Reasons to be grateful: “random acts of generosity” for ecommerce

June 22, 2009

Interesting article in Sunday’s New York Times Magazine about Hyatt’s new “random acts of generosity” marketing approach:  by offering their guests random freebies like free massages and drinks during their stay, Hyatt hopes to win over grateful customers and keep them loyal.  From the article …

Its even better to give ...Jeff Zidell, the vice president who oversees Hyatt’s Gold Passport program, underscores the importance of surprise — both that the favors are “unexpected” and that there’s no discernible pattern to which customers will get them.  The hope seems to be that these grateful customers will reward the chain with future business and also spread positive word of mouth.”

Building generosity into ecommerce

Companies building online interfaces for e-commerce should take note:  inserting seemingly random acts of generosity into the online experience could add up to big wins in terms of enhanced user experience.  Some of the ways companies can do this might include:

  • Save some “specials” or “giveaways” for later in the shopping process, perhaps during check out rather than promoting them up-front.  Specials might include price off or free shipping, a discount off of an additional item, etc.
  • A free coupon for their next order inserted into the package or even a free (low cost) item included right in the box.  Sort of like getting a “free” prize in the Cracker Jacks box, only you weren’t expecting it.
  • A follow up email after the purchase of a high ticket item with a generous offer attached.
  • Random “notes of kindness” sent via email to loyal customers with a coupon offer attached – even if it isn’t attached to a particular sale.

As Hyatt and the researchers that have studied the role of gratitude as it relates to customer loyalty have  discovered, customers like it when companies offer them an unexpected benefit.  And these random acts can add up to big benefits for your company at a time when customers have less money to spend and more places to spend it.

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Capturing the spirit of Web 2.0

June 8, 2009

The new world order?

As I head off to this year’s national UPA (Usability Professionals Association) conference in Portland, I got to thinking about all of the hype around Web 2.0 and how it is changing EVERYTHING.

Image from tangyslice.com

Image from tangyslice.com

As the above tag cloud illustrates, Web 2.0 can be defined in a number of ways and can be pretty confusing to the uninitiated. However, one thing is for sure: if you are a marketer and you haven’t embraced the idea of technologies that support customer collaboration, sharing, and control using so-called “social media” then you are in the dark ages.  Right?

Sure, you say, that’s fine for those cool new music sites and iPhone apps but what if I am selling shipping services, heart valves, or cupcakes, what then? I can set up a company or brand Facebook page, allow customers to digg a page on my website, or send them Tweets about new stuff we’re doing. But is that really taking advantage of all that Web 2.0 has to offer? And, what if my customers are reluctant to participate in these new social media?

Choosing a Web 2.0 strategy

One of the pitfalls of trying to keep up with this new world order is to be too reactive.  Companies want to stay competitive and may be attracted to some of these new tools or services and then try to fit them into a vague strategy that demands Web 2.0 type of interaction with customers. But which tools?  And what do customers really want?

Now, which ones should I pick?

Now, which ones should I pick?

The problem with this “follow the wave” approach is that you may be spending money on stuff that nobody cares about or that just isn’t a good fit for your company.

Whether you are already fully invested in Web 2.0 or just getting started, here are some suggestions for meeting the challenges of the Web 2.0 world:

1) First define your brand: Recognize that your customers still have the same needs they had before – i.e., they want to be listened to and treated well. Choose any new services or tools based on this simple premise and keep coming back to it. Ask yourself: does this cool new (tool, service, etc.) support great customer experiences and my vision for my brand?  If not, then maybe it’s not right for you.

2) Give and take: Provide a feedback loop that will bring you good information about how your customers are feeling about you and that makes customers feel as though you care about them. Don’t give them the tools for communication/collaboration and just sit back and watch. Stay in touch.

3) Build the spirit and sensibility of Web 2.0 into the online experience: Although your customers still have the same basic needs, that doesn’t mean their expectations haven’t changed.  Web 2.0 has raised the bar re: customer expectations of the quality of the online experience.

Use “polite interfaces” and/or “adaptive interfaces” that speak to your users in real life language and give your website and your brand some personality. Provide a level of personalization that creates real value. Even if you don’t offer popular Web 2.0 tools, you can create pleasurable and meaningful experiences for your online users in other ways that don’t require a large investment (I’ll go into more detail about this in a future post).

4) Learn from your mistakes: Don’t be content with the status quo. There is going to be something new right around the corner that your customers might want. If participation rates slump for a particular tool, move on. Be willing to adjust as technology and customer desires change.

5) Do research: William Goldman’s famous quote about the entertainment industry is relevant here:  “nobody knows anything.”  Don’t assume that your competitors have this thing all figured out.  The only real way of knowing  if you’re making the right decisions is to do research.

Once you embrace the spirit of Web 2.0 there are a number of ways of collecting and analyzing information that can provide insight and are cost effective.