March 8, 2010 53 Comments

What I Told Simon Last Night

Simon is marketing director for Bar B-Ria, an upscale barber shop experience for gentlemen in Bogota, Colombia. They offer everything from massages to haircuts to manicures and pedicures, and a bar full of top shelf liquor, including a new favorite rum, Zacapa from Guatemala. I’ll tell you what advice I had for the place upon appreciating their services and their commitment to guest experience. This is mostly tactical. There’s still something to learn from it.

Turn The Revenue Measure From “Dollars Per Day” into ” Dollars Per Guest”

Because the entire plan of Bar B-Ria is hinged around delivering excellent guest experiences, it dawned on me that measuring revenue by day instead of dollars-per-guest means that opportunities get lost. For instance, I love Zacapa rum. When I walk in the door, it should be one goal of the Bar B’Ria team to pour me a glass (and add to my bill). This is how places like Disney think. They work on delivering maximum guest experience, but they calculate on dollar-per-guest, as do cruise ships, as do many other hospitality experiences.

Build Relationship Databases

I recommended that Simon have each guest in a database that tells them my preferences all the way through. Do I like gel in my hair after the haircut? Do I want my massage hard or soft? Why shouldn’t everyone in the place know that upon my arrival? It’s going to benefit my experience, and it’s going to improve my perception of the service. You can do this easily with Google Docs, better with BatchBook.

Partner With Hotels

Simon needs my dollars. I’m a US guy in Colombia and the service he offers is premium-but-inexpensive by American standards. If I hadn’t had friends from Colombia, I’d have never heard of Bar B’Ria. The people of Colombia in general don’t know much about it yet, and the men here aren’t yet convinced that a $30 haircut is somehow better than a $4 haircut.

Hotels that cater to people from other countries or vacationers would be a great place to build a relationship with concierges, maybe even to sponsor/advertise. Simon could earn much more by building bridges between the places where people who can afford the experience are and into his establishment.

Until more folks come and see the value for themselves and use it to treat themselves.

Word of Mouth Referral Program

Simon would do well to give me a card upon leaving that offers someone a free drink or a scalp massage or something else. He should give me 3-5 per visit. Imagine the experience: I’m done with my massage and my haircut and my delicious rum, and I am about to leave the venue. Aren’t I going to go forth and spread the word? It’s the perfect opportunity. Should 3 of those people come in with my referral, I’d maybe get a small benefit back: my own free scalp massage, perhaps.

Little Things Add Up

Over all the various ideas I gave Simon, they weren’t immediate millions-makers. They are all experience-enhancing and tactical. They all relate to giving guest value that results in improved revenue and guest acquisition. None of what I talked about had to do with the web. That’s almost the easy part, right?

Your Ideas

What would you add to this, oh social media friends. Give a few ideas in the comments on what you’d do to amp up the social elements, and tell me how they’d help Simon. (I’ll share my ideas in the comments a day or so later.)

Good?

(Oh, and I found this video in Spanish about the venue, if you want more inspiration.

VERY special thanks to Carlos Pardo for help finding the link to the place, and for the hospitality he (and his amazing parents) showed me at their family home for dinner while in Bogota. (And ladies of Colombia: he’s single.)

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http://www.mikeslife.org Mike CJ

I'd add “Capture emails and put a follow up system in place” for visiting business people like you. Stay in touch with them, keep them in mind, and they will re book next time they're in Bogota.

For locals “Take charge of their future visits.” Years ago, I lived in a small town In Dorset and I wandered in to a traditional barber shop while my wife was shopping one Saturday morning. I got the full treatment (I had hair then!) with a shave and scalp massage, and at the end the owner Will said to me: “I'm going to book you to come in every two weeks, that's what you need with your hair and your job. Is Saturday the best day for you?”

For the two years I lived there, apart from when I was away, I never missed a Saturday with Will.
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http://twitter.com/Ungvall Torbjörn Ungvall

Find different ways to be seen and to reach out to customers. For instance:
- Start a blog about grooming with maybe a small webshop attached
- Cooperate with some choosen hotels to arrange special events for customers, like mens health or wine/ rum tasting
- Make sure to be seen during sports, cars and fashion events

But most of all – listen about wath people are saying on the internet about health and grooming and reach out to them and offer some help and advice.

/T
J. van der Linden

On the dollar per guest front, I would consider developing a relationship with a shoe shine/care service; in my own experience, Colombian businesspeople notice shoes and care about them. Possibly I would consider a clothing care service for things which can be managed while the customer is in the shop, but this will take some balancing to integrate it into the experience.

No company in Bogota which caters to locals can afford to ignore the family aspect of doing business; it seems to me that this business is targeted for younger male members of the family but offering special deals for other family members will bring in the older decision makers — jockeying for social influence can then be leveraged right into the till.

I think Simon might consider marketing himself to Colombians outside Bogota who are regularly in town for business. There is a friendly competition amoung cities/which again could be leveraged — a fellow from Pereira (to take a name out of the air) who takes his colleague to such a business will increase his personal cred by doing so. I think some marketing to visiting businesspeople outside Colombia may drive locals to his door, especially in Bogota, but there is some danger of the perception that the company offers services which are considered too personal to be appealing for business meetings with people one does not know well. It does seem to me to be a business better positioned for business meetings involving people who are already in an established business relationship.
http://www.crossingmarketingandit.com/ Elmer

Chris,

Certainly you gave Simon some excellent suggestions.

I would point to the web site. It's currently very sparse (just email links to make reservations) and only in Spanish. If he wishes to cater to foreigners visiting town a web site in the language(s) of his potential customers would be great. A quick poll of where the customers come from (kept in the database you suggested) would five him an idea of which language(s) to target first. This would certainly give the web presence a very upscale look.

I highly recommend not relying on machine translations. Write out the site's content in one language and have a person translate it. Machine translations lack a bit and often fall short to the “native language” reader.
http://twitter.com/AJBombers AJ Bombers

How about offering just a small part of himself and his services at the physical location of the hotels where most out of country guests stay? Maybe he spends one day a week providing his complimentary services to surrounding hotels best guests from out of the country inside the actual hotel and he “sneaks in” some other guests, shhh don't tell anyone (read: tell everyone). Fostering the feeling of membership and community and at same time working on creating scarcity for his time by virtue of the “I know Simon” concept. Simon is my guy! Or Valerie is my girl!

As much as this is a business at work that we're talking about here, what about the idea of one of the “barbers” being a niche specialist, “you won't believe the scalp massage that Valerie provides, you'll need a nap soon after. It might be the best in the world!” – Yeah! The Scalp Whisperer! Ha.

Perhaps the shop might have some success developing private bottle lockers for their guests to share with friends? Allowing guests to buy bottles and keep for sharing with only their invited guests? Can't you hear that story? “Joe, you're headed to Bogota? Oh, boy do I have a treat for you, stop by Bar B-Ria and ask for Simon, let him know I sent you and that I'd like for you to share my bottle of Zacapa, you're gonna love this place!” This is even something the hotels could do for their best guests, or even better, something that Simon could do FOR the hotels and let the guest believe that its the hotels private bottle just for them as a guest of the hotel. Imagine that story being told!
Sandy

This experience would be a great gift (Can only imagine Columbian woman have a difficult time finding the right gifts for men, as this US woman). Is there a way to connect with event markets (weddings?) and with women consumers?
http://twitter.com/NikiBGD Danica Radisic

Although Colombia is a much larger country, I believe both their level of Internet and mobile network users is (in percentages) somewhere around where Serbia & the Balkans used to be about two years ago. In retrospect on that period here, how about building bridges with some of the mobile service providers or perhaps even advertising with them? Offering a free Bar B’Ria service to customers of a mobile network, maybe even putting together one of those SMS prize games where mobile network customers would win a full Bar B’Ria treatment for Father's Day, Christmas or other holidays? Just thinking off the top of my head here, as I don't actually know the place, but mobile networks and hotels seem to be the way to go at this point. (Unless I'm wrong about the percentage and profile of Internet users in Colombia at this point?) Either way, love the concept. Think “ladies' day spa” next and I'm booking a trip to Colombia!
jeffcutler

I like the entire theme. The visit to a country that probably doesn't do much with social media, but imparting lessons in marketing that cross tech and help out is outstanding.

I'd loop in taxi services and maybe vacation companies here and abroad.

Nice post. And now I know where to get my haircut with a glass of rum. YUM!
http://arneltanyag.typepad.com/arnels-blog/ Arnel Tanyag

To help Simon,

I would ask these questions who come to his place:
1) Who referred you to us?
2) Are you here for pleasure and business?
3) Where are you staying?
4) What took you here to Bogota Columbia?
Simon, needs to go deep and ask questions to help him discover the secrets of his customers, so he can market to them appropriate. Most of our new business came from knowing our customers. He needs to know his target market and how to access them.
Another idea, I would start a Raving Fan Club. People who just love the shop and them. These people would be recognized and receive special benefits related to them bringing in new clients.
Sandy

It appears to me that this business is about depth of client relationships (like the database of customer preference), not necessarily breadth of client base. I think I would focus on building the relationships locally, then have a smaller percentage of effort go to strategic tourist segments (highend tourists/repeat tourists), using targeted strategies for incremental growth. While it may be tempting to tap first into the tourist market, the company must consider its longterm intent.
http://www.tommartin.typepad.com Tom Martin

Have a visual reminder to “check in” on services like Foursquare and maybe right under the visual some kind of “offer of the day for 4square users” that folks can include in their check-in “shout out”

Complimentary recharge station for cell phone, iPod, etc. Encourages customer to unplug and be pampered a bit — which in and of itself is nice but also provides a great benefit to heavy users of devices. Lastly, keeps entire experience “clean” as you don't have phones going off and disturbing everyone.
http://www.avenue3re.com Lois Ardito

I like the ideas you gave to Simon, they were more than likely things he could do easily as a start to get his guest experience into the “top-notch” category. What I particularly thought was the most profitable road to pursue is finding the people who can afford the relationship. My thought, a little sophomoric I'll admit, is to have a nice little laptop next to the cappuccino machine and invite customers to “tweet” their experience before they leave the barbershop, with an incentive of some kind for the Tweeter and the customer who comes in based on the Tweet. Just a thought.

Speaking of “guest experiences”, staying in a home of a friend and becoming part of a family for your stay is really pretty wonderful, I agree.

Lois
http://socialbutterflyguy.com/ DJ Waldow

Mike! You beat me to it. Let us not forget email. Imagine if Simon had a drip campaign of sorts set up per guest. This would work more for locals, but I see it as an email thanking you after you leave. Within the email, it would be cool to see a before and after picture too with the ability to post to Twitter, Facebook, etc – Share With Your Network (SWYN). Next, Simon could set up email reminders 2-3 weeks before your next haircut with the ability to “book now” … refer a friend, etc.

DJ Waldow
Director of Community, Blue Sky Factory
@djwaldow
http://www.ivanwalsh.com Ivan Walsh

Recommend a product. e.g. in the barber shop, some product for fair skin/sensitive skin.

Don't ruin it by trying to sell it then and there, instead suggest where they can buy it… maybe at a discount at a 'partners' shop.
ChrisML

All truly word of mouth ideas, Chris, and by doing that all very well and counting days per guest and referrals per guest or per channels (concierges, etc.) Simon can build his reputation and see what works best for a highly tweaked model quickly, that can than be franchised with the highest quality of replication in strategic local and LA locations as a start; leveraging social media / technology for promotion.
http://www.vastplanetblog.com Michael Vorel

Excellent Advice, I would add mobile text alerts to add reinforcement to the scheduling of appointments. With custom tailored relationship marketing (i.e. batchbook) and word of mouth marketing to encourage others to join it's a win win scenario.
http://www.mikeslife.org Mike CJ

The before and after pic is a really cool idea DJ, and yes a drip campaign to keep the business in people's minds would work really well. And the campaign should include info on latest hairstyles, products etc.

I'm still reeling from the idea of getting your favourite drink while you have a haircut – how cool is that?
maryeulrich

Chris I love this brainstorming session. Each person who commented expanded on your ideas. I'm new to marketing, and social media. This example helped walk me through the thought process. Could you do this more often? Perhaps with other examples.

For instance, I just learned my niece is the PR person for a high-end car dealership. I've been sending her stuff on inbound and outbound marketing but she's 22 years old and just graduated–so what could her old Aunt Mary possibly know to suggest….

After reading about the barber shop, I could see many business parallels to keeping the focus on the customer returning for a personal community. Giving free car washes, reduced oil changes… maybe giving something for referrals….

This post helped me put some stray puzzle pieces together. Thanks.
rob

Noteman “What's the work needed to improve my barber business?” rob “It begins with your own head; not on the outside but on the inside. Prosperity begins by consciously making changes in the system that offer more service to the world. How you do it will come naturally when you look at your business from a consciouslness of G&D (growth and development).”
greshkah

Thanks for the little story. I love hearing about sales people who are so good at what they do, you don't even realize they are making a sale – you feel like they are doing you a favor!. I like his sales pitch, “with your hair and your job, you should be coming in every two weeks”, how could you say no to that!
http://www.good-webhosting.com/ Rina

nice work, thanks for big resources overview for web developers
greshkah

I would recommend he try to make connections with the embassies, as I would imagine all those government types would be interested in using this service, and get a post on springwise, which is an online platform, showcasing new & innovative business ideas from around the world.
http://www.webconsuls.com/ Judy Helfand

As usual all that you offered is very good. I don't have a lot of time today, but I want to weigh in on what Mike CJ said about setting up the repeat visits. Some salons (men/woman/unisex) can survive in a large tourist hotel, but most salons are not in a major hotel and need to become part of the community. Repeat guest is all about dollars per guest. They require the least amount of your advertising dollars and they want to tell their friends. Having a standing appointment schedule allows for everyone to really get to know each other. My husband and I go to a salon here in Tucson and we each have standing appointments. We were referred to them by our son and future-daughter-in-law. Here is a link to their site http://www.gadabout.com/en/index.shtml I just want Simon to see all that this company offers, not just for their clients, but for the community…supporting non-profits, hiring interns, etc. Notice they are on facebook, twitter, and have a blog!
http://www.mikeslife.org Mike CJ

I love people like that too – supremely competent sales people and relationship builders, but if you said that to them they'd completely deny it!
terryeast

All of the ideas sound great. And the revenue per guest is a sound one… it's used in the grocery business with great success. But what are the lead services; I would say the hair cuts and other personal services. A focus on the talent providing this service is key. Who are these people and where did they come from… what previous clientele do they possess. They are the trust agents in this organization; their recommendations to try other services carry more weight than a coupon.

So, I would ask who are the hot barbers in town… are they working at Bar B-Ria?
pamelahowell

great comments from your fanbase! thanks everyone for the thoughtful posts.

now i just wish i could have a strong drink next time i get my hair done…where is this level of service in NJ? ;-)
http://www.stellarpointgroup.com/ PaMarketing

Thanks…I thought many of the comments are right on. This marketing scenario is a perfect example of how “Marketing Balance” should be integrated into their program.

There are a number of different ideas discussed at our “Effective Marketing” link which highlight the importance of balancing online search marketing with good old fashioned “face to face” marketing. It is wonderful to have a great online marketing strategy; but, it needs to be combined with an effective offline marketing strategy for the business to really take off….

Thanks to everyone for their comments…
David Siteman Garland

What about partnering with specific businesses in the local business community and offer specials, or exclusive benefits to employees?

For example, if you work at XYZ company:

1. You get a free drink when you come in.
2. Every three haircuts results in a free scalp massage (or something).

Benefits to XYZ company = Deals for employees equals happy employees and a “perk of the job”

Benefits to Bar-B-Ria = Set base of repeat customers with incentives.

Just my .02 or .03 cents.
http://www.dahowlett.com dahowlett

@elmer – I'd go further. The website is non-existent as a marketing tool. Without Chris's post it would be invisible to all but those most dedicated in running a Google search. (Note Chris's post appears top on Google for 'high end barber, bogota, colombia)
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TaylorEllwood

I'd have them consider looking into creating short videos of what they do and/or client testimonials. They might also consider doing social media only deals so that people following them on their social media could get a percentage off their first visit, etc.
http://chrisbrogan.com Chris Brogan

All good stuff, sir.
http://chrisbrogan.com Chris Brogan

So getting repeats is the biggest business possibility? Good to know.
bsrabian

I think Simon should reserve a slow night to invite only, and target key business/tourist executives in his area. Try to focus on the key business people in the area, and allow them to come in for a complimentary hair cut. This is the type of service that you must experience to fully appreciate, which will then lead to repeat business and word of mouth.

Also, no mention of targeting women who would send their husbands here. Birthdays, Father's Day, just a place to send their man to. As it has been said, women's are the CEOs of most families.
http://www.facebook.com/people/Peter-Murray/718019814 Peter Murray

Make the marketing more personal. Get fans to produce video – I don't understand the Spanish, but the video that is linked to in the article is too clinical and unemotional.

For a good example of documenting a wonderful haircut experience, see my Squidoo lens on Getting a Men's haircut in Turkey (http://squidoo.com/turkishhaircut) and the related YouTube video (http://www.youtube.com/watch?v=ahHHQzBG-Rg – deliberately unemotional for comedic effect).
http://www.webconsuls.com/ Judy Helfand

Yes, what I am saying is developing repeat guests (“grooming” your guests to become repeat guests) will increase your “total net dollars per guests” income. Because you will have to spend less to keep the repeat guest and they will refer by word of mouth. I think that the traveling public is less likely to risk their hair to a new salon, so you really need to develop the local community and inspire them to refer their visiting guests to you. Get it!?
http://twitter.com/Verilliance Verilliance

Chris, I think you're recommendations are spot on. The salon that I choose to frequent where I live does just that (though sadly, no rum). They keep a record of any color formulas they've used, any makeup I've tried and liked (even if I don't buy it) etc. They offer hot tea and multiple pampering services and they keep track of everything I like so I don't have to.

I don't know the level of social media engagement in Columbia, so I'll keep to expanding on your ideas. To win more locals, I would ask when they make their appointment, or when they walk in, if this is there first time. If so, give them a little extra on their first time. Run through the various services on offer, and let them choose a complimentary extra. Maybe they've come in for a haircut, but they would like to try a free hand massage while they get their haircut.

I think the idea of handing them a set of cards for complimentary services for their friends is an excellent idea, and would work much better for growing local clientele than tourist clientele.

To build tourist/visitor clientele, they definitely need to get on board with hotels in the area. Develop inserts for guest folders. I don't think it's necessary to offer a discount as long as the promotional materials highlight the “experience”. Tourists will go for experience over discounts.

They should also make sure they are listed on any travel and tourism sites that come up in the top 10 for various searches related to Bogota Colombia. Same for searches related specifically to salons, spas, and haircuts in Bogota.

Someone else recommended they update their site, and SEO should be part of that update.
http://fabricecalando.ca/ Fabrice Calando

Hey Chris!
Great recos! I would have a small add on to your Relationship Databases point.
There’s this hotel chain in Canada that encourages their staff to jot down every little detail they can about their customers on little note pads. For example, they even go down to what side of the bed you get up on so that for the next visit, they can un-tuck that side when they are prepping your room.
I think the fact that all is not entered directly in a computer system, but on an old-school note pad makes this much more personal. For the client it doesn’t feel like you’re just being entered in a database…especially for less computer savvy clients.
All the notes can be entered in a CRM system at the end of the day, but the collecting process is old-school. The end-result is the same, but with a more personal feel. I don’t know if that’s related to their branding though…
(Disclosure: The Hotel Germain chain I refer to is a client of the agency I used to work for)
http://twitter.com/simon_staffans Simon Staffans

These are all great comments. Good article as well. I feel I've learnt quite a lot just reading all your great ideas.

Personally I believe it's all about the details that make up the experience (User Experience being a field of interest of mine); what paper would the customer like to read on his bi-weekly appointment? Does he want snacks? What kind of drink? What are his interests? Is he a silent or a talkative type? Simon's barbershop should feel like home, only better.

And I love the idea of a private bottle in a cupboard, to be shared with friends who also frequent the place. I'll introduce that at my workplace :)
David Siteman Garland

Thanks, Chris.
http://www.mediabadger.com/ Giles (Webconomist)

That's a heavy txt market; I'd engage with some txt promotion via peoples mobile numbers that I collected.
linfp2009

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simonthebarber

Hotel private Ron Zacappa XO Solera Gran Reserva Especial bottle exclusively for guests? THAT IS SO GENIUS! It's the idea I've been looking for since I started my hotel partnership strategy. It really motivates the hotel to send the guests (which is the problem I've been having so far) because this makes them look really good. Thank you so much… consider this done I'm calling all my partner hotels TOMORROW!
http://twitter.com/AJBombers AJ Bombers

Simon, I couldn't be more pleased that you liked that idea. I sincerely hope that it works for your business. Now, if I only had any artistic skills at all I'd submit to you a drawing of exactly as I see it in your shop! Go make something HUGE happen!
All the best,
Joe
Q64138

Chris, it is absolutely amazing how much advice you got from people who will NEVER visit Columbia and use these services. Q64138
annawoods04

Following this steps would really help the best customer to come in and get the things they are deserving like best customer service and the best things which are already provided by the bar. One should be aware of the value they are paying to come on to the bar and also that they are in the bar and not in their private places so need to behave properly.

Texas breast reduction
margepiatak

They could also form a “membership” option. Encourages repeat customers, they qualify for extra perks, bring in other members, etc. As they said in Cheers, “it's nice when everybody knows your name”.
http://www.facebook.com/seangoldfaden Sean Goldfaden

sorry for being a noob, but what's a drip campaign?
http://www.mikeslife.org Mike CJ

A set of auto responders which are emailed out at set intervals – not just sales pitches.