Monday, February 8, 2010

Want an additive with that? HEB Adds Additech’s Fuel Service to its Gas Pumps.

I make it part of my weekly routine to fill up the ol’ Ford at the HEB. I stock up on groceries and then ‘fill er’ up’ at the ultra-convenient gas station – just about a touchdown pass away from the monstrous HEB.

A recent fill up had me mesmerized at the new Additech/HEB gas pumps. Yeah, I know, it takes a special kind of person to get excited about gas pumps.

HEB had recently ‘up-sized’ this gas station with a car wash. Now, they were hoping to ‘increase their share of wallet’ with a convenient ‘fuel additive’ service (right at the pump).

I’ve seen the ‘at the pump’ fuel additive service at numerous pumps around town, but it is new to the ‘very crowded’ HEB fill-up station. I’ve never personally ‘up-sized’ my car’s fill-up, but it has piqued my interest. I do have a suggestion that may convert more customers.

I have to ask:
Does a consumer really know that they need this?

If they don’t, how can HEB/Additech educate them that this is a must-have?

How can HEB/Additech push them to make this ‘impulse’ buy at the pump?

I have a suggestion for HEB. I believe this ‘hint’ would dramatically increase the ‘take rate’ on the additive service.

I would introduce a 3rd option (in between the entry-level and premium service). Currently, there are just two ‘fuel additive’ options to choose from on the screen.

By adding a 3rd option, you are establishing a middle ground that many consumers will gravitate towards. Most won’t pick the high-end option (do I really want to spend top-dollar on something I really don’t understand?) or the low-end option (will I get any benefit out of something so cheap?). The 3rd ‘middle’ option moves the ‘high-end’ down and the ‘low-end’ up, creating interest for people who probably weren’t inclined to ‘take the offer’.

This ‘theory’ is expertly presented in a book that I am reading titled: Predictably Irrational. If you are at all interested in how humans think (or sometimes don’t think!), you’ll want to give this a read. There are numerous examples cited that show how the slightest changing in pricing or pricing options can yield huge gains.

I’d love to see HEB and Additech add this option to their fuel pumps. I would think it would help drive more results in this new category for HEB. At the very least, they could ‘test and learn’ their way to better conversion rates in this new category.

Note: I am fascinated by the marketing/merchandising that is becoming commonplace on gas pumps.

In fact, I wrote about this very topic on Naden’s Corner a few years ago.

Until next time,

Dan Naden

Monday, February 1, 2010

Mighty Fine Hamburgers: Now That’s Good Eatin’

Mighty Fine Hamburgers: A lunch time place with a buzz that’s strong as an alarm clock at 6am.

When I visit a lunch-time venue, I usually evaluate it based on 3 criteria:
1.    Quality of food
2.    Cleanliness
3.    Atmosphere

Mighty Fine Hamburgers, located in North Austin’s Arbor walk shopping center, scores big on all counts.

Quality: I like a menu that’s simple and straightforward. MF Hamburgers does not disappoint. This place does not stray from burgers and dogs and it displays no reason to ‘branch out’. I had the burger and fries and loved it!  The burger, brimming with lettuce, tomato, and onions, was tasty and ‘right-sized’. It was a good size to slay my appetite, but did not ‘overdo it’.

Cleanliness: The floors were clean and the tables had that shiny ‘pull up a chair’ look. I was impressed that the staff was diligent and quick to clean a mess from a departed guest. Everything felt ‘FRESH and NEW’ about this establishment. Let’s hope time does not wear off these alluring characteristics.

Atmosphere: By 12:15pm on a weekday afternoon, this place was ALIVE. There wasn’t an empty seat in the house. Word has quickly spread that this place delivers a fine meal. From a ‘sneak peak’ into the burger prep area to the casual cafeteria-style tables, Mighty Fine Hamburgers puts a solid meal experience first and ‘accessories’ a distant second.

I give a BIG ‘thumbs up’ to Mighty Fine Hamburgers in Austin, Texas.

Note: Check out the Mighty Fine Video Remix:
It’s a short commercial clip that goes beyond clever.

Until next time,

Dan Naden
Naden's Corner

Yes, I know that this is the 2nd burger post in a row!!!

Sunday, January 24, 2010

McDonalds.com Misses the Basics

Everyone’s watching their dollars and cents these days. Our family has definitely changed our ways, but , then again, we’ve never been huge spenders.

One food destination that has stayed on our radar screen during the last few ‘lean’ years is McDonald’s. As a little boy, I fondly recall going crazy over a hamburger and fries at the Golden Arches. Now, it is amazing to see this same type of adoration in our kids over McDonald's chicken nuggets. The food is usually decently-priced, high-quality, and fast – 3 characteristics that anyone with small children can shout about at a fever pitch.

Thankfully, the Internet lets you research anything, including our beloved McDonald’s. A few years ago, I’d never think of looking up the price of a breakfast item, or the contents of a McDonald’s Big Breakfast, but today, it is so easy.

A few weekends ago, I wanted to check on those 2 exact items:
1.    How much does a Big Breakfast cost?
2.    What comes in a Big Breakfast?

McDonalds.com here we come!!

It wasn’t an issue of finding the McDonald’s .pdf menu just 3 clicks deep into the site (this was a snap!!), but the fact that the menu was lacking the Big Breakfast’s cost and ingredients. Wouldn't you think a menu would tell you the contents of a certain breakfast combo item? I realize the price may vary slightly depending on the restaurant’s region, but wouldn’t the ingredients stay consistent?

How was I supposed to make an educated decision about my breakfast selection when I don’t even know what I am getting? Is the Big Breakfast just eggs and pancakes? Eggs, pancakes, and sausage? Biscuit?

Keep up the high-quality, value-friendly meals McDonalds, but we need to see the basics (prices and ingredients) on your Web site to go from ‘good to great’. 

Until next time,
Dan Naden

Tuesday, January 19, 2010

Home Depot Raises This Customer Up

My Dad is great. When he comes to visit, he crosses ‘home projects’ off the list faster than Usain Bolt. Recently, when our Kohler faucet was leaking, ‘Dad’ determined that it was ‘beyond repair’ and due for a replacement.

I was shocked by this news. Kohler faucets were rugged yet stylish. How could a new faucet (we just had it replaced 9 months ago) already be failing? Thankfully, after some research, we determined that Kohler would honor a ‘full replacement and repayment’ of the faucet. Sounds as simple as a peanut butter and jelly sandwich? Yeah, right.

It turned out that Kohler wanted me to do the following:
· Fax in the receipt
· Take a picture of the malfunctioning faucet
· E-mail the picture to Kohler
· Wait for a response
· ‘Potentially’ receive the good news that Kohler was sending me a check
· Await the check

Did it have to be this hard?

A friend of mine mentioned, “Where did you buy it?”

Home Depot,” I replied.

“Why don’t you just call them?”, the wise friend answered.

Smart. Very smart.

A prompt call to Home Depot turned into a quick visit to a local store. 5 minutes later my card was credited the full amount for the replacement faucet. The friendly cashier took the defective faucet and said with a smile: “We will take care of everything with Kohler.”. Home Depot turned a ‘UUUUGGGGHHH’ moment into a ‘WOW’ moment. Thanks Home Depot for putting the customer first and making this transaction pleasant and painless. I feel valued as a customer. This sensation in today’s frenetic world is a rarity.

Until next time,
Dan Naden

Thursday, January 7, 2010

Retailers Use Music to Drive Business

Listen.

The doors open and the music starts pumping.

You are instantly in the mood to not dance, but SPEND.

This isn’t your neighborhood dance club, but your local retailer.

A recent visit to a Gap store in the Austin, Texas area had me pulsating to the beat of some fast-paced music. I am not sure what exotic selection was playing through the speakers on that particular afternoon, but it sure put a spring in my step.
Many retailers, including HEB, Crate and Barrel, and Pottery Barn, have gone ‘auditory’ to get you to open your wallet on a more frequent basis.

I would be very curious to see the effects of a music-free store vs. a store with ‘the vibe’ over the speakers.

I did a ‘simple test’ while in the Gap store by plugging my ears for 10 seconds and walking around the store. (Yeah, I got a few strange looks.) The comparison was startling. My whole perception of the store changed. I went from being ‘part of a music video’ (in which I play a starring role) to a bland, startling, quiet experience.

I did some digging and found an interesting article from Home Accents Today that breaks down the topic.
It gets very interesting when a store segment the day into ‘day-parts’ and suits the music to the various types of customers that visit your store throughout the day.

It is amazing that a position like ‘audio architect’ never even existed like 5 years ago.

Has anyone noticed a store that nicely matches the music to the experience? Let’s hear it.
Are you apt to spend more money when the music puts you in a good mood? 

They are ‘dancing in the aisles’ at ………………

Until next time,

Dan Naden