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

by Stan Phelps

  The idea of proactively admitting to mistakes is totally unexpected. Admit your wrongdoing, ask the customer what they’d like as amends and then always exceed their request. This is brilliant on so many levels. First, it is Dale Carnegie-esque... admit when you’re wrong and do it emphatically. It takes the steam out of a complaint. Second, it involves the customer as part of the solution. Let them be judge and jury. This speaks volumes about your willingness to make things right. Lastly, you exceed the proposed solution. Within reason you take the solution and notch it up one or two levels. This gets back to the idea of being totally unexpected.

  Let's look at four examples:

  1. When you are wrong... [PG #438]

  Nurse Next Door comes from the book ‘ Customer Love: ’ {Endnote 129}

  “Humble Pie. When this Canadian home health care service provider stumbles... they deliver a fresh baked apple pie and a note apologizing for poor customer service. Each year they spend about $1,500 on pies, but they estimate it saves about $100,000 in business going elsewhere. That sounds like pretty strong ROI as over 70% of customers that take their business elsewhere do so because of poor customer service.”

  Marketing Lagniappe Takeaway: When you’re wrong… admit it and make amends quickly.

  2. A $1.6 million dollar oops [PG #407]

  I came across a post on Inside Zappos {Endnote 130} via a tweet by ‘The Experience Factor’ @jenkuhnpr:

  Hey everyone – As many of you may know (and I’m sure a lot of you do not), 6pm.com is our sister site. 6pm.com is where brandaholics go for their guilt free daily fix of the brands they crave. Every day, the site highlights discounts on products ranging up to 70% off. Well, this morning, we made a big mistake in our pricing engine that capped everything on the site at $49.95. The mistake started at midnight and went until around 6:00 a.m. When we figured out the mistake was happening, we had to shut down the site for a bit until we got the pricing problem fixed.

  While we’re sure this was a great deal for customers, it was inadvertent, and we took a big loss (over $1.6 million – ouch) selling so many items so far under cost. However, it was our mistake. We will be honoring all purchases that took place on 6pm.com during our mess up. We apologize to anyone that was confused and/or frustrated during out little hiccup and thank you all for being such great customers. We hope you continue to Shop. Save. Smile. at 6pm.com.

  Nice job by 6pm.com to admit the mistake and take their medicine. The willingness to honor those discounted sales is admirable and more importantly a brand defining moment.

  I love it when the folks from the C-Suite get down in the trenches. Zappos CEO Tony Hsieh (Shay) is never afraid to address an issue. Here is his update to the original blog post: {Endnote 131}

  We have a pricing engine that runs and sets prices according to the rules it is given by business owners. Unfortunately, the way to input new rules into the current version of our pricing engine requires near-programmer skills to manipulate, and a few symbols were missed in the coding of a new rule, which resulted in items that were sold exclusively on 6pm.com to have a maximum price of $49.95. (Items that are sold on both 6pm.com and Zappos.com were not affected.)

  We already had planned on improving our internal pricing engine so that it will have a much easier-to-use interface for our business owners. We are also planning on adding additional checks and balances to hopefully prevent this type of thing from happening again.

  To those of you asking if anybody was fired, the answer is no, nobody was fired – this was a learning experience for all of us. Even though our terms and conditions state that we do not need to fulfill orders that are placed due to pricing mistakes, and even though this mistake cost us over $1.6 million, we felt that the right thing to do for our customers was to eat the loss and fulfill all the orders that had been placed before we discovered the problem.

  PS: To put an end to any further speculation about my tweet , I will also confirm that I did not, in fact, eat any ice cream on Sunday night.

  [Make your ice cream a triple scoop Tony. Well deserved on how you handled this situation.]

  3. Making good in response to the Snowpocalypse [PG #715]

  Taken from a post by Axel Murillo {Endnote 132} of Worldwide Business Research USA LLC:

  Like one of tens of thousands of people traveling this past holiday season, I had booked a JetBlue flight for the day after Christmas to spend quality time with friends and loved ones. However, Mother Nature had other plans. A storm that quickly produced between 12 and 32 inches of snow fell on many areas of the Northeast that eventually caused the cancellation of some 10,000 flights. It certainly earned its title as the “Snowpocalypse,” or “Snowmaggeddon” of 2010.

  [Editors Note: Axel's flight was canceled and rescheduled a total of four times. Each of his reschedules were done via Twitter.]

  My trip to Austin eventually went off without too many more delays, once again letting me take for granted things like roomier leather seats on coach, and DirecTV for everyone. Since I pretty much only fly JetBlue these days, I tend to forget that other airlines don’t offer what I’ve come to think of as common sense expectations.

  A few days after my return to New York, along with all other passengers affected by the “Snowpocalypse,” I received an email from Robin Hayes, Chief Commercial Officer for JetBlue Airways that partly read:

  “As a token of our appreciation for your patience during last week’s snowstorm when we canceled your flight, please accept 10,000 TrueBlue points which you can apply toward future travel to any JetBlue destination.”

  If I add those to my existing points, I got a free round trip ticket to Austin anytime! I’m more than satisfied; I am fairly star-struck by this rock-star quality treatment! By any conventional means, JetBlue has no responsibility to provide such perks to assuage climate disruptions. But the fact is that they did; that’s what I call a phenomenal customer experience.

  Marketing Lagniappe Takeaway: Be proactive when faced with service disruption. Great job by JetBlue to offer the complimentary TrueBlue points.

  4. Who is this Gary character? [PG #170]

  I went to see Gary Vaynerchuk speak at a MENG {Endnote 133} (Marketing Executives Networking Group) NJ Chapter event in Morristown, New Jersey. Gary was awesome in his typical “no holds barred” fashion. I came in with high expectations and he exceeded them.

  He shared a recent example from his company WineLibrary. com. He recounted that a recent order was screwed up via FedEx, not WineLibrary’s fault but that didn’t matter to the customer. A Wine Library staffer drove the shipment down south three hours to the Jersey Shore and hand delivered it to the customer.

  THE RESULT: That customer immediately reached out to his network over three or four tweets to laud WineLibrary.com and recommend them “hands down” over the competition.

  [Note: Gary alluded that there might be some other 'branded acts of kindness' coming down the proverbial (New Jersey) turnpike. He talked about the next major snow storm and the possibility of shoveling the driveways of his best customers. Imagine yourself as a customer and Gary shows up at your doorstep, shovel in hand. That's a purple goldfish I'd like to see.]

  5. Sharpening the Scissors [PG #996]

  Taken from a post {Endnote 134} by Forbes columnist Dean Crutchfield of The Caffeine Partnership:

  Just recently I visited one of Sur La Table’s stores in Manhattan with my entire set of Wüsthof knives in search of their door-buster deal of free blade sharpening. I brought in the lot, even the scissors, only to be informed by the assistant (and the small print) that the offer was for only two knives. I was already in the store, so blaming my reading glasses, as one does, I paid for all the knives (bar two) and left feeling duped and disgruntled.

  Two days later, after returning home from picking up, I realized there were no scissors. I called, explained and received a very courteous reply that they do not sharpen scissors, and that my set had likely been misplaced so it was best for me to come back in an
d get a replacement pair free of charge, even though I did not have the receipt. From there, the experience was like floating on air. An absolute delight that led me to informing the management at the store and their headquarters that the whole shop experience was amazing.

  Chapter 25

  Lagniappe Category: Technology

  “The most exciting breakthroughs of the 21st century will not occur because of technology but because of an expanding concept of what it means to be human.”

  - John Naisbitt

  Technology is becoming a game changer in marketing. Let’s look at three companies who are using RFID, QR Codes and computer chips to provide a little something extra for customers:

  1. RFID + Ice Cream [PG #995]

  Taken from a post by Matrix Product Development: {Endnote 135}

  Izzy’s Ice Cream Cafe of St. Paul serves over 150 flavors of handmade ice cream and always keeps 32 flavors in the case on any given day. I talked with Jeff Sommers today and he is super passionate about his ice cream and providing great customer service to serve it up.

  Here’s what was happening at Izzy’s:

  When customers came to his store, they wanted to taste their favorite ice cream flavor. Sometimes it was not yet available and so people would leave feeling disappointed. Some people would purchase a different flavor, but Jeff really wanted total customer satisfaction and he searched for a way to provide it.

  Finding a way to let the patron know when their favorite flavor was available, reducing disappointment, was a prime concern for Jeff. It was a problem he needed to solve right away. The day he found a RFID technology solution for that problem was the day revenue increased. He had solved the problem and provided added value.

  RFID tags identify each flavor when it is placed in the case ready to serve. The RFID system updates the inventory every three minutes so you can be sure your favorite flavor is there when you have a craving.

  If you choose to be notified by email, you can sign up and let the system know what flavors you are looking for. There are options to be notified by Twitter updates and Facebook alerts as well. Just sign up for the updates.

  The effort Jeff took to find a solution for his customer is remarkable. I find it one of the most unique ways of using RFID tagging technology and bringing top notch customer service to a business.

  When owners like Jeff go out of the way to serve their customer, I believe it’s a story worth telling over and over again.

  2. QR Codes + Squid Ink [PG #808]

  Submitted by Andrew Sweet. Andrew and I caught up at an advisory board meeting at Marist College. He mentioned an interesting use of QR Codes from Taranta and Chef Jose Duarte.

  Andrew talked about a segment he watched on Channel 5 about the Peruvian inspired Italian restaurant in the North End of Boston. Taranta uses squid ink to place QR codes on plates featuring fresh locally sourced seafood. Diners can scan the code to visit a site called Trace and Trust. {Endnote 136} It allows you to track where and when your fish was caught.

  Marketing Lagniappe Takeaway: Talk about a signature extra. This one is signed in squid ink. A clever use a hot button technology to highlight the fact you source fresh seafood from local fishermen.

  3. A Chip and a Hockey Jersey [PG #953]

  Submitted via e-mail by Lee Silverstein of Tampa Bay Job Coach:

  Not long after experiencing the joy of winning the Stanley Cup in 2004, the Tampa Bay Lightning and their fans experienced the frustration of a new ownership group that spent more time fighting amongst themselves then running the team.

  That all changed when in February 2010, a new ownership group, led by billionaire hedge-fund manager, Jeff Vinik purchased the team. Vinik vowed to build both a winning team, and a winning fan experience; he has definitely put his money where his mouth is. Over the summer the St. Pete Times Forum, home of the Lightning, underwent a $40m renovation, funded entirely by Vinik. Now almost completed, the renovation included:

  All new cushioned seats with cup-holders

  Remodeled luxury boxes

  An outdoor party deck that overlooks the city

  Tesla coils that shoot real “lightning” when the team scores

  The two biggest changes to the fan experience; however, were the addition of the world’s biggest digital theater organ and a new program that rewards season-ticket holders. Located on the third level of the Forum, the Lightning removed about 500 seats (and the revenue associated with those seats) for the organ. The instrument sits on a raised platform called the organ loft and is surrounded by a bar.

  The Lightning’s new program for their season ticket-holders is the first of its kind in professional sports. All full season ticket holders received a home game jersey with their respective season ticket commitments. In addition to the sweater’s distinct look, a microchip is inserted in the sleeve, thereby allowing season ticket holders to be identified at concession stands and merchandise shops throughout the St. Pete Times Forum. By scanning these embedded sleeves, fans receive a 25% discount on all concessions in the arena and a 35% discount on all merchandise purchased at the Times Forum during Lightning games.

  To me, the biggest “Lagniappe” of all came when it was announced that Jeff Vinik and his wife, Penny will be donating more than $10 million through the Lightning Foundation to deserving community heroes and charity partners in Tampa Bay over the next five years. During each and every home game (41 games!), the Lightning Foundation will select and honor a Community Hero. Their heroic efforts will be celebrated by making a $50,000 contribution to an eligible 501(c)(3) organization that represents that Hero’s cause.

  Top 12 Key Takeaways

  “Advice is like a tablet of aspirin. It only works if you actually take it.”

  - David Murphy

  Let us count the Top 12 most important takeaways from What’s Your Purple Goldfish?:

  #1. The Biggest Myth in Marketing

  There is no such thing as meeting expectations. You either exceed them or you fall short.

  #2. Choose Wisely

  You can’t be all things to all people. You only have two choices as a marketer: Create to spec and face being a commodity or set out to exceed expectations and become remarkable.

  #3. Shareholders vs. Customers?

  Business is about creating and keeping customers. Customer experience should be Priority #1 in your marketing. Stop focusing on the “two in the bush” (prospects) and take care of the one in your hand (customers).

  #4. Value is the New Black

  Don’t compete on price. Cater to the 70% that buy based on value. Price is only relative to the value received.

  #5. Phelps Corollary to the Pareto Principle

  Traditional marketing is flawed. Eighty percent of your efforts will net 20% of your results. Focus on existing customers instead of the funnel by finding little extras that are tangible, valuable and talkable.

  #6. Growth is Determined by Five Factors

  The growth of your product or service is similar to that of a goldfish. Growth is determined by 5 factors: Size of the bowl (Market), # of other goldfish in the bowl (Competition), Quality of the water in the bowl (Business Environment / Economy), First 120 Days of Life (Start-up) and Genetic make-up (Differentiation). Assuming you’ve already been in business for four months, the only thing you can control is how you differentiate yourself.

  #7. Purple Goldfish Strategy

  Purple Goldfish Strategy is “differentiation via added value.” Finding signature extras that help you stand out, improve customer experience, reduce attrition and drive positive word of mouth.

  #8. Acts of Kindness

  Think of lagniappe as an added branded act of kindness. A beacon or sign that shows you care. Marketing via G.L.U.E (giving little unexpected extras). A little something thrown in for good measure.

  #9. Lagniappe Economy

  There is a middle ground between a Market Economy (quid pro quo) and a Gift Economy (free). A lagniappe economy is where there is an exchange o
f goods and services for an exact value (market economy), plus a little unexpected extra that is given for good measure (gift economy).

  #10. v4 Principle

  V4 is when a consumer becomes a PROsumer. They stand up for a product or service and vouch for it, giving personal assurances to its value. As a marketer you need to figure out a way to make your product or service remark-able. Are you giving your customers something to talk, tweet, blog and post to Facebook about?

  #11. Five Ingredients

  There are 5 ingredients or R.U.L.E.S when creating a purple goldfish:

  Relevant - the extra should be of value to the recipient

  Unexpected - it should “surprise and delight”

  Limited - the extra should be something rare, hard to find or signature to your business

  Expression - it should be a sign that you care

  Sticky - it should be memorable and talkable

  #12. Value / Maintenance Matrix

  The VM matrix calculates how a brand measures up on two important criteria: value and maintenance. The goal is to be seen as “high value” and “low maintenance” by your customers. There are 12 types of Purple Goldfish based on value and maintenance: