Saturday, May 18, 2013

Mike Jeffries' lessons on brand experience (CEO of Abercrombie)

An ABC News report, broadcasted on TV the second week of May 2013 and published later on their website, revealed that the trendy retailer Abercrombie & Fitch carries mostly double-zero and extra-small sizes inside its New York City flagship store. Rebecca Jarvis, from ABC New’s reported there was no clothing for women in sizes larger than a 10, and salespeople at the store confirmed ABC News that Abercrombie doesn’t carry XL or XXL sizes for women. 

Since then the popular casual-clothing is under fire.

Where did all originated?
What can we learn from this case?

A lot.

For good or bad the philosophy (way of thinking, beliefs and frames of reference) of the leader of the organization is directly proportional to the company’s culture, and therefore to the brand experience delivered to customers and employees.

As Rebecca Jarvis report for ABC says, Abercrombie & Fitch’s CEO, Mike Jeffries has been outspoken and controversial. As it also says, Jeffries has not commented on the recent controversy but has been forthright in the about not wanting any customers who don’t fit the cool, young and sexy demographic the company targets. The report continues saying, he gave a 2006 interview to Salon magazine in which he said the store goes after “the attractive, all-American kid … A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely.”

“There are two different ways to brandwash the consumer – you can choose the open, honest approach, or you can take the more devious path. The choice is yours. Remember, regardless of what you do, the consumer will ultimately discover the truth.” Martin Lindstrom.

Jeffries should follow his advice.

The consequences.

Since ABC broadcasted the news, it has been bad for the clothes retailer. On her report, Jarvis informs that the size worn by the average U.S. woman is 14, as well as that plus-size shoppers now make up 67% of U.S. consumers. On Monday May 13 protestors gathered outside the A&F’s Michigan Avenue store in Chicago, outraged about the store’s not carrying clothes in large sizes. And some, the report says, have decided to return their clothes.

Even Kirstie Alley, the Former “Cheers” actress, summed up to the list of Abercrombie & Fitch critics who take exception to the company’s refusal to carry clothing in larger sizes, slamming the store on Tuesday May 14, telling “Entertainment Tonight” she would “never buy anything from Abercrombie.”

The report also comments on the backlash growing online. On Twitter, Facebook, and several petitions on Change.org urge people not to shop at Abercrombie & Fitch until the New Albany, Ohio-based retailer starts carrying larger sizes.

The report mentions a YouTube user that started a “Fitch the Homeless Campaign,” asking customers to rebrand the popular retailer by giving their Abercrombie & Fitch clothes to the homeless.

Here's the video. 



So, whatever you want to sell or offer to the public, through whatever concept of experience you envision, you must get conscious about the way you think and feel about things, life, people. Because within this lies the seed of the failure or success of the experience, products or services you offer. If not, why do you think Disney Parks have been so successful? Read the biographies of the leaders of the most admired companies in the world and you’ll see what I’m talking about. 

Bottom line, it’s up to you to deliver an extraordinary brand experience.



Follow me on twitter: @ZackGj

Source of inspiraton:



Wednesday, May 15, 2013

Awe-inspiring experiences can enhance your quality of life

New research from the Stanford Graduate School of Business shows that moments of awe can change your perceptions of time, enhancing your quality of life.
I share with you Susan Greenberg’s article published at the website of Stanford Graduate School of Business which talks about a recent research that suggests that eliciting a sense of awe is a way to expand your perception of time. Included in the article you will find my personal notes. If you are a professional dedicated to envision, design, plan, build or deliver brand experiences, this reading is a must for you. 

“Experiencing something awe-inspiring — whether it’s the Grand Canyon, a soaring cathedral, or a Puccini aria — can expand perceptions of time, enhancing quality of life” says Jennifer Aaker, Stanford GSB’s General Atlantic Professor of Marketing and author of a new paper on the subject. The key, she continues, is that awe makes us feel small, not larger than life, the way happiness can “When you feel small, there’s a reapportioning of what’s out there… Time is reapportioned also”. 

The study defines awe as something that is both vast (in size, scope, number, ability, or importance) and capable of altering one’s view of the world. To calculate the effects of awe on how people perceive and use time, Aaker — along with lead author Melanie Rudd of Stanford GSB’s PhD program, and Kathleen D. Vohs, associate professor from the University of Minnesota’s Carlson School of Management — conducted three experiments. 
In the first, they sought to assess whether awe would be more likely than happiness to enhance the perception of available time. They asked 63 students to watch a 60-second television ad. One group watched a commercial depicting people encountering “awesome” images — waterfalls, whales, and space exploration. The other group watched a commercial which showed individuals crossing paths with a parade of happy, brightly dressed people tossing confetti. Afterwards, they all rated their agreement with a series of beliefs, including four key variations on the idea: “I have lots of time in which I can get things done.” 
Consistently, subjects who had watched the “awe” commercial agreed more strongly with the statements relating to ample time than those who had watched the “happy” ad. “When you feel awe, you feel very present — it captivates you in the current moment,” says Rudd. “And when you are so focused on the here and now, the present moment is expanded — and time along with it.”

[Zack’s note: Check RedBull’s YouTube Channel and Redbull.tv and ponder on to which type do their videos belong, the ‘awesome’ or the ‘happy’. Check the amount of views the videos get. What do you think about what their marketing niche is feeling while watching in correlation to this study?]

The second experiment sought to determine whether people who experience awe would feel less impatient, as well as be more inclined to volunteer their time to charity. First, each of 86 student subjects was asked to write a personal narrative. Half described an experience that had filled them with awe — defined as “a response to things perceived as vast and overwhelming that alters the way you understand the world” — and half wrote about something that made them happy. Then, they had to fill out a series of surveys, rating their feelings of impatience, their willingness to volunteer time and donate money to a worthy cause, and their overall feelings of excitement, awe, pride, and happiness.
Those who wrote about awe were more likely to craft essays about nature, art or music, or the accomplishments of others, while those who wrote about happiness were more likely to write about social interactions or personal accomplishments. But regardless of the essay topic, those in the awe group reported significantly less impatience than those who had recounted happy events. Furthermore, the awe essay writers indicated they’d be more willing to volunteer their time — but no more willing to donate money — than the happiness essay writers. That supports the argument that awe makes people feel richer in hours, since participants were willing to be generous only with their time, not with their pocketbooks.
Building on the first two experiments, the third sought to demonstrate that awe, by expanding the perception of available time, would prompt participants to choose experiential over material gifts. In other words, someone who didn’t feel pressed for time would value a temporal, sensory experience over a concrete possession.

To test the hypothesis, subjects were instructed to read one of two stories and attempt to empathize with the main character. The first story, meant to elicit awe, described climbing the Eiffel Tower for an expansive view of Paris. The second described ascending an unnamed tower for a view of a generic landscape. Neither story mentioned the word “awe.” Then subjects rated their agreement with various statements about the availability of time, including “Time is slipping away” and “Time is boundless.” They were also asked to select between a pair of equally priced hypothetical gifts, such as a watch and a Broadway show ticket, or a scientific calculator and a professional massage.
Like the earlier experiments, the third revealed a strong causal link between awe and the sense of more plentiful time. It also showed that members of the “awe” group were more likely than the neutral group to choose an experience — such as dinner out or a movie — over a material possession, such as a new jacket or backpack. Additionally, those who expressed greater feelings of awe reported greater life satisfaction, at least momentarily.
The results of the three experiments proved more conclusive than the researchers had anticipated. “The power of the [awe] effect was surprising,” says Aaker. “It was quite robust".

[Zack’s note: Having worked at Disney Parks, I had hours and hours to observe guests behaviors, responding to all the stimuli surrounding them. Without a doubt I can say that there is a sense of awe evoked in each guest that visits the parks. Of course the degree in which it is evoked would depend on each person’s age, life experiences and other factors, but, since the well thought and planned ‘stages’, as Disney calls every park or attraction, are designed to communicate to the senses (sight, smell, hearing, taste and touch), these highly stimulating messages irremediably evoke a great deal of wonder or awe. They do. They are consciously designed to do that. Being an eyewitness I was able to testify that this sense of awe influenced guests on how to deal with waiting times and money spending. Thanks to this study, now we can understand why people are willing to wait so patiently in line for large amount of minutes, even hours; but, in contrast to their findings though, I observed that guests at the end of the day, tired and exhausted are willing to pay for souvenirs and/or food. Maybe, as this study reports, people are not willing to donate money and they prefer experiences over material possessions, but surely I saw guests were willing to spend on comfort and happiness, for them individually and for their loved ones. My hypothesis is that guests buy food and beverages at the end of the day responding to immediate satisfaction –comfort at the present moment; the action of buying food or beverages, in my opinion, is the answer to a personal question of ‘how can I make this moment comfortable for me (or the others with me) I am tired, exhausted, hungry and thirsty?’ Souvenirs on the other hand, as I dare to theorize, are the ‘happy’ reaction for experiencing something awe-influencing, as the study calls it. To Disney, merchandise stores are a ‘stage’ too, they are a way to continue delivering entertainment. No wonder named the practice as merchantainment. This is not an exclusive Disney concept. As Joseph Pine and Jim Gilmore shared in their book The Experience Economy, is a common practice among brand experience deliverers. As an example, for themed restaurants like the Hard Rock Cafe, Planet Hollywood, or the House of Blues, the food is just a 'prop' for what’s known as “eatertainment”; as for stores such as Niketown, Cabella’s, and Recreational Equipment Incorporated the offering of fun activities, fascinating displays, and promotional events is labeled as “shoppertainment” or “entertailing”. So, what I dare to theorize based on my observations and connections with what I’ve read and analyzed, is that what guests are emotionally seeking through buying a souvenir at any Disney shop, is that they want to take a ‘peace’ of that wonderful stage, and this merchandise, no matter what they choose to buy or how many, become the thing or things that summarizes all the happiness, all that sense of awe and fulfillment felt and lived during their stay and visits to the parks. Therefore, the merchandise transforms into the object that encapsulates all these feelings for the person to prolong them through time. What I reflect on, is that the sense of awe evoked in people thru extraordinary experiences, like Disney does, influences them in a way that they are willing to invest time and money to feel an intense sense of awe no matter how brief or long that moment is when it is actually happening, but also will invest time and money to make it last. For me what on the third experiment researchers asked for products that were no related to the experience, so what would have happened if the objects they asked about had a strong correlation with the awe-inspiring experience? I would dare to say results would be contrastingly different.] 
 
“[Awe] is more of a mindset than we think,” says Aaker. “This research suggests you can cultivate it in similar ways, as you do gratefulness or happiness. Yet, when it is present, awe can transform people and reorient their lives, goals, and values.”

Future studies will examine how malleable awe is, and how it can change other perceptions and behaviors. The larger goal, she says, is to understand how well various emotions — awe, gratefulness, peacefulness, or excitement — serve us in different situations. For now, perhaps the best we can do is watch a sunset or listen to a Brahms piano concerto. Then we’ll feel like we have all the time in the world.

From my point of view as an Experience Adviser, this is a key subject to take in mind for all organizations that would like to deliver extraordinary or awe-inspiring brand experiences, because they would be influencing people’s lives positively resulting in a strong bond between customer and brand.[My final note - Zack] 

Inspiring source: http://www.gsb.stanford.edu/news/research/time-warp.html?utm_source=Twitter&utm_medium=Tweet&utm_campaign=Time

Follow me on twitter: @Zack_gj
 

 

What my Mechanic taught me on Brand Experiences



This is the auto-shop of my mechanic. The ignition on our car went bad, so it needed fixing immediately, and after one day in repair, I came here yesterday to pick it up. As you can see, from the outside it looks like the typical auto-shop that you can find all around Mexico, except for one thing that makes their experience good and worth talking about. The ‘stage’ (as Disney calls the area where services are rendered) is not like a Grease Monkey franchise, well lit, neatly organized, with up to date technology and equipment.  They don’t have a logo or corporate image designed by a specialist, and they seem to not need it, their shop is always full. Word of mouth is their best marketing and advertisement because of their great reputation of being highly professional. And yesterday I was reminded why. What they do have, and what makes their experience a decent one, worth to return when needed, are the well thought, effective processes they have designed for their shop. From the way they receive your car, the way they report to you the diagnosis, the way they welcome you when picking it up and pointed to the service counter, to the way they dispatch you, they have strengthen what are the foundations of great service experience.

A lot of people think that having a flashy state-of-the-art ‘stage’ is the way to make memorable experiences happen. Far from true, what really helps a brand experience be worthy of returning customers are the processes, because they make it consistent. Each and every time you can expect certain standard, and if that standard meets your expectations, you will be out as a satisfied customer and will be returning the next time.

An important note is, highly effective processes are designed, but they are born in concept from the philosophy of the organization’s leader(s). As Disney Parks or Starbucks are what they are thanks to their founders’ philosophy, with my mechanic’s shop is the same. It would not be what it is if it weren’t for him.


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Monday, May 13, 2013

What Gene Simmons, the Rock God, needs to learn from Planet Hollywood

Billboard Biz reported that the leaders of KISS, Gene Simmons and Paul Stanley are thinking on expanding their restaurant franchise Rock & Brews.

"Paul Stanley and Gene Simmons, co-founders of KISS, have an ambitious worldwide restaurant strategy for their co-owned franchise, Rock & Brews. The dynamic rock titans recently opened their third restaurant and second Los Angeles area location in a year, furthering their plans to open an impressive 100 more in five years" the article says. 

I wish them great success in this endeavor highlighting to them: It’s not about just delivering an experience, it’s about making it extraordinary. If not, they should get a glimpse on why Planet Hollywood has gone bankrupt, twice.  

Planet Hollywood, an experience gone bad.

Planet Hollywood, a theme restaurant inspired by the popular portrayal of Hollywood, was launched in New York on October 22, 1991, with the backing of Hollywood stars Sylvester Stallone, Bruce Willis, Demi Moore, and Arnold Schwarzenegger. It was the brainchild of Robert Earl, former President and CEO of Hard Rock Cafe and Keith Barish, financier, real estate developer and film producer (Sophie’s Choice, The Fugitive, Running Man, Nine ½ weeks, Monster Squad). The restaurants were modeled after the Hard Rock formula, which had a very successful and famous concept around the world back in the 80’s and 90’s. Earl recruited many former Hard Rock veterans to open new Planet Hollywood stores. Movie star "owners" received stock options at rock bottom price in exchange for their endorsement, thus they could be billed as legal owners. (source Wikipedia)

The opening was dream. It was a PR success, bigger than life, better than expected. A great deal of Hollywood’s actors and actresses presented for the red carpet, pulling media coverage from all around the world. Even Bruce Willis performed with his band.

I had the chance to know Planet Hollywood Orlando at DownTown Disney. The “stage”, as Disney calls the area where the show and service is catered to guests was ok. Nothing outstanding, nothing to be awed by. There was no story told there. They thought that only placing replicas of movie memorabilia (cause this things didn’t even look real) would make people visit and saty which would make the business for them. Food was not outstanding, and I would dare to say of low quality. There was no attention to detail and working for Disney at the time, for me this was their greatest mistake.

As Tony Robbins says, poor efforts give you no results, good efforts give you poor results, excellent efforts give you good results and extraordinary efforts give you excellent results, this can also apply to brand experiences. Delivering an even not-near-to-good experience produces consequences.  The company's (Planet Hollywood that is) share price reached all-time high of $32 on the first day of trading and went down to less than $1 by 1999. The company has gone bankrupt twice. Nearly 100 stores have closed worldwide, leaving about 9 Planet Hollywood restaurants currently open.

In 1997, Planet Hollywood entered a joint partnership with AMC Theaters to establish and develop Planet Movies by AMC. In 1998, Planet Hollywood entered the ice-cream business when it launched Cool Planet. The business was scrapped later that year. Schwarzenegger severed his financial ties with the business in early 2000, and said the company had not had the success he had hoped for, claiming he wanted to focus his attention on "new U.S. and global business ventures" and his movie career.

Marvel Mania Restaurant opened on February 18, 1998 near Universal Studios, California with Marvel being a co-owner with Universal Studios Hollywood and Planet Hollywood. However, Planet Hollywood had financial problems due to expanding too quickly and had to close Marvel Mania.

For Simmons and Stanley this must be a business warning and an example to learn from. Planet Hollywood’s case proofs that it’s not about having a cool stage nor having flashy stars behind your restaurant to secure success.

What if CNN has named KISS ‘the world’s most recognizable band’, what if the band has sold more than $500 million in merchandise in the last 15 years. The success of Rock & Brews, and what makes any experience succeed in fact, is about paying extraordinary attention to detail. Being keen on designing and developing a strong philosophy (purpose), a clear strategy, a stage that tells flawlessly the story or concept; having lean and highly flawless processes to give structure to the operation; being extremely  effective at selecting, developing and retaining highly talented people that make the show happen, as well as offering products and services of world-class quality.

Follow me on twitter: @Zack_gj
 

Saturday, May 11, 2013

Disney, Time magazine and the Biology of Kindness


On May 9, 2013, Time magazine published an article about the study of the biology of kindness and how it makes us happier and healthier (see the link below). Regarding our subject here, what does kindness (and how it is produced) has to do with brand experiences, and henceforth, helping them to be extraordinary? A lot, I can say.



When I talk about Disney Parks at my seminar, what I like to share with the audience is that the competitive advantage of the company, and what they are most admired for in terms of service, is the opportunity that they open to human kindness to rise and be expressed. Believe it or not, thru their very creative stages (parks and attractions), processes, tools, and most of all thru the people that work there, the Cast Members, they have designed the most nutritious terrain to magical moments to happen, as they call them, that is, to encourage moments to happen where human kindness is evoked on purpose and put into action.



What Disney does to make magical moments happen is to train, encourage and trust Cast Members to apply the "No strings attached" policy. A policy that was thought using as reference the story of Pinocchio who, as you remember, was able to change from a wooden puppet to a real child, breaking free of the strings that held him dependent and on to become his real self, his human self. As it is, Disney’s policy empowers Cast Members (employees) to deliver happiness in the form of magical moments as they see fit by being fully aware of Guests needs and by applying a priority criteria using the Guest Service Guidelines. Therefore, the purposely happening of positive human interactions is encouraged by the company to deliver kindness by Cast Members in the form of magical moments.



Using the Pinocchio metaphor, as Disney understood, consciously or unconsciously, the more independent Cast Members are and, as Stephen Covey foresaw, the more interdependent they learn to be, the more kind they become and the more moments of kindness (magical moments) they deliver.



In correlation with the study that Time Magazine talks about, and that was first published in Psychological Science, it suggests that the vagus nerve connects social contact to the positive emotions that can flow from interactions, therefore helping us feel happier and healthier. So, if we ponder about magical moments, looking them thru the lense of this study, we can understand why they are so powerful to make us remember what we have lived at Disney, and why we judge these interactions as an extraordinary experience. The study helps us understand that magical moments are not only interactions, but highly positive human interactions. Highly positive interactions catered by Cast Members, which are, indeed, human beings purposely interacting in a positive way with other human beings, causing as a result, positive emotions, but most importantly, social connectedness in the most pure human way. This is, in my opinion as a bystander, why people feel happier when visiting a Disney Park and why they judge their experience as magical.

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RedBull capitalizing on Virgin and Branson Heritage

On October 14, 2012, Felix Baumgartner successfully set the world record for skydiving. Freefalling an estimated 39 kilometres (24 mi), reaching an estimated speed of 1,342 kilometres per hour (834 mph), he became the first person to break the sound barrier on his descent without vehicular power. Baumgartner's jump reminded me about reaching places where no human has set foot before, to be first at something. This resonated with my inner self.
Before this, I did not give RedBull the rightful position to which they have worked so hard for. Few days later, giving into my curiosity, I researched this energy drink company. I watched many videos at their Youtube channel and went into their website to learn, by observing, what the brand is about and what story they are telling.

They sponsor a variety of sports; most of them which are qualified as “extreme”, where athletes can be one with nature, test limits, compete with others or just for the sake of breaking a record.  Red Bull, by sponsoring these types of events, reminds its fans (they are more than consumers for them) to vibrate intensely, accelerate, live to the fullest, live on the edge.

As I said, it resonated with my inner self. I was surprised how quickly I identified with the brand and it reminded me of how I felt for Virgin back on the 80’s when Branson embarked on a record breaking attempt spree. Branson was like that, living life to the fullest, by living on the edge for him and for the brand. It was his strategy to make publicity for his newly acquired airline, yes, it was a business oriented strategy, yes, but made us all vibrate in a whole different level, in a very personal way, in that where it feels like we all, human kind, are reaching new frontiers thanks to the bold, brave pioneers. Branson was to Virgin, but also to us all.

But today, Branson and Virgin are resting on the efforts of the past of being bold, young and exciting, for the fun of enjoying life to the fullest. They remain bold, exciting and innovative in the business side but no one is speaking for the brand by attempting bold new things outside the business.

Should Virgin continue Branson’s heritage of reaching new limits with new talent? New daredevils? Or new extremes? I think yes. Virgin needs to refresh that prime characteristic of their brand: To excite their business by exciting their fans looking forward to gain new ones. It is a core feature of the brand, born by Branson’s pure entrepreneurial inspiration, and Virgin should continue to honor this heritage.

As I was observing and learning about RedBull, I see the events or sports they choose to focus, there is no sponsorship competition at their level. They are the coolest kid on the block capitalizing on a market niche that Virgin helped create in the 80’s (as the Millenials generation was born) and no one is giving up a fight. RedBull needs a brand to compete with, a challenger, a rival to go toe to toe to secure their own future and survival as a business. If things remain the same, they’ll get the relaxing momentum of the winner. When seeing all has been won, it becomes boring. They will stop engaging new challenges, and in the end this will mean the devaluation of the brand and losing business.

I am for fair and healthy competition, which supports any market evolve and reach farther. If at Virgin they studied the Millenials, this growing market who is tech savy, and has income to spare, likes to see rewarded with instant gratification, they would discover that they are very close to what Virgin stands for, but also that they do like and follow the activities that RedBull sponsors. Imagine the scenario, if both companies came to compete as sponsors in sports and events, bringing all what they are and what they stand for, should make it very interesting for us. The result would be more engagement and investment -  as fans and as consumers.

If both brands give some thought to this idea, RedBull challenging Virgin or Virgin wanting, on their own will, to take their rightful place as the challenger to beat, they will arrive to the same answer: In the end there will be no losers; we’ll all win, we’ll have prime class entertainment at all levels and they would have found a cool and engaging way to secure their business future.

Follow me on twitter: @Zack_gj