The Sold Experience Must Exceed The Marketed Expectation

The Customer Satisfaction Formula



By David Miranda
During a Q&A session after a marketing presentation to a university audience, I was asked what the difference was between marketing and sales since the terms were used interchangebly in business at times. The question is a good one and deserved a good answer.

There is a symbiotic relationship between marketing and sales. One relies on the other for ultimate success - a ying to the other's yang. Some have used the adage "everyone in marketing and sales must sing off the same song sheet", but to really understand the relationship, one must go further. Marketing and sales must "must make music".

Marketing, simply put, is getting someone to "want to buy" what you have to sell - creating the expectation. Sales is actually "getting them to buy" - selling the experience, not just the germane product or service. Starbucks, for example, doesn't sell coffee, it sells the Starbucks experience. Altoids doesn't sell mints, they sell prevention. And so on.

When the experience exceeds the expectation, there is strong customer satisfaction and positive word of mouth. When the expectation, on the other hand, exceeds the experience, customers are not happy and this creates negative word of mouth. When the experience meets expectation, customer get what they expect, but "just okay" does not generate word of mouth.

So the relentless goal should be to exceed customer expectations. This is the characteristic of all great brands.

Remember, before someone buys something (sales), they have to want it (marketing).

Recognition Strengthens Relationships

Letting Customers Know You Care

By David Miranda

While idly channel surfing recently, I chanced upon the Dr. Phil show. He was counselling a midde-aged married couple whose relationship had, obviously, become strained over the years. The wife related that she did not feel appreciated by her spouse. She was a working mom who, by her account, bore the largest share of the day-to-day domestic responsibilities. Her husband agreed with her assessment and said he was quite aware of his wife's contributions, and he countered that, not only was he the primary breadwinner, but he, over the course of the marriage, showered his wife periodically with various gifts, travel, and fine dining to show his appreciation. Still she was not happy. He could not understand why.

Dr. Phil listened intently and then presented some sage advice. He told the husband he took his spouse for granted. He opined that a healthy relationship is based on recognition - daily recognition that your spouse is your life partner. Periodic gifts, travel, and dining are no substitutes for personal recognition. "How was your day? "Take a break. You've had a rough day. I'll tend to the dishes." or just an embrace and "Have I told you I love you lately?"

It's high time that marketers had a little relationship therapy. It's called Recognition Marketing.

Marketers, too, have taken people for granted - their customers. Marketers spend a great deal of time, money, and lip service on how important their customers are; but there is a large gap between the preaching and the practice. Marketers are aware customers are important, but do they recognize their importance in thoughts and deeds?

Put your consumer hat on for a moment. When was the last time you were greeted when you entered a store, as in, "Good afternoon. Welcome to Acme, my name is Amy. If there is anyway I can be of assistance while you are here, please let me know." ? Or how about when you made a purchase, when was the last time you heard, "Thank you for shopping with us. We hope we will see you back soon."?

In this business world of sophisticated customer databases, wouldn't it be useful to recognize return customers at the point-of-sale, as in, "Mr. Smith, thank you for your continued patronage. On behalf of Acme, thank you for your business."? Or how about periodic thank you letters to frequent customers, as in, "We sincerely appreciate your business. As a token of our appreciation, please accept this coupon for 10% off your next visit."?

The result - a strategic competitive advantage over those who seek to solicit business only on price. All other things being equal, customers will respond to those that recognize their business. Recognition marketing also has P&L benefits since it cost five time more to acquire a customer than retain one.

Recognition marketing is not a program as much as it is a disciplined business philosophy. Recognize the lifetime value of your customers, give them the recognition they demand. Give your customers a big mental hug and let them know you love them.

"Press '1' To Be Ignored. Press '2' To Be Booted Out"

Please Stop Calling Customer Service for Customer Service!

By David Miranda

ABC News ran an interesting article, "Your Call Is Important To Us -- Not!" (You can check out the video piece here.) This "man bites dog" story centers around this week's announcement that Sprint has booted about 1000 of their customers for habitually complaining about their service. This is, apparently, one way to get the J.D. Power quality scores higher - boot the complainers. Sprint is not an isolated case, just the latest publicized offender.

The worst offenders, by category, according to the article, "invariably tend to be cell phone companies, cable TV companies, airlines and banks. These companies are among those that turned up in surveys by consumer and customer service consultants: AOL, Albertson's, Bank of America, Best Buy, Dell, Day's Inn, Home Depot, Sprint, Wells Fargo. "

The article notes the following:

But why do so many companies not get it?

A combination of factors, from the increasing reliance on automated phone systems to companies slashing budgets for their customer service divisions to disgruntled employees passing on their frustration, has provoked customers into voicing their complaints about the way companies treat them.

But let's give credit where credit is due and end on a positive note.

According to the article, the following companies are consistently cited for the quality of their service: Starbucks, Nordstrom, Four Seasons Hotels, Lexus, LL Bean, Chick-fil-A, Ritz Carlton, FedEx, UPS, and Cadillac.

Is it any wonder that these are some of the most respective brands in the marketplace? What do they have in common? - a culture of service and inspired leadership.

Next time you are treated badly, press "disconnect" and take your business to someone who wants it.

Photo Credit: Photodisc