May
12
The Star at Starwood
May 12, 2007 | 1 Comment
Although the travel industry maintains a reputation less than glowing, most of us still love to travel; despite the headaches that hotel chains and airlines can often cause they are indeed a necessary evil. The travel industry is filled with repeat customer business, with many choices for the consumer. Yet there are only a handful of companies in this industry that seem to understand and value that. While planning our summer vacation in Europe last year, my fiance and I were hit with fees for using points, substantial airline blackout dates and less than inviting hotel rooms at prominent chains. So as we begin the honeymoon planning, we are both wary.In my last job, I spent five years traveling from NY to Bentonville, AR, visiting the Wal-Mart corporate office to pitch my wares. Every other week I flew the same airline, and visited the same hotel, staying loyal to a number of companies. Yet when it came time to reap the rewards of being a valued customer, it seems that it can be hit or miss depending on who’s at the other end of the phone. Although all calls are “recorded to ensure quality customer service”, I’m not entirely convinced it’s working.
Both my fiance and I learned very quickly that it was often a better use of our time to hang up on these “customer service experts”, roll the dice, and call again. There were times we called back (and hung up) four or five times before reaching someone seemingly more helpful. This means that 75%-80% of the time we were not happy, which translates into a lot of dialing and a lot of frustration.
My fiance, who’s been a loyal Starwood member for years, decided to go this route for honeymoon planning. I was pleasantly surprised to learn that she was right, they are indeed an exceptional group- based on my small sampling so far. It took only took one phone call to Starwood to reach the very helpful Marcella Cabrera. Most good businesses teach employees to smile when they talk on a phone. They know that a smile changes your attitude for the better, as well as the inflections in your voice. Even though we were miles away, we knew that Marcella was answering every question we asked her with a smile.
Service businesses are a people business, and the travel industry is no different. All customer service representatives can pick up the phone when it rings. The real difference is what they say and how they say it. Marcella Cabrera at Starwood didn’t just pick up the phone, she helped create a relationship between her company and a customer that will last for years… all with just one phone call.
In our mind, Marcella Cabrera is the star at Starwood.
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Apr
7
Competing with Starbucks
April 7, 2007 | Leave a Comment
Category killers have been around for a long time. Wal-Mart (WMT) hurt all sorts of businesses over the last three decades, and when Home Depot (HD) and Lowe’s (LOW) came along many neighborhood hardware stores were forced to close.
There are however, many stores that have competed and thrived in the Wal-Mart / Home Depot world. This is not their story, though I may choose to write about them at a later date.
This is the story of two local coffee/tea shops that have not only competed with Starbucks (SBUX), their Category Killer, they’ve thrived.
First some quick stats on Starbucks, taken from their 2005 Annual Report: Stores: 10,500+
-Employees: 100,000+
-Store openings 2005: 1,672
-Projected store openings 2006: 1,800
-Global Presence: 37 Countries
-2005 Revenue: $6.4 billion
With over 10,500 stores around the world, and most of them in the United States, it’s hard not to pass a Starbucks during your daily routine. In Manhattan, there seems to be a Starbucks on almost every block… and they’re all packed with customers!
In Brooklyn, just minutes from Manhattan and the Brooklyn Bridge, their are two very hot neighborhoods; Park Slope and Brooklyn Heights. You would think that these neighborhoods would be packed with Starbucks stores, but they’re not. There are a few but they’ve been out-flanked by two local coffee/tea shops: Le Petite Cafe and The Tea Lounge.
What these neighborhood shops have done is fill a niche that Starbucks can’t fill… or won’t fill, because it doesn’t fit in the Cookie Cutter design that has made them successful.
Le Petite Cafe, with only one location has grown from a small coffee shop to a mid-sized restaurant. The interior design is very beautiful and incredibly unique. Features include:
-Michelangelo’s “The Creation of Adam” from the Sistine Chapel, painted on the ceiling.
-A toy train traveling around the cafe about a foot from the ceiling.
-A built-in waterfall located in a beautiful outdoor space.
The Tea Lounge, on the other hand just opened it’s third location in Brooklyn. The feel of their stores is much more relaxed than both Starbucks or Le Petite Cafe. Highlights include:
-A young, “hip” staff. Often tattooed… always nice.
-”Lived-in” furniture (sometimes so lived in there are holes in the couches).
-Comfy couches everywhere.
As you can see, both Le Petite Cafe and The Tea Lounge have found a niche that differs themselves from Starbucks. They also offer great service… and great quality.
It’s not easy to survive if you’re competing with a category killer. However, if you’re able to find a niche and provide equal or better service… your business might not just be surviving… it might be thriving!
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