StartingOverNow.com
Articles
What Do Employees and Customers Want?
Zappos and Lemonade
People have debated the issue of whether employees and
customers value time versus money for centuries. Which one
makes people happier? Knowing the answer as it relates to your
employees and customers could make and save you hundreds of
thousands of dollars. Of course happier employees make for
happier customers. Happier customers will then purchase more of
your products or services. The answer to the question of time
versus money lies in your company’s culture as well as some
proven data.
A corporation’s culture plays out in how people communicate,
information is disseminated, feedback is given, performance is
managed, and projects are co-coordinated. It is reflected in the
values of its leadership, the way the corporation is structured and
whether work is conducted cross-functionally or within silos.
Without a doubt, all companies want their culture to be a productive
one.
Zappos Steps to ‘Happiness’
When trying to find a standard to follow in any industry I like to look
at innovative companies. Zappos, an e-commerce juggernaut, is
one of those. Zappos booked $1 billion in gross sales in 2008, up
20 Percent from the prior year. Tony Hsieh (pronounced Shay)
helped start Zappos in 1999 as an online shoe store that has since
expanded to a plethora of online goods with free shipping and free
returns. Mr. Hsieh was recently interviewed by Max Chafkin of Inc.
Magazine who he told he has decided to center his entire business
around one thing: happiness. Other companies may spend their
senior team meetings analyzing the productivity of their outsourced
services or the complexity of their software code. Mr. Hsieh values
making Zappos's employees and customers feel really good. He
leads his operation from his space tucked into a row of cubicles in
the middle of the office floor. Everything at Zappos focuses on the
single outcome of happiness which is why the company continually
scores high on lists of the best places to work.
This focus on happiness differs significantly from other employee-
focused companies. Salaries at Zappos are often below market
rates – the average hourly worker makes just over $23,000 a year.
However, the company covers 100 percent of health care costs.
Employees do not find perks often found at other large companies
such as on-site childcare, tuition reimbursement, and a 401(k)
match. Zappos does offer free food to its employees. Cold cuts for
lunch can be found in their small cafeteria.
One might argue that Hsieh does not see money as what is
important in life and that happiness is linked to the time available to
enjoy experiences. A common practice of Mr. Hsieh’s is asking
everyone he meets what makes him or her happy. He also studies
books on the subject. Managers at Zappos are encouraged to goof
off with their employees. On personal side, Mr. Heish blasts a
steady stream of light hearted Twitter messages to his 1.5 million
followers. As CEO, Tony Hsieh is held in the same regard as iconic
stars.
A Glass of Lemonade Please?
Still, there is little doubt that references to time and money in an
attempt to influence consumers is commonplace in most of the
worlds advertising campaigns. A survey of the recent issues of the
New Yorker, Cosmopolitan, Money and Rolling Stone magazines
revealed that out of a total of some 300 advertisements almost half
employed a reference to time or money in their message.
In order to test the time versus money theory, Stanford University’s
Graduate School of Business created a series of experiments as
reviewed in the recent issue of Journal of Consumer Research Vol.
36 article by Cassie Mogilner and Jennifer Aaker. The researchers
started with setting up of a lemonade stand in a busy park one
sunny afternoon. Three signs advertising the lemonade were
designed and switched every ten minutes to randomly assign either
a time, money or a control message (neither time nor money) to
passers-by. The time condition sign read “Spend a little time and
enjoy C & D’s lemonade." The money condition sign read “Spend a
little money and enjoy C & D’s lemonade.” And the control condition
sign simply read “Enjoy C & D’s lemonade.”
The results showed that significantly more people (14% v 7%)
purchased lemonade when they were exposed to the sign
mentioning time compared to the sign mentioning money. There
was no significant difference in the number of lemonade purchases
made by those people who saw the money sign compared to those
exposed to the control condition sign. The researchers also
reported that those people who stopped to make purchases were
representative of a range of ages (14 – 50 years old), gender (58%
male v 42% female) and occupations. This suggests that people in
general are more primed to make a purchase when they are
influenced by time than money.
But what effect might that have on the perceived value of the product
being purchased? In an interesting twist passers-by who
purchased a cup of lemonade were told that they could pay
anywhere between $1 and $3 for the lemonade but the exact
amount they chose was up to them personally. Those customers
exposed to the “spend a little time” sign not only bought twice as
much lemonade, on average they paid more for it as well ($2.50
versus $1.38). Thus, the experimenters claim that mentioning time
versus money in marketing materials and promotional campaigns
can make a product not only more attractive but also more valued
too. Why? Because the researchers felt that someone’s
experience of a product is likely to generate feelings of personal
connection. Suggesting that consumers consider their time as a
commodity could lead to more favorable attitudes and decisions.
A Download of Experiences
In an attempt to test the monetary value of time consumers were
asked to complete surveys regarding the use of their iPod – a
product of which a lot of people spend money and time. The results
showed that iPod owners who were asked to think about the time
they had invested in their iPod reported more favorable attitudes to it
than the owners who were asked to think about the money they had
invested due to their perception of a heightened personal
connection and experiences with the product.
The lemonade and iPod experiments suggest that irrespective of
the amount of money an individual might spend on a product,
making references to time can influence people’s perception of a
product’s attributes.
The researchers also found that when the products concerned are
considered ‘prestigious possessions’ and your influence target is
more ‘materialistic’, then making references to money rather than
time should be more persuasive due to the fact that in this group
the feeling of personal connection would more likely come from
possession than experience.
One of the reasons that Zappos offers free shipping and free
returns is that consumers save time not having to go to the store to
buy shoes and other items while also not losing money if the size is
wrong or they are unhappy with their purchase. The risk of losing
money has been eliminated, leveling the playing field to retail
stores. But with Zappos the consumer saves time.
So what is it about your business, product or service that can save
time for consumers? What is it about your work culture that
demonstrates to your employees that you value their time and their
happiness? Can you implement something today that will make a
difference? Start now!
Sign up for Mary Lee’s FREE e-newsletter of free career and
productivity advice by emailing info@startingovernow.com.
For the FREE Worksheets: "SMART Goals," “It’s Not Who You Know
It’s Who knows You” and “Goals - What They Did for Me” go to: www.
startingovernow.com/Articles-andTip-Sheets.html
Mary Lee Gannon is a cultural turnaround and leadership expert
who went from being a stay-at-home mother with four children living
in an unpalatable marriage behind the facade of a country club life
to the reality of divorce, homelessness, and welfare. As a national
guest speaker she demonstrates turn-around strategies that
transform corporate cultures and took her from an earning capacity
of $27,000 to the president and CEO of a hospital foundation. Her
book “Starting Over – 25 Rules When You’ve Bottomed Out” is
available in bookstores and on Amazon.com.
Zappos and Lemonade
People have debated the issue of whether employees and
customers value time versus money for centuries. Which one
makes people happier? Knowing the answer as it relates to your
employees and customers could make and save you hundreds of
thousands of dollars. Of course happier employees make for
happier customers. Happier customers will then purchase more of
your products or services. The answer to the question of time
versus money lies in your company’s culture as well as some
proven data.
A corporation’s culture plays out in how people communicate,
information is disseminated, feedback is given, performance is
managed, and projects are co-coordinated. It is reflected in the
values of its leadership, the way the corporation is structured and
whether work is conducted cross-functionally or within silos.
Without a doubt, all companies want their culture to be a productive
one.
Zappos Steps to ‘Happiness’
When trying to find a standard to follow in any industry I like to look
at innovative companies. Zappos, an e-commerce juggernaut, is
one of those. Zappos booked $1 billion in gross sales in 2008, up
20 Percent from the prior year. Tony Hsieh (pronounced Shay)
helped start Zappos in 1999 as an online shoe store that has since
expanded to a plethora of online goods with free shipping and free
returns. Mr. Hsieh was recently interviewed by Max Chafkin of Inc.
Magazine who he told he has decided to center his entire business
around one thing: happiness. Other companies may spend their
senior team meetings analyzing the productivity of their outsourced
services or the complexity of their software code. Mr. Hsieh values
making Zappos's employees and customers feel really good. He
leads his operation from his space tucked into a row of cubicles in
the middle of the office floor. Everything at Zappos focuses on the
single outcome of happiness which is why the company continually
scores high on lists of the best places to work.
This focus on happiness differs significantly from other employee-
focused companies. Salaries at Zappos are often below market
rates – the average hourly worker makes just over $23,000 a year.
However, the company covers 100 percent of health care costs.
Employees do not find perks often found at other large companies
such as on-site childcare, tuition reimbursement, and a 401(k)
match. Zappos does offer free food to its employees. Cold cuts for
lunch can be found in their small cafeteria.
One might argue that Hsieh does not see money as what is
important in life and that happiness is linked to the time available to
enjoy experiences. A common practice of Mr. Hsieh’s is asking
everyone he meets what makes him or her happy. He also studies
books on the subject. Managers at Zappos are encouraged to goof
off with their employees. On personal side, Mr. Heish blasts a
steady stream of light hearted Twitter messages to his 1.5 million
followers. As CEO, Tony Hsieh is held in the same regard as iconic
stars.
A Glass of Lemonade Please?
Still, there is little doubt that references to time and money in an
attempt to influence consumers is commonplace in most of the
worlds advertising campaigns. A survey of the recent issues of the
New Yorker, Cosmopolitan, Money and Rolling Stone magazines
revealed that out of a total of some 300 advertisements almost half
employed a reference to time or money in their message.
In order to test the time versus money theory, Stanford University’s
Graduate School of Business created a series of experiments as
reviewed in the recent issue of Journal of Consumer Research Vol.
36 article by Cassie Mogilner and Jennifer Aaker. The researchers
started with setting up of a lemonade stand in a busy park one
sunny afternoon. Three signs advertising the lemonade were
designed and switched every ten minutes to randomly assign either
a time, money or a control message (neither time nor money) to
passers-by. The time condition sign read “Spend a little time and
enjoy C & D’s lemonade." The money condition sign read “Spend a
little money and enjoy C & D’s lemonade.” And the control condition
sign simply read “Enjoy C & D’s lemonade.”
The results showed that significantly more people (14% v 7%)
purchased lemonade when they were exposed to the sign
mentioning time compared to the sign mentioning money. There
was no significant difference in the number of lemonade purchases
made by those people who saw the money sign compared to those
exposed to the control condition sign. The researchers also
reported that those people who stopped to make purchases were
representative of a range of ages (14 – 50 years old), gender (58%
male v 42% female) and occupations. This suggests that people in
general are more primed to make a purchase when they are
influenced by time than money.
But what effect might that have on the perceived value of the product
being purchased? In an interesting twist passers-by who
purchased a cup of lemonade were told that they could pay
anywhere between $1 and $3 for the lemonade but the exact
amount they chose was up to them personally. Those customers
exposed to the “spend a little time” sign not only bought twice as
much lemonade, on average they paid more for it as well ($2.50
versus $1.38). Thus, the experimenters claim that mentioning time
versus money in marketing materials and promotional campaigns
can make a product not only more attractive but also more valued
too. Why? Because the researchers felt that someone’s
experience of a product is likely to generate feelings of personal
connection. Suggesting that consumers consider their time as a
commodity could lead to more favorable attitudes and decisions.
A Download of Experiences
In an attempt to test the monetary value of time consumers were
asked to complete surveys regarding the use of their iPod – a
product of which a lot of people spend money and time. The results
showed that iPod owners who were asked to think about the time
they had invested in their iPod reported more favorable attitudes to it
than the owners who were asked to think about the money they had
invested due to their perception of a heightened personal
connection and experiences with the product.
The lemonade and iPod experiments suggest that irrespective of
the amount of money an individual might spend on a product,
making references to time can influence people’s perception of a
product’s attributes.
The researchers also found that when the products concerned are
considered ‘prestigious possessions’ and your influence target is
more ‘materialistic’, then making references to money rather than
time should be more persuasive due to the fact that in this group
the feeling of personal connection would more likely come from
possession than experience.
One of the reasons that Zappos offers free shipping and free
returns is that consumers save time not having to go to the store to
buy shoes and other items while also not losing money if the size is
wrong or they are unhappy with their purchase. The risk of losing
money has been eliminated, leveling the playing field to retail
stores. But with Zappos the consumer saves time.
So what is it about your business, product or service that can save
time for consumers? What is it about your work culture that
demonstrates to your employees that you value their time and their
happiness? Can you implement something today that will make a
difference? Start now!
Sign up for Mary Lee’s FREE e-newsletter of free career and
productivity advice by emailing info@startingovernow.com.
For the FREE Worksheets: "SMART Goals," “It’s Not Who You Know
It’s Who knows You” and “Goals - What They Did for Me” go to: www.
startingovernow.com/Articles-andTip-Sheets.html
Mary Lee Gannon is a cultural turnaround and leadership expert
who went from being a stay-at-home mother with four children living
in an unpalatable marriage behind the facade of a country club life
to the reality of divorce, homelessness, and welfare. As a national
guest speaker she demonstrates turn-around strategies that
transform corporate cultures and took her from an earning capacity
of $27,000 to the president and CEO of a hospital foundation. Her
book “Starting Over – 25 Rules When You’ve Bottomed Out” is
available in bookstores and on Amazon.com.
StartingOverNow.com
Articles
People who use the
FREE resources on
this site are:
* Starting over in
their career or
personal life
* Empty nesters
* Entrepreneurs
* Networking
* Job Seekers
* Starting all over
again
* Going through a
divorce
* Looking for career
opportunities
* Seeking FREE
career advice and
education
* Finding mentors
* Setting new life
goals
To chart your road
map to success
click here for FREE
"Worksheets and
Articles."
FREE resources on
this site are:
* Starting over in
their career or
personal life
* Empty nesters
* Entrepreneurs
* Networking
* Job Seekers
* Starting all over
again
* Going through a
divorce
* Looking for career
opportunities
* Seeking FREE
career advice and
education
* Finding mentors
* Setting new life
goals
To chart your road
map to success
click here for FREE
"Worksheets and
Articles."
Turnaround Solutions for People & Organizations
Whether you are an executive who is "stuck," your company needs
better productivity, or you are in a life transition you represent the
people and organizations Executive Leadership Coach Mary Lee has
helped. Learn how to clarify direction, create strategy, upgrade skills,
optimize your environment and wipe out fear and doubt. Make it fun =
get more done!
Mary Lee’s strategies from her book “Starting Over” helped her in her
own transformation from stay-at-home mother with four children living
a country club life to the reality of a difficult marriage, divorce, poverty,
welfare and then on to president and CEO. Eliminate self doubt, under-
performance, money fears, relationships woes, and negative influence
so that you may soar. Then lead others to improve their lives and your
business. Start now! For a FREE introductory coaching session via
phone contact info@startingovernow.com.
Whether you are an executive who is "stuck," your company needs
better productivity, or you are in a life transition you represent the
people and organizations Executive Leadership Coach Mary Lee has
helped. Learn how to clarify direction, create strategy, upgrade skills,
optimize your environment and wipe out fear and doubt. Make it fun =
get more done!
Mary Lee’s strategies from her book “Starting Over” helped her in her
own transformation from stay-at-home mother with four children living
a country club life to the reality of a difficult marriage, divorce, poverty,
welfare and then on to president and CEO. Eliminate self doubt, under-
performance, money fears, relationships woes, and negative influence
so that you may soar. Then lead others to improve their lives and your
business. Start now! For a FREE introductory coaching session via
phone contact info@startingovernow.com.
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
FREE Resources
to help you:
1. United States of America's
primary source on career
information:
www.onetcenter.org
2. Wage Estimates
www.salary.com and Bureau of
Labor and Statistics
3. Organize Your Job Search -
Post a Question etc.:
www.cvtips.com
4. Starting Over After Divorce:
www.womansdivorce.com
5. Starting Over for Women:
www.makingbreadmagazine.co
m
6. Self Improvement:
www.selfgrowth.com.
7. Job Postings, Resume
Advice and Resources:
www.careerbuiler.com
8. Templates for: business
plans, competitive analysis,
start up costs and more:
www.score.org/business_toolbox
.html
9. Federal/Sate/Local
Government jobs:
www.USAJOBS.com
10. U.S. Government's Free
online courses, webinars and
podcasts for workforce
development:
www.onetacademy.com.
11. Occupational Outlook
Handbok 2008-09 by Bureau of
Labor and Statistics:
http://www.bls.gov/oco/home.ht
m
to help you:
1. United States of America's
primary source on career
information:
www.onetcenter.org
2. Wage Estimates
www.salary.com and Bureau of
Labor and Statistics
3. Organize Your Job Search -
Post a Question etc.:
www.cvtips.com
4. Starting Over After Divorce:
www.womansdivorce.com
5. Starting Over for Women:
www.makingbreadmagazine.co
m
6. Self Improvement:
www.selfgrowth.com.
7. Job Postings, Resume
Advice and Resources:
www.careerbuiler.com
8. Templates for: business
plans, competitive analysis,
start up costs and more:
www.score.org/business_toolbox
.html
9. Federal/Sate/Local
Government jobs:
www.USAJOBS.com
10. U.S. Government's Free
online courses, webinars and
podcasts for workforce
development:
www.onetacademy.com.
11. Occupational Outlook
Handbok 2008-09 by Bureau of
Labor and Statistics:
http://www.bls.gov/oco/home.ht
m
| Mary Lee Gannon is interviewed on Mind Your BIZness |
Listen to Mary
Lee's interview
"From Welfare
to CEO" on the
Renee Bobb
Show on
BlogTalk
Radio.com.
Lee's interview
"From Welfare
to CEO" on the
Renee Bobb
Show on
BlogTalk
Radio.com.
Gannon Group/StartingOverNow.com
Executive Leadership Coaching - Productivity Solutions for People and Organizations
Executive Leadership Coaching - Productivity Solutions for People and Organizations
Get the FREE e-Book "Lead Your
Team with Values and Watch
Productivity Grow - A
Manager's Toolbox"
and the Executive Coaching Newsletter
.
Team with Values and Watch
Productivity Grow - A
Manager's Toolbox"
and the Executive Coaching Newsletter
.
Mary Lee Gannon's
Book "Starting Over" is
available in bookstores
everywhere or at
Amazon.com - 5 Stars!
Book "Starting Over" is
available in bookstores
everywhere or at
Amazon.com - 5 Stars!
Follow Mary Lee's tips
and information on these
Social Networking sites:
and information on these
Social Networking sites:
