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Lewis Green Lewis Green   Bio
09.15.06

Business Strategies Based On Happiness

At the end of the day, our value to the customer and client and to ourselves is not measured at the bottom line or in ROI. It is measured based on what I call The Happiness Quotient: The experience that we create for all the people we touch....

***

This is my first article for Marketing Profs, so be gentle with me. I am a bit nervous.

If I had to describe myself in two words I would say simple yet detail-oriented. (Is that three words?)

Very often smarter people than I make up my peers and my clients. And that is a good thing for all of us. I learn something new, get advice about which books to read and which to avoid. In return, they get simple, straight-forward advice, presented with Yankee ingenuity and authenticity, no BS, and no over-analyzation.

My clients receive recommendations that flow out of my basic philosophy: Keep it fresh, simple, budget-friendly and designed to make everyone--customers, clients, strategic partners, and employees--as happy as possible. Because at the end of the day, our value to the customer and client and to ourselves is not measured at the bottom line or in ROI. It is measured based on what I call The Happiness Quotient: The experience that we create for all the people we touch.

I often wonder why American businesses don’t spend more time strategizing around happiness. It is true, naturally, that many companies are customer-focused and invest lots of energy meeting customers’ needs. Responding to those needs results in happiness.

Happiness is the driving force behind everything Americans do. It is the key to determining their wants, needs and desires. It is the essence of the American Dream and as important as the air you breathe. For gosh sakes, our Declaration of Independence calls for the “pursuit of happiness.”

And yet a study by the Pew Research Center that the press reported on in February 2006 found that only 34 percent of us are “very happy” while 50 percent are “pretty happy.” Fifteen percent are “not too happy.”

Don’t jump to conclusions, however. I do not advise firing your CFO, your accountant or your financial adviser. The argument made here does not pit happiness against financial responsibility and margins.

Instead, I argue for strong fiscal responsibility and creating budgets that create better-than-hoped-for margins, using The Happiness Quotient to grow success and the bottom line, but never falsely. Everything you do must be authentic to a culture built on values. And business leaders are responsible for the makeup of that culture, The Happiness Quotient and the bottom line.

At minimum, the market looking for more happiness represents at least 65 percent of all Americans. They want great business experiences that will make them happier. And, of course, even the “very happy” folks can be moved to a higher happiness level, translating into 99 percent of all Americans seeking products and services that create great experiences—ones they want, need and desire—to give their pursuit of happiness a gentle shove forward and upward.

And this applies to employees, including executives.

It is likely that my articles within this space will often deal with The Happiness Quotient, as it is the theme of my next book, and something that has engaged my thinking for well over a year. Be well, please give me your feedback--good or bad--and remember, posts are designed to begin thoughtful conversations, which cannot exist without your participation.



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Comments

Our difference is Customer Percieved Value and I think this happines thing is probably a good view as well. It goes along with it.

Posted by: Sandra Covert | 09.15.06

Creating happiness is hard work, and most businesses are simply looking for ways to seperate the customer from their wallets. The smart businesses are the ones that realize that if they give the customer a reason to WANT to do business with them, that they'll not only get their business, but very likely gain a satisfied customer that will tell others about their positive experience. It's the difference between a business wanting their needs satisfied upfront, and a business that's smart enough to realize that if you meet the customer's needs first, you'll also satisfy your own.

Great first post Lewis, welcome aboard!

Posted by: Mack Collier | 09.15.06

Sandra, you are right. In fact, customer perception is driven by their experience--the happiness thing.

Mack, great comment (and thank you for the kudos).

Posted by: Lewis Green | 09.15.06

Hi Lewis,

I think you're right on the money saying that companies' marketing focus should be on creating optimal customer experiences. And that means making them happy and satisfied at every level. I've commented on this in several of my published articles and posts because it is critically important.

By the way, welcome aboard, Lewis. I look forward to reading your insights with great anticipation.

Posted by: Ted Mininni | 09.15.06

"I often wonder why American businesses don’t spend more time strategizing around happiness." Well said, and I really appreciate that you referenced the happiness citation in our Dec. of Independence.

I think part of the issue is that companies--at such a remove from the customer--look at customers as commodities, rather than relationships (and in turn, people). It's otherwise all too easy to become numbers on a Profit & Loss spreadsheet.

And not for nothin', businesses compile customer 'Satisfaction' surveys...not customer happiness surveys.

Sure, when you're in your office buildings everyday it's easy to lose touch with your customers--that's why you need to involve them, get them in your face. Be it through blogs, discussion sessions (I don't like focus groups as much as I like free-form discussion sessions) or going out to where they are and talking to them. Amazing how fast they'll tell you their level of happy (or not happy) when you ask and listen to them.

While many companies will find "happiness" to be a soft effect on the bottom line, they will fine customer attrition to be a hard one on the earnings statement.

Great first post Lewis--you've now set a high bar for yourself. Don't forget to enjoy every minute of it.

Posted by: CK | 09.15.06

CK,
As always your thoughts are inspirational and motivational. Sometimes delivering on The Happiness Quotient is as simple as corporate getting out of the way of their employees, who in many instances determine the company's brand image, its marketing success, and its bottom line. Why? Because they are the customers' touch points.

Ted, I always enjoy reading your on-target posts. Thank you for your welcome message. I appreciate it.

Posted by: Lewis Green | 09.15.06

Welcome aboard, and your post made me think, great work.

"I often wonder why American businesses don’t spend more time strategizing around happiness"


CK nailed it, "I think part of the issue is that companies--at such a remove from the customer--look at customers as commodities, rather than relationships"

Also, let's talk about the definition of happiness to most Americans. Which is, usually, directly tied into how much stuff they can buy/own. New big screen, new car... The majority of Americans value "stuff" and equate that accumulation of stuff as happiness.

I don't think this is as true for non-Americans in general. Hey, we just like our stuff!

So, how happy are you going to be with a low-paying job where you can't buy tons of stuff? Not very happy, which means your work suffers, and the company bottom line does too.

Long story short... Our culture is to blame for unhappiness? What's a small biz to do?

Posted by: Jim Kukral | 09.15.06

Thanks for the great post, Lewis. I'd even argue that the Pew Research Center findings are overly optimistic about the percentage of us who are happy. After all, we live in a society with all sorts of numbing resources at our disposal. Many of us think we're happy, only to discover down the road - when we actually get in touch with our emotions and our bodies - that we aren't happy at all.

Which leads to another issue. How does an organization really commit itself to creating happy customers when the people expected to deliver the customer experience aren't happy themselves? Addressing this challenge is the difference between "customer happiness," "customer experience," "customer delight," "customer loyalty" and "Voice of the Customer" being merely buzzwords or actual reflections of how an organization really operates.

Posted by: Gary Katz | 09.15.06

It makes me happy to be surrounded by so many smart people. Jim and Gary, like the other commentators, you have added a great deal to this conversation. Thank you!

Posted by: Lewis Green | 09.15.06

I agree with Jim, CK...you nailed it: the commodities v. relationships definition. I also like Gary's point: "How does an organization really commit itself to creating happy customers when the people expected to deliver the customer experience aren't happy themselves?" True nuf.

I guess in my view, the whole question of "happiness" is a little subjective, isn't ir? Especially for Americans, who for the most part have nailed all those other things in the Declaration of Independence. It's just that that happiness thing sometimes a little hard to define.

Posted by: Ann Handley | 09.15.06

Thanks for the great post, Lewis. I'd even argue that the Pew Research Center findings are overly optimistic about the percentage of us who are happy. After all, we live in a society with all sorts of numbing resources at our disposal. Many of us think we're happy, only to discover down the road - when we actually get in touch with our emotions and our bodies - that we aren't happy at all.

Which leads to another issue. How does an organization really commit itself to creating happy customers when the people expected to deliver the customer experience aren't happy themselves? Addressing this challenge is the difference between "customer happiness," "customer experience," "customer delight," "customer loyalty" and "Voice of the Customer" being merely buzzwords or actual reflections of how an organization really operates.

Posted by: Gary Katz | 09.15.06

Morning Lewis,

I'm Pete Jeans, CEO at SMO Sydney in Australia. We're business transformers. We fix underperforming companies.

Every CEO wants happy customers, staff, stakeholders and shareholders.

But that outcome is the result of strategy that delivers a value proposition and buyer experience that exceeds expectations...a reasonably rare commodity.

I suspect that Australian consumers...like the US... aren't that happy. We suffer from ologopolistic markets here in Oz. We are at the mercy of outfits that have to deal with scale...so the consumer has to go up against limited choice... or make a decision about a renewed effort in the search for value.

Add to that, we are all in the user-pay era... new credit card account charges for buying gas, paying bills on-line, toll road tags, parking at the beach...it goes on and on.

No wonder our happiness starting point is less than happy!

Bring on more competition I say.

Pete Jeans
CEO
SMO Sydney
http://smosydney.blogspot.com

Posted by: Pete Jeans CEO at SMO Sydney in Australia | 09.15.06

Great post Lewis. I'm looking forward to your book.

Note: The link above to "Go to Lewis Green's site" is broken.

Posted by: Tom Asacker | 09.16.06

Gary, Pete and Ann:

I have a follow-up post that addresses your comments and questions, although no post can cover the work detailed in a book. Briefly, Gary hits the mark when he touches on employee attitudes. In my thesis, I argue that, like brand, The Happiness Quotient is built from the inside/out and from the top/down/bottom/out.

Posted by: Lewis Green | 09.16.06

Is there a difference between happiness and satisfaction? Food for thought, and perhaps a second article :-)
Good first article.

Posted by: Darcy Moen | 09.17.06

Excellent discussion, Lewis! It is true that the business leaders are responsible for setting the business culture, but how that translates to the day-to-day interactions of staff and customers really falls into the lap of your employees. We talk a lot about loving brands ... but this is usually from the consumer's point of view. As Gary Katz says, What about the employee? How many employees LOVE the brand they work for?
Love to hear/read your thoughts on "happiness from the inside-out"!

Posted by: Gavin Heaton | 09.18.06

Lewis, I agree with your premise, but I, like Ann, question how we can define "happiness."

Personally, I believe we're a fickle lot - happy on the days we get a raise, win $100 in the lottery, see our kids perform in their first play, or get an unexpected display of appreciation from someone.

On the days when we miss an appointment, get stuck in traffic, need root canal work, etc. we're downright miserable. We are human, after all. So, even if our employers work hard to build an exceptional internal working environment so we will love our brands, we are still fallible to our human emotions and experiences. We aren't automatons.

That being said, I still believe that organizations with amazing coporate cultures - that exemplify quality internal AND external customer service - have a much better chance of retaining customers and employees than those that don't. No matter how crummy we may feel at any given time in our personal lives, a lousy work environment will surely make us even more unhappy and miserable. So, the flip side is: a "happy" work environment has a decent chance of turning us around after we walk in the company door.

Posted by: Elaine Fogel | 09.18.06

I must agree with those that believe happiness begins with the employee. I always commend people when they are doing a good job. Chances are their bosses are only looking for what they do wrong and don't praise them for what they do right. Next time you make a reservation on the phone or go to the grocery store or any kind a business of which you are a patron, notice the people you interact with. Can you tell if they're happy? Are they trying to do a good job, or are they going through the motions? Tell people if they are doing a good job, tell their manager. As a consumer you will be contributing to a spirit of happiness that begins with all of us. Thank you.

Posted by: Tammy Strnatka | 09.19.06

Great piece ... I smiled reading it having just resigned a major account over this very issue. Serving about 25 clients, the one that is proverbially utter UNhappiness just made the decision a no-brainer despite billing (et al).

My own little "what it takes" is CODES--Communication, Ownership, Dilligence, Excellence ... and the "deal-breaker" Spirit. One guy who walks in the door every day with a negative spirit can absolutely kill the morale.

Personally, from a spiritual dynamic, I would vote for the "Fulfillment" Quotient -- but, I get the happiness thing entirely.

Looking forward to more!

Posted by: Peggy Campbell | 09.21.06

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