When a program gets stuck on our computers, we reach for the ever-present reset button.Which got me thinking: Why not apply the idea of a reset button to other parts of our business that, from time to time, get stuck too?

Since starting my consulting business, I have found that when companies aren't spending their energies opening new locations, they like to look back at their brand to make sure it's in line with their mission. Essentially, times like this recession are ideal for looking at what works and what doesn't. If something doesn't, it's probably time to reach for the reset button.

That doesn't mean finding trouble spots is easy or obvious. Recently, I stayed at the Essex House in New York City. Since I really like to drive in the city, I rented a car.  Before I could arrive at the hotel, I saw that a large construction project was blocking t...Read More

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You know what I’m taking about: the tiny print that says "limited time offer" "service include," "terms apply," "two-year commitment required," and "this offer cannot be used with any other offers." As customers, we hate it, but as operators, we're used to it.

After working for The Cheesecake Factory for 12 years, I am a Cheesecake fan. Yet recently I noticed that one of their promotions was probably not working as well as they had intended. The original idea was good, but it was too complicated, too busy, with too many moving parts.  It consisted of a three-fold pamphlet. All six sides were covered in words printed in at least five different fonts. The whole thing mentioned five or more promotions. For one promotion, guests  had to go the website to enroll in a program and then bring in two cards on their...Read More

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The other day I was reading the newspaper and saw a list of auto dealerships being closed. On the same page was the news that Apple is coming out with its new iPhone 3G S next week.

The question is, which of business these businesses is yours like? One where not having kept up with the times has created an industry that’s shrinking, or one that's always looking ahead and investing in the future?

This GM and Chrysler mess could have been seen coming for years, but instead of making cars that people wanted to buy—cars that were efficient and lasted—they made  products that would break down knowing we would need to buy new ones. The last time I bought an American car was 1975. It was a Ford Thunderbird. 

With Apple, I have kept up with their products. Last year switched from a PC to a Mac. I have an iPod and iPhone,...Read More

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A recession forces businesses to operate more efficiently, but many people panic and make bad decisions that lead to damaging trade-offs. We need to give top priority to quality ingredients of our businesses: decisions, food, beverage, service, tabletop, uniforms, décor, etc. When things get tough, we sometimes forget that the economic times have not always been this way and they will end too, so we need to be ready for that.

Recently I saw an ad for a restaurant offering 50%-off wine Monday through Thursday. My first reaction was that their wine prices must have been too high to start with.

That's why it's important to realize what your customers are going to think of your decision. Then think about whether your strategy will really draw them in and help, or will it hinder your brand? At The Cheesecake Factory, I never discounted anything I cou...Read More

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Sure, we are all marketers. We all sell our ideas to our customers and staff members every day. The question is, how effective are we?

Case in point: I recently was on a trip to New York and stayed at the same hotel I have for a number of years. They just finished $90 million renovation and are promoting the hotel heavily. I arrived and received a great room and view, yet there were a few hiccups:

• The room had nine different light switches (none labeled), and I had to turn them all on and off to figure them out.
• The key-card advertisement of the hotel's restaurant turned out to be upside down on the way you were directed to hold the card.
• They wanted to charge $14.95 a day for internet service. Even McDonald's has free WiFi!
• It sometimes took over a minute to get an operator on the phone .

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In recessions, companies must understand consumers' shifting needs and adjust their communications strategies and offerings accordingly. It is critical to track how your customers reassess priorities, reallocate funds, switch brands and redefine value. 

Customer behavior has changed. Today's customers fit into one of four categories:
 
1) Those who have stopped spending or deeply reduced their "treats" while seeking lower-cost substitutes;

2) Those who are feeling the hurt of the economy but are patient and will cut back some, yet are value conscious;

3) Those who still feel comfortable, yet are more selective when purchasing luxuries;
 
4) Those who live for today and will continue to buy their favorite brands as they did before the recession.

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What if your company could actually improve its competitive position during an economic turndown, a slump or anytime?

No question about it, this is a tough time to be selling to customers. Their budget allowances for the moment simply are not there. Customer relationships need a boost to keep them coming back, so what do you need to do?

All of this would be discouraging if not for one fact: We all have survived downturns before, and some of us have even profited from them. In this blog, we will identify what your customer wants in this current business environment as well as going forward. You might find out these things are one and the same!

When I was senior vice president of business development and marketing at The Cheesecake Factory, we strived to make sure every guest had a great experience, which drove them to come back and to become word-of-mouth a...Read More

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