Have you heard of Build-a-Bear? It’s a magical place where people go to assemble the stuffed animal of their dreams. It’s a product. It’s a service. It’s an experience. If you look closely, there are several principles they employ that any business would do well to follow.
Determine Your Niche
This step is often the most difficult because it requires omitting offerings. Does Build-a-Bear do more than bears? Sure, they have monkeys, giraffes, bunnies, cats, and dogs. They even have a videogame: Build-a-Bearville. However, they chose to focus on what people could digest. The bear is the most universally recognized stuffed animal, and Build-a-Bear owns that niche. Starbucks sells juice and muffins, but they own coffee. Position yourself in a place where you can own something.
Have a Process
Build-a-Bear could create a tie-dye bear if they wanted to. They could probably make a bear with sideburns like Elvis or hair like Carrot Top. I’m sure they are fully capable of producing just about anything you or I could imagine, but they don’t. They provide a set of choices with a predetermined cost, similar to a menu at a restaurant. What if you went to a restaurant and the waiter asked you what you wanted without handing you a menu? Often, businesses think the more choices, the better. This is not the case. Give customers a choice, but don’t overwhelm them with decisions.
Set Customer Expectations
Closely related to establishing a process is creating customer expectations. An organized process allows Build-a-Bear to guide customers through each step. They learn they need to first pick an animal, fill him with stuffing, and then choose an outfit. Models on the shelf give customers a glimpse of how their end product will look. Prices are provided up front. There are no surprises. Everyone is happy at the end. Setting expectations you can meet will earn a loyal customer.
Encourage Interaction
While there are many other factors involved in running a successful business, it’s important to remember that customers ultimately pay the bills. No matter how creative the idea, establishing processes is essential. Make sure your customer understands what he will get out of the transaction, and keep him involved along the way. If business slows, ask yourself if one of these two factors could be improved. A business adhering to these principles will be more attractive to its customers.
Final Thoughts
Build-a-Bear involves its customers. Each bear has a heart inside and before it’s placed into the bear, customers are invited to rub or kiss it for good luck. There’s a giant machine churning stuffing like cotton candy. The bear is stuffed and the proud new owner can go to a “bath station” to clean him off. The customer takes ownership because he is involved. Keep your customers involved from start to finish and you will increase loyalty.