Friday, January 30, 2009

NO DECAF STRATEGY!

If you follow me on Twitter then you saw that I made a comment about Starbucks recently. Apparently, they plan to pursue a number of cost-cutting initiatives including cutting jobs and store locations. In addition, they plan to stop offering decaf coffee in the afternoons. Isn't that when people drink decaf? I guess I'm kickin' it "old school" when it comes to this stuff because I don't understand that strategy. Without having a complete picture of the idea it would be my guess that this may improve operating margin in the short-term. At any rate, this post is mostly about the reaction that Caribou Coffee is taking towards the Starbucks decaf cut. I LOVE IT!

Here's a recent press release:

MINNEAPOLIS, Jan 29, 2009 /PRNewswire-FirstCall via COMTEX/ -- Caribou CoffeeCompany, Inc. (Nasdaq: CBOU), the second largest company-owned gourmet coffee house operator based in the U.S., will give away free cups of decaf coffee starting at noon on Friday, January 30.

The promotion is in response to competitor Starbucks eliminating decaf coffee ready in the afternoons. All Caribou Coffee locations will offer free 12-ounce cups of decaffeinated coffee from noon until closing on Friday, January 30.

"Decaf drinkers deserve better!" says Caribou Coffee Senior Vice President of Marketing Alfredo Martel. "Caribou Coffee is first and foremost a coffeehouse, emphasis on coffee. We strive to give our customers the very best coffee, when, where and how they want it. And if that means a cup of decaf in the afternoon,then we're more than happy to oblige. We invite all decaf coffee drinkers to experience Caribou Coffee's exceptional customer service by tasting a truly delicious cup of our Natural Decaf(TM) coffee on the house.

"Contrary to competitors, Caribou Coffee first selects the highest quality coffeebeans, then uses an all-natural decaffeination process involving no chemicals. Soaking the beans in an all-natural water solution draws out the caffeine, leaving the robust coffee flavors, but none of the buzz. The result is a smooth,delicately balanced decaffeinated coffee experience, indistinguishable from regular coffees.

ABOUT THE COMPANY Caribou Coffee (CBOU), founded in 1992, is the second-largest company-owned gourmet coffeehouse operator in the world based on number of coffeehouses. At Caribou Coffee, our mission statement is "an experience that makes the daybetter." We provide this by sourcing the highest-quality coffee in the world and craft roasting it in small batches to bring out the best in every bean. We then bring this extraordinary coffee to our customers via several channels including grocery locations, online or via our coffeehouses, which provide a relaxing escape for our customers. Caribou Coffee is committed to expanding our business by bringing this experience to new customers through multiple means without compromising our unwavering commitment to quality. Caribou Coffee is a proud recipient of the Specialty Coffee of America Association's (SCAA's) 2008 Roasters Choice Tasting Competition Gold Award.

SOURCE Caribou Coffee Company, Inc.

Monday, January 26, 2009

A BUSINESS PLAN CAN SAVE YOUR LIFE!


Most of you know that I am a big proponent of business plans. Here's a great video about how a plan can save your life and your business.




Tuesday, January 6, 2009

RUDE CUSTOMERS - BEWARE!

Here is a post from Geoffrey James that my team has found very interesting. Although we haven't seen a rise in the number of rude clients (they're rare), we do have reports from other sales professionals in our network that tensions are high out there due to the economy. Enjoy!

I started my morning off with a customer chewing my rear off about a product. We’re talking rude, degrading, disrespectful insults flying out of this man’s mouth! I put on my best smile and worked to “pop” his balloon. But to no avail. He hung up, probably satisfied that he was superior in the battle. He slammed me, my company, and companies that did business with us. It took every part of me to keep my control and let this guy fume! My question is…are there just some times when all your sales knowledge just doesn’t help? And is there ever a time when you can just let loose? Please say yes! I’m still steaming!

Well, the standard answer is that you’re never supposed to “let loose.” After all, if “the customer is always right,” it’s your job to stand there, nod, and take it, right?

I don’t think so.

If you’re in sales, you’re a professional. Which means that you have the RIGHT to civility and respect. No exceptions.

Before I go further, though, I need to emphasize that the advice that I’m about to give is for sales professionals, not people working in customer support. Sales professionals can and must interact with customers on a peer-to-peer basis. Customer support personnel are paid to be subservient. Different role, different approach.

So here’s my advice for sales professionals. If somebody is being intense with you, then a failure to get intense in return only makes them more intense. If you want to defuse the situation, you need to get in rapport with the customer, which you can’t do if you’ve got “welcome” tattooed on your chest.

When a customer gets rude or loses his temper, the correct response is not to placate (i.e. “put on your best smile”), but to increase your own intensity and then demand civility.

Here’s how:

STEP #1. Raise your own intensity level. Don’t become as intense as the customer, but let your voice become firm and authoritative. If you’re face-to-face, put on a serious expression, one that expresses clearly that you don’t appreciate being yelled at. You’re a professional, not a doormat. Act like one.
STEP #2. Call the customer’s bluff. State clearly that you’re willing to help resolve the problem, but you’re not going to be yelled at. Don’t mince words. Make it clear that your help is dependent upon the customer’s ability to behave in a civil manner. In most cases, the customer will BREATH A SIGH OF RELIEF. It’s quite noticeable.
STEP #3. If the customer doesn’t comply, end the conversation. Do this politely but firmly. State that you’ll be glad to help once the customer is willing to treat you with the respect that you deserve. You will almost never need to do this, but it sometimes happens.
STEP #4: Apologize for the problem. Once you’ve demanded, and gotten, civil behavior — then and only then — you should apologize for the inconvenience that the problem has caused the customer. Explain that you are just as committed as the customer is to resolving the problem.
STEP #5: Work on the problem. Now that you’ve established rapport and the fact that you’re a professional, you can go ahead and work the customer’s issue.

The reason that sales pros don’t insist upon respect is that they’re afraid that that the customer will become even more rude. But answering intensity with (appropriate) intensity is giving the customer what he or she really wants, which is a connection. The customer wants to be heard. And nothing is more frustrating to an angry person than getting a “have a nice day” brush-off and nothing fuels a bully more than weak-kneed caving.

There are three advantages to demanding respect, before you work a customer problem:

1. It’s easier on your nerves. No job is worth being abused. If you’re a sales professional, you can always get a job elsewhere, anyway, so there’s no excuse for putting yourself through this kind of emotional wear and tear.
2. It establishes your credibility. When you placate, you’re just proving to the rude customer that you’re not a professional and therefore not reliable as an individual. The customer figures that, if you had something valuable to offer, you wouldn’t take the guff.
3. It prevents future flareups. Once you’ve laid down the ground rules for interaction, you’ll get the respect you deserve. I saw this happen with a boss who yelled at employees until they mustered the courage to yell back. At that point, he was satisfied and never yelled at that person again.

In other words, stop getting “steamed” and start standing up for yourself. You’ve got nothing to lose… except the aggravation.

What are some situations that you have been in with a customer? How did you handle it and what tips do you have?