Tom Peters ReImagine New Customer Excellence in an Age of Commodities IDDBALas Vegas06.01.2003

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Tom Peters Re-Imagine!New Customer
Excellence in an Age of CommoditiesIDDBA/Las
Vegas/06.01.2003
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Slides at tompeters.com
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1. The New Value Added Revolution Beyond
Satisfied Customers.
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Base Case The Sameness Trap
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While everything may be better, it is also
increasingly the same.Paul Goldberger on
retail, The Sameness of Things, The New York
Times
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When McDonalds first started exporting its
formula of quality, cleanliness and service, it
was something of a novelty. These days,
quality, cleanliness and service are a givenand
people are becoming more interested in what they
are eating. FT/12.21.2002
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New Customer Excellence Re-making the Value
Equation
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Gerstners IBM Systems Integrator of choice.
Global Services 35B. Pledge/99 Business
Partner Charter. 72 strategic partners, aim for
200. Drop many in-house programs/products.
(BW/12.01).
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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 its financial security, buying a car,
paying for home repairs, or even taking a dream
vacation.Martin Feinstein, CEO, Farmers Group
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Nardellis 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
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Its All About EXPERIENCES Trapper to
Wildlife Damage-control ProfessionalTrapper
beaver 750-1,000 for flood-control piping
so that beavers can stay.Source
WSJ/05.21.2002
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2. A World of Scintillating/ Awesome/ WOW
Experiences.
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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
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Club Med is more than just a resort its a
means of rediscovering oneself, of inventing an
entirely new me. Source Jean-Marie Dru,
Disruption
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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
thats not work or home. Its the place our
customers come for refuge.Nancy Orsolini,
District Manager
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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
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The Experience LadderExperiences
ServicesGoods Raw Materials
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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) 10.001990
Party _at_ Chuck E. Cheese (experience economy)
100.00
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Bob Lutz I see us as being in the art business.
Art, entertainment and mobile sculpture, which,
coincidentally, also happens to provide
transportation. Source NYT 10.19.01
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Car designers need to create a story. Every car
provides an opportunity to create an adventure.
The Prowler makes you smile. Why? Because its
focused. It has a plot, a reason for being, a
passion.Freeman Thomas, co-designer VW Beetle
designer Audi TT
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Hmmmm(?) Only Words StoryAdventureSmile
FocusPlotPassion
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PlotSharper Image 8 Smith Hawken 8
Crate Barrel 7Williams Sonoma 5L.L.Bean
3
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I Know It (Plot) When I See It!Draegers
(Menlo Park, CA) 10Roberts of Woodside
10Peltiers (Dorset VT) 10Whole Foods
10WF 4S Nirvanna
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6 Chain Groceries in MaySelection B-
(0A)Presentation C- (0A)Personal service
C/C- (1A, 2D)Experience/WOW C- (Kind,
0A)Spontaneous purchases 2
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This Is Soooooooo COOL Food/Fantasyland/Field
of Dreams/DisneyWorldPlusDairy!Deli!Bakery!Wi
ne!(Fresh) (Packaged) Produce!Flowers!!!!!!!!!P
repared Meals!(And the rest is details!)
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First Step (?!) Hire a theater director, as a
consultant or FTE!
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Experience Cirque Du Soleil
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DO YOU MEASURE UP?If not, why not?
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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.
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Extraction Goods Male dominanceServices
Experiences Female dominance
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2. Embracing the Dream Business.
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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
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The marketing of Dreams (Dreamketing)Dreamketing
Touching the clients dreams.Dreamketing The
art of telling stories and entertaining.Dreamketi
ng Promote the dream, not the product.Dreamketin
g Build the brand around the main
dream.Dreamketing Build the buzz, the hype,
the cult.Source Gian Luigi Longinotti-Buitoni
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3. The Mostly Ignored Soul of Experiences
Design Rules!
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Design Transforms even the Biggest
Corporations!TARGET the champion of
Americas new design democracy (Time) Marketer
of the Year 2000 (Advertising Age)
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All Equal Except At Sony we assume that all
products of our competitors have basically the
same technology, price, performance and features.
Design is the only thing that differentiates one
product from another in the marketplace.Norio
Ohga
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Design is WHAT WHY I LOVE. LOVE.
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Design is WHY I GET MAD. MAD.
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Design is never neutral.
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Hypothesis DESIGN is the principal difference
between love and hate!
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Message (?????) Men cannot design for womens
needs.
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3. Packaging Power!
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Thomas Hine The Total Package The Secret
History and Hidden Meanings of Boxes, Bottles,
Cans, and Other Persuasive Containers
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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
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Packages have personality. They create
confidence and trust. They spark fantasies. They
move the goods! Thomas Hine/The Total Package
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Oatmeal/1870 horses and a few stray
ScotsOatmeal/1890/Quaker a delicacy for the
epicure, a nutritious dainty for thr invalid, a
delight to the childrenDifference
Packaging!Thomas Hine/The Total Package
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Salt is salt is salt. Right? Not when it comes
in a blue box 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
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Research customers aware of 11,000 packages in
1,800 seconds walking the aisles. Opportunity
1/6th second! Source Thomas Hine/The Total
Package
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Whats important to recognize is that fast-food
and motel chains are not like packages, but
that they are packagespackaged places and
experiences. Thomas Hine/The Total Package
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4. It all adds up to THE BRAND.
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WHO ARE WE?
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WHATS OUR STORY?
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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 to how we work with
others. Companies will thrive on the basis of
their stories and myths. Companies will need to
understand that their products are less important
than their stories.Rolf Jensen, Copenhagen
Institute for Future Studies
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Branding Is-Is Not TableTNT is not
TNT is TNT is notJuvenile
Contemporary Old-fashionedMindless
Meaningful ElitistPredictable
Suspenseful DullFrivolous
Exciting SlowSuperficial
Powerful Self-important
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4. Brandings Bedrock
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Brand Talent.
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
Business Week, 11.20.00
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5. Trends I Women Roar!
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?????????Home Furnishings 94Vacations 92
(Adventure Travel 70/ 55B travel
equipment)Houses 91D.I.Y. (home projects)
80Consumer Electronics 51 Cars 60
(90)All consumer purchases 83 Bank Account
89Health Care 80
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91 women ADVERTISERS DONT UNDERSTAND US.
(58 ANNOYED.)Source Greenfield Online for
Arnolds Womens Insight Team (Martha Barletta,
Marketing to Women)
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Carol Gilligan/ In a Different VoiceMen Get
away from authority, familyWomen ConnectMen
Self-orientedWomen Other-orientedMen
RightsWomen Responsibilities
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FemaleThink/ PopcornMen and women dont think
the same way, dont communicate the same way,
dont buy for the same reasons.He simply
wants the transaction to take place. Shes
interested in creating a relationship. Every
place women go, they make connections.
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Men seem like loose cannons. Men always move
faster through a stores aisles. Men spend less
time looking. They usually dont like asking
where things are. Youll see a man move
impatiently through a store to the section he
wants, pick something up, and then, almost
abruptly hes ready to buy. For a man, ignoring
the price tag is almost a sign of
virility.Paco Underhill, Why We Buy (Buy
this book!)
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Read This Barbara Allan Peases Why Men Dont
Listen Women Cant Read Maps
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Resting State 30, 90 A woman knows her
childrens 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 Dont Listen Women Cant
Read Maps
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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
Dont Listen Women Cant Read Maps
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SensesVision Men, focused Women,
peripheral.Hearing Womens discomfort level I/2
mens.Smell Women Men.Touch Most sensitive
man Barletta, Marketing to Women
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Editorial/Men Tables, rankings.Editorial/Women
Narratives that cohere.Redwood (UK)
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Women werent comfortable in our stores. So I
figured out where they would be comfortablemost
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
didnt want it to be girlie. John Hoke,
designer, Nike
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Read This Book EVEolution The Eight Truths
of Marketing to WomenFaith Popcorn Lys
Marigold
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EVEolution Truth No. 1Connecting Your Female
Consumers to Each Other Connects Them to Your
Brand
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Women dont buy brands. They join
them.EVEolution
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War has broken out over your home-improvement
dollar, and Lowes has superpower Home Depot on
the defensive. Its not-so-secret ploy Lure
women. Forbes.com
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Home Depot is still very much a guys chain. But
women, according to Lowes research, initiate 80
percent of all home-improvement 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. Dont get me wrong, but women are
far more discriminating than men, says CEO
Robert Tillman, 59, a Lowes lifer. Forbes.com
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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. Womens Market Opportunity
No. 1.8. Men are (STILL) in charge.9. MEN ARE
TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10.
Womens Market Opportunity No. 1.
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6. The Passion Imperative Leading in a Post-
Satisfaction World.
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G.H. Create a cause, not a business.
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Grocery Opportunity No. 1Entertainment-Experie
nce-DreamketingDisneyland!/Field of Dreams!Pure
aesthetic-sensual pleasure!Feminine!(Best
defense-offense re WalMart)