Case study 1: Dale Carnegie Focuses on Business Customers
Dale Carnegie was a highly successful entrepreneur and one of the most legendary speakers of the 20th century. His simple but effective two-step formula for connecting with customers and colleagues in business situations was (1) win friends and (2) influence people. He began teaching his methods as part of the Dale Carnegie Course in 1912. In 1936, he published his ground-breaking book, How to Win Friends and Influence People, which went on to become an international bestseller and is still available in print, as an audio book, and as an c-book. The original manuscript of this famous book remains on view in the Hauppauge, New York, headquarters of the company that Dale Carnegie founded, inspiring the new leaders who have brought the firm into the 21st century.
Today. Dale Carnegie operates in 85 countries, from China to Cameroon, with 2,700 trainers teaching his methods in 25 languages. In all, more than 8 million people have taken a Dale Carnegie course. The company has trained managers, employees, and teams in multinational corporations, such as Ford, Honda, Adidas, John Deere, 3M, Verizon, American Express, and Apple. It also provides training to people in gov¬ernment agencies, such as the U.S. Department of Veteran Affairs, as well as to small business owners and individuals who want to learn the Carnegie way.
Carnegie's methods can help marketers build a rela-tionship with people at all levels, from the mailroom to the boardroom. Whether the conversation involves a sales call or a factory visit to see a particular piece of equip¬ment, "you can change people's behavior by changing your attitude towards them," says Peter Handal, CEO of Dale carefully, wearing a smile, and being Carnegie. Listening courteous is common sense, yet 'It's not common prac-tice," Handal explains, which is where the Dale Carnegie course comes in.
Dale Carnegie's principles still apply in this era of digi¬tal communications. For example, choosing positive words in a business e-mail can give recipients a good feeling about the message and the sender. Businesspeople are busy, so many value the efficiency of brief messages sent via text or Twitter. At the same time, adding a personal touch with a quick Skype conversation or recording a relevant video mes¬sage can be a very effective way to engage business custom¬ers. And there's nothing like a face-to-face meeting where the customer can sit with a supplier or technical expert, ask questions, watch a live demonstration or handle a product. and build trust.
As CEO, Peter Handal travels the world to hear what cus-tomers and trainers have to say about Dale Carnegie's opera• tions and about their own business situations. He emphasizes the need for managers to listen to what others have to say. even if the news is bad. "That's a very dangerous situation:. Handal says. "You can't have everyone on the team in charge. but you have to have everyone be able to speak openly and honestly." In other words, it's important to be nice, but it's also important to speak up so decision makers have all the information they need to proceed.
Questions for Discussion
1. How would you apply Dale Carnegie's methods if you were trying to make a sale to a company with a large buying center?
2. From a marketing perspective, why would people who work for the U.S. Department of Veteran Affairs be as interested in taking a Dale Carnegie course as people who work for American Express?
3. Which concerns of business customers should Dale Carnegie's marketers pay close attention to when selling training services to a company like American Express?
Case study 2: Starbucks Refines the Customer Experience
Starbucks-the Seattle-based company that popularized the "coffee culture"-is brewing up higher sales through new beverages and new cafés in global markets. A stop at Starbucks has become part of many consumers' daily rou¬tines. Some are attracted by the high-quality, brewed-to¬order coffees, while others look forward to relaxing and socializing in the "third place" between home and work.
Starbucks has researched and refined every aspect of the customer experience, from the size of its coffees ("tall" is actually "small") to the number of minutes that customers spend waiting in line. To speed up purchases, it offers a pay¬by-cell phone option called "mobile pay." Consumers with iPhone or Android cell phones simply download the app and let cashiers scan the Starbucks code on the screen during checkout. The app links to the customer's Starbucks Card, which combines the rewards of a loyalty program with the convenience of a prepaid card for making purchases. Mobile pay is a big hit: in its first 15 months, customers used their cell phones to make more than 42 million payments to Starbucks.
Well established in the intensely competitive U.S. market, Starbucks is growing much more quickly in Asian markets company will soon have 1,500 cafés and 30,000 employ¬ees in China, where consumers drink, on average, just three cups of coffee every year. By opening in more locations and encouraging consumers to bring their friends for coffee and conversation, Starbucks aims to increase demand and boost sales throughout China. In Japan, where Starbucks now has more than 1,000 cafés, consumers have long enjoyed the tra-dition of meeting in neighborhood coffee shops.
Through market research, Starbucks stays in touch with what its customers like and what their lifestyles are like. Coffee lovers are still buying their espressos or lattes, but they are also "looking for a healthier lifestyle," says a Starbucks executive. In response to this trend, the company bought Evolution Fresh, which makes premium juices, and opened its first Evolution Fresh store in Bellevue, Washington. On the menu: all-natural, freshly-blended drinks from nutri¬tious fruits and vegetables, plus salads and wraps. Over um?. Starbucks is adding Evolution Fresh drinks to the menu In all of its cafés and opening additional Evolution Fresh stores on the East and West Coasts. Although expanding into fre!ll juices means competing with Jamba Juice and other nob.
Starbucks is relying on its brand-building expertise to juice up this part of its business.
Taking note of consumer inter¬est in energy drinks, which has blossomed into an $8 billion mar¬ket. Starbucks has also launched Starbucks Refreshers, a line of car¬bonated drinks with more than half the caffeine content of an espresso shot. Available in supermarkets and in Starbucks cafés, these all-natural drinks combine green, unroasted coffee with fruit juices for a fruity, non-coffee flavor. To gain signifi¬cant market share, Starbucks must battle Red Bull, Rockstar, and other well-known marketers of energy drinks.
Starbucks also believes in social responsibility. It offers health-insur-ance benefits to both part-time and full-time employees and donates generously to community projects. It also protects the environment by recycling in every café and con-structing buildings designed to save energy and water. Finally, the com-pany follows ethical purchasing practices to ensure that coffee growers get a fair price for their premium beans.'
Questions for Discussion
1. In terms of situational influences and level of involvement, what are the benefits of mobile pay?
2. With Evolution Fresh, which psychological influences on con-sumer buying decisions does Starbucks seem to be addressing?
3. Why would Starbucks want cus-tomers to know that it believes in social responsibility?