2009年07月23日
I had three bad customer experiences this past week (two of which I will discuss below). All of them were caused by employees inflexibly following rules that either have no value or should not be applied blindly in every situation. In each case, two key ingredients were missing: flexibility and common sense.
Situation #1: Turn out the Lights, the Party’s (not) Over
This took place Saturday night at a charity event at a chain restaurant. The event itself was excellent, raising lots of money for a good cause. The problem came at 10pm, when the event was over. At that time at least 100 people still remained. And none of them were in a mood to go home. People were ready to buy more drinks and order more food. But instead of welcoming us, we were somewhat rudely shuffled into a small corner of the restaurant so that they could clear the area for incoming customers. However, there were no customers waiting and other areas of the restaurant were also open. In short, they treated sure-thing customers poorly in order to be able to accommodate potential customers who may or may not arrive. Well, the corner was crammed, leading almost all of us to leave and head to another location, which gladly took our money. So, not only did the restaurant lose money that night, they also created negative feelings that will make many of us less likely to go their again in the future.
Situation #2: Bait and Switch
This past Sunday, I was in Sakuragicho with my youngest daughter. She saw the giant ice cream cone outside the cafe (see picture above) and of course it enticed her. It was a hot afternoon and she had been a good girl at her big sister’s orchestra performance, so I agreed to let her have a soft cream. When we walked into the cafe, it was empty. It was around 3pm, in between lunch and dinner, which may have explained why it was so empty. But when I told them I wanted a soft cream for my daughter, they said they could not serve me only a soft cream. “This is a cafe,” one of the previously idle waiters said. Another one piped in that we could take one to go, but we could not eat it inside. Well, it was hot outside, which would have melted the ice cream a lot faster than my little girl could eat it. So, I said never mind, we’ll find someplace else, and we did. We ended up going to the top of the Landmark Tower, Japan’s tallest building, where my girl had her ice cream and I enjoyed a delicious Yokohama White Ale. We enjoyed our treats and the gorgeous view while the crew at cafe we left behind waited patiently for the dinner crowd that would come, or not. Again, a little flexibility would have gone a long way here. I would have understood if the place was packed, but it was absolutely empty. Sure, it is not a big deal to lose one ice cream sale. But, had they treated us well it definitely could have led to other visits, with more people and larger orders. Instead, they lost my family as customers forever. And by the looks of the empty restaurant it is likely others have been turned off by their inflexibility as well.
I want to emphasize an important point: I usually receive great service in Japan. And you know it is sincere, since employees here do not work on tips like in the US. Still, even in friendly establishments, it is very rare that you will find a place that will go off the menu or substitute one item for another. One place I went to wouldn’t even exchange wheat bread for white bread! Meanwhile, in other countries I have been to, such as Korea and Hong Kong, businesses are much more customer-focused as opposed to rule-focused. For example, you would never see an Irish-style bar in Hong Kong close at 11pm because the staff needs to catch the trains home, which I once observed at a place in Toranomon. And this inflexibility exists beyond retail establishments. I am sure all of you with experience in Japan have come across rules that make no sense or that should not be iron clad in all cases. My hope is that as the future executives among my readers move up your respective corporate ladders that you will instill greater flexibility and common sense in your companies’ policies. It will be better for your businesses, your employees and your customers, especially the ice cream lovers among us.
2009年07月13日
What do these two items have in common? They are both disposable commodities that consumers buy again and again. Correct. What else do they have in common? They both can be bought at Tomods’ Pharmacy in Tokyo. That’s right, a place where people go for health products also sells what some call cancer sticks or coffin nails. To me, that’s worse than dentists handing out candy to their patients.
I made this discovery when I went to buy refill blades for my Gillette Fusion Power razor. As an aside, I have never found a better razor than this one. It is battery operated but can be used in the shower, and its five blades work very smoothly and quickly. What’s more, each disposable blade set can be easily be used for a week, and I have gone up to two weeks without a replacement. (I do not own stock in the company, so this is an unbiased opinion.)
Actually, it is so effective that P&G, which has owned Gillette since 2005, has had to change its marketing strategy recently. The long lifespan of the blades is something of a threat to the razor and blade business model mastered by Gillette’s founder King Gillette early in the 20th Century. Under this model, also known as the freebie or loss leader model, the razor itself is sold at or below cost, just to get the product in peoples’ homes. This leads them to buy the blades, which are priced with high profit margins. This is MBA 101 material, so there is no need for me to go into any more detail here. However, the “problem” with the Fusion Power is that its blades work well for so long that consumers replace them much less frequently than P&G would want. As a result, recent commercials have focused not on getting new customers, but on getting existing customers to replace their blades more frequently. In the ads, customers are reminded that when the blue strip turns white, it is time to replace the blade.
But getting back to the cigarettes, I have to say that I wasn’t surprised to see cigarettes for sale at a pharmacy. Anyone who has been in Japan for more than a few days knows that is a smoker’s paradise (and a non-smoker’s hell). Most restaurants still allow smoking, with small or non-existent non-smoking areas. People smoke on the streets at will, even in places like Shinagawa Ward where it is prohibited. Worst of all, the government tacitly endorses smoking, largely because it still holds a stake in JT, the RJR of Japan. It also generates substantial tax revenue from smoking, which helps explain the timid warning labels like “Please don’t smoke too much, OK?” for more than a few days knows that is a smoker’s paradise (and a non-smoker’s hell). Most restaurants still allow smoking, with small or non-existent non-smoking areas. People smoke on the streets at will, even in places like Shinagawa Ward where it is prohibited.
Now, this is not meant to bash smokers. Based on the experiences of friends and family members, I know it is very difficult to quit. However, I do believe the Japanese government should do much more to discourage smoking in public. Not only would it keep second hand smoke from affecting non-smoking patrons and workers, but it would create a stigma that would motivate many smokers to quit. That was the strategy used to great affect in California, New York and other early movers in the non-smoking crusade.
But if you can’t quit smoking, at the very least, I urge all MBA candidates to NOT smoke prior to an interview. The worst impression you can make is to come into an interview smelling like an ashtray. What you should do before the meeting, is shave with a new Gillette Fusion Power razor. But please don’t wait too long to change the blade, OK?
2009年07月04日
The Tuck School of Business will be holding an information session in Tokyo on Sunday July 12th at the ANA Intercontinental Hotel In Akasaka from 2:30 to 4:30pm. Full details can be found online here:
Dartmouth’s Tuck School of Business was founded back in 1900, making it the world’s oldest graduate business school. It is also one of the best, consistently ranking in the top 10. And based on what several of my past clients have told me, the high ranking is well-deserved. In fact, if anything Tuck is probably under-appreciated, at least here in Japan. Tuck is a school that truly promotes collaboration and teamwork. The supportive environment is conducive for developing important leadership skills. It is also an ideal location for those who want to take a break from the big city for awhile and enjoy the tranquility of rural surroundings.
So, if you’re interested in learning more about an outstanding program, it is definitely worth attending. And don’t worry if you don’t know a lot about the school yet. This is your chance to find useful information and make valuable connections. Registration is required, so please book your place at http://www.smaster.jp/Sheet.aspx?SheetID=16021
by July 7th. Also if you have any questions, please contact tuckreception@gmail.com.
I had three bad customer experiences this past week (two of which I will discuss below). All of them were caused by employees inflexibly following rules that either have no value or should not be applied blindly in every situation. In each case, two key ingredients were missing: flexibility and common sense. 
