What's Your Purple Goldfish? How to Win Customers and Influence Word of Mouth

by Stan Phelps

  Baker’s who were found to have shortchanged customers could be liable for severe punishment such as losing a hand with an axe. To guard against the punishment, the baker would give 13 for the price of 12, to be certain of not being known as a cheat.

  The irony is that the statute deals with weight and not the quantity. The merchants created the “baker’s dozen” to change perception. They understood that one of the 13 could be lost, eaten, burnt, or ruined in some way, leaving the customer with the original legal dozen.

  A baker’s dozen has become expected. Nowadays when we walk into a bakery and buy a dozen bagels, we expect the thirteenth on the house. Therefore it is not marketing lagniappe. Now if you provided a 14th bagel as part of the dozen... that would be a purple goldfish.

  ACTS OF KINDNESS

  Another way to think of lagniappe is as an act of kindness.

  There are three “Acts of Kindness”:

  Random Act of Kindness - we’ve all seen this before. Good deeds or unexpected acts such as paying tolls, filling parking meters or buying gas for consumers. They are usually one-off, feel-good activations. A random act of kindness draws upon gift economy principles. Giving with no expectation of immediate return, except maybe for potential PR value.

  Branded Act of Kindness – next level 2.0. Here the item given is usually tied closely with the brand and its positioning. It’s less random, more planned and potentially a series of activations. This has the feel of a traditional marketing campaign. Many brands are moving in this direction. According to EVP / CMO Joe Tripodi {Endnote 40}, Coke is leaning more towards “expressions” than traditional “impressions.” Less eyeballs and more emphasis on touches. What is an expression or a touch? It’s a “Like” on Facebook, a video on YouTube, sharing a photo, a tweet on Twitter etc.

  Lagniappe Act of Kindness – 3.0 stuff. Kindness imbedded into your brand. Giving little unexpected extras (g.l.u.e) as part of your product or service. This is rooted in the idea of ‘added value’ to the transaction. Not a one off or a campaign, but an everyday practice that’s focused on customers of your brand. The beauty of creating a purple goldfish as a branded act of kindness is that there is no waste. You are giving that little extra to your current customers. You are preaching to the choir... the folks who are already in church on Sunday.

  Here is an illustration that shows all three:

  Branded Acts of Kindness: Evolving from tactic to campaign to brand differentiator

  Think of it as the Curly Fry

  My friend Rick Liebling recently shared some insight on lagniappe. Here is a snippet from his post at rickliebling. com : {Endnote 41}

  It’s a fantastic concept that explains how brands can benefit by giving consumers just a little bit extra (read about it here ). As I was reading “ My life ,” {Endnote 42} a blog by my friend Anastasia Wylie, she made reference, via a Jason Mraz song, to one of my all-time favorite lagniappes. Ever go to a fast food joint, order regular french fries, and get one curly fry in the bag? Man, I love that! It’s such an incredibly small thing, it’s an accident of location really (the regular fries are right next to the curly fries in the kitchen). But it makes you feel like you received something you weren’t supposed to, that others didn’t get, and that you wouldn’t necessarily have asked for (”hey, could you throw one curly fry in there please?”), but once you get it, you are over-joyed. That’s a lagniappe.

  I love how Rick has summarized the feeling you get when you receive a lagniappe. The curly fry is that unexpected little extra.

  PLUSSING: WALT UNDERSTOOD THE IMPORTANCE OF EXCEEDING EXPECTATIONS

  I had the pleasure on meeting up with Rick Cerrone at a networking function. He shared a story about Walt Disney [PG #537] Rick mentioned the concept of “plussing” from a book by Pat Williams called, How to Be Like Walt : Capturing the Disney Magic Every Day of Your Life. {Endnote 43} Here is a superb summary of the concept by John Torre : {Endnote 44}

  Normally, the word “plus” is a conjunction, but not in Walt’s vocabulary. To Walt, “plus” was a verb—an action word—signifying the delivery of more than what his customers paid for or expected to receive.

  There are literally hundreds, if not thousands, of examples of Walt “plussing” his products. He constantly challenged his artists and Imagineers to see what was possible, and then take it a step further…and then a step beyond that. Why did he go to the trouble of making everything better when “good enough” would have sufficed? Because for Walt, nothing less than the best was acceptable when it bore his name and reputation, and he did whatever it took to give his guests more value than they expected to receive for their dollar.

  Perhaps one of the best examples of Walt’s obsession for “plussing” comes from Disney historian Les Perkins’ account of an incident that took place at Disneyland during the early years of the park. Walt had decided to hold a Christmas parade at the new park at a cost of $350,000. Walt’s accountants approached him and besieged him to not spend money on an extravagant Christmas parade because the people would already be there. Nobody would complain, they reasoned, if they dispensed with the parade because nobody would be expecting it.

  Walt’s reply to his accountants is classic: “That’s just the point,” he said. “We should do the parade precisely because no one’s expecting it. Our goal at Disneyland is to always give the people more than they expect. As long as we keep surprising them, they’ll keep coming back. But if they ever stop coming, it’ll cost us ten times that much to get them to come back.”

  Chapter 5

  Powered by Gift Economy Principles

  “There are two types of economies. In a commodity (or exchange)

  economy, status is accorded to those who have the most.

  In a gift economy, status is accorded to those who give the most to

  others.”

  - Lewis Hyde

  EXPLORING THE IDEAS OF SURPLUS AND STATUS

  I’m fascinated by a concept of a “gift economy” and how it relates to marketing lagniappe. So – what is a gift economy?

  According to Wikipedia : {Endnote 45}

  “In the social sciences, a gift economy (or gift culture) is a society where valuable goods and services are regularly given without any explicit agreement for immediate or future rewards. Ideally, simultaneous or recurring giving serves to circulate and redistribute valuables within the community.”

  A gift economy is the opposite of a market economy. In a market economy there is an exact exchange of values (quid pro quo). It is my theory that there is a hybrid called the lagniappe economy that can sit between the two.

  Can marketing lagniappe live in the middle?

  Here is a great analysis from a post by Kevin von Duuglass-ittu of Tonner Doll on gift economies : {Endnote 46}

  This does not mean that the Gift Economy… and the Market Economy of business are incompatible, not in the least. In fact many if not most of our business exchanges are grounded in Gift-based relationships whose “gift” nature we simply are unconscious of and just assume. If you develop a keen eye for the gift-giving environment, and think about all the things that gift-giving in those environments signal, 1. a surplus others want to attach themselves to, 2. a magnanimous respect for the relationship beyond all else, 3. a debt structure that is positive.

  Let’s examine each of the three through the lens of a lagniappe economy:

  Surplus – the idea of surplus is grounded in giving extra or creating an inequality. Lagniappe comes from the Spanish “la napa” or the Quechan “yapay” both meaning “something that is added.” Lagniappe is the practice by the business of throwing in little extras at the time of purchase.

  Respect – The gift or little extra is about the respect for the relationship. It becomes a beacon ,{Endnote 47} a sign that shows you care. It’s a physical sign of goodwill and customer appreciation.

  Positive – A debt structure that is positive. This speaks to exceeding expectations by giving extra. The idea of an equal exchan
ge (market exchange) is a myth in marketing. You either exceed or fall short of customer expectations. Providing that extra value provides an inequality that is positive. The positive effect leads to a sort of indebtedness or reciprocity on behalf of the customer.

  The Benefit of Surplus is Status

  As a business why would you want to incorporate gift economy principles into your market exchanges? I believe there are three distinct reasons and corresponding benefits of the status gained through marketing lagniappe:

  Positioning – stand out from your competition. If everyone is providing x, the fact that you provide x + y (gift) differentiates your offering. Less than 30% of consumers buy on price. You want to tap into the 70+% who are looking for value and a strong customer experience.

  Benefit: Differentiation

  Loyalty – giving the little extra (gift) enhances the customer experience. It creates a bond between the business and the customer. The benefits of that bond includes increased loyalty and ultimately patronage as a form of repayment.

  Benefit: Retention

  Reciprocity – Part of giving extra is to create goodwill (inequality). That inequality is repaid by positive word of mouth or digital word of mouse. The best form of marketing is via positive word of mouth. By giving a signature extra (gift) you provide something for your customers to talk, tweet, blog, Yelp or Facebook about.

  Benefit: Referrals

  CASE STUDY: THE POWER OF A CHOCOLATE CHIP COOKIE

  Flour, eggs, butter, chocolate chips and…

  I recently had a quick business lunch at the Port Chester Coach Diner in Port Chester, New York [PG #543]. Upon paying at the counter I noticed a bowl of miniature chocolate chip cookies.

  Here is the recap of the experience from my colleague Tim Heath:

  We were pleased with the rapid and attentive service and quality of food. I walked away from the table content; but you guessed it, I was seeking a little something more to satisfy my appetite. Much to our pleasure, there was a container of complimentary small chocolate chip cookies next to the cash register. My colleague and I looked at each other simultaneously with a smile. We both consumed two free cookies and we shared our pleasure with the owner who was observing our enthusiastic response to his offering. A pleasant ending to a fine lunch. I look forward to my next meal at the Port Chester Coach Diner.

  The chocolate chip cookie has been a thread throughout the Purple Goldfish Project. {Endnote 48} The very first submission from Tom Haidinger was the DoubleTree Chocolate Chip Cookie.

  Double Tree and their signature chocolate chip cookie was named so many times they own the distinction of being the first brand inducted into the Purple Goldfish Hall of Fame. {Endnote 49} The Hotel has built a reputation on a unique treat that keeps leisure and business travelers coming back for more: its legendary chocolate chip cookie presented to each guest at check-in. Their signature DoubleTree chocolate cookies are baked fresh daily providing a warm welcome and refreshing hospitality for travelers around the world.

  Here are a few fun facts about the cookie {Endnote 50}:

  DoubleTree gives out approximately 30,000 chocolate chip cookies each day. That’s more than ten million each year!

  DoubleTree began giving out chocolate chip cookies in the early 1980s, when many hotels across the country used them as treats for VIP’s.

  In 1995, DoubleTree enlisted the services of Nashville based Christie Cookie Company to hold the brand’s secret recipe, which ensures that the same, delicious cookie is delivered consistently at every DoubleTree hotel and resort.

  Every DoubleTree chocolate chip cookie is baked fresh daily at each hotel.

  Each cookie weighs more than 2 ounces and has an average of 20 chocolate chips.

  The Christie Cookie Company uses more than 580,000 pounds of chocolate chips each year for DoubleTree’s cookies.

  In June 2002, DoubleTree presented its 100,000,000th cookie!

  To date, more than 200,000,000 cookies have been served to delighted guests and customers.

  More than a million chocolate chip cookies have been donated by DoubleTree hotels to celebrate and thank deserving members of the community from doctors and nurses to police and firefighters, as well as non-profit groups such as orphanages, food banks and homeless shelters.

  From the United Kingdom to Canada and Italy to China, the signature chocolate chip cookie welcome is now being presented to travelers at DoubleTree by Hilton hotel locations around the world.

  DoubleTree was followed by Midwest Airlines [PG #142] and Fort Wayne International Airport {Endnote 51} [PG #176]. The trio has given away more than 250 million chocolate chip cookies collectively.

  It begs the question… what’s so special about a cookie?

  DoubleTree offers an explanation right on the brown paper bag the cookie comes in. “Why a cookie?” the headline asks. “Cookies are warm, personal and inviting, much like our hotels and the staff here that serves you.”

  Quoted in an article by the NY Times {Endnote 52}, Erich Joachimsthaler, chief executive of Vivaldi Partners said,

  “When consumers don’t know how to judge the benefits or the differentiation of a product — I don’t know the difference between Midwest and JetBlue and United — then a meaningless attribute like cookies can create meaningful differentiation… The giveaway creates buzz, it creates differentiation, it increases a purchase decision.”

  I’m not sure if I agree with “meaningless,” especially if that little extra is a signature element. I subscribe to the philosophy that Malcolm Gladwell offered in The Tipping Point , “The little things can make the biggest difference.” {Endnote 53} The chocolate chip cookie is not just a chocolate chip cookie. It’s much more than that.

  GREETINGS AND GIFTING AS A ONE - TWO SALES PUNCH

  A recent study in the International Journal of Marketing Studies {Endnote 54} has revealed that giving a gift before purchase could increase consumer spending by over 40%. Here is a synopsis of the article by authors Hershey H. Friedman and Ahmed Rahman:

  An experiment was conducted in a restaurant to determine the effects of a small gift upon entry and greeting customers with a thank you for their patronage. Two types of gifts were used: a cup of yogurt and an inexpensive key chain. The authors found that providing a gift upon entry into a store had an impact on how much was spent, on the performance rating, and on how strongly the establishment would be recommended. This study did not find any differences between gifts: a gift of a cup of yogurt had the same impact as a key chain. The difference in amount spent between the group that was not greeted or given a gift and the group that was greeted and given a cup of yogurt was 46.4%, a considerable amount.

  The article discusses the underlying principle of reciprocity, the power of surprise and the importance of giving without an implicit expectation of return. The conclusions are very interesting:

  This study demonstrates that there is value in greeting customers who enter a store. Customers who are not greeted will spend considerably less, will rate the store lower on performance, and will also be less likely to recommend the establishment. Providing a small gift upon entry into a store will have an impact on how much is spent, on the performance rating, and on how strongly the establishment will be recommended.

  The value of a satisfied customer to a business is immense. One study showed that customers who are totally satisfied contribute 17 times more sales to a firm than customers who are somewhat dissatisfied and 2.6 times as much sales as customers who are somewhat satisfied (Whalley and Headon, 2001). If all it takes to improve attitudes of customers is an appreciatory comment and an occasional gift, then organizations should use this approach as part of their marketing communications strategies.

  From Yogurt to Peanuts [PG #94]

  One of the Purple Goldfish Project Hall of Famer’s is Five Guys Burgers and Fries. Jerry Murrell and his eponymous five sons (Matt and Jim travel the country visiting stores; Chad oversees training, Ben selects the franchisees and Tyler runs t
he bakery) represent the principles of marketing lagniappe. Added value is baked into the model at Five Guys:

  1. Free peanuts when you walk through the door

  2. 15 free toppings for your burger or dog

  3. An extra handful or two of bonus fries

  4. Free refills for your soda or ice tea

  5. Free of logos and excess décor

  The free peanuts you can shell are my favorite. According to Todd at cheese-burger.net:

  While you wait for your order to be prepared, there is a mountain of peanuts just inside the front door to munch on. Free peanuts have become the trademark “thing” that Five Guys is known for. I saw over fifty bags, 50 pounds apiece, waiting to be opened and devoured. They have signs at the door to serve as fair warning for folks with peanut allergies, and they’re pretty strict about not letting you take any peanuts to go as a safety precaution. But it’s a pretty cool thing: order your cheeseburger, scarf down a handful of salty, ballpark-style, still-in-the-shell peanuts.

  By my rough calculation Five Guys gives away over two million pounds of peanuts per year. Do little things make a big difference? For a company that does little to no advertising, here is the mantra from founder Jerry Murrell : {Endnote 55}

  “We figure our best salesman is our customer. Treat that person right, he’ll walk out the door and sell for you. From the beginning, I wanted people to know that we put all our money into the food. That’s why the décor is so simple — red and white tiles. We don’t spend our money on décor. Or on guys in chicken suits. But we’ll go overboard on food.”