Salim Bueno's Blog

Brands that treat customers with love and respect create Brand Lovers. Brand Lovers are the most valuable customers because they buy from the brand more often and create new customers through positive word of mouth. Brands like Southwest Airlines embrace their Brand Lovers and take every oppurtunity to show them respect and Love. By not following the airline industry trend of baggage fees Southwest Airlines demonstrated respect for their customers. Southwest let their brand lovers know they were not going to get nickel and dimed.

But not all brands have Brand Lovers. In fact some brands treat their customers so bad they create Brand Haters. Brand Haters are not afraid to talk negatively about your brand. In fact if you upset your customers enough they will go out of their way to rally against your brand.

Recently in a meeting with Salomon Sredni, Chief Executive Officer of TradeStation Group the topic of Brand Lovers and Brand Haters came up. He shared with the group an awesome example of what happens when you treat your customers with no love or respect.

Dave Carroll has every right to be angry. As a musician his guitar is not only his livelihood but his love. When United Airlines decided to throw around guitars and other bags they stopped treating their customers with love and respect. Dave Carroll’s song “United Breaks Guitars” has gain popularity not only because it is a catchy tune but because other people have had a bad experience with United Airlines. The song has been viewed more than 4 million times in the past month on YouTube. Web2.0 has given customers a bigger bullhorn and they aren’t afraid to use it. There are over 20,000 comments on the video with customers who also feel like Dave Carroll about United Airlines. Here are some of my favorite comments.

Comments on United Breaks Guitars

Customers take note of how you treat them and they will speak up against you. If you break their heart they will break yours.

On May 22-24, 2009 MINI Cooper celebrated their 50th birthday in Great Britain. The event featured live concerts, unique classic Mini’s, and 25,000 fans from around the world. The film “Rebel without Pause” was created by MINI to celebrate their brand lovers from around the world and the passion they have for their MINI. You will find that MINI customers are more alike than they are different.

Rebel Without Pause: Part 1

Rebel Without Pause: Part 2

The new MINI cooper was introduced to the US in 2001 and it was an instant success. By 2003 MINI won the North American Car of the Year award and the competition started paying attention. Car manufacturers began imitating the MINI’s sporty design, painted roofs, and bonnet stripes. Suddenly the streets were filled with fake MINI’s.

In 2005 MINI began to educate customers about counterfeit MINI’s .

Imitation is the sincerest form of flattery. MINI did not panic when the competition began imitating them. MINI stayed true to their core values and continued to build a unique experience for their customers.

In a recent ad Suzuki compares the SX4 with a Mini Cooper (base model). The ad claims that the SX4 is mightier than the Mini because of its 4 wheel drive and 25 more horsepower. The commercial targets people who want a Mini but can’t afford one.

This is what happens when someone who wants a MINI gets a SX4.

The SX4 sold 2,523 in January and February. MINI sales were almost double the SX4 at 4,908. By continously embracing the customer MINI has made it difficult for competitors to steal their market share.

What makes the MINI Cooper special can not be found in car specification sheets.  The unique design,  great customer service, and above all the MINI community is what sets MINI apart from the competition.

Most brands are focused on constantly creating new customers instead of retaining the ones they already have. These brands change their message, products and events often and they worry little about those customers who already chose them. These brands attract transactional customers and rarely form a loyal following.

Cult brands understand that retaining a customer is more profitable than constantly making new ones. But loyal customers don’t appear over night, a brand has to be consistent over years to attract these customers. Customers who engage in a relationship with a brand have done it because they know what they can expect from the brand. To create a loyal following a brand must have traditions that brand lovers can rely on. Traditions give customers a sense of being part of something bigger than themselves, a feeling of being part of a family.

World Wrestling Entertainment are masters of creating and keeping traditions alive. For the past 25 years WWE has given their fans Wrestle Mania. This super bowl of wrestling is the climax of an entire year of brawls. The event was first produced in 1985 and 25 editions have been produced as of 2009. All of the events produced have been sold out within a short period of time, with recent editions being sold out within minutes of tickets going on sale.

To keep traditions alive a brand must spend time with their brand lovers. The WWE Fan Axxess Tour is three-months of parties, rallies, and autograph signings for fans across 14 cities in North America. The event energized more than 237,000 fans in the lead up to Wrestle Mania 23.

Keeping the tradition alive paid off for WWE. in 2007 Wrestle Mania 23 achieved 1.2 million pay-per-view buys, achieving global revenues in excess of $24.3 million. “Once again, the WWE fans have responded and made Wrestle Mania 23 a record-setting success,” said Geof Rochester, Senior Vice President, Marketing.

When you rally around your customers you keep traditions alive. Those traditions become memories in your customers minds and your brand becomes part of their life.

Recently I took on a small home project and decided to give K-mart a chance for some landscaping supplies. I parked near the garden center and walked towards the entrance with enthusiasm, I was going to have a beautiful patio soon.

I walked into K-mart and surveyed the entrance for a shopping cart but there was not one cart in sight, not even a basket. How was I suppose to carry bags of gravel, potted plants, and a shovel without a cart? I asked the cashier where I  could find a shopping cart and he directed me towards the main entrance.  I parked near the garden center so I wouldn’t have to walk the entire store and now I had no choice. Of course this was very irritating and most customers would have left immediately. This experience alone could cause K-mart to loose a customer for life.

If you are in retail and you want people to shop for more than one item, make sure you provide them with a basket, shopping cart or small burro to carry their goods.

K-Mart Shopping Burro

It seems to me that K-mart is getting too much department store advice from their parent company Sears Holding Corporation (NASDAQ: SHLD). Although it might seem insignificant, not having shopping carts in all entrances could be costing K-mart millions of dollars. When you are competing against the best (Walmart & Target) you can’t bring your “C” game. If Sears has decided to keep K-mart alive they need to strive for perfection or this brand will surely die.

From the original Nintendo Entertainment System to the Wii, Nintendo has always created new experiences for their customers. Here is a look at the different innovations Nintendo has brought to their customers and the gaming industry.

NES Zapper.

The NES Zapper was first introduced in Japan in 1984 bundled with the Nintendo.  (1984-02-18)Although the NES Zapper was not the first light gun used in video games Nintendo’s Duck Hunt made the light gun an instant hit.

NES Powerpad

Originally created by Bandai in 1986, Nintendo saw the potential of this interactive experience and bought the rights in 1988. Games such as Dance Dance Revolution can thank their success to the Power Pad.

Gameboy

Born in 1989 the Nintendo Gameboy was not the first portable gaming device but it was the first to make it fun. With 10-12 hours of gameplay on 4 AA batteries the Gameboy could embark on any adventure with you.

Nintendo 64

Although four player games already existed in 1996 Nintendo inroduced the first  4-player console with the Nintendo 64. Since its introduction four controller slots are a must in modern gaming consoles.

N64 Controller

Even though the Nintendo 64 was not the first console to use an analog stick (the Vectrex in 1982 was the first), it did popularize the idea. It was also the first controller to incorporate the D-pad (digital pad) and analog stick on one controller.

N64 Rumble pack

Nintendo’s was the first gaming console to introduce force feedback in 1997 with the rumble pack. Today every game controller has force feedback built in.

Nintendo DS Lite

Released in 2004 the Nintendo DS is the first portable gaming system with two LCD screens inside—with the bottom one being a touchscreen. The DS also features a built-in microphone and supports Wi-fi for multiplayer interaction.

Nintendo Wii

The Nintendo Wii, released in 2006, has brought interactive gaming to a new level. Thanks to the motion sensing controller users can interact with video games through physical movement. Today Microsoft and Sony are trying to find ways to incorporate physical interaction with their video game consoles.

Wii Balance Board

Introduced with the game Wii Fit the Wii Balance Board contains pressure sensors that  measure a user’s center of balance. Nintendo has sold 18.22 million copies of Wii Fit worldwide, which include the Wii balance board. The balance board has inspired new fitness, skate boarding, snowboarding, and skying games that are inching closer to reality.

Nintendo has always focused on making new and exciting ways for their customers to experience games. Even when competitors launched more powerful systems Nintendo stayed focus on creating unique experiences. Shigeru Miyamoto, creator of Mario and Zelda, revealed that the Wii concept involved focusing on a new form of player interaction. “The consensus was that power isn’t everything for a console. Too many powerful consoles can’t coexist. It’s like having only ferocious dinosaurs. They might fight and hasten their own extinction.”

Microsoft Xbox 360 has sold approximately 28 million units and Sony Playstation 3 has sold approximately 22 million units. By focusing on what is important to their customers Nintendo has managed to become the top selling video game console with approximately 50 million Wii’s sold world wide.

Being a winner is not a gift or a talent. People are not born winners, they become winners.

The following presentation explores the qualities winners share and how you can make those habits your own.

Anyone is capable of becoming a winner if they are willing to put in the work.

On Friday, June 19, Apple released the iPhone 3G S.

Analysts anticipated lower sales for the new iPhone due to a smaller launch and new competition from the Palm Pre. The phone was debuted in eight countries compared with 21 countries for the 3G launch. Also some iPhone 3G customers are not eligible for the discounted price, discouraging sales. Apple stores had smaller lines than in previous years. Piper Jaffray analyst Gene Munster estimated Apple would sell 500,000 iPhone 3G S units over the weekend, that’s half of what the iPhone 3G did over three days last year.

But analyst did not take into account Apples’ keen ability for launching their products. Apple sold more than 1 million units within the first 3 days.

iPhone 3G S

At just $199 there were plenty of eager customers waiting to buy the new iPhone. Apple also lowered the price of the 3G iPhone to just $99. The new price tag makes the iPhone 3G cheaper than the iPod nano, giving apple customers more reasons to upgrade.

One of the reasons Apple had a successful launch was that customers could  pre-order  their iPhone. Pre-ordering was introduced this year and it paid off in a big way. The iPhone pre-order stock sold out by Tuesday, four days before its launch. Apple enthusiast who pre-ordered the phone had it delivered Friday morning or set aside at stores, helping them avoid the long lines.

The competition has tried to keep up, but Apple doesn’t make it easy. The new Palm Pre with service from Sprint has been called by some the “iPhone killer.”

Palm Pre

The Palm Pre set a new Sprint sales record with approximately 100,000 units sold during its first weekend. Even though the Pre had a strong launch it is still way behind the iPhone. With sales like that the Pre has a lot of work before it can be dubbed an “iPhone Killer.”

“Customers are voting, and the iPhone is winning,” Steve Jobs said. “With over 50,000 applications available from Apple’s revolutionary App store, iPhone momentum is stronger than ever.”

As long as the competition continues to imitate the iPhone, Apple will dominate the mobile phone industry. With all the momentum Apple has built it is going to be near impossible for the competition to catch up.

I was looking at Yahoo’s home page today when I saw an intriguing headline in their featured section.

This made me wonder which company the mystery flight attendant works for. So I read the article carefully for any clues on who signs this flight attendants checks. Although I did not find the answer I was looking for, I did find out that they don’t work for Southwest Airlines.

Here are the clues that confirmed to me this is not a Southwest Airlines flight attendant.

Clue #1

My first clue came as early as complaint number 2 in this article.

“2. Shove your bag into the first bin you see and then walk to your seat in the back of the plane…”

A Southwest Airlines flight attendant would not complain about this. If you are on a Southwest flight shoving your bag into the first bin this means you were first on the plane and you chose to sit in the front.

Clue #2

This clue is also in the second complaint.

“I can’t lie and say we flight attendants don’t take some small satisfaction when we tell you, ‘We couldn’t identify the bag’s owner, so we sent it to cargo.’ It’s a security issue, for real.”

A Southwest Airlines flight attendant would get no satisfaction in inconveniencing a passenger.

Clue #3

The third clue is found in complaint #5

“5. Gripe that you haven’t been seated in a roomy exit-row seat.”

Flight attendants on Southwest Airlines don’t hear this complaint because every seat on every plane is roomy.

Clue #4

This clue was revealed in the last complaint.

“7. Whine about the high price of flying…In recent years, it’s not uncommon for you to be able to cross the continent for under $130 each way, with a maximum of one layover. It’s a bargain!…

If this was a Southwest Airlines flight attendant she would say you can fly across the continent for $49 each way with no layovers. The Southwest Airlines round trip is cheaper than a one way ticket from the competition.

Clue #5

The final clue to the mystery flight attendant is also found in complaint #7

“People point to first class ticket holders and want to know why they don’t get the same treatment. Wake up folks: You’re getting a great deal. If you want even more, pay more!”

At Southwest Airlines they treat every passenger like a first class ticket holder. Every seat and the service is first class, regardless of  your seat number.

Unfortunately my detective skills could not lead me to the company who employs this irritated flight attendant. To the mystery flight attendant I hope that I am never an annoyance to you. To the company who hires this flight attendant find ways to make his or her job more pleasant. Your employees will thank you for it and so will your customers.