Multi-Unit Franchisee Magazine Issue IV, 2016 | Page 64
CustomerService BY JOHN D I J U L I U S
Are You Ready
for a New Reality?
Is Pokémon GO a new way to attract
customers into your stores?
P
okémon GO, the hot new augmented reality (AR) game is
not just another fad or trending game on the market—it is
a cultural phenomenon. While gamers see
it as just another way to play games, many
businesses are reaping huge benefits by
paying to have Pokémon located inside
their business. A pizzeria in Queens, N.Y.,
claims they are getting new customers all
day trying to capture Pokémon.
This is a game changer, and the possibilities are endless. What if Starbucks
put a Pokémon in every cafe? What if
retail stores added them? Businesses must
quickly learn, understand, and get used to
AR. If a small pizzeria can figure out how
this gives them a competitive advantage,
the behemoth brands will figure out how
they can improve the customer experience by integrating AR.
Smart businesses will evolve AR to
drive more customers through their
doors. Customers could be alerted on
how to take advantage of limited double
bonus points similar to how people capture Pokémon. I have said for years that
on-site, in-store shopping should offer
GPS tracking to what you are looking
for. This can be anything from trying to
find specific products in a grocery store
to an attraction at Disney.
Open door policy
I know what some of you are thinking:
“I don’t want a bunch of people walking
into my business with no intention of
purchasing anything.” That mentality
drives me crazy.
Once I was in my favorite store, Apple,
spending a great deal of time and money.
As I was on my spending spree, I needed
a bathroom. I asked the Apple associate
where the nearest public restroom was,
and she responded, “You can use the one
at the smoothie place next door.” So I ran
next door and did so. As I was leaving I
saw that they had smoothies and wraps, it
62
was lunchtime, and I was pretty hungry.
After I wrapped up my Apple purchase
I went right back to the smoothie place
and ordered my lunch and a smoothie.
As I was eating, I asked if the owner
or operator was available. When he came
out to my table, I thanked him for allowing people to use his restroom. His face
changed to agitated. He said, “Did Apple
tell you that you could use our restroom?
Our restrooms are only for our paying
customers.” I said, “But I didn’t even know
your business existed until I ran in here to
use the bathroom, and as a result I purchased my lunch here.” He responded,
“Well, we’ve been here for nine years.”
Now I was sorry I purchased anything
from this location, even though both the
smoothie and wrap were pretty good.
This operator didn’t get it. The entire
reason you pay such high rent to be next
to an Apple store is for increased awareness and foot traffic. The only thing better than foot traffic outside your store is
foot traffic inside your store. I would take
it one step further and give free smoothies to the Apple associates who tell their
customers to use my restrooms. Drive
traffic in my doors, please! Businesses
must stop being worried about being
taken advantage of and instead take advantage of opportunities to increase their
brand awareness and demonstrate their
friendliness.
Free Coke for all!
In 2003, Jeff and Bill Smith opened Easy
Money, a payday and check cashing financial institution based in Birmingham, Ala.
Payday loan centers typically charge high
interest rates to customers who may have
fallen on hard times, need cash fast, and
are limited in their options. The Smith
brothers did something totally unconventional almost from the start: they put
a Coke dispenser in the waiting area in
each location so customers could enjoy
a free soda as they waited. This became
popular with customers and the neighborhood. Asked why they offered free Coke,
Jeff said, “We wanted to get our name out
there in the community. We wanted a way
to connect with local people. We became
known as the place that gives away free
drinks.” They also told customers who
had paid off their loans to stop by, say
hello, and have a free Coke.
People started coming in for a Coke—
sometimes only for a Coke—which made
managers concerned they were being
taken advantage of. “I would have managers calling me all the time saying that
people were asking if they could have
more than one. And I would tell the managers to tell them to take as many as they
wanted,” Jeff said. “A manager would call
and say a woman pulled up to the store
and her kids ran in and grabbed some
Cokes and ran out. I would say ‘That is
totally okay. More and more people are
becoming aware of us, and we are training them to come in. Don’t worry about
how many Cokes people are taking.’ Most
people are skeptical about walking into a
payday loan center. This humanized Easy
Money to the neighborhood.”
Not everyone in the neighborhood
liked it. The local gas stations and C-stores
started to complain that Easy Money was
taking a bite out of their Coke business.
Easy Money gave away so much Coke—
about 2 million drinks per year—that the
Smiths were earning trips reserved only
for Coke’s top customers. This became
a $400,000 expense on their P&L. Even
I was blown away by this. I asked Jeff if
he ever thought about stopping the free
Cokes and adding $400,000 to the bottom
line. He said, “No way. I can’t measure the
goodwill and foot traffic we get, as well as
being an integral part of the community.”
How did this work out? Easy Money’s
revenues grew on average between 80 and
100 percent every year. They went from 4
employees and 2 locations to more than
250 employees and 21 locations before
selling the company.
John R. DiJulius III, author
of The Customer Service
Revolution, is president of
The DiJulius Group, a customer service consulting firm
that works with companies
including Starbucks, Chickfil-A, Ritz-Carlton, Nestle, PwC, Lexus, and
many more. Call him at 216-839-1430 or
email [email protected].
MULTI-UNIT FRANCHISEE IS S UE IV, 2016
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