wide aperture

April 4, 2012

3 products you shouldn’t like but probably do - and why.

Red Bull, Jäger and Vegemite are much loved products for many punters in Australia and beyond. Have you ever thought how bizarre this is? It’s fair to say all three are naturally repulsive to the tastebuds - at least at first tasting.

When Dietrich Mateschitz first tested Red Bull with consumers the responses were off the charts. Participants hated it, some claimed it was the worst thing they’d ever tasted.

Rather than refining the formula, Mateschitz decided to invest in building the cult brand that we know as Red Bull today. Mateschitz understood the bigger beverage companies could always formulate a more appealing taste. He stopped wasting time on the formula and invested in building a brand experience none of them could match. Red Bull stands for fun, energy and adventure. People drink it because they want to get more out of their day - or at least show others that they do.

Even more perplexing than the Red Bull case is that of Jägermeister. Nobody drinks Jäger because it tastes nice. I don’t need to know the secret ingredients in Jager to tell you it tastes horrendous. But that’s not the point.

You drink Jager as a bonding ritual with your friends. The god awful taste is to be endured not enjoyed. And then you dare your mate to endure another. Jäger is a great brand experience. It fulfils a primal urge to endure a painful experience in front of an audience.

The last product I’ll talk about is a bit harder for me to understand. I’ve been conditioned from day dot to like it - and I do. A lot. But I can’t let this bias distort the reality. I’m talking about the iconic Vegemite.

Tell any rational person to eat a salt yeast extract and they’d likely tell you to bugger off. What was the response like the last time you saw an overseas visitor eat Vegemite (Kiwis exempt)? For most it triggers an instinctive pursing of the lips and squinting of the eyes. It is a sensory assault to be sure - but certainly not a good one.

Still, millions of Australians eat Vegemite each morning as part of their daily routine because it’s an enjoyable brand experience. Because the tradition is passed down through the generations it has a wonderful nostalgic value. So you wake up, pop in some toast, spread the Vegemite and enjoy a few minutes of comfort before taking on the day. What an amazing psychological experience to deliver.

Which leads to the point of this post. Brand experience and the context in which we consume products are remarkably powerful. So powerful in fact, that they can rewire your brain to enjoy things that by rights you should reject.

This is important to remember in an era where product development seems to rule the business roost. I have no doubt betting the house on product can set a business up for success. But as these cult brands prove, sometimes your money is better invested in cultivating unique and valuable brand experiences for customers.

12:37pm | URL: http://tmblr.co/ZIbslwJ2jVjC
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December 8, 2011

Cultivating guilt, retaining customers

Guilt is a particularly powerful emotion because it can make people act against their own self interest. In criminal law, for example, guilt pushes people to confess to crimes which effectively condemns them to jail or in some cases death. So if it is such a powerful emotion, one that can make people act against rational self interest, would it be a good idea to use guilt as a customer retention strategy?

In my experience, small businesses are very good at this. I feel a terrible sense of guilt if I walk past my usual coffee haunt to meet someone at another cafe. This is remarkably irrational behaviour. I should feel no sense of allegiance or commitment to buy all my coffee from the one cafe. Though I’m well aware of this, I can’t suppress the guilt.

I suppose the next question is why? Do I worry that they will close if I stop buying coffee there? Am I concerned I’ll hurt the feelings of baristas who are passionate about their craft?

What I do know is the guilt plays out in one of two ways. The first thing I do is try to arrange all my coffee meetings at my favourite cafe. If I can’t do this, which happens if the other person has already nominated a cafe, I walk the long way to avoid being sighted by the baristas at my haunt.

But, of course, not all businesses illicit a feeling of guilt for shopping at a competitor. It takes a special kind of business with great people to make you feel this.

So, how does my local cafe cultivate guilt?

It starts with the baristas. They drop in remarks like “we haven’t seen you for a few days, have you been out of town?” Or when you walk past and they are out the front wiping down the tables and they ask, “where are you off to in such a hurry?” They make you feel like you’re cheating on them if you go somewhere else.

But they also offer amazing service way above what is required of them. The product is also better than the other cafes I visit.

And, finally, the place is familiar to me. I feel I belong there. The baristas always remember my name. They know what I order. They know the types of single origin coffees I like and recommend it when I come in. All of these small things combine to build a sense of loyalty to the place.

And maybe this is the rub. I don’t feel guilty for going to another cafe because I’m worried the cafe will cease to exist without me. I don’t think the barista will have a terrible lull in self confidence if they see me enjoying coffee at a rival’s cafe.

No, I feel guilty because it is like I’m betraying my loyalty to a cafe that cares deeply about my unique, personal and individual customer experience.

There is a key point that all businesses can take out of this, not just small business. If you make a sincere effort to provide the best customer experience you will reap the rewards of unprecedented customer loyalty. A loyalty that becomes so strong it transforms into guilt when your customer buys from a competitor.

It would be foolish to think there was a shortcut to this kind of loyalty. This will cost your business something, mostly time and effort. But if you put that time and effort in, your rewards will be long and sustaining.