NewsLetter for Monday March 8th, 2004

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Walking the Walk
By Joe LePla

By definition, values are those beliefs a company prizes above all else — beliefs to be held at any cost, even at the expense of short-term profitability.

Values speak to the commitment a brand makes to society at large. Because a brand and its customers operate within society, the values a company assigns to a brand will have an impact on customer relationships. In fact, these values can strongly influence customer preference and loyalty.

Every company has values. Make sure you know what yours are. Clearly stated values ensure continuity of the corporate culture and help employees "live the brand."

Eyes on You

The people at the top of a company must also live by these values. To no one's great surprise, employees watch their bosses closely and pattern behavior after theirs. If a company owner shows a "do as I say, not as I do" mentality by claiming certain values but displaying contrary behavior, employees — potentially the company's biggest cheerleaders — will opt not to buy in.

For example, a company might claim customer service is its primary value or people are its greatest asset, but unless these values are supported with actions, the company runs the risk of creating a "yeah, right" mentality among employees.

Howard Olivier, owner of Flying Pie Pizzaria, a three-store operation in Boise, Idaho, says a bull session with a Boise State University sociology professor a dozen years ago led to the credo practiced at his company: quality product, quality community and integrity.

By quality product, Olivier said he means Flying Pie's food; he wants it to be the best. By quality community, he means customers, vendors, employees, everyone who comes in contact with his company. He said all staff members learn to relay information in a helpful, not critical, manner. As for integrity: "Once you know what's right, you do it all the time," he said.

Go for the Overlap

"We have one house rule," Olivier said. "A company usually has a lot of house rules and they're usually a weapon for management to use to beat employees over the head. But here the house rule is you have to show you care. And it goes both ways. I give $100 to the employee who calls BS on me."

Olivier's company, which sells dough mix, logo-laden gear and a pizza-making instruction kit via its Web site, endeared itself to Boise citizens by adding an exclamation mark — and enthusiasm — to the sign marking the city's library. It reads not Library but Library!

While that move paid for itself in increased business within a fortnight — and earned a mention for the pizza company on CNN — Olivier said Flying Pie's acts that benefit the community are only done when they overlap a company need.

"Our goal is to serve the best pizza," he said. "We don't sell pizza that has been sitting too long. We give it to the Idaho Food Bank. So the $10,000 we donate to the food bank is because we care about the quality of our food."

Article Continues below...

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Continued...

Stretch the Limits

Values can work in concert with other brand attributes to enable great decisions, creativity and higher-quality products or services. They can free employees from the need to follow rigid rules. They offer flexible guidelines that allow employees to make on-brand decisions for the company.

Finally, a company with clearly defined, clearly practiced values will attract employees with those same values. If a company demonstrates innovation as a value, it will attract and encourage employees who are innovative. If a company prizes "taking responsibility," it can screen job candidates for the attribute.

REI, a national outdoor clothing and sports equipment retailer, has kept its values for more than 60 years. What started as a customer-owned co-op for climbers seeking higher-quality climbing gear has expanded to more than 1.5 million members.

Among REI's values are quality and service. To REI, quality means creating long-lasting, high-performance products. Customers say they appreciate REI's service and that they seek out the employees they dealt with previously when they make subsequent visits.

Although each REI employee receives standard customer training, the company focuses on continual new-product training. Not only are employees knowledgeable about products, they are active in the outdoors. They share their customers' interests.

Apply Values Online

The key to business success is customer retention. Values can play a major role in this by helping your company differentiate its site from the competition's. Effective use of values involves taking advantage of the Internet.

REI uses e-mail feedback to improve its products. The company's educational approach has been transferred to the Internet through the Learn & Share section of its Web site.

In Learn & Share, users can find specific information on how to use all the sports equipment REI carries and how to find the right piece of equipment. News about clinics, group activities and community forums is on the Web site.

Drs. Foster and Smith, a Wisconsin veterinary supply company, has a stated value of "helping pets get the care they need." The company does this by developing and offering its products directly to the customer; this makes veterinary supplies more affordable by eliminating the middleman.

To Be Great, Innovate

Online commerce can help a brand fulfill its values to society. Interface, an Atlanta, Ga., carpet manufacturer, was concerned about the environmental impact of the 255,000 sample orders it sent out every year in the United States.

The company designed an innovative online order and return program whereby customers can go to its Web site to order samples. This move significantly reduced the waste involved in sending unsolicited samples. Interface now sends a reusable mailing box with a postage-paid label with the samples for returns.

Living your brand values online can differentiate your product or service in a way that creates long-term customer loyalty. This is true whether your values are strictly business-based, such as offering affordable products or a high level of customer service, or are loftier, good-for-society values, such as protecting the environment.

 


The views of our authors don' t necessarily reflect the views and policies of this company or its advertisers.


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