Tom Peters’
Re-Imagine!
New Customer
Excellence in an Age
of Commodities
IDDBA/Las Vegas/06.01.2003
Slides at …
tompeters.com
1. The New Value Added
Revolution: Beyond
“Satisfied
Customers.”
Base Case: The
Sameness Trap
“While everything may
it is also
increasingly
the same.”
be better,
Paul Goldberger on retail, “The Sameness of Things,”
The New York Times
“When McDonald’s first started
exporting its formula of quality,
cleanliness and service, it was
something of a novelty. … These
days, quality, cleanliness and
service are a given—and people
are becoming more interested in
what they are eating.” —FT/12.21.2002
New Customer
Excellence: Re-making
the Value Equation
Systems
Integrator of
choice. Global Services:
Gerstner’s IBM:
$35B. Pledge/’99: Business
Partner Charter. 72 strategic partners,
aim for 200. Drop many in-house
programs/products. (BW/12.01).
“No longer are we only an
insurance provider. Today,
we also offer our customers the
products and services that help them
achieve their dreams, whether it’s
financial security, buying a car, paying
for home repairs, or even taking a
dream vacation.”—Martin Feinstein, CEO,
Farmers Group
Nardelli’s goal ($50B to $100B by 2005):
“… move Home Depot beyond selling
‘goods’ to selling ‘home services.’ …
He wants to capture home
improvement dollars wherever and
however they are spent.”
E.g.: “house calls” (At-Home Service: $10B by ’05?) …
“pros shops” (Pro Set) … “home project management”
(Project Management System … “a deeper selling
relationship”).
Source: USA Today/06.14.2002
It’s All About EXPERIENCES: “Trapper” to
“Wildlife Damage-control Professional”
Trapper: <$20 per beaver pelt.
WDCP: $150/“problem beaver”;
$750-$1,000 for flood-control
piping … so that beavers
can stay.
Source: WSJ/05.21.2002
2. A World of
Scintillating/
Awesome/ WOW
“Experiences.”
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
“Club Med
is more
than just a ‘resort’; it’s a
means of rediscovering
oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
“The [Starbucks] Fix” Is on …
“We have identified a ‘third
place.’ And I really believe that
sets us apart. The third place is
that place that’s not work or
home. It’s the place our
customers come for refuge.”
Nancy Orsolini, District Manager
Experience: “Rebel Lifestyle!”
“What we sell is the ability for
a 43-year-old accountant to
dress in black leather, ride
through small towns and have
people be afraid of him.”
Harley exec, quoted in Results-Based Leadership
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
1940: Cake from flour, sugar (raw
materials economy): $1.00
1955: Cake from Cake mix (goods
economy): $2.00
1970: Bakery-made cake (service
economy): $10.00
1990: Party @ Chuck E. Cheese
(experience economy) $100.00
“I see us as being in
the art business. Art,
entertainment and mobile
sculpture, which,
coincidentally, also
happens to provide
transportation.”
Bob Lutz:
Source: NYT 10.19.01
“Car designers need to create a
story. Every car provides an
opportunity to create an adventure.
…
“The Prowler makes you smile.
Why? Because it’s focused. It has a
plot, a reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer
Audi TT
Hmmmm(?): “Only” Words …
Story
Adventure
Smile
Focus
Plot
Passion
Plot
Sharper Image … 8+
Smith & Hawken … 8
Crate & Barrel … 7
Williams Sonoma … 5
L.L.Bean … 3
I Know It (Plot) When I See It!
Draeger’s (Menlo Park, CA) … 10+
Roberts of Woodside … 10+
Peltiers (Dorset VT) … 10+
Whole Foods … 10+*
*WF = 4S = Nirvanna
6 Chain Groceries in May
Selection … B-* (*0A)
Presentation … C-* (*0A)
Personal service … C/C-* (*1A, 2D)
Experience/WOW … C-* (*Kind, 0A)
Spontaneous purchases … 2
This Is Soooooooo COOL: Food/Fantasyland/
Field of Dreams/DisneyWorldPlus
Dairy!
Deli!
Bakery!
Wine!
(Fresh) (Packaged) Produce!
Flowers!!!!!!!!!
Prepared Meals!
(And the rest is details!)
Hire a
theater director, as
a consultant or
FTE!
First Step (?!):
Experience …
Cirque Du Soleil
DO YOU MEASURE UP?*
*If not, why not?
“Most executives have no
idea how to add value to a
market in the metaphysical
world. But that is what the market
will cry out for in the future. There
is no lack of ‘physical’ products to
choose between.”
Jesper Kunde, Unique now ... or never [on the
excellence of Nokia, Nike, Lego, Virgin et al.]
Extraction & Goods:
Male dominance
Services &
Experiences: Female
dominance
2+. Embracing
the “Dream
Business.”
DREAM: “A dream is a complete
moment in the life of a client.
Important experiences that tempt
the client to commit substantial
resources. The essence of the
desires of the consumer. The
opportunity to help clients become
what they want to be.” —Gian Luigi
Longinotti-Buitoni
The marketing of Dreams (Dreamketing)
Dreamketing: Touching the clients’
dreams.
Dreamketing: The art of telling stories and
entertaining.
Dreamketing: Promote the dream, not the
product.
Dreamketing: Build the brand around the
main dream.
Dreamketing: Build the “buzz,” the
“hype,” the “cult.”
Source: Gian Luigi Longinotti-Buitoni
3. The
“Soul”
of “Experiences”:
[Mostly Ignored]
Design Rules!
Design Transforms even the
[Biggest] Corporations!
TARGET … “the champion of
America’s new design democracy”
(Time) “Marketer of the Year 2000”
(Advertising Age)
All Equal Except …
“At Sony we assume that all products of
our competitors have basically the same
technology, price, performance and
Design is the only
thing that differentiates one
product from another in the
marketplace.”
features.
Norio Ohga
Design “is” … WHAT &
WHY I LOVE.
LOVE.
Design “is” … WHY I
GET MAD.
MAD.
Design is never
neutral.
DESIGN is the
principal difference
between love and
hate!
Hypothesis:
Message (?????): Men
cannot design for
women’s needs.
3+. Packaging
Power!
Thomas Hine: The Total
Package: The Secret History
and Hidden Meanings of
Boxes, Bottles, Cans, and
Other Persuasive Containers
“The most fundamental difference
between a traditional market and
the places through which you push
your cart is that in modern retailing
all the selling is done without
people. It replaces people with
packages.” —Thomas Hine/The Total Package
“Packages have
personality. They create
confidence and trust.
They spark fantasies.
They move the goods!”
—Thomas Hine/The Total Package
Oatmeal/1870: “horses and a few
stray Scots”
Oatmeal/1890/Quaker: “a delicacy
for the epicure, a nutritious dainty
for thr invalid, a delight to the
children”
Difference: Packaging!
Thomas Hine/The Total Package
“Salt is salt is salt. Right? Not when it
blue box
comes in a
with a
picture of a little girl carrying an umbrella.
Morton International continues to
dominate the U.S. salt market even though
it charges more for a product that is
demonstrably the same as many other
products
on the shelf.”
Tom Asaker, Humanfactor Marketing
Research: customers aware of
11,000 packages in 1,800 seconds
walking the aisles.
th
Opportunity = 1/6
second!
Source: Thomas Hine/The Total Package
“What’s important to recognize is
that fast-food and motel chains are
not ‘like packages’, but that they
are packages—packaged
places and experiences.” —Thomas
Hine/The Total Package
4. “It” all adds up
to … THE
BRAND.
“WHO ARE
WE?”
“WHAT’S
OUR
STORY?”
“We are in the twilight of a society based on data. As
information and intelligence become the domain of
computers, society will place more value on the one
human ability that cannot be automated: emotion.
Imagination, myth, ritual - the language of emotion will affect everything from our purchasing decisions
Companies will
thrive on the basis of their stories
and myths. Companies will need to understand
to how we work with others.
that their products are less important than
their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
Branding: Is-Is Not “Table”
TNT is not:
TNT is:
TNT is not:
Juvenile
Contemporary
Mindless
Meaningful
Elitist
Predictable
Suspenseful
Dull
Frivolous
Exciting
Superficial
Powerful
Old-fashioned
Slow
Self-important
4+. Branding’s
Bedrock
Brand =
Talent.
“AS LEADERS, WOMEN
RULE: New Studies find
that female managers
outshine their male
counterparts in almost
every measure”
Title, Special Report, Business Week, 11.20.00
5. Trends I:
Women
Roar!
?????????
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel
equipment)
Houses … 91%
D.I.Y. (“home projects”) … 80%
Consumer Electronics … 51%
Cars … 60% (90%)
All consumer purchases … 83%
Bank Account … 89%
Health Care … 80%
91% women:
ADVERTISERS DON’T
UNDERSTAND US.
(58% “ANNOYED.”)
Source: Greenfield Online for Arnold’s Women’s Insight Team
(Martha Barletta, Marketing to Women)
Carol Gilligan/ In a Different Voice
Men: Get away from authority, family
Women: Connect
Men: Self-oriented
Women: Other-oriented
Men: Rights
Women: Responsibilities
FemaleThink/ Popcorn
“Men and women don’t think the same
way, don’t communicate the same way,
don’t buy for the same reasons.”
“He simply wants the transaction
to take place. She’s interested in
creating a relationship. Every place
women go, they make
connections.”
“Men seem like loose cannons. Men
always move faster through a store’s
aisles. Men spend less time looking. They
usually don’t like asking where things are.
You’ll see a man move impatiently
through a store to the section he wants,
pick something up, and then, almost
abruptly he’s ready to buy. For a
man, ignoring the price tag is almost
a sign of virility.”
Paco Underhill, Why
We Buy* (*Buy this book!)
Read This: Barbara & Allan Pease’s
Why Men Don’t
Listen & Women
Can’t Read Maps
“Resting” State: 30%, 90%: “A
woman knows her children’s
friends, hopes, dreams, romances,
secret fears, what they are
thinking, how they are feeling. Men
are vaguely aware of some short
people also living in the house.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“As a hunter, a man needed vision that
would allow him to zero in on targets in the
distance … whereas a woman needed eyes
to allow a wide arc of vision so that she
could monitor any predators sneaking up
on the nest. This is why modern men can
find their way effortlessly to a distant pub,
but can never find things in fridges,
cupboards or drawers.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
Senses
Vision: Men, focused; Women,
peripheral.
Hearing: Women’s discomfort
level I/2 men’s.
Smell: Women >> Men.
Touch: Most sensitive man <
Least sensitive women.
Source: Martha Barletta, Marketing to Women
Editorial/Men: Tables, rankings.*
Editorial/Women: Narratives that
cohere.*
*Redwood (UK)
“Women weren’t comfortable in
our stores. So I figured out where
they would be comfortable—most
likely their own homes. The [first
Nike Goddess] store has more of a
residential feel. I wanted it to have
furniture, not fixtures. Above all, I
didn’t want it to be girlie.” —John Hoke,
designer, Nike
Read This Book …
EVEolution:
The Eight Truths of
Marketing to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your Female
Consumers to Each
Other Connects Them to
Your Brand
“Women don’t buy
They
join them.”
brands.
EVEolution
“War has broken out over
your home-improvement
dollar, and Lowe’s has
superpower Home Depot on
the defensive. It’s not-so-
secret ploy: Lure
women.” —Forbes.com
“Home Depot is still very much a guy’s
chain. But women, according to Lowe’s
research, initiate 80 percent of all homeimprovement purchase decisions,
especially the big ticket orders like kitchen
cabinets, flooring and bathrooms. ‘We
focused on a customer nobody in home
improvement has focused on. Don’t get me
wrong, but women are far more
discriminating than men,’ says CEO Robert
Tillman, 59, a Lowe’s lifer.” —Forbes.com
1. Men and women are different.
2. Very different.
3. VERY, VERY DIFFERENT.
4. Women & Men have a-b-s-o-l-u-t-e-l-y
nothing in common.
5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF.
7. Women’s Market = Opportunity No. 1.
8. Men are (STILL) in charge.
9. MEN ARE … TOTALLY, HOPELESSLY
CLUELESS ABOUT WOMEN.
10. Women’s Market = Opportunity No. 1.
6. The Passion
Leading
in a “PostSatisfaction”
World.
Imperative:
“Create a
‘cause,’ not a
‘business.’ ”
G.H.:
“Grocery” Opportunity No. 1
Entertainment-ExperienceDreamketing
Disneyland!/Field of Dreams!
Pure aesthetic-sensual pleasure!
Feminine!
(Best defense-offense re Wal*Mart)