Your trumpet calls

Yesterday I was doing some shopping and, while waiting for service, I casually read the signs alongside the counter. One in particular caught my eye. Written in red on a white background was an A4 card with the words "HFM only stock Australian product".

Over recent months there has been much in the press about retailers sourcing product from outside Australia. Go to your local butcher, fishmonger, fruit and vegetable vendor, and, especially, your major supermarket chains and the probability is that much of the product is sourced from outside Australia. Many in the Australian community are concerned about this and people such as the entrepreneur Dick Smith constantly exhort us to think about the source of product when we are buying anything.

I'd never seen this sign before - I buy from specialist shops rather than from supermarkets wherever possible because I believe the supermarkets need competition and small local retailers are the best source of this. But the sign still made a difference in my attitude to HFM - it made me feel even more positive towards them.

I looked again at the prices shown in the shop where I was waiting. They were very comparable with those in the supermarket next door - clearly no premium for buying the Australian product. When, a few seconds later, I was served, I commented that the sign ought to be larger and that HFM should make more of this. The person at the counter didn't really seem to understand what I was saying. He smiled and agreed but, today, nothing had changed.

The statement that "HFM only stock Australian product" is a strong marketing claim that sets it aside from its larger competition. It is a critical point of differentiation. Yet it seems to have been made almost as an aside by someone who obviously knows its important yet doesn't seem to know how to make the message stand out.

It set me thinking.

How often do all of us have clear and important points of differentiation yet we either fail to recognise them or we fail to make them clearly and prominently enough. I, for one, am sure that this is an area in which I screw up quite often.

It reminded me of a statement I heard long ago: "If the trumpet doesn't make a clear call, who will get ready for battle?" And also of another statement once heard at a seminar: "if you don't blow your own trumpet, someone else may use it as a spittoon!"

In today's highly competitive environment, whatever goods and/or services we are offering can easily be confused with commodities - the similarities are such that prospective customers/clients bag everything together and, in lieu of clear differentiation, make buying decisions on price or familiarity. This can make things especially difficult for the small operator or for the new entrant to any field.

Points of differentiation should be trumpet calls.

How clear is your trumpet call of what makes you different and why people should buy from you? It needs to be very clear. It needs to be loud. And it needs to be frequent.

More about Doug Long at http://www.dglong.com

Poor Customer Service Reflects PPM

Don't you just love Apple stores. As you walk past you see all these exciting pieces of electronic equipment and the place is staffed by such happy, helpful people. There's an immediate reaction: "I like the look of this place and I've just got to go in." Now that's pretty good as far as it goes.

But what if you've got a small problem - like your IPhone's playing up? Just supposing you're close to an Apple store when this happens. You walk in and its one of those times when there's a lot more staff than customers. Staff are standing around chatting to each other but a receptionist quickly comes to attend to you. You explain the problem - and suddenly the famed Apple service disappears. "I'm sorry," you are told, "we're too busy to help you with this right now. You have to go on line and make an appointment." You look around. Staff are still chatting to each other - clearly not busy either with technology or customers: "Oh,", you say, "what about someone from over there? Can they have a quick look at it?" "No," comes the reply, "you will have to go on line and make an appointment."

Suddenly having anything other than Apple equipment seems to be a good option!

Now, as you might suspect, this isn't just a hypothetical example. It happened this morning at an Apple store in Sydney.

I can understand making an appointment when a store is packed with customers. I can understand that whatever is wrong with the phone might require a technician to examine it. I can understand that the problem may take a little time to be fixed and that there might be no phone for a short time.

What I can't understand is why, in a store that is obviously not busy, no-one can even make a brief examination of the phone and perhaps be able to help solve a reception issue. Somewhere in Apple is a manager - perhaps more than one - who is more concerned with process than with customers. And that's PPM - piss poor management.

What do you think?

More about Doug Long at http://www.dglong.com

PPM and customer service

Last week I had an interesting interaction with Virgin Australia. I wanted to make significant changes to a booking and I understood that there would be a fee involved. To check on the process I phoned Virgin and received clear instructions on how it could be done on line and what the fee would be. I then went on line to make the changes but, no matter what I tried, something wouldn't work. I again phoned Virgin, spoke to a different person, and was then told that the changes could only be made over the phone and that, because I was doing it by phone, there would be further charges! Even though Virgin Australia's policies may have no such intention, the person with whom I spoke left me with the impression that some form of price gouging may be involved. When I asked to speak to a supervisor or manager I was told that this wasn't possible and that, even if I did speak with one, I would be given the same message!! So much for Virgin Australia Service!

Two phone calls. Two different "service" people. Two totally different messages. I find it very easy to forget the first, helpful person and very easy to remember the second, very unhelpful and uncooperative person. Unfortunately for Virgin, as is usually the case in customer service interactions, it is the negative experience which tends to dominate.

I have written quite a few blogs on customer service (they're all available below). It is a sad fact that today, with organisations' emphasis on short term to medium term results and the use of outsourced and casual staff, cultures of relatively short term expediency seem to be replacing service and commitment. As I have said before about PPM (Piss Poor Management), it starts at the top by actions of commission and/or omission. In the case of my recent experience with Virgin Australia I suspect the "omission" aspect applies as contradictory messages (both direct and implied) were given.

Today's business environment is increasingly competitive and customers are increasingly price conscious. Things like air travel that once were "special" are now a commodity. Those supplying commodities need to offer something special to set themselves apart and to encourage customer/client loyalty - and "loyalty programs" don't fit this bill. Good management and good leadership recognises this and works constantly to ensure this "something special" is always on show and applied.

"We the people" are happy to respond positively when we feel that service providers really are providing service. Don't we?

What do you think? Please make your comments below.

More about Doug Long at http://www.dglong.com

Poor Management = Disengaged Staff = Lower Profits

I think it was the 60's folk group, Peter Paul & Mary who sang "When will they ever learn?"

I couldn't help but think of this over the weekend.

I have 2 daughters who are still studying and, like most of their peers, they work part time to generate income as they complete their degrees. One works in a locally owned fashion store and the other in a well known jewellery chain with high quality merchandise but owned by overseas interests. Both enjoy their work - they love the interaction with people and each of their employers recognises them as people who make their targets.

Last Thursday the daughter who works in jewellery mentioned that, on Friday, the regional manager would be visiting the store where she works. She said that her manager appeared a bit concerned because the shop's figures were 8% down on target - a situation that their research showed was somewhat better than most other retailers in their shopping centre and a lot better than the situation with the other members of the same chain in nearby shopping centres.

On Friday evening she came home furious. We learned that the regional manager had shown absolutely no understanding, had not been prepared to listen, and had given all 11 staff members a formal warning of dismissal - this despite the fact both my daughter and her manager were ahead of budget on their individual figures. On Saturday my daughter learned that she was not the only one now looking for another job.

Now I know that retail is a hard business at the best of times and that, right now in Australia, it is especially difficult. But surely the last thing you want to do is to have your good staff looking for other jobs!

The truth is that good people don't work for bad bosses! Once good employees find out that their management is poor to bad, they start looking elsewhere - and, because they're good, its not too hard for them to find alternative employment even when the job market is tough.

Retail trade is very dependent on floor traffic. That is why so many retailers go into large shopping centres where the multiplicity and variety of shops encourages a wide range of people to browse even if they have nothing specific to buy. If floor traffic is down there is very little, if anything, that a small individual shop can do to generate more shoppers. If this low floor traffic is coupled with a reduced spending pattern (such as Australia is now seeing) then meeting targets becomes even more difficult. The evidence of this is seen in the closure of so many retail outlets across the country over the last year or so.

In difficult times organisations need highly committed people who are fully engaged with their employer and their work associates. These fully engaged people will function as effective teams and will search for creative ways of meeting targets. They will engage with potential customers knowing that satisfied customers spend a lot more money than dissatisfied ones. Good management recognises this and seeks to enhance commitment. Poor management destroys commitment by making threats.

My suspicion is that somewhere in an office well away from Australia, is a management team that has looked at the jewellery chain's Australian figures and has put a lot of pressure on the local management to improve results. The local CEO has passed this pressure down and it has reached regional manager level. The regional manager, feeling threatened, has hit out at the managers of individual stores, etc. Its a classic example of PPM ("piss poor management").

Of course, this isn't only found in retail and its not only found in overseas owned operations.

There is significant research showing that the most critical thing in achieving desired results is that people feel physically, emotionally and psychologically safe. Immediately a person is threatened with dismissal this safety factor is triggered. At that time the person becomes more concerned for their own welfare than they do for their employer. A descending spiral commences which results in everyone losing. I can see this starting to emerge with the jewellery chain in question.

All of the data shows that most people want to do a good day's work and achieve results. Good managers understand this so they set clear performance targets in both qualitative and quantitative terms, then through effective feedback and an appropriate balance of control and empowerment, they create an environment in which people are fully engaged and in which they can achieve the desired results. It a pity the senior management where my daughter works doesn't understand this.

I believe its well past time to get rid of PPM practices.

I'd love to hear what you think. Please provide me with some feedback.

More about Doug Long at http://www.dglong.com