Tuesday, February 22, 2011

Loving my TOMS!


I’ve been hearing about TOMS shoes for a while now.  I was never very interested in buying a pair though.  I love the idea of the company donating one for one, but they aren’t exactly what I would call fashionable.  I also figure I can donate money on my own, and I don’t need to do it through buying a pair of shoes.  Despite all of this, my mom bought my brother and I TOMS shoes last Christmas.  They were the typical, plain black ones.  I didn’t care for them much at the time, and they sat in my closet unused for about a year.  This winter, I was in desperate need of closed-toe shoes so I gave them a try and boy was I pleasantly surprised.  They are so comfortable!! Why had I waited so long to try them on? Why in the world wasn’t I told in the past few years how comfortable they were?  On the website, the “one for one” movement, but their comfort is not advertized at all.  If I had known, I would have used the pair much earlier. 

Now I see these shoes in a whole new light.  I notice many people wearing them on campus, and I appreciate seeing them.  They have recently come out with new and fun prints, which I think will help with more sales.  They have become a fashion statement, but instead of saying, “I love fashion”, they say, “I love helping others.” This Christmas my grandmother asked me what I wanted.  I thought TOMS would be a perfect gift.  Sometimes people want to buy you something even when you insist it is not necessary.  Receiving a pair of TOMS, as a gift, is the best of both worlds: you receive new shoes and so does someone in need!  I also bought a pair for a friend of mine.  :) 

TOMS have become very popular.  My question is what has lead to this success? Like Coke, is the story behind the brand the main factor? OR is it  the look or comfort of the shoe? What types of people buy TOMS? Is there anything that could have made the business even more successful? What price would have been too high?

What other products will this idea work for?  Does the item have to be something that is publicly seen? For example, would consumers pay an inflated amount for furniture or kitchen appliances that only a few people would notice? Or are consumers drawn to the fact that people will know they own the item? When I see someone walking around in TOMS, I definitely have a good impression of them, and I know people feel the same about me when they see me in TOMS.  Does this play a part into why consumers buy them?

It is my understanding that using a different business plan probably wouldn’t have worked as well. For example, if people were given the choice to buy a pair of TOMS for $35 (another pair would not be donated) or buy a pair for $50 and another pair would be donated, I believe people would not spend the extra money. The fact that they are not given a choice makes this successful. Other people wouldn’t know whether a consumer bought the TOMS for $30 or paid extra to donate another pair.

Like I said, if I had known these shoes were so comfortable, I would have used them a lot earlier.  This reminds me of the Aeron chair we read about in Chapter 5 of Kenna’s Dilemma. The chair was built to be comfortable but the look was so different and new that people had a bad first reaction to it. Should TOMS have advertised the comfort of the shoes more to combat the “dull” look of the shoe? On the other hand, would advertising their comfort take away from the story behind the product?

As I explained in my first blog, I am very interested in nonprofit organizations.  I want to either start my own nonprofit organization or play a very important role.  For this reason, this company is of great interest to me.  Maybe one day I can duplicate this idea and build a similar business (for a different product, of course). 

"The Business of Giving: TOMS Shoes" explains some answers to the previous questions and gives customer insight. The article explains that TOMS has proven to be “recession-proof.” They are not losing business during the recession. In fact, they are hiring. Why? The article says, “Consumers are now conscious about where they put their dollars. A product like TOMS that gives to others is appealing to people more than ever.” I think the price is perfect. They are not too expense. For a comfortable pair of shoes, someone with an average salary would not think twice about buying them.

Another reason, the article says, that people buy TOMS is because of the story attached to the product. “Buyers feel so good about their purchase they want to tell others about it.” There is a ‘how-cool-is-this buzz’ and the news spreads like wildfire through word-of-mouth.

The TOMS business plan was a great idea and has proven to be very successful. I want to discover everything TOMS did right and everything they did wrong (if anything). I also hope to discover what other products this idea could work for. I believe this business plan is worth pursuing for many different products in the future.

Sunday, February 6, 2011

Customer Experience


When I think about great customer experiences, the first thing that comes to my mind is India. During my yearly visits, I experience true customer service. I can recall one specific event perfectly. 

About a year and a half ago, my brother, aunt, and I were travelling to India together to meet some family. Our itinerary was as follows: Laredo to Houston, Houston to Germany (9 hour flight), Germany to India (another 9 hour flight). Our flight from Houston to Germany was delayed and we missed our connection from Germany to Chennai, India. When we landed in Germany, we spoke with the first customer agent we could find to help us. It was the worst customer service I have ever experienced, but that is another story all together. Anyways, we were put on a flight to Mumbai, India and told we had to spend the night there and fly the next morning to Chennai. We reached Mumbai around midnight after a 24 hours journey, and found our way to the Taj Mahal Palace. We figured we would splurge a little after the long trip. By the way, we had to pay for transportation, hotel accommodations, and food while staying in Mumbai.  If you recall, there were terrorist attacks in Mumbai about 2 years ago and security was at a high point when we visited. To reach the hotel, we drove past a guarded gate and a few security guards. After a long trip, this helped ease my tension and made me feel extremely safe. Now all I could think about was food, a shower, and sleep.

As the taxi driver parked the car, our bags were removed from the trunk for us. Though this is a standard procedure at many hotels, what happened next definitely was not. We walked into the hotel (it was even more beautiful inside than it was outside), to the front desk. The front desk attendant said, “We’ve been awaiting your arrival. Shall we walk up to your room?” I was wondering how they checked-in guests but didn’t argue. She explained that they are able to check in guests in their hotel room. They like to go the extra mile especially for people who have traveled far to reach their hotel. Ahhh, a sigh of relief. She walked us up the room, asked for a credit card, told us to feel free to order room service, and left us to get settled in. We didn’t wait long to order sandwiches and. Finally good food and a bed! After a few minutes our bags arrived, and I showered first J. A few more minutes later, the front desk attendant knocked on our door, handed us our keys, credit card, and had us sign some papers. She left and a few minutes later... the food!  That really hit the spot. Then, I crawled into a bed and got some well-needed sleep!

SENSE
If you’ve ever flown long distance before, you know the feeling of exhaustion and filth describes it perfectly. I had heard so much about this hotel before visiting it, but I wasn’t at all excited to see it in person. We weren’t even supposed to be in Mumbai! I have to say, though, the experience was well worth the detour.  Just to be out of an airport was wonderful. The hotel was beautiful, and the service was unbelievable. The food tasted delicious, the shower amazing, and the bed the most comfortable.

FEEL
Considering the circumstances, things couldn’t have been better. All I wanted before reaching the hotel was someone to be nice! What we received was perfect customer service. I felt safe and extremely comforted. Bags, check-in, and food brought to our room door. What a relief!

THINK
I was surprised at the ease of this hotel stay. All I was thinking was: why doesn’t every hotel do this? Seems like such an easy concept so why hasn’t anyone thought of it before? I understand the way it was done at this hotel was time consuming, but there are ways to make it a little easier. What if hotels brought up the paperwork and a credit card machine to the hotel room? The front desk attendant wouldn’t have to go back downstairs to do these things. What a great idea!

ACT
My parents own a La Quinta Inn & Suites in Laredo, TX and my experience and the Taj inspired me to help them more. La Quinta isn’t an upscale hotel, and we can’t afford to make changes like these, but some minor changes would make a big difference. If we make a positive impact on a guest’s stay, they will be our customers forever. We began cracking down on our front desk, making sure they were welcoming and receptive to the guests’ needs. Asking how their day was and if there was anything we could do to make their stay more enjoyable made al the difference.

RELATE
As I mentioned in my previous blog, I find job in making other people happy. This hotel made me extremely happy! It inspired me to keep helping people to feel the way I did. The staff was sincerely concerned with making our stay comfortable and enjoyable. I realize it is their job to be nice, but I still appreciate their attitude and was inspired to keep helping others.