| Recently, I had the opportunity to interview Jonathan | | | | moving target at all times. As soon as you've come up |
| Tisch, CEO of Loews Hotels and author of | | | | with a great customer experience, you've got to start |
| "Chocolates on the Pillow Aren't Enough: Reinventing | | | | thinking about a new one because tastes change, |
| the Customer Experience." Published earlier this year, | | | | competitors catch up quickly, and customers almost |
| his book has been named as a finalist for the Quill | | | | always want the new, new thing. If you want your |
| Awards' Best Business Book of the Year. | | | | customer to feel special, you'll have to keep innovating |
| Peter: Hello, Mr. Tisch. Congratulations on the success | | | | again and again. |
| of "Chocolates on the Pillow Aren't Enough." I found | | | | Peter: Is the idea of providing a memorable customer |
| that the book shed a great deal of light on the need | | | | experience simply the latest in an ever-expanding |
| for companies to rethink how they are interacting with | | | | cache of marketing ideas? |
| their customers. I can now better understand why | | | | Jonathan: Most marketing gimmicks grab someone's |
| Loews has such a stellar reputation for providing its | | | | attention for an instant. That's not what I'm speaking |
| guests with exceptional customer experiences. | | | | about. Customer experiences are how customers |
| Jonathan: Thank you, Peter. | | | | experience a brand in a long-term and deeply personal |
| Peter: Is the customer experience something that only | | | | way. If customers feel a personal connection to your |
| companies in the hospitality business need to be | | | | brand, they'll willingly seek your products and will willingly |
| concerned with? | | | | spread the word to everyone else. If you can create a |
| Jonathan: Absolutely not. All industries are feeling | | | | great customer experience, the brand starts marketing |
| today's crisis in customer loyalty. The way to address | | | | itself. |
| this is to provide positive customer experiences that | | | | Peter: What would you say to those who say that |
| will make any customer feel like a guest. Nobody has | | | | keeping your eye on efficiency is the most profitable |
| more experience with this approach to customers than | | | | way to run a business? |
| the hospitality industry so I wrote the book to share | | | | Jonathan: Efficiency is absolutely a great priority for |
| this knowledge with members of any industry. The | | | | any business, but that doesn't have to be mutually |
| book includes examples of how retailers, banks, | | | | exclusive of great customer experiences. Dell offers a |
| restaurants, and even healthcare organizations are | | | | great direct-to-consumer experience with a very |
| innovating new kinds of customer experiences. I hope | | | | efficient model that eliminates retail stores. Sephora |
| these examples will inspire anyone to apply the same | | | | needs less employees to sell its cosmetics but at the |
| thinking to their business no matter what industry its in. | | | | same time gives the customer a great experience by |
| Peter: Why isn't providing a good product or service | | | | letting them explore the products themselves online or |
| enough anymore? | | | | on shelves of samplers. |
| Jonathan: Because brand loyalty is shrinking, and price | | | | Peter: In your book, you refer to the "art of the |
| sensitivity and customer skepticism are at an all time | | | | welcome." Can you briefly describe this concept? |
| high. To attract and retain customers in today's | | | | Jonathan: Every time your employees interact with |
| competitive marketplace, companies have no choice | | | | customers is an opportunity for providing a great |
| but to think of new ways to engage them. Lots of | | | | customer experience. At Loews Hotels, we have an |
| companies provide good products and good services, | | | | extensive employee training program called "Living |
| but you'll only win customer loyalty if you can provide a | | | | Loews." Part of this training involves the art of the |
| great customer experience. | | | | welcome. Whether they are checking people in at the |
| Peter: How does a company cut through the | | | | front desk, making a reservation by phone, or turning a |
| skepticism and advertising clutter? | | | | bed, we ensure that our employees talk to each guest |
| Jonathan: One way companies can stand out is by | | | | as an individual and make them feel special. |
| treating a customer like an insider instead of one of the | | | | Peter: What are some of the companies that are |
| masses. This is how In 'n Out Burger managed to | | | | providing a great customer experience? How do |
| stand up to huge competitors in the fast food industry. | | | | these companies do it differently from the others in |
| One of their most distinctive assets is their "secret | | | | their industries? |
| menu." Variations on In 'n Out's classic offerings are | | | | Jonathan: Best Buy has helped customers, particularly |
| created by customers themselves, who spread the | | | | women, overcome the intimidation of technology |
| secret menu to one another through word of mouth. | | | | products. This has broken a serious barrier and made |
| Any company can learn from this example by | | | | a much larger pool of customers feel welcome. Their |
| shedding their masses approach and creating insider | | | | distinctive "Geek Squad" will visit your home in a pink |
| customer experiences. | | | | Volkswagon beetle to help solve your technology |
| Peter: Why are the old ways of creating loyalty losing | | | | problems. Strategies like these help show Best Buy's |
| their impact? | | | | customers that they care about them, and this makes |
| Jonathan: Because customers are in the driver's seat | | | | them stand out from competitors that would otherwise |
| like never before. They can choose from many | | | | seem very similar. |
| different brands and they'll go for the best price unless | | | | Peter: Do you believe it is possible for small companies |
| you can convince them that you'll give them a very | | | | to provide their customers with exceptional customer |
| different experience. Customers are also tired of | | | | services? |
| feeling like the masses. Customization is one way that | | | | Jonathan: Absolutely. The advice in the book is for |
| you can create customer loyalty. For example, many | | | | companies large and small. One of the key messages |
| customers of Build-A-Bear come back again and again | | | | is that customer experiences usually don't need |
| because they feel that the store and its teddy bear | | | | expensive budgets. They just require creativity. |
| products are made just for them. | | | | Peter: Thank you, Jonathan. I appreciate the fact that |
| Peter: What is the key to companies keeping | | | | you have taken time out of your busy schedule to |
| customers? | | | | offer your thoughts and insights. |
| Jonathan: Customer-centricity involves following a | | | | Jonathan: It's my pleasure. |