Experience Manifesto

Chocolates on the Pillow Aren't Enough Blog Book Tour Kicks-Off

Kicking off the blog book tour with Jonathan Tisch, CEO of Loews Hotels and author of Chocolates on the Pillow Aren't Enough: Reinventing The Customer Experience. Mr. Tisch will be touring blogs all week, so be sure to click here for the full schedule. In addition to blog postings, look for several podcasts and we may even do some live blogging from a presentation this week! And now, without further adieu, here's our interview with Mr. Tisch!

1. The biggest challenge we face when discussing “experience” is getting companies to understand it’s about business, not art. With this in mind, how does the Loews Hotels customer experience translate against your bottom line?

With intense competition, and with products being somewhat similar in nature, it becomes incumbent upon us to use one of our most important assets to help differentiate our product from others – at Loews Hotels it’s our co-workers.

Accordingly, we put in an enormous amount of time and resources in to training and educating our co-workers, and we give them open access to senior management. This investment in our people has translated in to experiences for our guests that really do differentiate us from the competition.

Creating positive experiences for our guests may be an art form, but it’s not a luxury. It’s a necessity that drives our bottom line.

2. How does a business measure the value of a great experience?

Great customer service and great customer experiences are ultimately responsible for whether or not people chose your product or chose another product. We place such a high value on great customer service – because it’s so vital to our business – that we actually use it as a metric in determining senior management compensation. Customers drive our profits. It’s only fitting that their experiences help drive our compensation.

3. One of the great things about the book is that it’s so timely. Several of the brands that you wrote about in the book as examples have experienced recent difficulties that have made national headlines. Comments?

JetBlue, which obviously went through an entire organizational meltdown on Valentine’s Day, quickly realized the size of its problem and, in my mind, moved very efficiently to try to diffuse the horrendous customer feedback that was permeating its entire system. By senior management going before the media to acknowledge the meltdown, taking steps to financially remunerate the dissatisfied customers, and then introducing the first passengers’ bill of rights, JetBlue showed just how committed they truly are to their customers.

4. I had the SF Hilton tell me that they didn’t do room service after 11 PM because “it wasn’t convenient for them.” When did the hospitality industry stop being hospitable?

Like most businesses – especially when it’s a public company – there’s always a laser-like focus on the bottom line. Even though there may be rules in place, good hoteliers will find ways to ensure that customers’ needs and desires are met and that great service is always offered.

At Loews Hotels we go to great lengths to accommodate all our guests, no matter what the request. We have even designed specialty programs like “Loews Loves Kids” and “Loews Loves Pets” to service all of our constituencies.

5. We describe the brand experience as “everything you do.” Is there one activity that you think makes or breaks an experience?

The human touch is tantamount to customer experiences. While that concept is increasingly challenged in today’s world as more and more transactions happen over the web, we never miss opportunities to interact, in person, with our guests – thanking them for their business and soliciting their feedback.

One of my frustrations – and I know that I speak for millions of others – is when you get caught in an automated system of a company that you are trying to do business with, and never have the opportunity to opt-out and interact with a person.

That same frustration translates on the Web. Even when you are making purchases online, sites that are easy to navigate are the ones that you’ll continue to do business with. The companies that anticipate the consumers’ needs, and make transactions as easy and experiential as possible, are the companies that are doing well.

6. Another topic of ours is the idea of authenticity. How do brands remain authentic today?

Successful brands are the ones that always revert back to the initial core values that made them successful in the first place; that’s what keeps them authentic. Names that we find synonymous with great service have often times evolved over time, but ultimately consumers know what the company stands for.

7. In the pre-internet days, when you had a complaint, you maybe would share it with a handful of friends. Now you create a web site to tell the whole world. What impact does that level of accountability have on companies today?

The explosion of the Internet as a communications channel is a good news/bad news scenario. The good news is that we now have so many opportunities to create a dialogue with our customers. The bad news is that the medium is so viral and that if you don’t mitigate a bad experience immediately, damaging information can spread quickly. That’s why it’s so important to maintain great customer service and respond immediately to any problems.

8. How does creating a better experience change the pricing formula?

In most businesses, especially in lodging, there is the notion of creating a value proposition. What we as owners of brands have to do is ensure that our products are perceived to offer value. As value is ultimately determined by the person who is paying the bill, a great experience truly tips the scale. Customers are willing to pay some premium for a great experience.

At Loews Hotels we spend a lot of time and energy trying to understanding our customers, and value propositions are at the forefront of our thinking as it relates to pricing. Whether you’re offering budget accommodations or high-end luxury, if the consumer feels like there isn’t value for the dollar, they will check out and take their business elsewhere.

9. How can companies better leverage “true communities” to create a better experience?

Having written two books now in the last three years, and in comparing media outreach with the last book versus with this book, I have seen a great evolution in “old media” versus “new media.” I’ve been amazed by the influence and reach of these new media channels. Our marketing team now spends a great deal of time looking at how we can become more relevant in terms of new media exposure. The difficulty for us, especially because we are a much smaller company than many of our competitors, is how to stay current with marketing trends in light of more limited budgets.

10. How do you incorporate customer comments that you receive to create a better experience for your guests? How important is that feedback loop in the experience process?

We’ve spent a fair amount of time and money upgrading the customer feedback process at Loews Hotels. So much that it can now be done electronically. Comments that we receive – both positive reviews about services customers have enjoyed as well as areas in which, perhaps, we could improve -- are valued, evaluated and acted upon. Today’s travelers are very vocal about their opinions. Rather than risk losing customers, we listen to what they have to say and make adjustments accordingly.

ADDITIONAL QUESTION – You learned the hotel business from your father, Robert Tisch, and your uncle, Larry Tisch, who founded Loews Corp. during a much different time. How do you think they would perceive the “new media” and this new way of interacting with consumers?

My cousins and I had the opportunity to learn from one of the great partnerships in American business – the one between my father, Bob Tisch, and my uncle, Larry Tisch. They had the great insight to know what they knew, and know what they didn’t know. As things in our world are now changing so rapidly, they would have had the wisdom to engage those who are more current in terms of trends to help guide the company.

This concept is one that I wrote about in my first book, The Power of We. You cannot be all things to all people, and you must surround yourself with people who complement you in order to help your company reach its full potential.

ADDITIONAL QUESTION – What was the greatest customer service lesson that you learned from your father and uncle?

Treat all people with respect, especially if they are the people you work with or the people you count on as customers.

Chocolates on the Pillow Aren't Enough

I used to love when I did events for the city of Orlando and I was scheduled to be on one of the local radio stations. I'll be sitting in the studio waiting while the DJ announced that I was on my way and going to be there any minute. Occasionally, if they had to stall me to cover something else, they would say he's stuck in traffic but he'll be here shortly!

So I just wanted to let you know that Mr. Tisch is on his way to our studios here and we're really looking forward to it! His book, Chocolates on the Pillow Aren't Enough: Reinventing The Customer Experience was filled with lots of great examples of companies using experience to differentiate themselves in the marketplace.

We'll start posting answers in just a little bit. And you if you still have questions, let me know!

Download "12 Theatrical Tools" here

Adam Lawrence has posted a new ebook entitled 12 Showbusiness Tools for Your Business; a theatrical approach to experience design and I thought that you would enjoy reading it. Adam & I share our love for bringing theatricality to the business world. I think you'll enjoy the read!

Link: Download "12 Theatrical Tools" here.

Upcoming Blog Book Tour with Jonathan Tisch

On May 21st and running for a full week, we're excited to co-host a blog book tour with Jonathan Tisch, CEO of Loews Hotels. He'll be spending a week traveling across the blogosphere, talking about the need to create better experiences in order to create successful businesses. You'll have a chance to hear first-hand how Mr. Tisch uses experience in his own business, as well as hear some great examples from around the world. But the most exciting part of the blog book tour is that you'll get a chance to participate. You'll be able to post your questions and see them answered on the tour!

I'll be posting a list of the participating blogs tomorrow and we’ll have a chance to get the dialogue started. There’s some information below to get your warmed up, so start thinking about what you’d like to see discussed. Given how critical it is today to create authentic, compelling and relevant brand experiences, this should be a great conversation!

Chocolates on the Pillow Aren’t Enough: Reinventing the Customer Experience

No matter what industry you're in, the only way to build long lasting customer relationships is to create great customer experiences. No business knows how to do this better than hospitality, and few individuals are more skilled at turning customers into life-long guests than bestselling author Jonathan Tisch, CEO of Loews Hotels.

At a time when customer loyalty is declining in all industries, Chocolates on the Pillow Aren’t Enough: Reinventing the Customer Experience by Jonathan Tisch shows how enduring customer relationships can be built with dynamic customer experiences that extend far beyond a financial transaction.

As seen in USATODAY, Advertising Age, and on MSNBC.com, Chocolates on the Pillow Aren’t Enough addresses the equally urgent crisis of today's disintegration of customer loyalty. The solution is simple. “You don't have to be an anthropologist (or a CEO) to have powerful insights about the customer experience," says Tisch. "You just have to be human.”

When does an experience begin and end?

Friend Bob Jacobson is putting together a book on experience and he's looking for some outside input. He's posted five questions at Total Experience and I've included the links below. If you have some time, take a look at them and please head over and give him your thoughts.

I'm asking these questions as part of my research for a book in progress on the design of experience. (It’s coming along quite well, thanks.)

Please visit the blog and leave your answers there as Comments. They’re much appreciated — and should be interesting reading, individually and collectively, as they accumulate. Direct your friends there, too: in this case, the larger the sample, the better the results.

My five questions are:

1. When does an experience begin and end?
2. What are the dimensions of an experience?
3. What role do setting, memories of prior experiences, and the larger environment play in the character of an experience?
4. What metrics can be devised and applied, or already have been, to take the measure of an experience?
5. Can an experience be shared? If so, among whom and how many individuals? Is the experience they share the same?

Thank you for sharing your wisdom.

Link: 1. When does an experience begin and end?

Link: 2. What are the dimensions of an experience?

Link: 3. What role do setting, memories of prior experiences, and the larger environment play in creating the character of an experience?

Link: 4. What metrics can be devised and applied, or have been already, to take the measure of an experience?

Link: 5. Can an experience be shared? If so, in what way, and among whom and how many individuals? Is the experience they share the same?

Orange Slices: It's the Insperience

Good to see so many different kind of people writing about the importance of experience! They have a number of good examples in the article and what I think is most interesting about it -- it comes from a blog about library services. Not a group usually known for creating compelling experiences.

Link: Orange Slices: It's the Insperience.

US Airways Magazine - Straight Talk

Love what Peter Guber had to say about the in-theatre experience in the current issue of US Airways magazine. This is something that many companies and industries do -- they forget about what they're really about. So theatres try to compete with home theatres, rather then talking about what makes them a different and unique experience. And we watch brand after brand compete with the wrong thing, rather then remember their our unique values. As Mr. Guber says, they forget what they're selling and devalue their own proposition.

“Theaters are crucial in keeping the communal experience alive. But mostly, it’s a pain to park, the queue’s too long, the seats are uncomfortable, the concession person’s indifferent, then there are 20 minutes of commercials. There’s not much creative thinking about the whole theater experience. Instead of recognizing what they’re selling, some theaters are devaluing the proposition.

“Additionally, for around $2,000 you can buy a really first-class theater — plasma screen, surround-sound, HD delivery — and re-create the moviegoing experience at home.

Theaters should be about providing an entertainment experience for the audience. They should deliver a compelling, holistic experience, so that the popcorn is good, the concessions are engaging, the seating is excellent, and the experience is not to be missed. In other words, you’re not just getting a movie — because you can get that at home — but you’re getting a communal experience, you’re having fun with other people, all while being entertained.

“I went to a Korean theater complex and there were kids playing on videogame machines and sports scores were posted in the lobby while they were waiting. The experience made them want to come early. The film, of course, is crucial, but it’s only part of the overall experience.”

BTW, here's something that I wrote back in 2001 about the movie going experience:

“Why go to the movie theatre when you can download the flick for free!” Well, that’s a simple question with a simple answer. When my wife considers sitting on the couch watching a rented video and eating microwaved popcorn a date. When the experience of downloading a flick at home is the same as the experience of going to the movie theatre. And I’m not just speaking about getting a better home projection or sound system. In other words, not anytime soon.

Seeing first-run movies is a horse of a different color (immortalized, of course, in a movie: The Wizard of Oz). Viewing the movie is just one piece of the entire experience. It’s the Sno-Caps (let’s face it, without movie theatres, we wouldn’t eat Sno-Caps at all!) and the theatre itself (especially in the Barcalounger-like stadium seating). And don’t forget the popcorn: I don’t consider it a movie-going experience if I haven’t had popcorn and butter. I’ve gotten to the movies after having just eaten a full big meal and yet I’ll still find a way to eat a big bag of popcorn. In fact, one night when my wife and I decided to stay at home and rent videos, I went to the movie theatre a few blocks from our house, bought popcorn from them and then carried it home for our video rental night!

Link: US Airways Magazine - Straight Talk.

Download 1stperson if you'd like to read my full article about the social experience of going to the theatre.

Adrants -- Kleenex Let it Out Campaign Gets Hosed by Greenpeace

I actually enjoy these commercials from Kleenex. I think that they're funny, touching and commercials that I always stop to watch. And we rarely buy anything but Kleenex in our house. But, I have to admit, I thought that this was pretty clever too! Nothing like using your own event against yourself! They could've done something that really interrupted the experience, but instead, Greenpeace decided to use the axctual forum that Kleenex created to air their complaints. Now, it'll be interesting to see if any of that footage gets used or if Kimberly-Clark will make any changes to their manufacturing process.

Over the weekend in Times Square, the Kleenex Let It Out campaign in which people let their emotions out while Kleenex films them was infiltrated by Greenpeace which is irked Kleenex manufacturer Kimberly-Clark uses "ancient growth" forests in their tissue products. Greenpeace activists, posing as distraught individuals complained about Kimberly-Clark's apparent deforestation tactics while Kleenex PR people had nothing much to do except let it happen, even when some activists unfurled a banner for Kleercut, Greenpeace's tree hugger effort.

Link: Adrants -- Kleenex Let it Out Campaign Gets Hosed by Greenpeace.

Amazon.com: Chocolates on the Pillow Aren't Enough: Reinventing The Customer Experience: Books: Jonathan M. Tisch,Karl Weber

I received some information fom the PR folks for the new book, CHOCOLATES ON THE PILLOW AREN’T ENOUGH by Jonathan Tisch. Mr. Tisch is Chairman and Chief Executive Officer of Loews Hotels and is also Co-Chairman of the Board and a member of the Office of the President of Loews Corporation, the hotel chain’s parent company and one of the largest diversified financial holding companies in the U.S. With his background, he certainly has the experience to talk about experience.

I haven't received my copy of the book yet, so I'll do a full review once I've had a chance to read it through. But they did send a Q&A with Mr. Tisch that covers a good overview of how he thinks. I like the case he makes for experience being for everyone, not just those in the hospitality industry. Many times, companies tend to look at the experience conversation and say "But that's not for me," and they're wrong. Having a compelling, authentic and relevant brand experience is a critical point of differentiation that helps companies thrive, not just survive.

So take a look at the Q&A below and I’ll post more once I’ve had a chance to read the book. I’m working to see if I can live blog from one of Mr. Tisch’s presentations, so if you have any questions you’d like to ask, drop me a note and I’ll see what I can do.

CHOCOLATES ON THE PILLOW AREN’T ENOUGH
Q&A WITH JONATHAN TISCH

Jonathan Tisch is chairman and CEO of Loews Hotels; chairman of the Travel Business Roundtable; a member of the Discover America Partnership Leadership Committee; and the author of Chocolates on the Pillow Aren’t Enough: Reinventing the Customer Experience. Below Jonathan discusses why creating an intimate, positive, and long lasting connection with customers is the key to success in any field.

How has the relationship between consumers and businesses changed from a generation ago?

The relationship between consumers and businesses has never been so fragile. With price sensitivity and customer skepticism at an all time high, old ways of creating customer loyalty have lost their impact. It’s no longer enough to just create a good product or service. You have to create meaningful connections with your customers by creating unique experiences. (Emphasis mine)

How does your experience in running Loews Hotels apply to other types of businesses and organizations?

In the hotel industry, the key to attracting life-long patrons is transforming customers into guests. This means behaving not like salespeople, but like hosts, with all the human qualities that implies – warmth, openness, generosity, welcome. Today, every organization needs to capture this spirit to build a growing fan base of loyal and appreciative patrons – especially at a time when customer loyalty is on the way out. (Emphasis mine)

Your book’s subtitle is “Reinventing the Customer Experience”. What do you mean by that?

Token chocolates on the pillow aren’t going to bring customers back. The way to stand out from the competition is to reinvent the customer experience…to give your customers something unexpected. Customers will embrace your brand enthusiastically if you find creative ways to make them feel special. (Emphasis mine)

In your book, you describe the “touchpoints” of the customer experience. Can you explain what a touchpoint is?

Your store entrance, your website, your call center, your direct mail – these are all examples of touchpoints. In other words, touchpoints are the points where your customer creates contact with your brand. Touchpoints are invaluable opportunities for you to connect with your customers and show them that you care.

You discuss the importance of creating customers who are happy to buy. How would an organization accomplish this?

Customer centric companies create experiences that make customers enthusiastically embrace your brand. In ‘n Out Burgers has a devoted following of customers who’ve become fans. Why? They created a secret menu that makes their customers feel like insiders. By making the customer experience even more enjoyable than the product, Build-a-Bear also has a fan base of customers that will enthusiastically come back for more.

How can the emphasis organizations now must devote to security translate into happier customers?

When companies give customers a sense of security they’ll feel protected, they’ll be put at ease, and they’ll gain your trust. What could be a better way to show your hospitality? Most consumers don’t think too much about safety when they shop at Target, but the store went out of its way to protect its customers by reinventing prescription drug packaging to avoid dangerous mistakes. These efforts will earn Target the trust of many customers for a lifetime.

Can you explain the concept of mass customization?

Mass customization is a way to market to the masses while making each individual customer feel like they are your only customer. Lands End does this with custom-fit clothing that can fit any size. Build-a-Bear does it by letting customers create their own teddy bears. There’s no better way than customization to make your customer feel special.

Your book has many examples of organizations that are embracing new approaches to the customer experience. You say “Lifestyle Centers” are taking the place of traditional malls. What are they and how are they different?

Lifestyle centers were recently invented by developers who listened to mall customers and tried to make a mall shopping experience more compatible with their lifestyles and preferences. They offer more outdoor spaces and parking near the stores you want so you can do in and out shopping instead of parking in huge lots and then wandering forever until you find the store you are looking for. It’s all an example of the customer-centric philosophy.

What was your inspiration for writing this book?

Every business audience that I speak to, no matter the industry, has told me that they have one main concern: declining customer loyalty. I felt that I could help address this problem with a book that shares the lessons I’ve learned from a lifetime in the hospitality industry. Everybody wins when you learn how to treat your customers or citizens like guests.

Can the concepts in your book apply beyond the business world?

A hospitality approach is relevant to all organizations including companies, non-profits, and government agencies. For example, the U.S. government wants to improve its image abroad right now. One of the first ways they can do so is to start treating international tourists like welcome guests.

Link: Amazon.com: Chocolates on the Pillow Aren't Enough: Reinventing The Customer Experience: Books: Jonathan M. Tisch,Karl Weber.

Link: ConverStations: Chocolates on the Pillow: Delivering Big Aha's.

Link: Lessons from a hotel mogul - Today Books: Money - MSNBC.com.

Link: Jonathan Tisch Helps Reinvent the Customer Experience.

Marketing at Retail

Marketing at Retail is now posting our articles online, so click on the links below to read them. And while you're there, make sure you look around. There's lots of great content there!

The New Face of Retail

In many retailers today you'll have a hard time finding staff that can tell you where things are. But recently I've been visiting stores in our SoHo neighborhood where the employees can not only tell you where things are, but they can also tell you where they came from, how they were made, and anything else you could think to ask. Is this the new face of retail?

For years retail pundits have discussed the impact of online shopping on the physical retail space. And while many have debated the "will we shop online or in-store" issue, what they've often missed is how the online shopping experience impacts the offline shopping experience, not how it eliminates it. One thing that it really changes is the information available to us as consumers.

The result: there's nothing worse then going into a store and knowing more about the products than the people working there. The online shopping experience impacts the retail experience by tipping the balance of what we know as shoppers vs. the sophistication of the retail sales staff.

Link: The New Face of Retail.

The Brand as Experience

When you look at the profound changes occurring in both the retail and media spaces it's only logical to explore how they are going to impact each other. The first place to look is the technology that it is driving much of the change on both fronts. And the key to success in harnessing technology for marketing or sales is to realize that technology has to be focused on creating a better experience for the consumer, not for the retailer.

Audiences have come to expect dynamic environments in everything that they do. They watch content when they want to. They receive information when they want it. The have bought into just-in-time marketing. When they are bored with our content, they make their own. So as you look at the technologies on the retail horizon, think about how you could use them to create something more unique for the consumer. Dan Pink, writing for Yahoo Finance, recently had this to say:

"Today, utility is abundant. We have more products and services than we can handle, and most function just fine. To stand out in a crowded marketplace, sellers must make a dramatic leap in utility-or stand out in some other way. They can try to compete on price, but that usually ends in a downward death spiral. So the alternative is to compete not on left-brain attributes like price and functionality, but on right-brain qualities such as emotion, meaning, and look and feel. Case in point: Target sells toilet brushes and vegetable scrubbers designed by superstar architect Michael Graves. Even the most mundane, utilitarian objects in our lives have been turned into objects of desire."

Link: The Brand as Experience.