We’ve been talking about Core Values, the nutrients that “feed” your company’s customer experience. Now it’s time to move up and actually construct a system that can consistently deliver great experiences.
We’ve all heard about the road to hell and what it’s paved with. If your organization is all about the core values but you have no systems or processes, no structure, no architecture, you’ll fail. If you’re values-driven but structure-impoverished, despite your incredible niceness, people will get mad at you and flame you on Yelp.
One of the reasons I love living in Santa Cruz, California, is that it’s a community where people really wear their values on their sleeve. We are awash in good vibes and good intentions. But it’s not been a great place to go out to dinner.
What do I mean by that? Feather, my server, smiles a lot and greats me with genuine warmth. The organic food I’ll be enjoying this evening was sustainably grown nearby. But poor Feather she doesn’t have the training or systems in place to support her success. They’re out of the very thing on the menu I want most. My dinner order isn’t quite right, or the food comes out cold because the place is slammed and there aren’t enough servers on. The restroom is adrift in paper towels and doesn’t appear to have been tidied up by anyone over the course of the busy evening.
Recently my husband and I dined at a local institution that I hadn’t visited in a couple of years, the Shadowbrook. The Shadowbrook is the sort of lovely, landmark, touristic restaurant where you go for your prom, or take the out of town relatives (the ones you like.) It sits on the banks of a beautiful creek just beyond the beach in the charming village of Capitola. It is enclosed by verdant gardens and trickling streams. A friendly neighborhood cat is always there to greet you as you step into a little funicular railway car to take you down the very steep hill into this magical grotto. Got the picture?
These places are generally lousy. They rest on their laurels (or in the case of the Shadowbrook, their giant tree ferns.) In most of these pretty-face tourist traps, food quality is ho-hum. The service is jaded. The prices are high.
As we were being seated, the hostess asked us if we were celebrating a special occasion. Later we heard other diners being asked this question as well. This, my friends, is evidence of a “system.” The Shadowbrook understands that its guests come there for special occasions–not because there isn’t time to make dinner on Friday night. By understanding your special occasion, they accomplish two things: they identify special needs (birthday cake and candle) and they honor the special-ness of your visit, making you feel good. Over the years, they have learned that it makes sense to ask about your occasion. And now it is incorporated into the process and into your “journey” as a customer.
They are fully aware that they are in the business of creating memories. In fact, the Shadowbrook is a finely tuned memory-creation machine. Step aboard, and your work is done. They have it under control. You are not anxiously gazing around the dining room trying to get a server’s attention or asking to have your water refilled. That’s because they have a powerful system, a Ferrari engine of hospitality.
My husband and I had an exceptional dining experience that night. You would never have known this restaurant had been there since the late 1940’s. They fully grasped the significance of our visit and made the evening a special occasion for two. They were doing something that in our Selvice course we call “making it fresh daily.”
To that end, the service was crisp but never rote. The waiter was immaculately attired. He was professional. He was warms and personable but did not try to become our best friend. The busser was every bit as careful, thorough and professional. There was a sense of pride in the way they carried themselves and communicated.
How? These folks had been trained. That’s an element of structure that is too often overlooked. If you think your team members can just “learn by doing,” think again. Formal training is essential to success, and the “throw them in the water” school of training has been debunked by research.
The food was terrific, too. Better than it even needed to be. Very fresh, lots of local-ness, and perfectly cooked. We left impressed, despite the hefty check, as the cat saw us off at the top of the hill. (I really don’t know how they get the cats to do this.)
Structure is about making the intangible tangible. It’s the Body to your Core Values Soul. It holds things together. It makes things happen. Consistently.
Structure is about doing it the right way, again and again. Its purpose is not to create a brilliant, one-of-a-kind improvised performance. (But it may feel that way when it’s done exceptionally well, as in great theatre.)
How does Structure manifest itself?
- People Plan
- Organizational structure
- Consistent hiring process
- Job descriptions and performance standards
- Appraisal and Coaching
- Codified Standards
- Communication Plan
- Documentation
- Meetings
- Training
- Reviews
- Information System
- Physical Structure
- The design and flow of the physical plant
- Experience flow, Salesflow or merchandising
Structure is like the iceberg of CX. 90% of it is invisible to the customer–or should be.
There are plenty of companies that are structure-centric and values-impoverished. Any left-brain driven outfit is going to be about structure. Medical offices are All. About. Structure. These are businesses that are keen on instructing their customers on the rules. These are the businesses where you, the customer, are expected to conform to the system, not the other way around. These are the companies where you hear the laborious grinding of gears as service is slowly extruded from the machine.
So now we have Core Values and we have Structure. Any company that masters these two elements must have reached the World Class CX level, right?
Not quite. Our Shadowbrook meal had a little something extra. My next blog will talk about that ineffable, above-and-beyond level, where CX starts to look a lot like Art.
Spa Retailing: Whose Job Is It?
/0 Comments/in Education, Spa Retail /by lstarr@wynnebusiness.comSpas know that retailing is an important component of revenue generation, and yet many still struggle to reach hoped-for results.
Who’s responsible for driving retail sales in your spa?
Management? Therapists? Support Staff? Product Companies?
It’s actually all of the above.
While spas consider product sales to be less important than the main spa focus of selling treatments, the business of retailing is a major industry globally. China is currently the second largest retail market in the world.
Click to watch our short learning video with Spa Retailing Tips
According to McKinsey Consulting, the surging middle class in China is fueling a growth rate in luxury goods consumption that has ranged from 16-20 percent annually for the last four years, and Nielsen Companies finds that the health and wellness sectors are also maintaining a strong and steady rate of growth. Retail sales in China and globally continue to be fueled by social media, as shown by product and service reviews shared on Sina Weibo and Meilishuo. The retail industry global infrastructure includes trade shows, associations, best practices, and degreed university coursework. What spas do is dabble in retail; having a few shelves on a wall with a scattering of skincare products doesn’t make a business a “retailer.”
Since spas are clearly appointment-driven businesses, the common focus of spa management has been on selling treatments and experiences rather than thinking like a retailer. Spas open their doors in the morning with books full of appointments and knowing that those clients will be passing through certainly takes the pressure off the immediate need to create additional sales. And yet, the benefits of retailing are numerous, and include:
All of these excellent results, however, do not happen by accident. Achieving a healthy retail to service sales ratio is the result of focused efforts by all of the stakeholders, working together to create a compelling retail environment.
Management
As with many initiatives, effective retailing starts at the top. Successful spa retailers carry a selection of products from retail partners that are in keeping with the vision and mission of the spa brand, and that are priced appropriately for the target customer. Innovative spas will also look beyond the typical beauty brands for retail items that can drive sales as well as margin. But the most impactful action management can take is to be purposeful in hiring and training staff who can create rapport with guests, and in creating compensation and advancement plans for therapists which include retailing benchmarks as part of the career path.
Therapists
Without a doubt, therapists play the biggest role in retailing to spa guests. As the uniformed experts, their artfully presented home care suggestions, in tandem with their one-on-one interaction with the guest, will be the biggest driver of sales activity. Therapists who are well-trained on the spa’s products and ingredients can weave suggestions into their service routine in a seamless way, which does not feel as pushy to the guest as a rushed effort at the service conclusion, or a list of products pushed into the client’s hands. Making home care recommendations MUST be part of every treatment on the spa menu.
Support Staff
While the therapist’s personal touch is key to introducing home care to the client, in a busy and/or large spa it can be difficult for therapists to complete the sale. Clients may be heading on to another treatment or spending time using spa amenities, and by the time they check out they have forgotten about products. Well-trained support staff who can advise on usage will be effective in closing sales.
Retail Partners
The role that vendors and resource partners play in the retail chain cannot be overlooked. Effective brands will provide plenty of tools and training for all of the spa staff, on a regular basis. Supporting activities including inventory planning, sampling, retail support tools and marketing collaterals will certainly help the spa to be more successful.
The global personal care product market is estimated to total $1.5 trillion annually. Your clients are purchasing home care products from somewhere, it might as well be your spa!
Are you struggling with retailing at your spa? Our team can help. Contact us to schedule a complimentary 30-minute needs assessment.
A version of this post appeared first on spachina.com.
Inspiration for Spa Leader Challenges
/0 Comments/in Education, Spa Business, Spa Leadership Development /by lstarr@wynnebusiness.comDo you ever wish you had more information that would help you to solve a problem?
Do you ever wonder whether you are the only one experiencing a particular challenge?
Read more
Get Your Gift Card Accounting Processes Ready For The Holidays
/0 Comments/in Blog, Spa Business /by lstarr@wynnebusiness.comDo you have big plans for all of the money you received from selling gift cards and gift certificates over the holiday sales season? Not so fast—it’s not your money yet. You need a solid gift card accounting process.
A Brief History of Gift Cards
As an industry, we’ve had a long learning curve in how to market gift cards and gift certificates, and much has changed from a legal perspective. In the beginning, we sold paper gift certificates that said “massage” on them; clients would stuff them in a drawer and show up to redeem them three or more years later. Even though there may have been a couple of service price increases between when the gift certificate was issued and when it was redeemed, clients would still get their massages at the old price. Today, many states have amended their laws so that certificates never expire, and most businesses have moved from paper to plastic or online gift cards. But the model of a business receiving cash up front for a service yet to be delivered is still going strong.
I can remember when this craze really set in during the late 1980s. We couldn’t sell gift certificates fast enough! We rented extra computers and hired holiday help to manage the long lines of purchasers during the month of December. It felt like winning the lottery. After the dust settled, we would figure out how to best spend all of this cash: new carpeting, an updated piece of equipment, bonuses for the staff, etc. We knew it wasn’t really our money, but we also knew that a significant portion of those gift certificates would never be redeemed, so it felt safe. That is, until our weekly gift card redemption rate approached 50 percent of business, creating a cash scramble to meet payroll.
A Lesson in Gift Card Accounting
Does your spa have a solid Gift Card Accounting Process in place?
The lesson from the story above is that gift card revenue isn’t your money—it’s an indication that someone intends to do business with you in the future. When a recipient comes in to enjoy their Relaxation Massage or Scalp Treatment and Hairstyling, their gift card is just another payment method. As a consultant, I see a lot of income statements, and I’m surprised how often I see gift card sales listed under revenue, where they don’t belong. Let’s examine some of the accounting implications.
#1 Report Gift Cards as a Liability on the Income Statement
According to GAAP (Generally Accepted Accounting Principles), which is followed by most qualified accountants and bookkeepers, gift card and gift certificate sales should be recorded as a liability on your balance sheet; they shouldn’t show up on your income statement at all. The cash generated from the sales of gift cards should be put into an escrow account, separate from your regular bank account, that can be drawn upon as gift cards are redeemed. This is similar to what should happen in the sales of appointment series or packages.
Some accountants may handle gift cards differently, especially if your salon or spa is operating on a “Cash” rather than “Accrual” accounting method. According to Monte Zwang, Principal of Wellness Capital Management, some CPAs will leave gift certificate sales on the income statement of a Cash accounting business to more easily determine the net sold vs. redeemed revenue. Says Zwang, “I actually prefer to leave it on the balance sheet, even for Cash basis, so owners do not look at it as operating cash. If gift cards are recorded under revenue, as opposed to a Current Liability, you can’t look at your P&L and see how profitable you are. Sales is the money you are entitled to after you provide a service or sell a product. You will be overstating your sales if you record gift certificates as anything other than a Current Liability.”
#2 Review the Matching Principle for Gift Cards
As gift cards are redeemed, the supporting funds can be drawn out of the escrow account and put into regular checking, at least to the degree that redemptions outpace new purchases. Lisa Neufeld, Operations Lead at Wellness Capital Management, adds that “outstanding liability on the balance sheet goes down, and cash goes up. At the same time, labor costs for performing service shows up on P&L and in the accounting world. You have just used the matching principle—matching revenue and expense in the period they actually occurred.” The services and products that are purchased with gift cards are recorded in revenue on the income statement, just like any other sale, so it’s entirely possible you won’t see the word “gift card” on your income statement at all.
#3 Unclaimed Property (Escheat) Laws and its Effect on Business Value
You should also be aware of your state’s laws on unclaimed property, or escheat. These laws provide a way for the state to recover some of the money lost if the gift card is not redeemed and a taxable sale is recorded. The federal CARD Act, which mostly pertains to credit cards, is an underlying statute, and each state has their own regulations regarding if and when any unredeemed gift card funds should be transferred to their coffers.
Obviously, you’ll want to handle your own accounting situation in a manner that is both legal and beneficial for your business. As Zwang says, “Leaving gift card sales on the balance sheet means the Income Statement will be a better tool to see how the business is operating throughout the year. That is what financial statements are for: to help clients make business decisions on a day-to-day basis, not to make it easy for the CPA to prepare the tax return!”
Remember that swelling gift card sales also mean swelling liability on your balance sheet. Should you ever want to sell your spa or salon, any potential buyer will look at that liability and want to know where the matching bank account asset is; if it doesn’t exist, your business value will shrink accordingly.
The Bottom Line
Gift card sales are an important tool to bring in new clients at certain times of the year, but they must be handled properly to keep your salon or spa financially healthy.
Do you need help finalizing a Gift Card Sales and Reporting Process? Contact us for a consultation.
A version of this post appeared first on Blog.Booker.com.
How Spas Help Battle Aging Using Non-Medical Methods
/0 Comments/in Blog, Spa Business, Spa Retail /by lstarr@wynnebusiness.comThe International Spa Association defines the word ‘spa’ as “places devoted to overall well-being through a variety of professional services that encourage the renewal of mind, body, and spirit.” Can we add anti-aging to the mix?
We know how rejuvenated our minds and spirits can feel after a relaxing full body massage or body treatment, but the reference to the body, our physical selves, can be harder to judge. After all, massages don’t make us look different. While they don’t necessarily want to look younger, most of your female clients would be very happy with the ability to halt the forward march of time, and stop aging in its tracks.
There have been so many advancements and developments in technologies of both products and equipment that slowing the effects of aging is almost becoming a reality, meaning that you don’t have to be a medical spa to provide anti-aging or rejuvenation treatments to your clients. A typical manifestation of the aging process is the appearance of your skin. Aging skin loses collagen and elastin from the dermis, causing skin to become less firm and radiant, and gradually to form wrinkles through the processes of glycation and cross-linking. Causes of aging are both extrinsic and intrinsic, and include too much sun exposure, lack of hydration, excessive intake of caffeine or alcohol, and genetic predisposition. Battling these symptoms used to require a visit to a healthcare professional or medical spa. But today’s new advancements in technologies mean that spas can offer progress in delaying the appearance of these symptoms on both the face and body.
Equipment for Anti-Aging Treatments
There are now numerous skin-tightening devices available for non-medical professionals:
In some countries, personal devices have been created which can safely be used at home. Whether for deep cleansing and exfoliating, such as the Clarisonic skin brush, or anti-aging effects like LED masks or the Tria personal laser, clients are sure to desire the newest take-home devices to augment their spa treatments.
Products for Anti-Aging
Anti-Aging products like Age Logic Cellulaire can reduce the signs of aging.
Numerous advances in cosmetic chemistry have resulted in product formulations and delivery systems that produce excellent results, both in the spa during treatments, and continuing at home through follow-up home care. Espa’s Lifestage line consists of three products designed to rejuvenate aging skin through Natural Encapsulation and Stage Release Technology; these products are not recommended for those under the age of 40. Thalgo offers several anti-aging ranges, including products utilizing hyaluronic acid, collagen, marine silicium extract and caffeine. Anti-glycation agents, vitamins C & E, and ATP are utilized in Age Logic Cellulaire crème from Rene Guinot.
Clients Must Do Their Part to Support Anti-Agina Methods
While it is now possible for clients to get desirable beauty-care results through these non-medical methods, with no pain or downtime, there is still no magic in skincare products or equipment. In order for clients to remain youthful beyond their years, they will have to do their part outside of the spa. Avoiding sun exposure, one of the biggest contributors to premature skin aging, is an excellent start. Be sure to have plenty of sunscreen on hand to retail to your customers, especially during the summer months and travel seasons. Also, train your entire staff to instruct clients, as appropriate, on the importance of their personal care outside of the spa. A regular routine that includes getting enough sleep, following a proper diet and drinking plenty of water on a regular basis will also provide a good foundation so that anti-aging spa treatments are even more effective.
Wynne Business can help develop a successful anti-aging consultation process for your spa. Schedule a complimentary 30-minute needs assessment consultation with Wynne Business.
A version of this post appeared first on SpaChina.com.
Global Wellness Forecast
/0 Comments/in Blog, Featured /by lstarr@wynnebusiness.comWhat is the forecast for Global Wellness?
You cannot open a magazine or see marketing messages today without being struck by the frequent use of the word “wellness.” It may seem like this word came out of nowhere, but in fact, the concept of wellness has existed for many years. In 1947, the World Health Organization defined wellness as “a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity.” Dr. Halbert Dunn further explored the concept of wellness in a series of lectures in the late 1950’s that became the basis for his book, “
Dr. Halbert Dunn further explored the concept of wellness in a series of lectures in the late 1950’s that became the basis for his book, “High Level Wellness” published in 1961. Dr. John Travis, inspired by Dunn’s book, opened the Wellness Resource Center in California in 1975, exploring the concept that individuals can actively participate in their health and well-being, rather than the traditional model of physicians treating patients only for illnesses. In 1979, Dr. Travis and his center were featured on the popular US TV show, Sixty Minutes, which brought the wellness concept into mainstream American consciousness. Dr. Travis was also a frequent collaborator with Dr. Don Ardell, who was also influenced by the Dunn book, and in 1977, published his own book, “High Level Wellness: An Alternative to Doctors, Drugs, and Disease”.
Definition of Wellness
“Wellness is an active process of becoming aware of, and making choices toward, a healthy and fulfilling life.”
Today, the definition of wellness by the National Wellness Institute has evolved into this: “Wellness is an active process of becoming aware of, and making choices toward, a healthy and fulfilling life.” This definition makes clear that wellness is not just something that happens to us; humans play a significant role in their own personal wellness through the choices that they make regarding diet, exercise, and lifestyle. According to a study by Boston Consulting Group, Chinese consumers are the world’s most health conscious. The BCG survey revealed that 73% of Chinese consumers are willing to pay more for products that are considered healthier, which is 12 points higher than the global average.
Global Spa Summit
In 2007, SpaFinder CEO Susie Ellis created the inaugural Global Spa Summit, an invitation-only event in New York City, attracting 250 leaders in the worlds of spa, fitness, and hospitality, to establish a positive direction through friendly collaboration. By 2015, the event name was changed to become the Global Wellness Summit. At a recent Summit, in November 2015, almost 500 industry leaders gathered in Mexico City from all corners of the globe to participate in 3 days of keynote speeches, panel presentations, and breakout and networking sessions from well-known authorities including Dr. Deepak Chopra, Dr. Ken Pelletiere, and author Agapi Stassinopoulos. The information presented is all available on the Global Wellness Summit website, and has become much more medical in nature, as advances are made in discovering ways we can positively impact our physical health through microbiomes and epigenetics.
One of the 2015 Summit speakers, French economist Thierry Malleret, predicted that the current trends in obesity and an aging global population will lead some nations to mandate wellness for their populations, as the costs of healthcare continue to rise. In an effort to lower healthcare costs, large multi-national companies are examining ways to make workplaces healthier, from better food choices to natural light and opportunities to move about during the day. This trend of Workplace Wellness is the subject of the forthcoming study sponsored by the Global Wellness Institute.
Wellness and Wearable Technology
Few items illustrate the interest consumers have in their own health better than wearable technology. Ranging from Misfits and FitBits to devices from Garmin, Apple, and Samsung, the wearable device market has exploded from sales of US $6million in 2010 to US$7Billion in 2015, with growth projected to continue. Some spas are enabling social media contests so that clients can compare their steps, sleep, diet and other statistics.
Spas Play an Important Role in Wellness
Despite the medical overtones in many wellness discussions, spas still have a very important role to play in the personal wellness of our clients. Having a massage or facial at a spa, and enjoying the relaxing environment, is often the introduction to the concept of self-care that ignites the desire in our clients to do more for themselves. The rejuvenated psyche and increase in energy that consumers experience after an invigorating workout or pampering spa break is not something that just happened to them, it is due to their personal action in making time to visit the spa or the health club. Our clients are in search of guides for this journey and look to their spa for ideas and encouragement. Spas that go beyond the basic facial and massage treatments, and provide important components, such as a dedicated relaxation space, highly trained staff, and high-quality home care products, are well-positioned to take advantage of the current surge in interest in personal wellness.
Want to grow your spa’s wellness program? Schedule a complimentary 30-minute needs assessment consultationwith Wynne Business.
A version of this post appeared first on SpaChina.com.
The Changing Faces of Spa Staffing
/4 Comments/in Spa Business, Spa Employee Development /by lstarr@wynnebusiness.comEconomic indicators, elections, global events, volatile weather and changing trends all contribute to positives on the one hand and negatives on the other. Post-recession, the spa business has changed quite a bit. The spas that made it through are running lean and smoothly and have been consistently busy for the last couple of years. Read more
Here’s to a successful new year
/0 Comments/in Education, Spa Business, Spa Marketing /by lstarr@wynnebusiness.comThe older I get, the more New Year’s Day reminds me of the movie Groundhog Day; I can’t believe it’s here again, already! The fact is, the more quickly the years tick by, the more urgency you may have as a business owner to avoid procrastinating in regards to your spa business.
New Year’s resolutions have actually been around since the ancient Babylonians marked the new year as a time to repay their debts and return borrowed objects, 4000 years ago. You know that list of changes you’d like to make, or new approaches you’ve been meaning to try? The time is now, no need to wait until another year, or two, or five, goes by. Select one activity from each of these four areas, and get to work! Read more
6 Ways Spas Don’t Practice Workplace Wellness
/0 Comments/in Blog, Featured /by lstarr@wynnebusiness.comThis year’s Global Wellness Institute Summit in Mexico City will highlight Workplace Wellness as a key issue. Spas are all about wellness, right? We’re exemplars, right?
The reality is, a spa is a mentally and physically demanding environment that is built on the profit-challenged business model of selling services. Right there, you know that employee well-being may not be at the top of the list of priorities for spas. Here are six ways spas don’t walk their wellness talk:
1. Spas who treat their workers as “independent contractors” instead of employees. Do you really espouse wellness when your therapists don’t qualify for worker’s compensation insurance if they get injured at your place of business? This is also one of the key reasons the playing field is not level in the spa industry: unfair competition from companies who misclassify their workers to save money.
2. Overworking your team. Whether your employees work at your front desk or in a treatment room, good people are hard to find. Many spas are burning out their A Players due to staffing challenges.
3. Using the wrong /cheap equipment. Yes, it’s more expensive, (but it’ll only hurt for a minute.)
4. Not providing continuous education in body mechanics and workplace safety. Yes, massage therapists learn a bit about this in school. Do they practice it? With a few exceptions, no. Your other workers, including estheticians, nail techs and front line personnel have equally serious ergonomic challenges.
5. Not providing resources and tools for self-care.
6. Not providing enough (high quality) support Spa employees shouldn’t be stressed out at work: their stress will translate into unhappy guests. But equipment breakdowns, communications mishaps, supply shortages and other operations “fails” create a stressful workplace. Think you can skimp on your support staff, designate “managers” who spend their day in the treatment room, or share your bad mood at work because you’re the boss? Think again.
Workplace wellness is a crucial issue in creating a well world, and it starts with us!
To learn more about ways to keep employees happy and engaged, visit us at wynnebusiness.com. Morale challenge? Trying to create a healthier team? Contact us at consultants@wynnebusiness.com or call 610.368.6660.
The Second Ingredient of World Class CX: Structure
/0 Comments/in Blog, Featured /by lstarr@wynnebusiness.comWe’ve been talking about Core Values, the nutrients that “feed” your company’s customer experience. Now it’s time to move up and actually construct a system that can consistently deliver great experiences.
We’ve all heard about the road to hell and what it’s paved with. If your organization is all about the core values but you have no systems or processes, no structure, no architecture, you’ll fail. If you’re values-driven but structure-impoverished, despite your incredible niceness, people will get mad at you and flame you on Yelp.
One of the reasons I love living in Santa Cruz, California, is that it’s a community where people really wear their values on their sleeve. We are awash in good vibes and good intentions. But it’s not been a great place to go out to dinner.
What do I mean by that? Feather, my server, smiles a lot and greats me with genuine warmth. The organic food I’ll be enjoying this evening was sustainably grown nearby. But poor Feather she doesn’t have the training or systems in place to support her success. They’re out of the very thing on the menu I want most. My dinner order isn’t quite right, or the food comes out cold because the place is slammed and there aren’t enough servers on. The restroom is adrift in paper towels and doesn’t appear to have been tidied up by anyone over the course of the busy evening.
Recently my husband and I dined at a local institution that I hadn’t visited in a couple of years, the Shadowbrook. The Shadowbrook is the sort of lovely, landmark, touristic restaurant where you go for your prom, or take the out of town relatives (the ones you like.) It sits on the banks of a beautiful creek just beyond the beach in the charming village of Capitola. It is enclosed by verdant gardens and trickling streams. A friendly neighborhood cat is always there to greet you as you step into a little funicular railway car to take you down the very steep hill into this magical grotto. Got the picture?
These places are generally lousy. They rest on their laurels (or in the case of the Shadowbrook, their giant tree ferns.) In most of these pretty-face tourist traps, food quality is ho-hum. The service is jaded. The prices are high.
As we were being seated, the hostess asked us if we were celebrating a special occasion. Later we heard other diners being asked this question as well. This, my friends, is evidence of a “system.” The Shadowbrook understands that its guests come there for special occasions–not because there isn’t time to make dinner on Friday night. By understanding your special occasion, they accomplish two things: they identify special needs (birthday cake and candle) and they honor the special-ness of your visit, making you feel good. Over the years, they have learned that it makes sense to ask about your occasion. And now it is incorporated into the process and into your “journey” as a customer.
They are fully aware that they are in the business of creating memories. In fact, the Shadowbrook is a finely tuned memory-creation machine. Step aboard, and your work is done. They have it under control. You are not anxiously gazing around the dining room trying to get a server’s attention or asking to have your water refilled. That’s because they have a powerful system, a Ferrari engine of hospitality.
My husband and I had an exceptional dining experience that night. You would never have known this restaurant had been there since the late 1940’s. They fully grasped the significance of our visit and made the evening a special occasion for two. They were doing something that in our Selvice course we call “making it fresh daily.”
To that end, the service was crisp but never rote. The waiter was immaculately attired. He was professional. He was warms and personable but did not try to become our best friend. The busser was every bit as careful, thorough and professional. There was a sense of pride in the way they carried themselves and communicated.
How? These folks had been trained. That’s an element of structure that is too often overlooked. If you think your team members can just “learn by doing,” think again. Formal training is essential to success, and the “throw them in the water” school of training has been debunked by research.
The food was terrific, too. Better than it even needed to be. Very fresh, lots of local-ness, and perfectly cooked. We left impressed, despite the hefty check, as the cat saw us off at the top of the hill. (I really don’t know how they get the cats to do this.)
Structure is about making the intangible tangible. It’s the Body to your Core Values Soul. It holds things together. It makes things happen. Consistently.
Structure is about doing it the right way, again and again. Its purpose is not to create a brilliant, one-of-a-kind improvised performance. (But it may feel that way when it’s done exceptionally well, as in great theatre.)
How does Structure manifest itself?
Structure is like the iceberg of CX. 90% of it is invisible to the customer–or should be.
There are plenty of companies that are structure-centric and values-impoverished. Any left-brain driven outfit is going to be about structure. Medical offices are All. About. Structure. These are businesses that are keen on instructing their customers on the rules. These are the businesses where you, the customer, are expected to conform to the system, not the other way around. These are the companies where you hear the laborious grinding of gears as service is slowly extruded from the machine.
So now we have Core Values and we have Structure. Any company that masters these two elements must have reached the World Class CX level, right?
Not quite. Our Shadowbrook meal had a little something extra. My next blog will talk about that ineffable, above-and-beyond level, where CX starts to look a lot like Art.