Monday, April 30, 2012

Can Buffalo Wild Wings Soar to New Heights?



I am starting a four part series exploring ways that brick and mortar companies can compete in a multi-channel world. For our purposes, I am going to divide all brick and mortar companies into four categories:

  • Apparel – American Eagle Outfitters, DSW, Target, etc.
  • Consumable / non-perishable goods – Blockbuster, etc.
  • Consumable / perishable goods – Buffalo Wild Wings, Cub Foods, etc.
  • Hard goods – Best Buy, Barnes & Noble, Home Depot, etc.

Today, I am focusing on the consumable / perishable goods, specifically Buffalo Wild Wings. I will start by presenting my SWOT analysis on Buffalo Wild Wings.


The SWOT analysis is a useful tool to develop and evaluate new strategies for businesses. For the sake of brevity, I am choosing to only walkthrough a couple ideas to convert weaknesses to strengths using multi-channel solutions. As discussed in my previous blogs, the key idea is that consumers want convenience at an affordable price.

1. Inconsistent service – “…can be SUPER awesome or SUPER slow and inattentive”

It is not fair to imply B-Dubs alone struggles with inconsistent service. However, it is absolutely critical to create a consistently great consumer experience, making as few mistakes as possible. Poka-Yoke[6] is a useful Lean Six Sigma concept to leverage towards accomplishing this goal. It is a Japanese term that means “fail-safing” or “mistake-proofing” with the purpose of eliminating defects by preventing, correcting or drawing attention to human errors as they occur. For instance, a server can easily misunderstand a consumer’s request or get delayed in taking an order during a busy period at a restaurant. What if you leveraged the B-Dubs mobile app to solve these problems? Imagine… It is Tuesday and a group of friends from work decide to do an impromptu happy hour but, you cannot stay long because you have to get to your son’s baseball game at 6:30 PM. In an effort to use your time wisely, you use the B-Dubs mobile app to check the wait time at the nearest location. It is 15 minutes away and has a 20 minute wait time, so you check-in your group of four on the B-Dubs mobile app. When you arrive you immediately get seated. After being seated, the group decides to have the usual, but the server is nowhere to be found. Again to save time, you use the B-Dubs mobile app to place the order by scanning the items selected from the menu and the location ID on the table. After a short wait, the beer arrives and the wings arrive shortly after. Now, it is getting late and you do not have a minute to spare if you are going to reach the baseball game by 6:30 PM. No need to worry, you do not have to waste any time waiting for your tab since you already paid for it when you ordered it on the B-Dubs mobile app. The end result is a great time with friends and you arrive at your son’s baseball game without a minute to spare.

2. Chaotic game day experience – “I go here because a friend organizes big watching parties. If it were up to me I would never go back. You have to get there an hour or more early to get tables”

I can personally relate to this experience. I am a huge fan of the UFC, so I invited another couple to join my wife and me at B-Dubs. We expected it would be a packed bar so we arrived at 7:00 PM for the 9:00 PM main event. Even with us arriving 2 hours early, there was no room anywhere and people were lining up in the bar around the tables waiting for people to leave. We tried positioning ourselves near a table where a couple was finishing their meal. The man kept looking in our direction, smirking and laughing to himself, seeming to relish in the fact that he was making us wait for “his” table. After awhile, my friend politely approached the table to let them know we would like “dibs” on the table whenever they decided to leave. Then, the man proceeded to tell us that we could have the table only if we were willing to pay his bill. Seriously, you want us to what? Well, we had no intention of paying his bill and he continued to stall. Eventually, a woman approached him asking if she could have the table when he was done and he immediately gave up the table, mocking us on the way out of the restaurant. I have wanted to go back to B-Dubs for UFC events on many occasions since then, but I have been apprehensive because I do not want to potentially deal with an experience like that again.

You may be thinking to yourself, how can B-Dubs possibly prevent these types of situations from occurring?! After all, seating in the bar area is first come, first serve. Here are a couple of ideas…

It may not be possible to use an official check-in process in the bar but you can give customers visibility to the capacity in the bar. You could use the B-Dubs mobile app to let customers check bar capacity in the hours leading up to the event. Using this information, customers could choose when to head out to B-Dubs. Capacity could be described in fun terms like “roomy” instead of “lots of open space” or “hopping” instead of “standing room only.” In the short term, customers may decide to go somewhere else after seeing the capacity is “hopping.” However, in the long term, customers will appreciate this transparency and make B-Dubs the first choice before even considering other alternatives.

In addition to giving customers visibility to bar capacity, you could reserve a prime table in the bar area for the Foursquare Mayor of the local B-Dubs. Customers would check-in to their local B-Dubs during each visit to earn points. The customer with the highest point total for the previous 7 days would be named Foursquare Mayor for game day. If unable to attend the event, the mayor would have the option of designating a friend as mayor in their place. In the moment, it appears the restaurant would be losing revenue by having an empty table. However, I believe more frequent visits from B-Dubs best customers would offset any potential lost revenue. Additionally, other customers would be encouraged to visit more frequently in hopes of becoming the Foursquare Mayor and score the reserved seating next time around! A significant side benefit of the increased check-in activity would be free advertising on Facebook and Twitter. Also, as game time approaches, potential customers looking for a place to watch the big game can check Foursquare and immediately know where their friends are hanging out.

Once again, the key idea is that consumers want convenience at an affordable price. B-Dubs can dramatically improve the customer experience by integrating the mobile app with social media by allowing customers to save time checking-in and making game day a more enjoyable. Next time, I will look at how Target can leverage multi-channel opportunities for their apparel business.

Share your experiences, your ideas, and invite others to participate in the conversation. I am interested in what you think.

Monday, April 9, 2012

The Apple Challenge




In my previous blog, I talked about consumers wanting convenience at an affordable price. This week, I am going to take a closer look at how Apple is dominating the world by offering convenience built into its products at an affordable price. First, how do I know convenience built into products at an affordable price is important to consumers? One way is how I feel great when I buy a shiny new product and it feels wasteful when I pay for a service I could potentially “DIY.” Normally I am the type of person who needs huge piles of data to justify my point of view, but not this time around; this time I am going with my instincts and emotions instead of mountains of data. Consider the following examples from Twitter…
  • @codinghorror: Geek Squad's in-home "diagnose and repair a computer" service is $299. iPad is $399.
  • @_OMFGitsCody: Who needs geek squad when you can do it yourself?
  • @_denny79_: @KozmicKris I use both for iPhone and iPad. Easy to use
  • @TheRealEddieM: @ShukMadeULook let me know bro yea I mean iPhone is popular but the reason its popular is because it's plain and easy to use
Apple went from a bit player to world domination[1] by introducing the iPod in 2001 and the iTunes Store in 2003. The iPod made it possible for consumers to carry 1,000 songs on a single device, instead of carrying about 80 CD’s or 18 pounds. The iTunes Store made $0.99 songs available to sync with the iPod, instead of forcing consumers to buy entire albums for $15 each. Before iTunes, if you bought an album from each of your 10 favorite artists, you would spend $150 or approximately $1.25 per song. After iTunes, you could buy your 3 favorite songs from each of your 10 favorite artists for less than $30. This powerful combination brought Apple 5 billion downloads by 2008. In 2007, Apple made things even more convenient for consumers by combining the iPod with a phone to create the iPhone. In 2010, Apple introduced the iPad which went onto sell 14.8 million units in its first year (75% market share of tablet PC sales).[2] Apple dominates everybody by integrating content with its devices thus creating value for consumers by making convenience at an affordable price.

Now, let’s play a bit of Jeopardy… “Alex, I’ll take ‘Ways to defeat Apple’ for $1.8 trillion.”[3] So far, Amazon has mounted an impressive response in going head-to-head with Apple’s iPad by introducing the Kindle Fire. Amazon has over 20 million movies, TV shows, songs, magazines and books available on the Kindle Fire.[4] Rumor has it, Amazon is even planning on launching a phone to complete with the iPhone.[5] Unfortunately for Amazon, consumers already invest $4.1 billion annually in content through the iTunes Store[6] which makes them less willing to switch to the Kindle Fire. Have you ever tried syncing content from the iTunes Store with non Apple products?! It is an infuriating process with seemingly endless steps and hours of pain.[7] However, simply copying Apple isn’t a winning strategy, even if Amazon can magically find a way to make it easier to sync the iTunes Store with its products. Second place is merely the first loser.

The only way to defeat Apple is to get ahead of Apple, to succeed where Apple has failed, to build Apple TV before Apple does. Imagine a future where you no longer pay $75 per month for 315 channels you don’t need or even want... What if you paid $3 per channel per month for the 12 channels you actually want to watch ($36 total per month)? Or what if you paid $1 per episode for the 24 episodes you watched ($24 total per month)?

Although Apple introduced Apple TV in 2007, Apple has not been able to duplicate the success of the iPod and the iTunes Store because content is not readily available for it. Just this week, Apple took a significant step forward by allowing consumers to join Netflix through Apple TV and Apple handles the payments via its iTunes back channel.[8] In a twist of fate, Microsoft, who once upon a time dominated Apple, is potentially on the verge of turning the tables on Apple once again with the Xbox 360.[9] In the past year, consumers have increased the time spent on the Xbox Live by 30% to more than 80 hours per month using this service. Microsoft is creating value for consumers by making home entertainment more convenient than ever before. Consumers are already using the Xbox 360 to play video games and increasingly now they are able to find and watch their favorite TV shows without even raising a finger by using the Kinect voice-search.

Who’s going to defeat Apple? Who’s going to seamlessly integrate content with the TV to offer consumers convenience at an affordable price and claim the $1.8 trillion prize?

Share your experience, your ideas, and invite other to participate in the conversation. I am interested in what you think.

Sunday, April 1, 2012

It's a Multi-Channel World




A multi-channel world is a place where consumers are no longer limited by how far they are willing to drive or how long they are willing to wait. In a multi-channel world, consumers download music / movies / games instantly to a device at home or wherever they happen to be with mobile devices. Consumers also regularly use apps on their smartphones to order groceries, computers, TVs, appliances, etc.

Who is taking over this growing multi-channel world? That depends on the product or service you are looking for. When it comes to movies / games, Netflix and Redbox are dominating Blockbuster, Best Buy, etc. When it comes to music, Apple is dominating the entire world with iTunes. When it comes to all things electronic, Amazon is rapidly gaining on Best Buy.

Here is what Netflix, Redbox, Apple and Amazon have in common; convenience at an affordable price. This is what today’s consumer is looking for more and more. I’ll explore this concept in greater detail in future blogs.

Share your experiences, your ideas, and invite others to participate in the conversation. I am interested in what you think.

Who Am I?

A few words about me as I start my first blog ever... I am just a guy who’s passionate about ideas that make things easier for customers and employees. I love building ideas together with others; taking the best of your ideas and my ideas to make better ideas.