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Costco (COST) – Needs Customer Focused Perspective

Before attending yesterday’s Chicago Cubs game upon a surprise invitation from my friend Pat Cunningham, I went to Costco. Before I talk about that though, the Cubs played the San Francisco Giants and Barry Bonds hit his 728th home run, he is now only 27 shy of Hank Arron’s record. You will notice that the ball thrown back on the field was not the actual home run ball per this ESPN Video, you wouldn’t have noticed it if you were at the game though.

During this Costco visit, they had recently redesigned the store layout, so much so that I simply gave up on a few of the items I was trying to find. As I waited in the checkout line I wondered if my actions were signing the death warrant for these items I skipped because all the buyers for Costco never look at these issues when they make their decisions. It’s clear that the company is moving away from its’ roots, providing excellent value. Every time I turn around something is being replaced with a “superior image product” that costs significantly more. The membership isn’t as valuable to me as it once was due to this continuous series of actions. The constant brand swapping can drive any serious food lover to near insanity when they find a brand they really like and then it’s replaced by an inferior brand by Costco’s buyers. 

Two examples: 1. Earlier this year the Costco Lincoln Park Chicago location had these awesome Palmiers (somewhat like these) for several months, they moved them around the store no less than four times and they are no longer stocked – I firmly believe this was due to the movement factor affecting sales.

2. For what seems like forever, Costco carried New York Style Texas Garlic Toast in large economy sized boxes. Then a few months ago it stopped and replaced with a package of garlic bread in loaf form, not useful for sandwiches that was a fraction of the size and cost more! OK, one this one it’s clear the buyers have no clue how and why they choose certain products.

On my way out the door, I stopped and talked with the store manager, Brian. We talked about how the Customer’s viewpoint is never taken into account by the buyers. In fact, I showed him sympathy because he isn’t empowered to fix these issues or even experiment with such things as express checkout.

Costco is an example of an organization that would benefit greatly from blogging, but blogs should be the last and not the first step I now believe. The first step is to change the organizational focus so that customer’s voices are heard as loud if not louder than Wall Street’s voices.  Without this dramatic top-down culture change of action, not words in regards to customer focus, then they would be a great blogging candidate to put the effort on steroids. I pitched to Brian the idea of having the buyers come into his store on a Saturday to actually listen to customers for a full day preceded by a 4-week period of pre-announcement – I told him that the store would likely have its’ busiest day ever and that this would be a very eye opening event for the buyers. I asked him to escalate my request for such an event internally so that this could occur and offered to e-mail him my blog post to save him time in explaining and communicating the idea during our brainstorming discussion. Maybe one day Costco might even create the role of Chief Customer Officer, I would love that!

Good Luck on creating that buyer visiting day, Brian. The blogosphere and customer champions everywhere will be routing for you.

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Mobile Marketing/Search – Open Thread – Comment Away!

I’m researching mobile marketing and mobile search, a lot, lately. There are articles everywhere you loop like like this.

The following are opinions I seek:
– What do you want to see on your mobile device?
– What don’t you want to see on your mobile device (perhaps more important actually)?
– What companies are the leaders in the mobile marketing/SMS/messaging space?
– Who are the movers and shakers in the mobile marketing/SMS/messaging space?
– Who are the thought leaders in the mobile marketing/SMS/messaging space?
– What are the barriers to international standards and metrics creation?
– Will pay per call truly migrate to the mobile device? How will it be different?
– What are the other barriers to success of the space?
– What oligopolistic and/or blocking will prevent adoption of superior technology?
– Will customers true needs and desires be considered fully first? 

Gee, that’s a lot of upside down M’s at the start of the thoughts above!
Other links for you to consider for discussion:  Mobile Marketing Magazine, Engadget, The Mobile Weblog, Mobile Marketing & Spam, 4Info, Goobile,  etc

OK now, please comment away and ask your friends to do the same (heck even link it if you want), I want this discussion to focus on your thoughts and ideas and drive my future research and discussions here. Thanks for your time.

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Danny Sullivan to leave SES and SEW

Yes, Danny Sullivan is leaving SES and SEW.

The rumors that he is leaving to build the world’s largest design firm of flash web sites are unfounded!

Please do a blogroll lesson here and update your blogrolls to daggle.com, many people change primary blogs and the blogrollers don’t follow. For example Robert Scoble’s old blog still ranks above his new blog in Google…

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dellbatteryprogram.com = poor customer service

Shel Israel says Dell warned customers about the Sony hot battery problem. However, I’ve got to say not good enough here. In fact my Dell laptop does run hot. When I got a recall notice on my car once, they mailed me a letter and notified me directly. What a concept actual communication to the affected customer. 

Dell has the data to inform the customers themselves directly. Instead they are sending people to a lame web site, http://www.dellbatteryprogram.com, asking customers to do their work for them. If you are Dell you have service codes, you have email addresses in other words you have all the data necessary to contact these people…yourself. You didn’t need to spread panic in this manner. You could have issued a statement saying “We contacted all the parties with the batteries under recall and will immediately be shipping them the new batteries after we have verified their current address.”

Dell, you can and should do better here. I want you to tell me whether I’m affected. Even if I’m not, my laptop still runs hot, why is that?   

Speaking of Dell, the Dell blog has still never acknowledged my post about USB shortcomings in my new Dell desktop. Will they ever innovate from customers?

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Commercializing Software Ideas via Crowd Wisdom

My friend Peter Harkins has joined this new place called Cambrian House. They are based in Calgary, I’d love to do some marketing for these folks as a trip to Banff or Drumheller would be oh so nice!

Cambrian House’s mission is to discover and commercialize
software ideas through the wisdom and participation of crowds.
Contributors earn royalties, sharing in the success of the products.”

I could have oh so used this concept for my music business plan from 2003 that went unexecuted! I see great world changing value in the new things that are being created out there that are removing friction from the start up process!

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My Next Big Gig

Lots of people ask me for details of what my next leadership role would look like. They want to know my ideas for using traditional sales, marketing and business development in conjuction with strategies to build passionate users and use attendance of events, networking with influencers and blogging about the events themselves to put focus on these issues. So I was challenged to put that together by someone. **I want to be clear that this a corporate and not an agency or consulting perspective!** I’m happy to customize a spec once we have a discussion, please ask!

CUSTOMER EVANGELIST

POSITION
As Customer Evangelist, you will contribute to lowering customer acquisition costs and increasing the frequency of acquisition, remove objections to usage and adoption, drive continuous innovation from customer and partner listening and increase usage frequency. Customers whose lives you touch will be transformed into passionate spokespeople to create positive word of mouth and make YOUR COMPANY the most adored brand in the world leading to high user adoption rates of your product and feature introductions.

This individual is a leader and rainmaker capable of seeing the big picture as well as the finer details. This is a roll up your sleeves, dig in and get it done role. The CEO strives to create a participative and progressive culture and is committed to executive sponsorship of the customer evangelist’s transformational activities to meet priority goals through resource allocation as necessary.

RESPONSIBILITIES

  • Role will likely be about 50% (depending on the organization) mix of traditional brand shaping, partnering creation, sales, marketing, viral marketing, data metric and reporting invention, business development and you are always seeking ways to do things differently and better using new technologies and/or techniques like search engine optimization. Create viral acquisition. 
  • Travels to networking events and conferences targeting early adopters, influencers and generation to listen to customers, potential strategic partners and expand brand awareness. Strive to develop speaking engagements and evangelize YOUR COMPANY’S BRAND AND PRODUCTS as the preferred product distribution channel and consumer’s destination of choice for local purchases.
  • Identifies new partnership and distribution opportunities as they arise in networking and communicate them to other team members for analysis of brand implications and then participate in execution.
  • Be a critical voice of YOUR COMPANY’s new customer experience blog. This blog profiles unique product usage by customers as well as blogging about conferences attended by Customer Evangelist where you build strong networking relationships. This blog also creates transparency and trust by listening to blogosphere feedback to prioritize feedback for introducing new features and initiatives.
  • Participates in blogosphere brand monitoring, conversation and shaping as well as competitive landscape with YOUR COMPANY’s team to build the world’s most responsive and adored brand.
  • Places periodic feedback phone calls to existing partners leaders to ask “How are we doing?” and “What can we do better together?”
  • Monitors new disruptive technologies (like mobile and location based services), through networking events and other research, in order that they can be embraced. In some countries, PC ownership is low and mobile devices rule, we need an individual to be open to that changing in North America and making our platform flexible and relevant in eventual foreign markets.
  • Coordinate with other “voices of the customer” touch points throughout the company to integrate the feedback into the continuous innovation research and scope expansion.

 QUALIFICATIONS

  • An understanding that flexibility in what your role may periodically require from you, especially in terms of extensive travel, is critical.
  • A clear passion for satisfying and listening to customers, disruptive technology, simplifying processes and relationship building through both traditional and new age communications tools. It is required to do the customer profiles that you have had experience bringing out why people do what they do.
  • Communicates well with both C-level executives and other groups within and outside the organization. Understands that different types of communication are necessary. Respects the importance of each individual in driving both change and customer satisfaction.
  • Previous experience in a hyper growth company which utilized technology to transform customer experiences in a learning, innovation and highly collaborative, rapidly changing culture.
  • Possess a clear passion for networking, search, process simplification, online marketing and customer relationship management.
  • Superior command of data models and appreciates the importance of tying together disparate data sources to create value for both customers and the organization while appreciating personal privacy. Previous experience working with Phd’s or heavy engineering types is welcomed and is a definite plus.
  • Candidate will have an existing blog with a growing readership of A-list readers.
  • B.S., Top 10 MBA strongly desired.

Again, this is a draft document that is a foundation of postition customization (if you are a small startup this would be appropriate to do!) My ability to network and use event attendance in a unique way is one of my emerging and potentially most valuable assets when mixed with my strong strategy and data abilities.

Please read my bio further if this is your first time here.

Thanks!