Golden Goldfish - Taking Care of Your Most Important Customer and Employees

60
Taking Care of Your Most Important Customers & Employees Stan Phelps, JD/MBA PurpleGoldfish.com GOLDEN GOLDFISH

Transcript of Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Page 1: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Taking Care of Your Most Important Customers & Employees Stan Phelps, JD/MBA PurpleGoldfish.com

GOLDEN GOLDFISH

Page 2: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

The setting is Paris 1848. A boy is born of an exiled noble Genoese family.

Page 3: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

His father, Raffaele was an Italian civil engineer who had fled Italy like other Italian nationalists. His mother, Marie was French. Enthusiastic about the German revolution that year, Raffaele and Marie named their son Fritz Wilfried.

Page 4: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Fritz would become Vilfredo Federico upon his family’s move back to Italy at age 10. He would grow up to become an engineer, sociologist, economist, political scientist, and philosopher. During his life he would make several important contributions to the field of economics.

Page 5: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Partly because of his work, the field of economics evolved from a branch of moral philosophy, as practiced by Adam Smith, into a data intensive field. Vilfredo is credited with helping to develop the field of microeconomics and was also the first to discover that income follows a distribution.

Page 6: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Over a century ago Vilfredo would stumble across an idea that would change the course of history. This revelation would come from a simple observation in his vegetable garden. Vilfredo noticed something peculiar about his pea pods.

Page 7: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

This insight turned into action. He decided to pluck all of the pods off the plant. He opened each and made an interesting discovery. Vilfredo found that 80% of his peas came from a mere 20% of his pods. This intrigued the 59 year-old Italian economist.

Page 8: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Soon he was applying this ratio to other socioeconomic scenarios. You may now recognize his last name. His full name was Vilfredo Federico Damaso Pareto and his most famous finding was that 80% of the land in Italy was owned by just 20% of the people.

Page 9: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Pareto’s discovery and contribution was largely unheralded until two decades after

his death. During World War II, social scientist Dr. Joseph Juran uncovered his

work while streamlining shipment processes for the Lend-Lease

Administration.

Page 10: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

  “The law of the vital few… and the trivial many.”

Juran was the first to coin the phrases, “Pareto’s Law of Unequal Distribution”

and the “80/20 rule”

Page 11: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Of all the applications of Pareto’s law, here’s three of the most important in the context of the Golden Goldfish: 80% of your profits come from 20% of your customers 80% of a company’s sales are made by 20% of its sales staff 80% of new business comes from 20% of your existing customer base

Page 12: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

GOLDEN GOLDFISH LESSON:

Page 13: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

You don’t treat every customer and employee the same…

GOLDEN GOLDFISH LESSON:

Page 14: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

A Cheesy Case Study:

Authors Yoon, Carlotti and Moore bring Pareto to life with Kraft’s Velveeta cheese.

Page 15: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

In 2012, sales of Velveeta cheese were

on a downward trajectory

Page 16: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

What to do… Get lapsed consumers to buy Velveeta again? Get occasional purchasers to buy more frequently?

Page 17: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

INSIGHT: The top 10% of Velveeta buyers account for over 50% of profit. Kraft decided to focused on this key segment of 2.4 million consumers

“The previous thinking was that the

quickest, easiest path to growth was to identify light users or lapsed users.

But when we talked to superconsumers, we learned that in

fact they wanted to use Velveeta more—they were starving for it.”

- Greg Gallagher, Marketing Director

Page 18: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Velveeta Extensions $100 MM

The results are anything but cheesy. New product spin-offs totaling over $100 million in

additional sales has been game changing.

Page 19: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Do more for your best ones. In the words of Yoon, Carlotti, and Moore:

GOLDEN GOLDFISH LESSON:

Page 20: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

WHY GOLD AND WHY A GOLDFISH?

Page 21: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

WHY GOLD?

Page 22: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

WHY GOLD? Gold is an ode to New Orleans. Specifically a tribute to its most famous event…

Page 23: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Gold is one of three official Mardi Gras colors

with Purple and Green

Page 24: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

The “additional gift”or “to give more”

LAGNIAPPE It’s an ode to New Orleans because of one word…

Mark Twain came to appreciate this one word and its meaning during his time in New

Orleans. He wrote that it was “a word worth traveling to New Orleans to get.”

Page 25: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

That one word is…

LAGNIAPPE

Page 26: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

means the “additional gift”or “to give more”

LAGNIAPPE

Page 27: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

WHY A GOLDFISH?

Page 28: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

The Goldfish represents something small, but it was directly inspired Kimpton Hotels. A chain of boutique hotels, Kimpton embodies the doing the little something extra. Stay at any of the Kimpton properties and you’ll find:

•  free gourmet coffee and fresh fruit in the lobby •  complimentary wine tasting in the afternoon •  pet-friendly accommodations

My favorite perk is something a select number of the properties do for guests. Perhaps you are staying at a Kimpton for a few days, and you are getting lonely…

Page 29: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

GIVE A LITTLE UNEXPECTED EXTRA

Guppy Love

Kimpton will give you a pet goldfish for your stay. They call it “Guppy Love.”

Page 30: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Average Goldfish = 3 inches

A goldfish also represents something small. But all goldfish are not created equal.

The world’s largest is…

Page 31: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Nearly 20 inches or 50 centimeters

That’s nearly six times larger! How can there be such a difference. It turns out the growth of a goldfish is determined by five factors. The growth of your business is also affected by the same five things.

Page 32: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

1

1. The size of the bowl or pond will determine how big a goldfish with grow. The bigger the pond or bowl, the more a goldfish can grow.

SIZE OF THE BOWL = _____

Page 33: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

1

1. SIZE OF THE BOWL = MARKET

Page 34: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

1

2

2. The number of other goldfish in the bowl will also impact the growth. The more goldfish, the more difficult it is to grow.

THE OTHER IN GOLDFISH IN BUSINESS = ________

Page 35: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

1

2

2. AMOUNT OF OTHER GOLDFISH = COMPETITION

Page 36: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

NUTRIENTS / CLARITY OF THE WATER IN BUSINESS = _______

3. The nutrients in the water and clarity of the water will also determine how large the goldfish will grow.

Page 37: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

3. QUALITY OF THE WATER = ECONOMY

Page 38: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

4

24. The first 120 days of a goldfish life will be a factor on its growth. The better the start, the bigger it can get.

= _______ FIRST 120 DAYS OF LIFE IN BUSINESS

Page 39: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

4. FIRST 12O DAYS = START-UP

Page 40: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

2

5. The genetic makeup of a goldfish will also determine how big it will grow. The more it stand outs, the better.

= ___________ WHAT’S GENETIC MAKE-UP IN BUSINESS

Page 41: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

5. GENETIC MAKE-UP = DIFFERENTIATION

Page 42: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Five Factors #1. MARKET #2. COMPETITION #3. ECONOMY #4. FIRST 120 DAYS #5. DIFFERENTIATION Assuming you’ve already been in business for four months, what’s the only thing you have control over?

Page 43: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Five Factors #1. MARKET #2. COMPETITION #3. ECONOMY #4. FIRST 120 DAYS #5. DIFFERENTIATION

The only thing you can have control over is how you differentiate.

How you purposely stand out in a sea of sameness?

Page 44: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Golden Goldfish Strategy is about differentiation via added value.

Giving little unexpected extras that drive loyalty and word of mouth for your best customers and employees. Your “Vital Few.”

Page 45: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Employees!

I crowdsourced over 200 examples in

It was clear that there was:

Page 46: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

9 Types of Golden Goldfish

1. Throw In’s 2. Added Service 3. Follow Up 4. Convenience 5. Handling Mistakes

Employees!

Customers 6. Flexibility 7. Recognition 8. Training & Development 9. Empowerment

Employees

I crowdsourced over 200 examples in

It was clear that there was:

Page 47: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

The entire idea of Golden Goldfish is explained through the acronym of

G.L.U.E.

Page 48: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

G stands for Give The entire idea of Purple Goldfish is explained through the acronym of G.L.U.E.

Page 49: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

G = Give

The best customers for the Tampa Bay Lightning are Season Ticket Holders or as the Lightning call them “Season Ticket Members.” STM’s received a complimentary customer jersey at the beginning of the season equipped with a special chip. The chip when scanned gives STM’s discounts on merchandise and concessions.

Page 50: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Give L stands for Little

Page 51: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Give L = Little

Tory Burch does a little extra for its best customers. It’s called Clientbook. It allows store associates to track and manage both online and offline behavior. Customers using Clientbook spend 62% more than ordinary customers.

Page 52: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Give Little U stands for Unexpected

Page 53: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Chapter 20Give Little U = Unexpected

Virginia based Decision Lens recognizes top employees by creating custom action figures personalized down to hobbies and interests.

Page 54: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Give Little Unexpected E stands for Extras

Page 55: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

Give Little Unexpected E = Extras

Disney’s “vital few” are resort guests. To do a little extra, Disney will designate one park a day that will open earlier or stay open later exclusively for resort guests.

Page 56: Golden Goldfish - Taking Care of Your Most Important Customer and Employees

READY TO THINK OUTSIDE THE BOWL? WHAT’S YOUR GOLDEN GOLDFISH?

Page 57: Golden Goldfish - Taking Care of Your Most Important Customer and Employees
Page 58: Golden Goldfish - Taking Care of Your Most Important Customer and Employees
Page 59: Golden Goldfish - Taking Care of Your Most Important Customer and Employees
Page 60: Golden Goldfish - Taking Care of Your Most Important Customer and Employees