Change the image, or change the business?

The other day, Time writer Justin Fox (a colleague of mine at Fortune, once upon a time) had a piece titled “How To Succeed? Make Employees Happy.” It focuses on Whole Foods and The Container Store, which “pay better than most retailers, offer good benefits and entrust workers at all levels with sensitive financial data. The idea is that happy, empowered employees beget happy customers.” (Somewhat related note: July 30, 2006 Consumed on Wawa, the convenience store chain whose success is partly attributed to treating employees well.)

Maybe these companies are exceptions, but I think there’s some value in at least considering the idea that Fox is writing about. And also about the broader idea underneath it, which is one I’ve thought about a lot lately as I’ve been out and about talking to some manager-and-executive-type people about Buying In. That broader issue is that I think a lot of companies that sense the need for a change are way more focused on changing their image (via marketing) than in changing their business practices.

Recently I answered questions from readers of The Alpha Consumer, a blog associated with U.S. News & World Report, in connection with Buying In (which was picked as the first selection of the Alpha Consumer Book Club). Part one is here, and part two is here.

In relation to the above, I wanted to bring up one of the questions (and answers) here. The answer is a little long so I’ll leave it up to you if you want to follow on after the jump.

From Meg Marco of the Consumerist.com: As you point out in your book, consumers often join their identities and even sense of self with brands (such as with Apple). When consumers reach out with complaints to companies whose brands they’ve incorporated into their sense of self, they’re operating in a state of emotional pain. When a brand fails them, they seem to feel as if they’ve failed, too. What effect do you think this level of emotional participation has on a company’s customer service responsibilities? If companies are adept at selling “ideas about products,” do they need to work hard to maintain that special feeling once the honeymoon is over? Or has all the hard work been done?

This is a great question—and one I wish I would get more often from, say, marketers and business owners.

There’s a widespread tendency to think “branding” just means logos and slogans and ads. I see branding more broadly, as the process of attaching an idea to a product. That idea lives in consumers’ heads and can come from an ad campaign—but it can also come from direct experiences. It doesn’t matter if the advertising for a drugstore chain depicts kindly pharmacists going out of their way to help—and the actual experience you or I have at that chain in real life involves a dirty store and a rude pharmacist who makes you wait around for no reason and screws up your prescription—well, the idea that gets attached to that drugstore chain’s brand is going to be the one that comes from real life.

Mostly in the book I’m speaking to consumers. But the one message I try to get across to companies is that maybe it’s better sometimes to stop worrying so much about reshaping your image and start worrying about reshaping the reality of your business. In the book, I bring that up specifically in the context of “ethical” issues such as sustainability or labor practices.* But the same point holds true for what you’re talking about. Some companies spend absolutely astronomical sums on creating a customer-friendly or creative or “cool” (or whatever) image through brand campaigns—and then they pay the workers on the selling floor so badly that they couldn’t care less, or outsource customer service, or whatever, and the net experience is bad. And customer loyalty evaporates—yes, precisely because the emotional reaction to a real experience can trump the emotional response to marketing. It’s very shortsighted.

I’ve had a number of conversations with folks at companies about this subject, and too often they basically say, in so many words, “Well, we are doing a great job and providing a great experience; we just need to get the word out because people don’t understand.” But actually people do understand—they understand that they didn’t have a great experience. Sometimes it’s a good idea to stop worrying about image and start worrying about the business.

[* This is the subject of Chapter 12 of Buying In. A partial excerpt of that chapter appeared in Fast Company.]