#1 (of 11):#1 (of 11):

First Things First Things BEFOREBEFORE First First

Things: Things: Conrad Hilton’sConrad Hilton’sCommandmentCommandment

CONRADCONRAD HILTONHILTON, at a gala celebrating, at a gala celebrating his career, was called to the podium and his career, was called to the podium and

asked,asked, “What were the most important

lessons you learned in your long and

distinguished career?” His answer …His answer …

““Remember Remember to tuck the to tuck the

shower curtain shower curtain inside the inside the bathtubbathtub.”.”

You get ’em You get ’em inin the door the door with “location, location, with “location, location, location”—and gorgeous location”—and gorgeous appointments. appointments. You keepYou keep

’em ’em comincoming g backback **with the tucked-in with the tucked-in shower curtain.shower curtain.

*Profit rarely/never comes from transaction #1; *Profit rarely/never comes from transaction #1; it is a byproduct of transaction it is a byproduct of transaction #2, #3, #4#2, #3, #4 … …

““EXECUTION EXECUTION ISIS STRATEGY.”STRATEGY.”

—Fred Malek—Fred Malek

““COSTCO FIGURED OUT COSTCO FIGURED OUT

THE THE BIGBIG,, SIMPLESIMPLE THINGS THINGS

AND AND EXECUTEDEXECUTED WITH TOTAL WITH TOTAL

FANATICISMFANATICISM.”.”

—Charles Munger, Berkshire Hathaway—Charles Munger, Berkshire Hathaway

Tom Peters’Tom Peters’

RE-IMAGINE RE-IMAGINE

EXCELLENCEEXCELLENCE!!Nissan North AmericaNissan North America

2015 Annual National Advisory Board Seminar2015 Annual National Advisory Board SeminarAtlanta/27 August 2015Atlanta/27 August 2015

((Slides at tompeters.com; also see our annotated 23-part Master Compendium at excellencenow.com)Slides at tompeters.com; also see our annotated 23-part Master Compendium at excellencenow.com)

#2:#2: TGRsTGRs & the & the “8/80” Fiasco:“8/80” Fiasco:

Towards Towards “EXPERIENCES” “EXPERIENCES”

That Rock!That Rock!

CustomersCustomers describing their service describing their service

experience as “superior”: experience as “superior”: 88%%ComComppaniesanies describing describing

the service experience they provide the service experience they provide asas

“ “superior”: superior”: 8080%%——Source: Source: Bain & Company survey of 362 companiesBain & Company survey of 362 companies, reported in John DiJulius,, reported in John DiJulius,

What's the Secret to Providing a World-class Customer Experience?What's the Secret to Providing a World-class Customer Experience?

Conveyance: Kingfisher Air Conveyance: Kingfisher Air Location: Approach to New DelhiLocation: Approach to New Delhi

““May I clean May I clean your glasses, your glasses,

sir?”sir?”

Conveyance: Southwest Airlines Conveyance: Southwest Airlines Location: Boarding flight to BWI, Location: Boarding flight to BWI, Albany NYAlbany NY

““May I help May I help you down you down

the jetway?”the jetway?”

LLBBTs* > Ts* > BBBBTsTs

“Courtesies of a small and “Courtesies of a small and trivial character are the ones trivial character are the ones which strike deepest in the which strike deepest in the grateful and appreciating grateful and appreciating

heart.”heart.” —Henry Clay

"Let's not forget that small "Let's not forget that small emotions are the great emotions are the great

captains of our lives."captains of our lives." –—Van Gogh–—Van Gogh

*Little BIG Things/#1 of 163

<TG<TGWandand … …

>TG>TGRR(Things Gone (Things Gone WRONG-Things Gone -Things Gone RIGHTRIGHT))

Get ’Em Away From the ATM and Into the Branches:Get ’Em Away From the ATM and Into the Branches:

7X.7X. 7:30A-8:00P. Fri/12A. 7:30A-8:00P. Fri/12A.

7:30AM = 7:15AM.7:30AM = 7:15AM.8:00PM = 8:15PM.8:00PM = 8:15PM.(+2,000,000 dog biscuits)(+2,000,000 dog biscuits)

Source: Vernon Hill, Source: Vernon Hill, Fans, Not Customers Fans, Not Customers (the story of Commerce Bank, (the story of Commerce Bank, the folks who revolutionized East Coast retail banking)the folks who revolutionized East Coast retail banking)

It It BEGINSBEGINS (and (and ENDSENDS) )

in the …in the …

PARKINGPARKING LOTLOT* *** ** *Disney *Disney **Carl Sewell’s street sweeper—start the experience right **Carl Sewell’s street sweeper—start the experience right

Don’t like it?Don’t like it?Don’t pay!Don’t pay!

Source: Graniterock Co. (Baldrige winner)Source: Graniterock Co. (Baldrige winner)

““ExExpperienceseriences are as distinct are as distinct from servicesfrom services

as services are as services are from goods.”from goods.”

—Joe Pine & Jim Gilmore, —Joe Pine & Jim Gilmore, The Experience Economy: The Experience Economy: Work Is Theatre & Every Business a StageWork Is Theatre & Every Business a Stage

NotNot a “one liner.” a “one liner.”A fact.A fact.

““At our core, we’re a coffee company, but the At our core, we’re a coffee company, but the opportunity we have to extend the brand is opportunity we have to extend the brand is

beyond coffee.beyond coffee. IT’S ENTERTAINMENTIT’S ENTERTAINMENT.”.” —Howard Schultz

“When Pete Rozelle ran the NFL, it was a “When Pete Rozelle ran the NFL, it was a

football business and a good one.football business and a good one. NOW IT’S NOW IT’S TRULY AN ENTERTAINMENT TRULY AN ENTERTAINMENT BUSINESSBUSINESS.”.”

—Paul Much, Investment Advisor—Paul Much, Investment Advisor

Boston GlobeBoston Globe: : ““Why did you Why did you [Berkshire Hathaway][Berkshire Hathaway] buybuyJordanJordan’’s Furniture?s Furniture?””Warren BuffettWarren Buffett: : ““JordanJordan’’s is spectacular.s is spectacular.

ITIT’’S ALL SHOWMANSHIPS ALL SHOWMANSHIP..””

Experience: “Rebel Lifestyle!”

“What we sell is the“What we sell is the ability for a 43-year-old ability for a 43-year-old

accountant to dressaccountant to dress in black leather, ride in black leather, ride through small towns through small towns and have people be and have people be

afraid of him.”afraid of him.”

Source: HarleyHarley exec, quoted in Results-Based Leadership

All retail excellence is “entertainment-All retail excellence is “entertainment-based.” Sure, the product has to be based.” Sure, the product has to be good—especially over the long haul. good—especially over the long haul. But the “experience” is what lingers—But the “experience” is what lingers—ANDAND drives word of mouth. drives word of mouth.

Beyond the “Transaction”/“Satisfaction” Mentality

“Good hotel”/“Happy guest”/ “Exceeded

Expectations”vs.

“Great “Great VacationVacation”/ ”/ “Transformational “Transformational

ConferenceConference”/”/ “Operation “Operation PersonalPersonal

RenewalRenewal””

First Step (?!):First Step (?!): Hire a Hire a theater theater

directordirector as a as a consultant* consultant*

(or FTE)!(or FTE)!*Carl Sewell and Stanley Marcus*Carl Sewell and Stanley Marcus

#3:#3: TGRs/ TGRs/LBTs*LBTs*

*Little*Little BIGBIG Things Things********************************

Big carts =Big carts =

1.5X1.5XSource: WalmartSource: Walmart

Las Vegas Casino/2X:Las Vegas Casino/2X:

“When Friedman“When Friedman slisligghtlhtly y curvedcurved the right angle of an the right angle of an

entrance corridor to one property, he was entrance corridor to one property, he was ‘amazed at the magnitude of change in ‘amazed at the magnitude of change in

pedestrian behavior’—the percentage who pedestrian behavior’—the percentage who

entered increased fromentered increased from oneone--thirdthird to to

nearlynearly twotwo--thirdsthirds.”.”

——Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Machine Gambling in Las VegasAddiction By Design: Machine Gambling in Las Vegas

Machine GamblingMachine Gambling

““Pleasing” odor #1 vs. Pleasing” odor #1 vs. “pleasing” odor #2: “pleasing” odor #2:

+45%+45% revenue revenue Source:Source: “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas “Effects of Ambient Odors on Slot-Machine Useage in Las Vegas

Casinos,” reported inCasinos,” reported in Natasha Dow Schull, Natasha Dow Schull, Addiction By Design: Addiction By Design: Machine Gambling in Las Vegas Machine Gambling in Las Vegas (66% revenue, 85% profit)(66% revenue, 85% profit)

Walmart/120-oz container (mainly water) to Walmart/120-oz container (mainly water) to ketchup-bottle size laundry-detergentketchup-bottle size laundry-detergent concentrate (100% conversion):concentrate (100% conversion): 1/4th 1/4th

packaging; 1/4th weight; 1/4th cost to ship; packaging; 1/4th weight; 1/4th cost to ship; 1/4th space on ships, trucks, shelves. 3 years: 1/4th space on ships, trucks, shelves. 3 years:

95,000,00095,000,000 #s plastic resin saved, #s plastic resin saved,

125,000,000125,000,000 #s cardboard conserved, #s cardboard conserved,

400,000,000400,000,000 less gallons of water less gallons of water

shipped, shipped, 500,000500,000 gallons less diesel fuel, gallons less diesel fuel,

11,000,00011,000,000 #s less CO2 released) #s less CO2 released)

Source: Source: Force of Nature: The Unlikely Story of Walmart’s Green RevolutionForce of Nature: The Unlikely Story of Walmart’s Green Revolution, Edward Humes, Edward Humes

METHODOLOGYMETHODOLOGY

(1)(1) AMENABLE TO RAPID AMENABLE TO RAPID EXPERIMENTATION/ FAILURE “FREE”EXPERIMENTATION/ FAILURE “FREE” (NO BAD “PR,” NO $$)(NO BAD “PR,” NO $$)(2)(2) QUICK/INEXPENSIVE TO IMPLEMENT/ QUICK/INEXPENSIVE TO IMPLEMENT/ QUICK/INEXPENSIVE TO ROLL OUTQUICK/INEXPENSIVE TO ROLL OUT(3)(3) HUGE (POTENTIAL) MULTIPLIER HUGE (POTENTIAL) MULTIPLIER(4) (4) AN “ATTITUDE”/“CULTURE” AN “ATTITUDE”/“CULTURE” (WTTMSW/WHOEVER TRIES THE (WTTMSW/WHOEVER TRIES THE MOST STUFF WINS)MOST STUFF WINS)(5)(5) AN “ALL HANDS” GAME. AN “ALL HANDS” GAME.

#4:#4: TGRs: TGRs: 3 Minutes3 Minutes

THE PROBLEM IS THE PROBLEM IS RARELY/RARELY/NEVERNEVER THE THE

PROBLEM. THEPROBLEM. THE

RESPONSERESPONSE TO THE TO THE PROBLEM INVARIABLY PROBLEM INVARIABLY ENDS UP BEING THE ENDS UP BEING THE

REAL PROBLEM.REAL PROBLEM.(OPPORTUNITY)(OPPORTUNITY).

Relationships (of all varieties): THERE ONCE THERE ONCE WAS A TIME WHEN A WAS A TIME WHEN A

THREETHREE--MINUTEMINUTE PHONEPHONE CALLCALL WOULD WOULD

HAVE AVOIDED SETTING OFF THE HAVE AVOIDED SETTING OFF THE DOWNWARD SPIRAL THAT DOWNWARD SPIRAL THAT RESULTED IN A COMPLETE RESULTED IN A COMPLETE

RUPTURE.RUPTURE.**

*Divorce, loss of a BILLION $$$ aircraft sale, etc., etc.*Divorce, loss of a BILLION $$$ aircraft sale, etc., etc.

With a new and forthcoming policy on apologies …With a new and forthcoming policy on apologies …

Toro, the lawn mower folks, Toro, the lawn mower folks, reduced the average cost of reduced the average cost of

settling a claim from settling a claim from

$$115,000115,000 in 1991 to in 1991 to

$$35,00035,000 in 2008—and the in 2008—and the company hasn’t been to trial company hasn’t been to trial

in the lastin the last 1515 y yearsears! !

Source: John Kador, Source: John Kador, Effective ApologyEffective Apology

#5/TGRs:#5/TGRs: Women BUYWomen BUY

(Everything)(Everything)!!

Women BUYWomen BUY

(Everything)(Everything) !!

$28,000,$28,000,000,000,000,000,

000000..

W W > > 2X2X (C + (C + I)*I)*

**“Women now drive the global economy. Globally, they control about “Women now drive the global economy. Globally, they control about $20 trillion in consumer spending, and that figure could climb as high as $20 trillion in consumer spending, and that figure could climb as high as

$28 TRILLION$28 TRILLION in the next five in the next five

years. Their $13 trillion in total yearly earnings could reach $18 trillion years. Their $13 trillion in total yearly earnings could reach $18 trillion in the same period.in the same period. In aggregate, women represent a growth market bigger than China and India In aggregate, women represent a growth market bigger than China and India

combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the combined—more than twice as big in fact. Given those numbers, it would be foolish to ignore or underestimate the female consumer. female consumer.

And yet many companies do just that—even ones that are confidant that they have a winning strategy whenAnd yet many companies do just that—even ones that are confidant that they have a winning strategy when it comes to women. Consider Dell’s …”it comes to women. Consider Dell’s …”

Source: Michael Silverstein and Kate Sayre, “The Female Economy,” Source: Michael Silverstein and Kate Sayre, “The Female Economy,” HBRHBR

““Forget CHINA, Forget CHINA, INDIA and the INDIA and the

INTERNET: Economic INTERNET: Economic Growth Is Driven by Growth Is Driven by

WOMENWOMEN.”.”

Source: Headline, Economist

Women as Decision Makers/Various sourcesWomen as Decision Makers/Various sources

Home Furnishings … Home Furnishings … 94%94%Vacations … Vacations … 92%92% (Adventure Travel … 70%/ $55B travel equipment)(Adventure Travel … 70%/ $55B travel equipment)

Houses … Houses … 91%91%D.I.Y. D.I.Y. (major “home projects”)(major “home projects”) … … 80%80%

Consumer Electronics … Consumer Electronics … 51%51% (66% home computers)(66% home computers)

Cars … Cars … 68%68% (influence (influence 90%90%))

AllAll consumerconsumer p purchasesurchases … … 83%83% **

Bank Account … Bank Account … 89%89%Household investment decisions … Household investment decisions … 67%67%Small business loans/biz starts … Small business loans/biz starts … 70%70%

Health Care … Health Care … 80%80%*In the USA women hold *In the USA women hold >50%>50% managerial positions including managerial positions including >50%>50% purchasing officer positions purchasing officer positions; ;

hence women also make the majority of hence women also make the majority of commercialcommercial purchasing decisions. purchasing decisions.

““The The MOST MOST SIGNIFICANT SIGNIFICANT

VARIABLEVARIABLE inin EVERYEVERY sales situation is thesales situation is the

GENDERGENDER of the buyer, and of the buyer, and more importantly, how the more importantly, how the

salesperson communicates to salesperson communicates to the buyer’s gender.”the buyer’s gender.”

—Jeffery Tobias Halter, Selling to Men, Selling to Women

Sales/After-sales ProcessSales/After-sales Process

1.    Kick-off  – 1.    Kick-off  – WomenWomen2.    Research – 2.    Research – WomenWomen3.    Purchase  – 3.    Purchase  – Men4.    Ownership – 4.    Ownership – WomenWomen5.    Word-of-mouth – 5.    Word-of-mouth – WomenWomen

Source: Martha Barletta, Source: Martha Barletta, Marketing to Women: How to Increase Your Share of the World’s Largest MarketMarketing to Women: How to Increase Your Share of the World’s Largest Market

Selling to men:Selling to men: THE THE TRANSACTIONTRANSACTION MODEL MODEL

Selling to Women:Selling to Women: THE THE RELATIONALRELATIONAL MODEL MODEL

Source: Source: Selling to Men, Selling to WomenSelling to Men, Selling to Women, Jeffery Tobias Halter, Jeffery Tobias Halter

““Women don’t ‘buy’ Women don’t ‘buy’

brands. brands. TheTheyy ‘j‘join’ oin’

themthem.”.”—Faith Popcorn, —Faith Popcorn, EVEolutionEVEolution

MenMen:: Individual perspective. Individual perspective. “Core unit is ‘me.’ ”“Core unit is ‘me.’ ”

Pride in self-reliance.Pride in self-reliance.

WomenWomen:: Group perspective. Group perspective. “Core unit is ‘we.’”* Pride in “Core unit is ‘we.’”* Pride in

team accomplishment.team accomplishment.

*Why the kindergarten teacher bought an F150!?*Why the kindergarten teacher bought an F150!?

Source: Martha Barletta, Source: Martha Barletta, Marketing to WomenMarketing to Women

2.62.6 vs.vs. 2121

Some Starter IdeasSome Starter Ideas

*Focus groups with women*Focus groups with women*Women-oriented dealership*Women-oriented dealership events events* Zero-based” re-design of the* Zero-based” re-design of the “service experience” with “service experience” with women in mind women in mind

**A goal of 25%-50%A goal of 25%-50% women salespersons women salespersons within 36 months within 36 months

I call it the “squint test.” The sales I call it the “squint test.” The sales team should more or less mimic the team should more or less mimic the prospect pool.prospect pool.

#6:#6: WOMEN RULE WOMEN RULE!!

““Research Research [by McKinsey & Co.][by McKinsey & Co.] suggests that to suggests that to succeed, start by succeed, start by

promoting women.”promoting women.”——Nicholas Kristof, “Twitter, Women, and Power,” Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes

““Women are rated higher in fully Women are rated higher in fully

1212 of the of the 1616 competencies that competencies that go into outstanding leadership. go into outstanding leadership. And two of the traits where And two of the traits where

women outscored men to the women outscored men to the highest degree — highest degree — takintakingg initiative and drivininitiative and drivingg for for resultsresults — have long been — have long been

thought of as particularly male thought of as particularly male strengths.”strengths.”

——Harvard Business Review/Harvard Business Review/20142014

““AS AS LEADERS, LEADERS, WOMEN WOMEN

RULERULE:: New Studies find that New Studies find that

female managers outshine their male female managers outshine their male counterparts in almost every measure”counterparts in almost every measure”

TITLE/ Special Report/ TITLE/ Special Report/ BusinessWeekBusinessWeek

For One (For One (BIGBIG) Thing …) Thing …

““McKinsey & Company found that McKinsey & Company found that the international companies with the international companies with more women on their corporate more women on their corporate

boards boards far outperformedfar outperformed the average the average company in return on equity and company in return on equity and

other measures. Operating profit other measures. Operating profit

was …was … 56%56% higher.”higher.”

Source: Nicholas Kristof, “Twitter, Women, and Power,” Source: Nicholas Kristof, “Twitter, Women, and Power,” NYTimesNYTimes, 1024.13, 1024.13

Women’s NeWomen’s Neggotiatinotiatingg Stren Strenggthsths

*Ability to put themselves in their *Ability to put themselves in their counterparts’ shoes counterparts’ shoes*Comprehensive, attentive and detailed*Comprehensive, attentive and detailed communication style communication style*Empathy that facilitates trust-building*Empathy that facilitates trust-building*Curious and attentive listening*Curious and attentive listening*Less competitive attitude*Less competitive attitude*Strong sense of fairness and ability to *Strong sense of fairness and ability to persuadepersuade*Proactive risk manager*Proactive risk manager*Collaborative decision-making*Collaborative decision-making

Source: Horacio Falcao, Cover story/May 2006, Source: Horacio Falcao, Cover story/May 2006, World BusinessWorld Business, “Say It , “Say It Like a Woman: Why the 21Like a Woman: Why the 21stst-century negotiator will need the female -century negotiator will need the female touch”touch”

#7/TGRs:#7/TGRs: WeWe (old farts like me)(old farts like me) Got Got

the the $$$$$$$$$$$$

1/65/8/201/65/8/20

USAUSA

11 BOOMER BOOMER

turns turns AGE AGE 6565

Every Every 88 SECONDS SECONDS

For the next For the next 2020 YEARS YEARS

USAUSA

>50: >50: 109,000,000109,000,000

Next 10 years:Next 10 years:

>50: >50: +19,000,000 +19,000,000

18-49: 18-49: +6,000,000+6,000,000

Half & HalfHalf & Half

50@50:50@50:

“PEOPLE TURNING 50 “PEOPLE TURNING 50

TODAY HAVE TODAY HAVE MORE MORE THANTHAN HALFHALF OF OF

THEIR ADULT LIFE AHEAD THEIR ADULT LIFE AHEAD OF THEM.”OF THEM.” —Bill Novelli, 50+: IGNITING A REVOLUTION TO

REINVENT AMERICA

7/137/13

Average # of cars purchased perAverage # of cars purchased per

(USA) household, “lifetime”: (USA) household, “lifetime”: 1313Average # of cars bought per household Average # of cars bought per household after the “head of household” reachesafter the “head of household” reaches

age 50: age 50: 77Source: Marti Barletta, Source: Marti Barletta, PrimeTime WomenPrimeTime Women

47X47X

““In 2009, households headed by In 2009, households headed by adults ages adults ages 65 and older65 and older ... had ... had

4747 timestimes as as

much net wealth as the typical much net wealth as the typical household headed by someone household headed by someone under 35 under 35 yyearsears of age. In 1984, of age. In 1984, this had been a less lopsided this had been a less lopsided

10-to-1 ratio.”10-to-1 ratio.”

Source: Pew Research/10.11Source: Pew Research/10.11

““Marketers’ attempts at reaching Marketers’ attempts at reaching those over 50 have been miserably those over 50 have been miserably

unsuccessful.unsuccessful. No No market’s market’s

motivations andmotivations and needs are so needs are so

poorlpoorlyy understoodunderstood.”.”

——Peter Francese, founding publisher, Peter Francese, founding publisher, American DemographicsAmerican Demographics

““BabBabyy-boomer -boomer WomenWomen: The: The Sweetest of Sweetest of

Sweet Spots for Sweet Spots for Marketers”Marketers”

—David Wolfe and Robert Snyder, —David Wolfe and Robert Snyder, Ageless MarketingAgeless Marketing

>50>50

>50% >50% spendingspending

1010%% marketing marketing

budgetsbudgets

#8/TGRs:#8/TGRs: Social Business/ Social Business/ Customer Engagement/Customer Engagement/

Customer Control/ Customer Control/ “Brand Ambassadors”/“Brand Ambassadors”/

““Brand Assassins”/Brand Assassins”/Social Epidemiologists/Social Epidemiologists/

Etc./Etc. …Etc./Etc. …

““The customer is in The customer is in comcomppletelete controlcontrol of communication.” of communication.”

““What used to be What used to be ‘‘word of mouthword of mouth’’ is now is now

‘‘word of mouseword of mouse..’ ’ You are either You are either creatincreatingg brand ambassadors brand ambassadors

or brand terrorists doinor brand terrorists doingg brand assassinationbrand assassination.”.”

Source: Source: John DiJulius, John DiJulius, The Customer Service Revolution: Overthrow The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the WorldConventional Business, Inspire Employees, and Change the World

““I would rather enI would rather enggaagge in a e in a Twitter conversation with a Twitter conversation with a

sinsinggle customer than see our le customer than see our comcomppananyy attem attemppt to attract the t to attract the

attention of millions in a attention of millions in a coveted Sucoveted Supper Bowl commercialer Bowl commercial..

Why? Because having people discuss your brand directly with you, actually Why? Because having people discuss your brand directly with you, actually connecting one-to-one, is far more valuable—not to mention far cheaper!. …connecting one-to-one, is far more valuable—not to mention far cheaper!. …

““Consumers want to discuss what they like, the companies they support, and the Consumers want to discuss what they like, the companies they support, and the organizations and leaders they resent. They want a community. They want to be organizations and leaders they resent. They want a community. They want to be

heard.heard.““[I]f we engage employees, customers, and prospective customers in meaningful [I]f we engage employees, customers, and prospective customers in meaningful

dialogue about their lives, challenges, interests, and concerns, we can build a dialogue about their lives, challenges, interests, and concerns, we can build a community of trust, loyalty, and—possibly over time—help them become advocates community of trust, loyalty, and—possibly over time—help them become advocates

and champions for the brand.”and champions for the brand.”

——Peter Aceto, CEO,Peter Aceto, CEO, TangerineTangerine (from the Foreword to (from the Foreword to A World Gone Social: A World Gone Social: How Companies Must Adapt to SurviveHow Companies Must Adapt to Survive, by Ted Coine & Mark Babbit), by Ted Coine & Mark Babbit)

““Amy HowellAmy Howell [social marketer extraordinaire, [social marketer extraordinaire,

founder of Howell Marketing]founder of Howell Marketing] ignites ignites epidemics. In a good way, epidemics. In a good way,

of course. Epidemics of of course. Epidemics of excitement. Epidemics of excitement. Epidemics of

business connections. business connections. Epidemics of influence.”Epidemics of influence.”

——Mark Schaeffer,Mark Schaeffer, ROI/Return on Influence: The Revolutionary ROI/Return on Influence: The Revolutionary Power of Klout, Social Scoring, and Influence MarketingPower of Klout, Social Scoring, and Influence Marketing

Going “Social”: Location and Size IndependentGoing “Social”: Location and Size Independent

““Today, despite the fact that we’re jToday, despite the fact that we’re just a little swimminust a little swimmingg ppool comool comppananyy in Vir in Virgginiainia, we have the most trafficked , we have the most trafficked swimming pool website in the world. Five years ago, if swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, you’d asked me and my business partners what we do,

the answer would have been simple, ‘We build in-ground the answer would have been simple, ‘We build in-ground

fiberglass swimming pools.’ Now we say,fiberglass swimming pools.’ Now we say, ‘We ‘We are the best teachersare the best teachers … … in the worldin the world … on the … on the subject of fiberglass swimming subject of fiberglass swimming

pools, and we also happen to build pools, and we also happen to build them.’”them.’”

——Jay Baer, YJay Baer, Youtility: Why Smart Marketing Is About Help, Not Hypeoutility: Why Smart Marketing Is About Help, Not Hype

ZMOTZMOT:: ZERO Moment Of Truth/Google ZERO Moment Of Truth/Google**

““You know what a ‘moment of truth’ is. It’s when a prospective customer You know what a ‘moment of truth’ is. It’s when a prospective customer decides either to take the next step in the purchase funnel, or to exit and decides either to take the next step in the purchase funnel, or to exit and

seek other options. … But what is a ‘zero moment of truth’? Many seek other options. … But what is a ‘zero moment of truth’? Many behaviors can serve as a zero moment of truth, but what binds them behaviors can serve as a zero moment of truth, but what binds them

together is that the purchase is being researched and considered before together is that the purchase is being researched and considered before the prospect even enters the classic sales funnel … In its research, the prospect even enters the classic sales funnel … In its research,

Google found thatGoogle found that 84%84% of shoppers of shoppers

said the new mental model, ZMOT, shapes their decisions. …” said the new mental model, ZMOT, shapes their decisions. …”

——Jay Baer, Jay Baer, Youtility: Why Smart Marketing Is About Help, Not HypeYoutility: Why Smart Marketing Is About Help, Not Hype

*See www.zeromomentoftruth.com for ZMOT in booklength format*See www.zeromomentoftruth.com for ZMOT in booklength format

55+ > 55-55+ > 55-Forrester Research: Forrester Research: “[Age 55-plus] are “[Age 55-plus] are

more active in online finance, more active in online finance, shopping and entertainment than shopping and entertainment than

those under 55.”those under 55.”

““Caesars’ Caesars’ Entertainment Entertainment have bet have bet

their future on their future on harvestinharvestingg ppersonal ersonal

data rather than data rather than develodeveloppiningg the fanciest the fanciest

pproroppertieserties.”.” —Adam Tanner, —Adam Tanner,

What Stays in Vegas: What Stays in Vegas: The World of Personal Data—Lifeblood of Big The World of Personal Data—Lifeblood of Big Business—and the End of Privacy as We Know itBusiness—and the End of Privacy as We Know it

Yup, the customer and prospect data Yup, the customer and prospect data are worth are worth moremore than the facility! than the facility!

QQ: Who needs a : Who needs a “Social Media “Social Media Guru”?Guru”?

AA: : E-V-E-R-Y-B-O-D-E-V-E-R-Y-B-O-D-

YY!!

8A/8A/Yes, but …Yes, but …

The vetting happens on The vetting happens on line—but the line—but the service service

exexpperienceerience is an almost is an almost sure-fire route to sure-fire route to

overcoming premature overcoming premature selection via delighted selection via delighted ccustomers and word of ustomers and word of

mouth associated mouth associated therewith.therewith.

I am not diminishing Web-power. I am not diminishing Web-power.

But the dealer does have a unique But the dealer does have a unique opportunity—the after-sale and service opportunity—the after-sale and service experience. If that experience is “off experience. If that experience is “off the charts,” word of mouth and the charts,” word of mouth and likelihood of a “lifetime customer” will likelihood of a “lifetime customer” will be off the charts as well.be off the charts as well.

#9:#9: PeoplePeople

““What employees experience, Customers will. The best marketing is What employees experience, Customers will. The best marketing is

happy, engaged employees.happy, engaged employees. YOUR YOUR CUSTOMERS CUSTOMERS

WILL NEVER BE WILL NEVER BE ANY HAPPIER ANY HAPPIER THAN YOUR THAN YOUR

EMPLOYEESEMPLOYEES.”.” —John DiJulius, —John DiJulius,

The Customer Service Revolution: Overthrow Conventional The Customer Service Revolution: Overthrow Conventional Business, Inspire Employees, and Change the WorldBusiness, Inspire Employees, and Change the World

““You have to treatYou have to treat your employeesyour employees like like customerscustomers.”.”

——Herb Kelleher, upon being asked his “secret to success”Herb Kelleher, upon being asked his “secret to success”

““If you want staff toIf you want staff to give great service, ggive great service, give ive ggreat service to staffreat service to staff.”.”

——Ari Weinzweig, Zingerman’s, in Ari Weinzweig, Zingerman’s, in Small Giants: Small Giants: Companies That Choose to Be Great Instead of Big, Companies That Choose to Be Great Instead of Big, Bo BurlinghamBo Burlingham

““Business has to Business has to give people give people enriching, enriching,

rewarding lives …rewarding lives …

““Business has to give people enriching, Business has to give people enriching,

rewarding lives … rewarding lives … or it's or it's simsimppllyy not not

worth worth doindoing.”g.”

——Richard BransonRichard Branson

““The organization would The organization would ultimately win not ultimately win not

because it gave agents because it gave agents more money, more money, but but

because it because it ggave themave them a chance for better a chance for better

liveslives.”.” —Phil Harkins & Keith Hollihan, —Phil Harkins & Keith Hollihan,

Everybody Wins Everybody Wins (the story of (the story of RE/MAXRE/MAX))

““Who’s on Second?”Who’s on Second?”““Nobody comes home after a surgery saying, ‘Man, Nobody comes home after a surgery saying, ‘Man,

that was the best suturing I’ve ever seen!” or ‘Sweet, that was the best suturing I’ve ever seen!” or ‘Sweet,

the y took out the correct kidney!’ the y took out the correct kidney!’ Instead, we Instead, we talk about the people who took care of talk about the people who took care of

us, the ones who co-ordinated the us, the ones who co-ordinated the whole procedure—everyone from the whole procedure—everyone from the

receptionist to the nurses to the receptionist to the nurses to the surgeon.surgeon. And we don’t just tell stories around the And we don’t just tell stories around the

dinner table. We share our experiences through dinner table. We share our experiences through conversations with friends and colleagues and via conversations with friends and colleagues and via

social media sites.”social media sites.” —from the chapter “What Does Come First?” —from the chapter “What Does Come First?”

in the book in the book Patients Come Second: Leading Patients Come Second: Leading Change By Changing the Way You Change By Changing the Way You

LeadLead by Paul Spiegelman & Britt Berrett by Paul Spiegelman & Britt Berrett

EXCELLENT EXCELLENT customer experiencecustomer experiencedepends … depends … entirely …entirely …

onon EXCELLENT EXCELLENT employee experience!employee experience!

If you want to WOW your If you want to WOW your

customers, customers, FIRSTFIRST you you

must WOW those whomust WOW those who WOW the customers!WOW the customers!

““The The 44 most most

important important wordswords in any in any

organization are …organization are …

THE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATIONTHE FOUR MOST IMPORTANT WORDS IN ANY ORGANIZATION

ARE …ARE … “WHAT “WHAT DO DO YOUYOU THINK?”THINK?”

Source: courtesy Dave Wheeler, posted at tompeters.com Source: courtesy Dave Wheeler, posted at tompeters.com

““The deepest human The deepest human need is the need to be need is the need to be

appreciated.”appreciated.”—William James—William James

““Employees who don't Employees who don't feel significant rarely feel significant rarely

make significant make significant contributions.”contributions.”

——Mark SanbornMark Sanborn

““It may sound radical, unconventional, and It may sound radical, unconventional, and bordering on being a crazy business idea. bordering on being a crazy business idea. However— as ridiculous as it sounds—joy is However— as ridiculous as it sounds—joy is

the core belief of our workplace. the core belief of our workplace.

JoyJoy is the reason my company, is the reason my company,

Menlo Innovations, a customer software Menlo Innovations, a customer software design and development firm in Ann Arbor, design and development firm in Ann Arbor,

exists. It defines what we do and how we do it. exists. It defines what we do and how we do it. It is the single shared belief of our entire It is the single shared belief of our entire

team.”team.”

——Richard Sheridan, Richard Sheridan, Joy, Inc.: Joy, Inc.: How We Built a Workplace People LoveHow We Built a Workplace People Love

““Contrary to conventional Contrary to conventional corporate thinking, corporate thinking,

treating retail workers treating retail workers much better may make much better may make

everyone (including their everyone (including their employers) much richer.”employers) much richer.”

Source: Source: The Good Jobs StrategyThe Good Jobs Strategy, by M.I.T. professor Zeynep Ton., by M.I.T. professor Zeynep Ton.

1996-2014/12 companies every year for 16 years/ 1996-2014/12 companies every year for 16 years/ 341,567 new jobs/jobs +172%:341,567 new jobs/jobs +172%:

PublixPublixWhole FoodsWhole FoodsWegmansWegmansNordstromNordstromCisco SystemsCisco Systems

MarriottMarriottREIREIGoldman SachsGoldman Sachs

Four SeasonsFour SeasonsSAS InstituteSAS InstituteW.L. GoreW.L. GoreTDIndustriesTDIndustriesSource: Source: FortuneFortune/ / “The 100 Best Companies to Work For”/“The 100 Best Companies to Work For”/0315.150315.15

“““Profits & Growth Through Putting People First” Business Book Profits & Growth Through Putting People First” Business Book ClubClub

Nice Companies Finish First: Why Cutthroat Management Is Over—and Collaboration Is In, Nice Companies Finish First: Why Cutthroat Management Is Over—and Collaboration Is In, by Peter Shankman with Karen Kellyby Peter Shankman with Karen KellyUncontainable: How Passion, Commitment, and Conscious Capitalism Built a Business Where Everyone Uncontainable: How Passion, Commitment, and Conscious Capitalism Built a Business Where Everyone Thrives, Thrives, by Kip Tindell, CEO Container Storeby Kip Tindell, CEO Container StoreConscious Capitalism: Liberating the Heroic Spirit of Business, Conscious Capitalism: Liberating the Heroic Spirit of Business, by John Mackey, CEO Whole by John Mackey, CEO Whole Foods, and Raj SisodiaFoods, and Raj SisodiaFirms of Endearment: How World-Class Companies Profit from Passion and Purpose, Firms of Endearment: How World-Class Companies Profit from Passion and Purpose, by Raj by Raj Sisodia, Jag Sheth, and David WolfeSisodia, Jag Sheth, and David WolfeThe Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs The Good Jobs Strategy: How the Smartest Companies Invest in Employees to Lower Costs and Boost Profits, and Boost Profits, by Zeynep Ton, MITby Zeynep Ton, MITJoy, Inc.: How We Built a Workplace People Love, Joy, Inc.: How We Built a Workplace People Love, by Richard Sheridan, by Richard Sheridan, CEO Menlo InnovationsCEO Menlo InnovationsEmployees First, Customers Second: Turning Conventional Management Upside Down, Employees First, Customers Second: Turning Conventional Management Upside Down, by by Vineet Nayar, CEO, HCL TechnologiesVineet Nayar, CEO, HCL TechnologiesPatients Come Second: Leading Change By Changing the Way You LeadPatients Come Second: Leading Change By Changing the Way You Lead by Paul by Paul Spiegelman & Britt BerrettSpiegelman & Britt BerrettThe Customer Comes Second: Put Your People First and Watch ’Em Kick Butt, The Customer Comes Second: Put Your People First and Watch ’Em Kick Butt, by Hal Rosenbluth, former CEO, Rosenbluth Internationalby Hal Rosenbluth, former CEO, Rosenbluth InternationalIt’s Your Ship: Management Techniques from the Best Damn Ship in the Navy, It’s Your Ship: Management Techniques from the Best Damn Ship in the Navy, by Mike Abrashoff, former commander, USS Benfoldby Mike Abrashoff, former commander, USS BenfoldTurn This Ship Around; How to Create Leadership at Every Level, Turn This Ship Around; How to Create Leadership at Every Level, by L. David Marquet, former commander, SSN Santa Feby L. David Marquet, former commander, SSN Santa FeSmSmall Giants: Companies That Choose to Be Great Instead of Big, all Giants: Companies That Choose to Be Great Instead of Big, by Bo Burlinghamby Bo BurlinghamHidden Champions: Success Strategies of Unknown World Market LeadersHidden Champions: Success Strategies of Unknown World Market Leaders, by Hermann Simon, by Hermann SimonRetail Superstars: Inside the 25 Best Independent Stores in AmericaRetail Superstars: Inside the 25 Best Independent Stores in America, , by George Whalinby George WhalinJoy at Work: A Revolutionary Approach to Fun on the Job, Joy at Work: A Revolutionary Approach to Fun on the Job, by Dennis Bakke, former CEO, by Dennis Bakke, former CEO, AES CorporationAES CorporationThe Dream Manager, The Dream Manager, by Matthew Kellyby Matthew KellyThe Soft Edge: Where Great Companies Find Lasting Success, The Soft Edge: Where Great Companies Find Lasting Success, by Rich Karlgaard, publisher, by Rich Karlgaard, publisher, ForbesForbesDelivering Happiness: A Path to ProfitsDelivering Happiness: A Path to Profits, by Tony Hsieh, Zappos, by Tony Hsieh, ZapposCamellia: A Very Different CompanyCamellia: A Very Different CompanyFans, Not Customers: How to Create Growth Companies in a No Growth WorldFans, Not Customers: How to Create Growth Companies in a No Growth World, by Vernon Hill, by Vernon HillLike a Virgin: Secrets They Won’t Teach You at Business SchoolLike a Virgin: Secrets They Won’t Teach You at Business School, by Richard Branson , by Richard Branson

#10:#10: Training = Training = InvestmentInvestment

#1#1!!

In the Army, In the Army, 33--star star ggeneralsenerals worry worry

about training. In most about training. In most businesses, it's a “ho-businesses, it's a “ho-hum” mid-level staff hum” mid-level staff

function.function.

Why Why (why(why whywhy whywhy whywhy whywhy whywhy whywhy whywhy whywhy whywhy

whywhy whywhy why)why) is intensive-is intensive-extensive training obvious extensive training obvious

for the army & navy & for the army & navy & sports teams & performing sports teams & performing

arts groups—but arts groups—but not for the average business?for the average business?

““No matter what the No matter what the situation, situation, [the great manager’s][the great manager’s] first first resrespponseonse is always to think is always to think

about the individual about the individual concerned and concerned and how thinhow thinggs s

can be arrancan be arrangged to heled to helpp that that individual exindividual expperience erience successsuccess.”.” —Marcus Buckingham, —Marcus Buckingham,

The One Thing You Need to KnowThe One Thing You Need to Know

““G-E-N-I-U-S”G-E-N-I-U-S”Getting more and more cantankerous (short tempered!)Getting more and more cantankerous (short tempered!)

about this:about this: Job #1Job #1 (& #2 & #3)(& #2 & #3) is to abet peoples' personal is to abet peoples' personal

growth. All other good things growth. All other good things flow there from.flow there from.My idea of a gen-u-ine "genius“My idea of a gen-u-ine "genius“

"breakthrough" idea:"breakthrough" idea: If If yyou work ou work yyour our heart out to helheart out to helpp ppeoeopple le ggrow, row,

thetheyy'll work their hearts'll work their hearts out to out to ggive customers a ive customers a

ggreat exreat expperienceerience..

What is the What is the

#1#1 reason to reason to

go berserk over go berserk over training?training?

What is the best reason to go What is the best reason to go bananas over training?bananas over training?

GREED.GREED.

(It pays off.)(It pays off.)

(Also: Training should be an official part of(Also: Training should be an official part of

the the R&DR&D budget and a capital expense.) budget and a capital expense.)

#11:#11: AVOID AVOID

MODERATION MODERATION!!

Kevin Roberts’ CredoKevin Roberts’ Credo

11. Ready. Fire! Aim.. Ready. Fire! Aim.2. If it ain’t broke ... Break it!2. If it ain’t broke ... Break it!3. Hire crazies.3. Hire crazies.4. Ask dumb questions.4. Ask dumb questions.5. Pursue failure.5. Pursue failure.6. Lead, follow ... or get out of the way!6. Lead, follow ... or get out of the way!7. Spread confusion.7. Spread confusion.8. Ditch your office.8. Ditch your office.9. Read odd stuff.9. Read odd stuff.

10. AVOID MODERATIONAVOID MODERATION!!

*Basement Systems Inc. *Basement Systems Inc. (Larry Janesky/Seymour CT)(Larry Janesky/Seymour CT)

**Dry Basement ScienceDry Basement Science (100,000++ copies!) (100,000++ copies!)*1990: $0; 2003: $13M; *1990: $0; 2003: $13M;

2010: 2010: $80,000,000$80,000,000

Retail Superstars: Retail Superstars: Inside the 25 Best Inside the 25 Best

Independent Independent Stores in Stores in

AmericaAmerica —by George Whalin—by George Whalin

JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OHJUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH::

““An adventure in An adventure in ‘shoppertainment,’‘shoppertainment,’ begins in the begins in the

parking lot and goes on to parking lot and goes on to 1,6001,600 cheeses and cheeses and

1,4001,400 varieties of hot sauce—not to mention 12,000 wines varieties of hot sauce—not to mention 12,000 wines

priced from priced from

$8-$$8-$8,0008,000 a bottle; all this is brought to you a bottle; all this is brought to you

by by 4,0004,000 vendors. Customers from every corner of the vendors. Customers from every corner of the

globe.”globe.”

BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MIBRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP , POP

5,0005,000:: 98,000-square-foot “shop” features 98,000-square-foot “shop” features 6,0006,000

Christmas ornaments, Christmas ornaments, 50,00050,000 trims, and anythingtrims, and anything else else

you can name pertaining to Christmas. …”you can name pertaining to Christmas. …”

Remember “entertainment”?Remember “entertainment”?

Or how about: “Shoppertainment”Or how about: “Shoppertainment”!!

““BE THE BEST. BE THE BEST. IT’S THE ONLY IT’S THE ONLY

MARKET THAT’S MARKET THAT’S NOT CROWDED.”NOT CROWDED.”

From: From: Retail Superstars: Inside the 25 BestRetail Superstars: Inside the 25 Best Independent Stores in America,Independent Stores in America, George Whalin George Whalin

The memories that matter—three guys The memories that matter—three guys at Pine Hill service station trying to at Pine Hill service station trying to inflate my 4-year-old granddaughter’s inflate my 4-year-old granddaughter’s flotation tube!flotation tube!