Transforming your brand value

Transforming your brand value
Tags: Operations Management, Trends / Statistics
December 10, 2009 - Mike Wittenstein

* Mike Wittenstein is a consultant who designs experiences in hospitality and retail. This is Part III of his customer experience series for fast casual operators.

In my last two articles (Part 1, Part 2) I have been addressing fast casual restauranteurs in particular. I do this because I believe you are operating in an industry sweet spot ripe for change. Unlike the vendors of commodities who can only hope to drive down costs incrementally, and unlike the more costly restaurants which continue to face market shakeout pressures, you have the opportunity to make things different and better at your restaurant. You can use this â€˜down' time to design a great customer experience that also is highly profitable and achieve significant business growth in the process.

If you've been observing and engaging your guests, you may have noticed that even the well-off diners are seeking high value at a low price. This is one of the reasons why so many knock-off brands thrive. People like having others notice their Rolex watch, knowing secretly that they only paid $50 for it. They like it even more when their clever purchase escapes unnoticed. The watch's weight is the same. The crown and bezel are the same. Even after a few years, it keeps time accurately. "Why pay more?" is a now ubiquitous advertising slogan because it reflects people's desire for quality and low price at the same time.

This trend represents a major shift from the days when luxury buyers bought for exclusivity—so that other people would covet what they had. Customers today know what they want to experience—and they're often looking for products and services that make their lives easier or more fulfilling. At the same time, they still want value.

So, how do you start to build a customer experience that's meaningfully different, cost effective, and practical?

Creating the customer experience begins with what by now should be a familiar refrain—understanding what customers really want and why they buy. Step into your customer's shoes and observe your business processes from their perspective. You will get valuable information you need to design (or re-design) your experience. A good design not only yields a more talked about customer and employee experience, it drives down production (or delivery) costs by eliminating the steps that don't add value.

Asking the question "What's important to customers when eating out?" has driven innovation in the fast casual segment since its inception. Bugaboo Creek's animated animals and props entertain young and old, give them something to talk about--and take their friends to. Rainforest Cafe does the same thing on a more elaborate scale at entertainment destinations.

Many fast casual restauranteurs have added wi-fi access, allowing people to business presentations and deal making to happen in a neutral location with lunch or dinner included. In these cases, the question has changed from "Where can I eat?" to "Where can I get the most done? (and get something to eat)." Focusing on what your customers want most is always the best focus for your restaurant and for your brand.

Making your customer experience better isn't easy. But, it's worth it. If you're leading the charge, start by taking a look at your operation from your customer's point of view. Pick one or two things to do that not only make the experience better for the customer, but easier to deliver for the employee and more profitable for the shareholders. Ideally, you'll pick something that's easy for your guests to tell their friends about. I call that a storyworthy experience. The rest will come naturally.