February 22, 2012

McDonald’s Connects with Employees and Customers

At AMA’s MPlanet conference today, I had the opportunity to be part of a special Blogger Q&A session with Mary Dillon, Executive VP and Global Chief Marketing Officer for McDonald’s. She talked about a strong focus on employees, reaching out to moms, and social media.

Connecting with Employees

Mary started the session by sharing about the strong social networks that have been built by and around McDonald’s employees, or crews. “We have over 1.6 million employees around the world, and we try to inspire the crew to feel great, deliver on the brand promise, as well as reduce turnover.” There are several internal social networks which not only engage crews but also give them the opportunity to become more educated (with some even getting credit for it!). Some of these crew communities include MeTime in Australia and New Zealand, OurLounge in the UK, Latin America’s McLand (hope you speak Portuguese!), Singapore’s Ketchup!, and USA/Canada’s StationM. On this last one, Canadian Amanda Wilson was recently voted, by fellow employees, to be the resident blogger and moderator for this community.  Per Mary, these internal-only communities really help crews with engaging, bonding, and living the brand.

“Each employee could be the one experience someone has with our brand. This is a great way tap in and get people on the same page, share experiences.”

Customers Rock! take: I agree with Mary about the impact each employee interaction has with the brand. This could be a returning customer, or it could be someone new to us. Either way, each brand interaction adds up to an overall brand experience, and in this economy, it is important to make sure those experiences leave a positive impression.

Connecting with Customers

Back in 2005, McDonald’s started a Moms advisory panel – Moms’ Quality Correspondents. Per Mary, McDonalds wanted to learn more about this group of customers and be more closely connected to what they are feeling, needs, brand perceptions, and how they would like to evolve it. It is a live (ie. not online) group with participants from multiple countries, including athletes such as Bonnie Blair, a mom in Latin America who is a chef, another mom in the USA who is a PTA president. The McDonald’s team meets with them once per quarter to find out how to improve. There are now panels country by country.  When asked whether this would move online, Mary responded that enjoy the face to face experience with these moms, and the amount of online activity varies country to country. In the US, it is primarily online.  One of the moms also had her own community where she shared her McDonald’s experiences. Recently, she took a trip to a McDonald’s supplier (they send these moms on field trips!) and blogged about it. Usually, these ladies authentically share what is surprising to them!

When asked about how they recruit the moms, Mary shared a few criteria (one was NOT that they eat at McDonald’s). They tend to look for a woman who is a community leader, an influencer, and someone who will bring in strong perspectives (and share them out, too).

Customers Rock! take: Spending time listening to your customers is a critical part of forming a great customer experience. How do customers perceive your brand? What do they tell their friends (and others)? At a minimum, give customers a place to provide you feedback (online, if your customers are online a lot). If you can meet live with customers to hear this feedback, all the better.

Social Media

McDonald’s sees social media as a great opportunity to gather consumer information on attitude and perceptions about the brand. Per Mary, “This is a big opportunity for us; we haven’t tapped into it much yet, but we will!” She also stated that they are willing to look beyond merely the cost of doing social media marketing, as they recognize that this is a different kind of conversation. I couldn’t have said that better myself!

Customers Rock! take: McDonald’s will be a company to watch in these upcoming months. They have a great focus on taking care of employees and getting them engaged with the brand. This will continue to bring them benefits as they move towards engaging their customers online through their website, through communities, and through the social web. Based on the interactions I could see at the Moms’ Quality Correspondents site, there are a lot of consumers that want to more closely engage with McDonald’s and their offerings (how can I be one of your moms?). Now is the time to cement relationships with brand loyalists, turn them into brand ambassadors, and really harness the powerful social networks that many consumers already have in place.

Thank you so much, Mary, for sharing your time with us. You rock!

Re-Experiencing Starbucks: Update 5 – MyStarbucksIdea

paper-cutouts.jpg Part 5 of the Re-Experiencing Starbucks project with Jay Ehret.  Read Jay’s latest post chronicling his recent trip to Brazil and the contrast between Brazilian coffee houses and Starbucks (what a contrast!).   Obrigada, Jay!  (Thank you, in Portuguese.)

Shortly after my last Starbucks update, Starbucks announced “…new strategic initiatives to transform and innovate the customer experience” at their shareholder meeting.  For a quick run-down of those ideas, see Jay Ehret’s post on the announcement.  For a more in-depth analysis of those ideas, and whether they will really impact the customer, see John Moore’s post.

Controversy

The most controversial initiative is Starbucks foray into the world of social media: MyStarbucksIdea.  Launched about 10 days ago, it is a website where customers can go to share ideas for improving Starbucks, vote on ideas from other customers, and then hear back from Starbucks on which ideas they are considering and/or taking on board.  There are a group of Starbucks partners (employees) who are responding to and interacting with these ideas on the site. 

Is It the Right Thing?

From reading several blog posts on this subject since the launch of MyStarbucksIdea, many bloggers seem to feel this is merely a PR move for Starbucks.  To get a feel for who is griping about it and who likes it, see the AdAge article citing references to MyStarbucksIdea from both camps.  Mack Collier of The Viral Garden wrote a great post comparing MyStarbucksIdeas to Dell’s IdeaStorm.  Mack writes,

“The name is different, but Starbucks has unveiled a new suggestion site that looks an awful lot like Dell’s Ideastorm community. Which isn’t necessarily a bad thing.”

I agree, Mack!  Dell’s community has been very good at getting their customers to engage and present new lines of thinking.  Dell has been very good at listening to them and responding quickly.

We can spend a lot of time debating whether this was a good idea for Starbucks or whether they went about it the right way.  It may even have been better for them to engage with customers by doing more listening and commenting through other mechanisms that already exist.  Mack goes on to say something similar in his next post on the subject of Starbucks and customer engagement:

“What would be more effective for Starbucks, to start the MyStarbucksIdea where 48 Starbucks employees attempt to engage Starbucks customers via the site, or to have those same 48 employees attempt to engage SBUX customers OFF the site, a la Richard Binhammer? I would lean toward having 48 employees reach out to customers online in THEIR space if those 48 did even half as well in engaging and responding to customers as Richard does.”

What is the Goal?

Perhaps it depends on the goal of this new online community for Starbucks.  Lately, I have been reading my advance copy of Charlene Li and Josh Bernhoff’s fabulous new book Groundswell(review coming soon here on Customers Rock!), and in it they discuss five goals for companies that want to engage with customers via social media: listening, talking, energizing, supporting, and embracing.  I have assumed Starbucks created MyStarbucksIdea for some combination of listening to customers as well as for co-creating (embracing in Groundswell terminology) with customers.  

Starbucks can easily listen in to customer conversations many places online (and offline) to understand what customers want.  They can also engage in many places online to continue a conversation.  By creating the MyStarbucksIdea site, Starbucks sets the expectation that they want to enable a conversation, join in, and connect customers with each other.  Charlene makes a suggestion on her blog that Starbucks should better close the loop on these interactions.  She says,

“Close the loop, and you’ve not only got me hooked, but I’ll walk the extra block in NYC or drive the extra mile to go to you rather than another coffee house.”  

When I started this “Re-experiencing Starbucks” project with Jay Ehret, I sent feedback to Starbucks via their website, some good and some not.  They responded to the good but ignored the rest.  Hopefully on “their turf”, they will be open to all ideas and close the loop on the feedback they are receiving.

Customers are being very active on the site, adding quite a few ideas and doing a lot of voting on others.  The main ideas on the site right now are dominated with requests for free “loyalty” drinks as well as free WiFi.  These are consistent with some of the pain points expressed by customersin a recent global survey, highlighted by Meikah over at Customer Relations, where price was the number one pain point.  Perhaps once Starbucks gets past these long-desired customer concerns, the conversation will blossom into other areas as yet unexplored. 

What do you think?

Go check out the site and let me know what you think.  Is this site a good way for Starbucks to keep an ear open to customer requests?  Will it be effective for co-creating with customers?  Do you think it will succeed?

Starbucks – are you listening?

Related Customers Rock! posts in the Re-Experiencing Starbucks project series:

Re-Experiencing Starbucks

Part 2: Transformation Starting

Part 3: The Training

Part 4: Little Things