‘Tis the holiday season, the season known to make or break more businesses than any other. The tradition of gift-giving is known to have cash registers ringing up as much as 40 percent of a retailer’s revenues and 80 percent of their profit.

With so much riding on these few weeks, it’s not surprising that the commercialism of Christmas drives some organizations to lose faith, supersede common sense and create policies that work against joyful experiences, and perhaps profits.

A Christmas aficionado, I can’t help but relate the Tryptophane Thursday and Black Friday retail practices to a movie classic based upon a customer experience on Christmas Eve in 1944. Writer Valentine Davies went to a busy department store to purchase a gift for his wife. Overwhelmed, he wondered what Santa would think of the hectic scene.

Davies went on to share what he imagined Santa’s reaction to be in the Oscar winning movie, “Miracle on 34th Street,” starring Maureen O’Hara, John Payne and Natalie Wood.

A miracle itself, the movie debuted in June of 1947, not only having received the necessary approval of the retail rivals, Macy’s and Gimbels, but portraying them as friendly competitors in the film. This summer Christmas film proved so popular it graced the big screen for six months, right through the holiday season.

The story starts off with Macy’s famous Thanksgiving Day Parade, where a man who calls himself Kris Kringle replaces a drunken Santa and rides atop the holiday float. To capture the true spirit of the parade on film, actor Edmund Gwenn took his place as Santa in the actual 1946 parade.

Well-received by the crowds, Santa is hired by Macy’s for the New York store on 34th Street. And Kris, a.k.a. Santa, brings the Christmas spirit to the store, its shoppers and its employees. Putting the happiness of children ahead of commercialism, Kris sends shoppers to other stores for bargains and products not found at Macy’s.

The grateful voices of the customers were heard loud and clear by the Macy’s management, which adopted Kris’s practice as a storewide policy. “Mr. Macy” said the store was going to be known as the helpful, friendly store with a heart, the store that puts public interest before profits.

Of course, as the story goes, great profits came with having a heart. It turned out to be quite the customer loyalty program. And even when Kris’ sanity was questioned in court, Macy’s cashed in on the spirit and belief of Christmas.

The latest version of this story, released in 1994, has a bit of a different twist that is perhaps more in tune with today’s retail competitive environment. The rival stores take on the fictional names of Cole’s and Shopper’s Express. Cole’s needs healthy holiday sales in order to overcome its recent financial woes and keep its doors open. Shopper’s Express is counting on its vulnerable competitor to fail, allowing the purchase of Cole’s for a bargain price and the end of its long-time competitor.

Friendly rivals they are not, as Shopper’s Express plots to damage the reputation of Cole’s charismatic Santa, and in turn kill store traffic and sales. Santa’s sanity is again put on trial, only to grow the support and belief of its employer, New Yorkers and the court.

The underlying business message still applies today. Putting the customer first pays dividends. True, many businesses just pay lip service to this belief, but there are some who are being just as bold as the movie’s department store.

Progressive, in fact, has adopted the exact same practice. The insurance company shares competitors’ rates with potential customers, even when they’re lower, and has done so for years. On the company’s web site you will find rates scrolling across the home page ongoing.

Sure Progressive loses a few customers to lower rates, but gains the trust and loyalty from many more through its transparency. It is the third largest insurer in the United States and has averaged a whopping 73 percent profit growth since 2001. And while that growth has slowed a bit as of recent, the company is not cutting back but rather instituting more customer-focused programs.

Another example, Publix supermarkets, reacted to increasing food prices by giving the customer a break. They cut prices on the essentials like milk and bread. They also staff their stores with knowledgeable employees who among other things make menu recommendations for customers planning special meals or events.

The popular Trader Joe’s honors the local customers and their shopping experience. The store foregoes stocking fees or rent from suppliers, allowing each outlet’s customers to decide with their purchases what stays or goes from shelves. Even individual requests are honored.

So having a heart is still paying off, as some businesses experience bottom-line miracles all year round.

Experience a bit of seasonal magic for yourself. Travel via video ( http://www.youtube.com/user/operaphila?feature=mhum ) to Macy’s in Philadelphia where customers, employees and local choir members fill the store’s many floors with music and Christmas spirit as they sing the Hallelujah Chorus.

Now what do you think, did sales increase that day?

Anita Ancel is President of Ancelary Group, a Vermont firm that helps CEOs and their teams develop attitudes and habits for ongoing success and happiness.

Just as a general attitude of competitiveness in our personal lives tends to get us caught up in matters that aren’t important to us, so is the case in business.
One-up-manship takes the focus off of uniqueness and innovation, and submerges it into incremental changes in cost and quality with very little payback.

This describes what authors W. Chan Kim and Renee Mauborgne call the Red Ocean. It’s competing in the existing marketplace, trying to exploit the same demand as everyone else in the industry. And in so doing, it forces a value-cost tradeoff, as well as a choice between differentiation and low cost.

In other words, it’s bloody awful with little reward. The tendency to over deliver without much pay back just grows in proportion to the level of competition.

In their book, Blue Ocean Strategy, Chan and Mauborgne share formulas for finding a Blue Ocean, where competition is irrelevant. It doesn’t exist. It’s a new market space, where new demand is created and captured.

A basic premise of this strategic approach is what our authors term “Value Innovation,” where value and innovation are given equal emphasis. The result is increased value at a lower cost. Sounds too good to be true, right? Well, it’s been done by many.

In the Red Ocean approach, there are two very different outcomes, with which I fear you may be all too familiar. Those that emphasize value tend to achieve only incremental increases. And those companies that put more energy into innovation often overshoot what buyers are willing to accept in product and price.

It will be more believable and easier to understand if we look at some companies that have successfully applied this approach. So let’s start with the wine industry.

An intensely competitive industry, it clocks in at $20 billion. There has been consolidation of wineries, over the top marketing, and domination of shelf space by the big players. At the same time there’s been the usual downward pressure on prices. So in a nutshell, competition is fierce while demand remains flat.

The U.S. has the third largest aggregate consumption of wine worldwide, with California wines capturing two-thirds of the domestic market. They go head to head with the imports, which are increasingly targeting the U.S. market.

Enough said, the wine industry is swimming in a bloody Red Ocean. What company in a sane, profit-minded state would dive into such a business? With a splash, enters Yellow Tail into the industry, but not the Red Ocean.

In just two years, Yellow Tail emerged as the fastest growing brand in the histories of both Australian and U.S. wine industries. It is now the No. 1 red selling wine in the U.S., and its average annual sales exceed 4.5 million cases.

And they did it simply by exploring an alternative industry and applying the lessons learned. In particular, they checked out the beer industry for they wanted to create a wine that was easy to drink, not requiring special knowledge or occasion.

Out the window went the ecological distinctions, aging qualities and above-the-line marketing. At the same time they decreased the wine complexity, the variety and vineyard prestige. Their bottles are simple, with the fun and adventurous kangaroo atop a bright yellow or orange background. No where on the bottle will you find anything about the blend, texture, flavors or finish.

Another success story involves acknowledging an existing external trend, but instead of succumbing to it, participating in shaping it over time. This is the story about iTunes.

In the late ’90s, Apple observed the flood of illegal music downloads. By 2003, more than 2 billion files were being shared each month. And while the music industry worked to stop it, downloads continued to grow. The trend toward digital music was clear, being underscored by the popularity of MP3s and iPods.

So in ’03, iTunes was launched. In the first year, 700,000 songs were offered and 70 million were sold. They offered a legal alternative with better sound quality, easy and intuitive search capability and flexible a la carte song downloads, all at a lower than traditional cost.

These two examples start to give you an idea how to create a Blue Ocean. There are additional ways, including looking across strategic groups within an industry as Curves did in catering to women. Another option is to peer across complimentary products and services, which led Dyson to eliminate the need for the vacuum cleaner bag. Viagra changed their market orientation from a functional medical solution, to an emotional lifestyle choice. And Bloomberg redefined the industry buyer group by catering to the traders, instead of the IT managers.

All of these exploratory streams led to innovation and increased profits for the businesses, and greater value at a lower cost for the customer. The differences were significant for everyone.

This of course it just the tip of the iceberg. There is much more to the implementation of Blue Ocean Strategy that makes the book worth the read.

Anita Ancel is President of Ancelary Group, a Vermont firm that helps CEOs and their teams develop attitudes and habits for ongoing success and happiness.

I’ve been on vacation, seeking a different level of balance and some veg time. I read a couple of mysteries, explored some of Canada’s Eastern Townships, and then lessened the activity to increase the quiet and still time.

Filling up days with places and events is often considered a great vacation. And great it is if not for beginning and ending with exhaustion. Its restorative score could be low, as most often vacations are expected to provide a break from schedules and their pressures as experienced in daily routines. A change in place, without pace, doesn’t always leave the residual effect anticipated with a vacation.

And while a change in pace, and not place, may serve up most of the benefits sought, vacations, we should note, are personal, and preferences as such will vary. The key is balance, something we all need and seem to believe is more achievable while on vacation.

Balance can be as elusive as the universal sought after happiness. And there’s a reason: they are intertwined with our state of mind. So while a change in pace or place seem appropriate for creating balance, neither provide a guarantee for a great vacation.

When I think of vacation I’m reminded of the carefree, imaginative and fun-filled days of childhood summers. Playing was the balance I needed then, and now. From creating our Indian village to spending hours throughout the day and evening at the local pool, to climbing a rock face of one of the bluffs overlooking the Mississippi, I was free to explore, create and experience. Our play was simply accepted, with few boundaries. And the appropriate level of silliness was always balanced with equal seriousness.

Self-expression flowed, and laughter came easy and often as we were loving life. With our laughter, we were releasing plenty of those healthy endorphins, which by the way are 10 times more powerful than the pain-relieving drug morphine. And no doubt we were increasing our little hearts’ rate, as in addition to the physical activity, our endless laughter gave it a boost. FYI, just a few minutes of laughter can double your heart rate, according to Dr. William Fry, Jr.

I’ve mentioned this before, but it bears repeating: As children we laughed on average 400 times a day; by age 35 we’ve reduced that to 15. So creating a more healthy balance truly does require a bit more play and laughter, in both the mental and physical sense.

For me, there’s nothing more fun than wandering and pondering. Wandering to see and experience new things, like dark chocolate enrobed blueberries we purchased at the Saint-Benoit-du-Lac Abbey. A burst of fresh berry flavor surprised us, because it was truly fresh and truly a burst.

As for pondering, time is given to those things that just don’t make their way into my brainscape during the normal course of a week. Topic matters not because vacation offers a chance to twirl anything and everything around and peer at them from different perspectives. My mental escapades are free to involve matters of the farfetched and otherwise inconceivable.

Play, mental and physical, has been recognized as a key ingredient of well being and happiness for centuries. Aristotle and Plato spoke of such beliefs. On through history, these beliefs have gained merit through the studies of the brain pertaining to the development and education of children, problem solving, creativity, relationships at home and work, as well as team performances.

According to one study, Schaeffer 1993, play is as important to human happiness and well-being as love and work. By nature we are born to play. It’s a source of energy and excitement, stimulating our bodies and brains. At the same time it provides for calmness, relaxation and improved sleep. Vacations that incorporate play are downright therapeutic.

It has been said that you can discover more about a person in an hour of play than in a year of conversation. I suspect the same is true in exploration of our selves. I’ve not happened upon too many down sides to play, other than the occasional skinned knee.

So with a hop and a skip, unleash yourself. Get in the spirit, stay in the spirit, be the spirit needed to jump into a fun-filled vacation. Giggle and laugh as if you’ve never grown up. Let vacation be like skinny dipping, where without hesitation you leap in. No clothes, no second thoughts are necessary as you understand life is not a dress rehearsal. Allow yourself to recapture the carefree feelings and well-being of childhood.

Anita Ancel is President of Ancelary Group, a Vermont firm that helps executives and their teams develop attitudes and habits for ongoing success and happiness.

I found myself somewhat immersed in the world of visual art this past week. From looking at my son’s latest creation, to watching a movie about Georgia O’Keeffe and having dinner with a friend who is celebrating his 50th year as an artist, I took a fresh look at the world and contemplated life.

The three styles of painting are distinctively identifiable with each artist. The canvasses speak to the essence of their creator, hinting at their values, as well as bits and pieces of their life’s journey. But most pronounced in the work are the artists’ passions, undeniable and, for the most part, unwavering.

While my son is just beginning, the stories of the other two reinforce this sense of passion, including a passion for the unique self. O’Keeffe had at one point early on given up on her art, noting that the tradition of what she had learned was not one with which she could distinguish herself. Then, while attending a teaching college, she met Arthur Dow, who believed the goal of art is the expression of the artist’s personal ideas and feelings.

O’Keeffe says Dow “…helped me find something of my own.” It was from within that O’Keeffe found the connection between herself and the land, transferring it to canvas for all to see. And from that point on the world was enriched with her shared intimacy of our landscapes.

In “finding her own,” came a strength and freedom to stay the course. She is quoted, “I get out my work and have a show for myself before I have it publicly. I make up my own mind about it – how good or bad or indifferent it is. After that the critics can write what they please. I have already settled it for myself so flattery and criticism go down the same drain and I am quite free.”

The same is true for my friend, Paul Gruhler, who finds that his modernist abstract works are not always enthusiastically welcomed. And yet, freely he continues, and in doing so his art reveals a strong voice, full of colorful subtleties and an undeniable integrity.

He does not go unnoticed or unappreciated. A January exhibition in New Hampshire proved to be a very confirming and lucrative one, as about a dozen of his paintings sold. His work is currently on exhibit at the governor’s office here in Vermont, and has been a constant in another state official’s office for some time.

Gruhler grew up in New York “in awe of the tall buildings and the orderly grid of streets and avenues.” Combined with an equal wondering reverence for the art of Sung and later Chinese dynasties, he creates both harmony and tension through a sophisticated use of the basics: color, line and form.

He creates with a respect for the individual in all of us. Thus, he doesn’t title his works because he wants “above all to leave them available to the experience and discovery of others.”

This passion, this relentless commitment to share the best of who they are, is a wonderful display of leadership. For at the core of great leadership is authenticity, which can only begin with self.

That’s not the only lesson here, though. Key to survival in the art and business worlds, alike, is something upon which many a strategic planning sessions have focused. That is, the unique value proposition.

If artists can take the same tools and palette of colors, and present the everyday in a way that is recognizably of them, a business likewise can present its products or services in a way that sets them a part. Like so many things in life, these distinctions come from taking a deep look within, as opposed to solely keeping a watchful eye on the outer world.

            Balancing business with having a fulfilling life, for most, coincides with the ever present goal for happiness. And while some may claim to be content, that is not the same as happy.

Success in business or career minus holistic fulfillment is what I call life failure.  I mention this because while I was trying a bit of balance myself, I happened upon some tips for making the life journey more joyful, and successful.

I took a break to read for awhile Saturday.  My husband was playing his guitar and singing one of my favorite songs, Sounds of Silence by Simon and Garfunkel. I paused to listen – People talking without speaking; People hearing without listening – and in so doing realized that it fit perfectly within the context of what I was reading.

            On the surface, no connections were evident.  I was perusing the 10^th anniversary edition of Oprah’s “O” magazine and also spent some time with a pamphlet entitled Teaching Children Compassionately by Marshall B. Rosenberg.  Then magically the synapses of my subconscious began connecting and the common themes emerged.           

Oprah’s magazine is filled with insights, inspirations and wisdom from people who had an impact for her in the last decade. Rosenberg’s work is about non-judgmental communication, and how it makes way for awe-inspiring learning and living.

            Their shared themes, eloquently stated by Rosenberg and powerfully demonstrated by Oprah, are: learning is best fueled by a reverence for life, all life; and continually be conscious of the beauty within yourself and others.

            This may seem a bit far afield and soft for some, but who can argue with Oprah’s success. So let’s explore these themes as they pertain to Oprah and her business empire. I’ll revisit Rosenberg’s work at a later time.

            The essence of these themes involves organic connection… with life, with self and with others. It is what Oprah banks on every month when almost 2 million women buy her magazine, 37 percent of whom also have observed the men in their lives leafing through it.  Isn’t that what we all want…   business and personal relationships that grow on what is true and real? 

            Oprah’s organic connections go beyond good marketing. They are personal, genuine and deep. She puts herself out there on the cover, big as life, month after month.  Always a glamour shot, she radiates all that is the good life and success. Inside she sheds the glitz and opens her heart and mind as if a best friend.

            The issue about her ongoing weight loss struggles attracted the most response from readers and the media.  She was so transparent, it was impossible to not relate to her. (Hopefully all have figured out that weight loss is often about an imbalance in life or other issues, and not just about diet and exercise.)  Oprah ventures to where we all live, ever exploring the path to what she calls “the best life.”

            She stands front and center as proof that success is not the be-all of life, but only a piece of the journey. Every month “O” magazine speaks to a reverence for life, ongoing learning and an appreciation of the beauty in all us.

In celebration of  “O’s” anniversary and life itself,  here’s a few tidbits shared by a couple of the magazine’s popular columnists.

Martha Beck shares that sometimes it useful to unlearn some lessons, such as:  Working hard leads to success; Success is the opposite of failure; Problems are bad; and, We should think rationally about our decisions.

          Wisdom from Dr. Oz included: Change is possible, but only if you believe it; We regret the actions we don’t take more than the ones we do; and It’s not about living longer, it’s about living better.

            There’s plenty of explanation and more tidbits to be found in the magazine.  If you are so inclined, check it out.  Either way, join the celebration by nurturing an organic relationship, at work or home.  And enjoy the difference.

It’s OK to be In The Pink… that has a positive connotation for everyone.  Nothing like having a great day!  But thinking pink, now, that can get you into trouble.

That was the message at a marketing session I went to this morning.  The speaker was Andrea Learned, author of Don’t Think Pink: What Really Makes Women Buy – And How To Increase Your Share of This Crucial Market. 

WAIT, this is not the time for the male business world to tune out.  In fact, you’ll be glad you didn’t.   For what Andrea can teach you about marketing to women, will work really, really well for men, too.  And that’s because women are tougher customers. They have radar and high expectations.

“Don’t Think Pink” means don’t feminize or play to stereotypes.  Pink and purple and flowers aren’t required to appeal to women.  In fact, it will more likely be a turn off.

It’s not that psychographics, demographics, technographics and even the new term on the block, gendergraphics, don’t have a role in marketing, but rather they can be misleading unless you are narrowing your customer focus. 

Andrea played a humorous radio spot of Cabot Cheese. It was an interview with a couple of women that started with: Women are all the same… All children are no different than any other….Each nationality is identical… Everyone has the same tastes. Of course the women objected to all of these statements.  And then the interviewer said: And all cheddars taste the same… The women admitted to buying cheese according to price.  Then they tasted Cabot cheese and were obviously taken by the taste.  They both liked it, and so the interviewer said: So women are all the same. Laughter followed.

It’s a great spot for Cabot. It is also a great, though somewhat exaggerated,  illustration of the trap in which marketers often fall. Too often we make generalizations about a customer segment and start treating all customers accordingly.

Andrea shared some great insights about women, but not without repeating: Narrow your focus and get to know your best women customers well, as intimately as is professionally possible.  “Know them in a day of their lives and in a day of their dreams,” she encouraged.

She was talking about transparent marketing, which she says, “is inspired and guided by the women you serve.”  Ongoing listening and observation of your women customers translated into your marketing process will have your company growing and changing with your customers.

And that will translate well with men, too.  And here’s why.  Men are linear thinkers.  Visualize a straight line.  Now picture a curvy line that crosses back forth across that straight line.  That represents the holistic thought patterns of women.

In other words, women gather information here and there as they make their way to a purchase.  They hit all the fact points that men do. Men, on the other hand, go straight to one store, for THE product, and purchase it.  They are in and out, done. 

So in your marketing, include the facts, those information points along the straight line that all customers will most likely take into account. But remember these facts are considered neutral and don’t necessarily inspire a customer connection.  To appeal to your tougher customers and create that holistic or curvy path, include stories and testimonials that add color, scents and sounds around the facts. So you see, Pink is not the Link.

             Some funny things happened to me and my husband on the way to Denver and Hualtuco, Mexico.  You won’t believe it, we experienced great customer service.  Now you have to know that I, like many who are heading to an airport, have service, usually lack of, as top of mind.

            Did we experience any delays? Yes, and during the two hours we waited we were treated to a free lunch.  We didn’t ask for it and we weren’t complaining.  In fact we weren’t even aware of the free lunch; the woman behind the food stand clued us in.  And the stipend was for more than we could eat.

            That’s not all.  When using the automatic check-in at Denver, the machine said we would need an agent to continue. My passport has an amendment and it always confuses the machines.  The woman who came over was very pleasant and took care of the matter quickly.  This was a far better than most of my travel experiences.

Again, that’s not all.   She took the time to look through our flight itinerary. Then she said we really should sit closer to the front with such little time before our connecting flight. Instead of just making the change, she said, “Here I’ll show you how to do it.”  She was taking the time to educate us so future experiences could be better as well.  

The extra time this agent took served us well, but will also serve the airline well.  After all, good customer service comes down to training, of the employee and the customer.

Frances X. Frei writes about this in the April edition of the Harvard Business Review: “Customer involvement in operations has profound implications for management because it alters the traditional role of the business in value creation.”

Frei, in fact, uses the airlines as an example of an industry that is getting it right.  For airlines simplified the check-in process to allow customers to take on this part of service.

He goes on to talk about managing customer behavior to get the desired results, better, more efficient service.  The value for the customer is better service, and for the company, it could mean increased business for lower costs.

When it comes to business, the customer should always play an active role.  Basic marketing requires it. One of the companies I worked for wanted all employees to be talking to the customer.  We were to ask such questions as:

n Why do you do business with us?

n What would you like us to do that we are not currently doing?

n What is someone else (competitors) doing that you like, that we are not doing?

n Overall, how are we doing? Is there any one thing we could do better for you?

            Answers to questions such as these allow for product refinement and innovation, as well as improving service deficiencies.  They should be considered part of the baseline of customer operations. 

            So have you talked to your customers today?

I just read an article by Dee Dee Myers, the first female White House press secretary.  She was noting that the women in the U.S. Senate, despite party affiliation and diverse backgrounds, found a way to work together when their male counterparts struggled.

            Myers, while saying her observations don’t provide an air tight argument, concludes women are more interested in consensus, less interested in score keeping, and more interested in listening to others’ opinions.

            While generalities are never 100 percent true, I agree with Myers observations.  And it made me think that women do not only work differently together, or lead differently, but they also shop differently.

            Before anyone starts guffawing at what seems to be obvious and common knowledge, let me finish.  For my observations tell me that many companies don’t really get it; they don’t know how to market to women. That is not to say no one gets it, for Kellogg gets it, Curves and Wachovia get it.  Apple gets it.

            Some companies think if they treat women the same as men, that is to say with the same level of respect and interest, they are doing a great job of appealing to the purchasing power of women.  Well it’s just not that easy, nor obvious.

            Women’s decision-making process is different than a man’s.  The credibility they give information resources differs, too.  And guess what, the process takes a little longer.

            Women are information gatherers.  The first step in sales to women is to offer information and answer questions.  You absolutely should not expect to close the sale on a first visit, unless she has previously done her information gathering. Of course, we’re not talking about purchases of the level of a tube of toothpaste. But don’t be fooled, she’s probably researched toothpaste.

            Developing a relationship and trust are what it takes.  Yeah, yeah, sales to anyone is about relationships.  With women, it has to be authentic, sincere and on target. And in your sales toolbox, you better have some satisfied women customers.  For women will believe their mothers, sisters and friends before they will believe any expert, doctor, mechanic or technology geek. Credentials just won’t measure up to the experience of the ones they trust.

            Kellogg understands a woman’s day, her fight to maintain a healthy weight, and how the two fit together.  Their product line is driven by this understanding. 

Curves understands the single most important driver to a woman trying to get or stay in shape is her kids.

Apple designed a new store layout just for women.  It’s not filled with just product to buy but product to try.  The sales staff knows it is there to answer questions, with a sale possibly coming after several visits. And the isles are extra wide, to accommodate strollers.  A children’s play area is next to the check-out counter.

            Yes, indeed women are different.  And that can be a real plus in the work place. And it can be great for a marketer, if they truly understand the differences.