someone responds to your ad.

While some companies may be using the economy slowdown as an excuse for negative impact on their business, the truth is that people are still building, buying, and eating out. If business is
down, start asking your customers about how they define your reputation. With that information, you can create a recipe for a reputation that delivers quality and builds brand equity.

Let's go back to the manager at the oil change business. Maybe he should have asked me what I loved about my experience rather than tell me his employee did wrong by serving me. He could have discovered that the technician's extra effort would have made the difference between my returning or not.

Your brand and your reputation are dependent upon your level of sincerity, your willingness to serve your customer, and doing it from the heart. My father told me The Farm Table is still in business and going strong after 25 years. No web page, no voicemail, and no fancy gimmicks. Their brand and positive reputation developed over a period of time based on friendly service and the best home cooking. When you put effort into your reputation, you build a brand that will sustain your business through any economy.

Here are some great ways to build a positive reputation:

* Never answer the phone or greet a customer with "Can I help you?" Just say, "Good Morning" or "Welcome." People will tell you what they need.

* Offer to fix something that's NOT included because you care.

* Send your customers handwritten thank you notes.

* Build your business on quality, not lowest pricing.

* Thank your customers for coming to you when it's obvious they have several
other choices. Customers will remember your efforts, and that goes a long way to building a reputation that creates substantial brand equity.

* Get more involved with your local community so your name and your brand become known.

* Honor your word. If you commit to something, do it! Even if you lose money, time, or energy. Your reputation is built upon your actions.

And if you ever happen to be at The Farm Table, please make sure you order chicken and dumplings in my honor.

Sunday, June 8, 2008

Who Are You Anyway?

"The world stands aside to let anyone pass who knows where he is going." David Staff Jordan, ornithologist.

Just a few short weeks ago, my wife and I were treated to a wonderful steak dinner out at a local steakhouse – Wildwood in Geneva. I have to mention that I have eaten here about 10 times now, and the experience has always been the same – extraordinary! The place was packed. We arrived at 6:30 and stayed until after 10, and hardly a table sat vacant for more than 5 minutes. I couldn’t believe my eyes. Here I am an “industry insider” familiar with the many tales of woe from operators complaining that they can’t get people into their restaurants, and I struggled to wrap my head around the fact that the restaurant with its $40 average entrees is enjoying a packed house on a Friday night. Don’t let my wife know, but I tuned out of most of the conversation as I wrestled with the age old question of WHY?! A number of things sprung to mind about their success in this allegedly down market, and I would like to share a few of my realizations with you.

The first, and I believe the most important, thing is that they understood who they are. They had a clearly defined image of who they are and who they are trying to be. Without talking to anyone there, it was easy for me to recognize that they want to be the best steakhouse on the map. Someone told me once that if I don’t know where I am going, chances are that I won’t get there. Do I really have to explain how true that simple statement is in business, in the car or in life? We have to have a clearly outlined purpose for who we want to be as operators. In my position, I get to interact with a whole bunch of operators. Remarkably, very few have an identity and a goal that they are striving to achieve outside of running a profitable business. In my opinion, too many operators stray from their identity to try to appease every potential diner even if it compromises their vision. Wildwood doesn’t throw dishes on to their menu haphazardly to try to lure that one diner away from the place next door, they stick to their guns and put new items that fall in line with their identity and present them without compromising quality or image. They know who they are and figure that if the put options on the menu that make sense and stay true to their goals, they will continue to win new customers.

The second thing that struck me was that they were uncompromising on quality. This attitude reinforces their desire to be the best steakhouse on the map. They don’t cut corners or look for items that are merely passable. They provide the best for their customers. They have faith in their product and sacrifice nothing to try to provide the best dining experience for their patrons, and they aren’t afraid to charge them for it. They appear to be interested in making money at the front door rather than saving money at the back door. As a result, each time I have eaten here, the food has been consistent. The snap of the veggies, the quality of their meats, and their desserts….it has a quality that never wavers. They know that if they put an excellent meal on the table, their patrons will be willing to pay for it.

The third and final thing that I couldn’t help but notice was the room and the quality of the staff. The room was fantastic – clean, updated and taken care of….just like the rest of the experience, their focus was on providing the best atmosphere for their patrons. The wait staff was fantastic. They were pleasant looking and ready to do whatever they could to insure that we – the diners – had a dining experience that was top rate from start to finish. The management team at Wildwood had done and excellent job of communicating their vision to their employees. The employees have embraced it and made it their own as well. The staff was going the extra step to keep the place neat, the customers happy and to make each experience a memorable one. Consequently, the bathrooms were clean, the service was quick, the servers were pleasant and from top to bottom it was an excellent experience.

While it may be just a little slower out there, people are still spending money in this economy, they are just being choosier about where they spend it. My experience proved it, and I want you to share in the same success that Wildwood is having. They have positioned themselves as a destination restaurant by first understanding who they are and where they want to go. Next they are uncompromising on quality and serve nothing but the best in food. Finally they hire smart and keep the facility looking fantastic. By keeping those three simple ideas in mind, you too can keep your house full each and every night of the week.