All posts by Norman Cescut

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Gulfood, THE Food and Hospitality Event in Middle East

Held in Dubai, Gulfood is perhaps the best trade show available for those in the food and hospitality sector looking to invest in the Middle East, Africa and South Asia.

Held from 19th to 22nd February, Gulfood takes place in Dubai, at the International Convention and Exhibition Centre. One of the largest and most-awaited events that concerns the foodservice and hospitality sectors in the Middle East, it showcases products, equipment and an array of specialist services. Covering the whole food and drink gamut, it also features printing, packaging, baking and the raw materials sector too.

Around 3,800 exhibitors will be taking part in Gulfood, from around 83 countries of origin. This gives Gulfood not only a distinctly Eastern feel, but also an international one too. With over 62,000 buyers from 110 countries present, it is a vast place in which to do business. 81 international pavilions showcase each of the countries’ best food, flavours, foodservice and hospitality sectors in great detail, so you can be sure of leaving with the knowledge or deals you set out to acquire.

Also on the table is the Gulfood Conference, which takes the best the industry has to offer and invites key industry experts to speak on hot topics and international concerns. Speakers this year include Yousuff Ali, Managing Director of Emke Group Lulu International, Eelco Camminga, the Vice President for South Africa, Middle East and Pakistan for Unilever and Sanjeev Chadha, the President for the Middle East and Africa for Pepsico.

Gulfood also aims to celebrate the success of those within the industry, the Gulfood Awards recognise excellence, so are a great indicator for the areas of taste and interest in the world of food and drink. The enormously popular Emirates International Salon Culinaire returns to demonstrate the skills of more than 1,300 young chefs as they compete to become stars of the future. Competitors are evaluated by a panel of 25 experts, mandated by the World Association of Chefs Societies to judge events across the globe, ensuring high competition standards. In another competitive element to Gulfood, the Pastry and Baking Salon is a platform for showcasing professional Pastry Chefs across the UAE and GCC region. The competition is open to all pastry chefs and bakers working in the UAE/GCC, to compete in static display and live baking across twelve categories. Ingredients Middle East runs concurrently with the show, creating a 360-degree industry offering for buyers and vendors. Ingredients Middle East is the only event in the region to address the manufacturing and processing sector.

This year’s exhibition should be one to remember, with four days to explore the delights on offer, you should leave having gained a real insight into not only the way business is done in the East, but also what other countries have to offer.

via Food and Drink International.

A ScenSational discovery allows you smell the aroma right from the packaging

Patent-pending innovation EncapScent, which has been developed by US-based ScentSational Technologies, will enable food and drink companies to add food grade flavours to packaging to convey the brand aroma, the company has claimed.

The coating, which can be added in-line, can be engineered to release an aroma at different stages; when picked up from the shelf, during handling, opening, use or consumption.

The intensity of the activated scent, which is intended as short-term aroma, can also be adjusted based on the client’s preferences, ScentSational Technologies added.

The company is working closely with flavour houses to make custom flavours for individual applications. Food and Drug Administration (FDA)-approved flavours are then applied to the packaging outer-surface and remain dormant until activated by the consumer.

Scented coating

“A scented micro-encapsulated coating (MEC) is applied to the outside of the packaging, after filling or assembly,” ScentSational chief technological officer Steven M. Landau told FoodProductionDaily.com.

“The aroma is protected by a microscopic cell, that when handled ruptures and releases the scent. There are millions of cells on each packaging application so cells can be ruptured and the scent released over and over again.”

“The coating can be applied on the production line. So with beverages we can apply it to the bottle, the cap, the label. It can be applied to any shape on the filling line.”

The development is safe for use with food, beverage and pharmaceutical products. It is not directly exposed to product ingredients and is compliant with food packaging regulations, Landau added.

“For food we are only using FDA approved flavours. These will not interact directly with food. If applied on the outside of packaging, it can improve and enhance aromatically.”

Client ‘wish list’

The innovation, can also be used to enhance the taste of the product during use or consumption, was developed in response to client requests for an inexpensive way to convey product aroma.

“We had our customers coming to us with a wish list. That was the origin of the development,” Landau said.

“We have been asked for many years to develop technology like this. We have tested it and it can even be adapted to ice cream. It’s a real game changer for frozen foods.”

“Until just recently, the sense of smell has been the most neglected sense in brand marketing strategies. Of the five senses, smell is the most powerful in driving consumer preference, conjuring up memories and creating purchase intent. As a result, our customers have been asking for a lost cost technology to deliver aroma from the shelf,” Landau added.

via ‘ScentSational’ packaging coating delivers food or drink aroma.

U.S.A Supermarket Food Trends for 2012

Americans love their foods – in supermarkets, on television, at restaurants and now even on their mobile phones.  But there is little doubt that in the coming years, we will continue to see food prices rise based on environmental conditions as well as higher production costs. 

Many of the savings tactics most shoppers deployed in 2007 as the recession began are still being used each time they shop for groceries – using coupons, frequent shopper cards, shopping lists, shopping at non-traditional foods stores and even trading down their choices to less expensive brands are part of the regular routine.  Following are the top ten food trends predicted for 2012, according to Supermarket Guru Phil Lempert.

TREND #1: FOOD PRICES

Look for consumers to shave costs by augmenting their recipes by decreasing the amount of the more expensive meats and seafood and adding more non-meat proteins that are filling and less expensive, including whole-wheat pasta, tofu, lentils, brown rice and vegetables to recipe.  Expect shoppers to use their mobile devices to calculate a price per portion cost rather than the unit price of individual products listed on the shelves. Just as the younger generation uses social networking as part of their everyday lives, expect this generation to be the “forever frugal consumer” using more coupons (higher than any other demographic) and searching for deals on line (63% spend 3 hours or more each week – double that of any other group).

TREND #2: SHARED FOOD EXPERIENCES

Apps like Foursquare, GoWalla, Living Social and Yelp have shown how “group” is better than “self.” Expect to see super food apps that bring previously unknown people together with common likes; to eat, prepare and shop together.

TREND #3: BOOMERS CONTINUE TO INFLUENCE

The generation of 76 million who started turning 65 years old last year will control 52% of the total $706 billion spend on groceries by 2015 – making them the largest food influencers and purchasers.  Expect supermarkets to cater to the Boomers, not only by offering the foods, beverages and services to satisfy their growing interest (and need) for health — but to take a good look at the physical shopping experience, to make sure that the aisles are wide, to lower the shelves and most importantly to make them feel welcome and respected.

TREND #4: INCREASED EMPHASIS ON ‘FARM-TO-FORK’

Shoppers have become increasingly interested in knowing where their food comes from and how it is produced, which is why 2012 will bring an added emphasis to a different kind of food celebrity — the farmer.   Expect to see more advertising and television programs starring these real food experts (vs. actors pretending to know their food).

TREND #5: THE END OF THE CHECKOUT LANE

Many shoppers are learning to appreciate the tech-savvy nature of self-checkout – the ability to compare prices at nearby retailers, cell phone scanners, in-store interactive media devices, QR codes, RFID and mobile coupons.  For many shoppers high-tech adds to personalization with suggested purchases and targeted offers based on their histories in the store, which is typically delivered in a functional way.

TREND #6: ETHNIC FOOD REVOLUTION

Food trucks are replacing gourmet and specialty stores as the channel to experiment and discover new food experiences — especially when it comes to ethnic foods.  More often than not, these ethnic food trucks are actually manned by descendants of the actual cuisines and cultures being offered; with the ability and knowledge to share the heritage and romance of the food — a benefit many shoppers have come to enjoy and expect from shopping at Farmers’ Markets for produce.

TREND #7: THE MALE SHOPPER

According to the Bureau of Labor Statistics, 41% of men are now doing the food preparation as compared to just about half that amount in 2003.  Because of the economy, more men are at home, suggesting there is an opportunity for marketers to engage men who are taking on the role of family caregiver.

TREND #8: EATING AT HOME, WITH A TWIST

With continued pressure on the economy more men and women will be choosing to eat at home to save money, which has happened before – but this time around expect a twist. Think of it as Xtreme Home Cooking where, following the lead of Extreme Couponers, these everyday cooks pride themselves on making the most for the least.  Look for food groups to form that cook together, crowd sourcing in the kitchen if you will, with the same primary focus on cost – shopping, cooking, eating and storing leftovers in bulk.

TREND #9: REDUCED SUGAR INTAKE

Sugar has been an ingredient that has been the center of a lot of debates, especially as the latest update on the Dietary Guidelines for Americans recommends reducing the amount of added sugars of all kinds (especially in soft drinks.)  Look for reduced-sugar products to be the biggest health claim in the coming year along with a revised Nutrition Facts Panel.

TREND #10: THE SOUND OF FOOD

Consumers judge the readiness of foods like microwave popcorn or burgers on the grill by the sounds that these foods make. They judge the freshness of carbonated beverages based on the sound of the gas escaping the container as it opens, and the duration of the sound of the bubbles as they pour. Multisensory perception will be one of the new “food sciences” in 2012 as psychologists and food scientists join forces to design, create and influence the sounds of our foods to convey freshness, taste and even health attributes.

via Supermarket Guru Predicts Top Ten Food Trends for 2012 | Marketing Forecast from Ad-ology.

Green Mountain Aims to Brew Energy with Coffee Waste

Green Mountain Coffee has teamed with the University of North Dakota and bioenergy specialist Wynntryst LLC to convert waste from its coffee processing plant to energy.

Specifically, the coffee company — best known for its single-serve Keurig brewers and coffee pods — is working with the Energy & Environmental Research Center (EERC) at the university, which is leading a project to develop an efficient renewable electricity technology for coffee-processing plants. Wynntryst, LLC, based in South Burlington, Vt., will develop a gasification power system to utilize the waste from a coffee-processing plant to produce energy.

In addition to its Keurig brand, Green Mountain Roasters also distributes many other coffee products to companies around the world, including Starbucks and McDonald’s. Its waste stream includes coffee residues, plastic packaging, paper, cloth or burlap and plastic cups.

“This project is an extension of work performed by the EERC for NASA, which explored the conversion of waste from a space station and future Martian and lunar bases into heat and power,” said Deputy Associate Director for Research Chris Zygarlicke. “This project will similarly utilize a mostly renewable and bio-based waste and convert it into electricity for the coffee industry.”

“The first step of the project is to demonstrate that we can gasify the complex mixture of waste and produce clean synthetic gas, or syngas, by utilizing the EERC’s novel advanced fixed-bed gasifier (AFBG) system on the biomass-residue mixture,” said Project Manager and Research Scientist Nikhil Patel.

The syngas will then either be utilized in an internal combustion engine (or a fuel cell) for efficient production of electricity and heat, or be converted to high-value biofuels or chemicals. The pilot-scale tests will evaluate the quality of syngas that can be produced from the Green Mountain waste.

“Over the years, the EERC has developed and tested numerous small gasifier systems like this on a variety of biomass feedstocks,” Zygarlicke said. “The EERC system has already produced power by gasifying forest residues, railroad tie chips, turkey litter, and other biomass feedstocks and burning the produced syngas in an on-site engine generator. The coffee industry residues will be similarly tested.”

via Green Mountain Aims to Brew Energy with Coffee Waste – Green Retail Decisions.

Meet us at SIGEP!

The next days are going to be very busy ones for us at DESITA, ECOFFEE and showfood. SIGEP – the 33rd International Exhibition for the Artisan Production of Gelato, Pastry, Confectionery and Bakery – will take place in Rimini from Jan.21st to 25th and we will participate meeting our current customers and prospects.

Artisan confectionery is one of the sectors for which Italy is famous worldwide. According to Confartigianato, between January and August 2011, Italian companies in this sector exported products for a value of 224 million euros, with an increase of 8.6% compared to the first eight months of 2010. The country that is fondest of Italian delicacies is France, followed by Germany and Austria. Since the beginning of the year, Italy´s ´cousins´ from the other side of the Alps have bought 50.3 million euros of confectionery (equal to 22.4% Italian exports of this type of product). Italy exported 35.8 million euros of pastry produce t o Germany (15.9% of total exports), whereas exports of confectionery to Austria totalled 16.8 million euros (7.5% of the total).

These results were achieved also thanks to the contribution of SIGEP, the world´s most important artisan confectionery expo, with its 90,000 m2 of exhibition space 850 companies taking part and approximately 20,000 foreign trade visitors over the five days.

The international success is the result of a precise strategy in event organization, with participants from the five continents, in sales communication and advertising and in the widespread network of relations set up through the years. A precise project is dedicated to internationalization activity – Top Buyers from 5 continents – which focuses on the qualified attendance of trade members from nations selected along with the exhibitors. Plus, to schedule effective business meetings before SIGEP, by means of the online Marketplace platform, precise daily agendas of meetings are programmed between Italian and foreign trade members, bringing together supply and demand.

With a view to SIGEP 2012 and to favour the arrival of foreign buyers, Rimini Fiera foreign marketing office concentrated on the so-called BRICST countries (Brazil, Russia, India, China, South Africa, Turkey), as well as on the neighbouring nations: Azerbaijan, Kazakhstan, Ukraine, Bulgaria, Egypt, Ecuador, Singapore, United States, Malaysia and Qatar.

Further promotional activity was carried out in Morocco, France, Arab Emirates and Canada

Also worth stressing are the numerous contacts made by the Italian Chamber of Commerce for Germany for the promotion of the SIGEP Neo program during SIGEP 2012. The major German Chambers of Commerce and Artisan Business were contacted and several of them expressed interest in divulging Rimini Fiera´s invitation among their ´young´ member companies. Also on behalf of the most important German associations there is willingness to distribute invitations to the sector´s new ´recruits´: many regional bakers associations, such as the Verband des Rheinischen BBckerhandwerks, BBckerinnungsverband Hessen and associations that include large-scale bakeries such as the Verband Deutscher Groobbckereien, just like the Uniteis e.V., whose members are all the ice cream parlours in Germany, have confirmed that they will distribute the program among their members.

Please feel free to contact me normanatdesitadotit if you want to arrange an appointment – our schedule is very busy but we will do our best to get to know you in person.

2012 top trends to dominate Middle East hotel sector

Ten leading hoteliers present the top 10 industry trends expected to dominate the Middle East hotel sector in 2012

1. M-commerce
“Rapid advancements in travel technology are on the cards, especially mobile bookings which has opened a whole new world. According to industry sources 18% of mobile users are expected to make bookings using their smart devices.”Michel Noblet, President & CEO, HMH – Hospitality Management Holdings

2. Influence of consumer ratings
“Websites such as Trip Advisor will continue to push hotels to become better attuned to customer’s needs. It is no longer about what we say about ourselves in a brochure that maters, it is what our reviewers say. We need to listen to our guests and even though not every review can be positive, hotels need to acknowledge issues and work to fix them.”Ali Hamad Lakhraim Alzaabi, President and CEO of Millennium & Copthorne, Middle East and Africa.

3. Digital booking
“Online booking will be another top trend. Our hotels will heavily switch to the online channel. Potential and existing clients are becoming tech-savvy experts. They know what they want, and are far more sophisticated in what they are looking for, easily accessing information about our hotels through digital tools. Thus, our key priority area is to be on top of the latest online tools and aggressively develop our digital services and presence: from mobile apps to E-Marketing, to our loyalty program, Le Club Accorhotels.”Christophe Landais, managing director, Accor Middle East

4. Growth of the mid-market

We think it will be a bit of a return to 2009 in 2012. In light of the economic instability in Europe I think added value packages will once again become very attractive. This instability will help grow another trend, mid-market hotels. I predict this will continue to grow in the region throughout 2012, especially the clearly defined brands within the mid-market segment.Marko Hytonen, Area Vice President, The Rezidor Hotel Group

5. Emergence of new brands

“I believe we will see the introduction and growth of brands that are new to the region, brands such as Hotel Indigo. We are yet to bring Hotel Indigo to this part of the world, but following the success of the brand elsewhere we expect to announce our first property early next year. The growth of our Staybridge Suites brand will also continue and this helps us cater for the needs of the long stay guest.”John Bamsey, Chief Operating Officer, India, Middle East & Africa, InterContinental Hotels Group

6. Spa and wellness

“Spas are becoming important to both the leisure and business traveler. Nowadays, they are a necessity rather than a luxury, just as a health and fitness club is today, as more and more people seem to be looking seriously at their personal health and well being. Rotana has introduced spa facilities to many of its properties following extensive research into the desires and needs of guests. The direction we are going is to include a Spa in each of our 5 star Resorts & Hotels.”Selim El Zyr, president and CEO, Rotana Hotels

7. Talent and training

“The battle for talent is a real one compounded by the complexities of the need to engage countries very real needs to immerse their own workforce in our industry” Jeff Strachan, vice president – sales and marketing, MEA, Marriott

8. Rise of the BRIC (Brazil, Russia, India, China) travellers 
“These emerging economies are slowly but surely making their mark as strong source markets as well as development markets. Hilton has recognised this and, with particular regard to China, launched an initiative in 2011 called Hilton Huanying — a tailored experience for all travellers of Chinese origin. Inspired by the Chinese word for ‘welcome’, the programme enables visitors to book Hilton hotels with confidence knowing the properties will meet their cultural needs and expectations. These include, front desk team member fluent in Chinese, tea kettles, dedicated Chinese broadcasting channel on TV, welcome letter in Chinese and chinese tea available in the bedrooms. We also provide special Chinese dishes at breakfast. Over 50 hotels in the Hilton Hotels & Resorts portfolio have signed up to the programme.”Rudi Jagersbacher, President, Hilton Worldwide, Middle East & Africa

9. Bargain hunters
“One of the most important trends is the very short lead of advance booking. This can be attributed to the availability of airline capacity to specific destinations which in turn relaxes customers urgency for advanced booking and allows guests the opportunity to search for last minute bargains. Guests are looking for added-value. In terms of preferences and behaviour patterns, travellers are still taking vacations and travelling widely but they demand extra value for money more than before. They are still looking for quality of service and personalized experiences but added value is a key factor while selecting their accommodations.”Gerard Hotelier, Vice President Operations- Middle East, Mövenpick Hotels & Resorts

10. Social media
“Social media creates opportunities never envisioned before. It influences how you are positioned on google, your reputation can be damaged or enhanced within a blink of an eye, social commerce is coming, and all this is going mobile. It is a revolution for the hotel industry, and it is just the beginning. Said that, as a company you have to wonder how to invest and how much. The ROI is still not clear, and there is a RISK on spending too much.” Sami Nasser, SVP, Sofitel Middle East and Indian Ocean 

Via http://www.hoteliermiddleeast.com

2011: a Great Year

The year 2011 is going to end. It has been an amazing year for DESITA, ECOFFEE and showfood.

This blog was read by people from all over the world – Europe, U.S.A, Turkey, UAE and even Siberia- and we were glad to see that many are the ones following us who are interested in sustainability and responsibility related to Retail, Ho.Re.Ca, Hospitality and Franchising.

We were amazed by the great response to post such as “A Pop-Up revival in Retail marketing”, “Zara 5000th store in Rome leads the way to a  sustainable retail” and “New terms of engagement for Levi Strauss&Co. Global Supply chain”, that were read and retweeted more than 2000 times.

We would also like to publicly thank all our supporters: HH Abdul Aziz bin Ali Al Nuaimi –aka the Green Sheikh, Serint Group, Titanka, Novamont, Fantoni, TWG, Quadrante, Smeg, Fair Trade Italia, Organic Academy, Green Graffiti, Al Baba,Karafirin, Kiroskay, Nyga chef, Bartecho, World Green Tourism, EcoSeed, Hospitality News, Asia & Middle East Food Trade, Goumbook.

Last but not least, a great thank you to all our readers. Thank you for your support and your helpful feedbacks and interesting comments.

We wish you all a Great Christmas and a Happy 2012
Norman Cescut and normancescut.com staff

PS We will be back on Jan.10, 2012

Healthy meals for more active students thanks to an Abu Dhabi cafe’s initiavite

Alexander Clavel, managing director and founder of the Federal Restaurant Corporation which runs Mirabel cafe in Abu Dhabi has undertaken the task of creating healthy lunch options for kids.

It is a subject that’s close to Clavel’s heart, so when he was approached by Aldar Academies Al Muna school to create convenient, nutritious meals in a box, he jumped at the chance.

“I think children in the UAE are generally unhealthy, and as an expectant father, I’m very much worried about this,” he said. “Obesity among children across the UAE is on the rise – as it is in the USA and Europe – due to changing dietary habits and limited physical activity. All this can be changed, much of it reversed, with good, healthy eating.

“This, combined with limited physical activity leads to a whole host of problems including diabetes, allergy development, erratic energy levels and mood swings.

“In the UAE you can literally find anything to eat and anything to do so there are no excuses for being lazy! Yet many pay more at the pump for Premium petrol for their cars but less for the quality of their food for their children. That logic can only change with education.”

via Abu Dhabi cafe creates healthy meals for schools | HotelierMiddleEast.com.

Start Today: UK brands join forces supporting sustainability

At the beginning of November, each UK based brand participating to the Start Today sustainability initiative has begun rolling out marketing campaigns, carrying the Start Today branding, urging consumers to take ‘one simple step’ toward being more environmentally friendly.

Start Today, which was conceived by integrated agency Meteorite, is led by Start, an initiative to encourage sustainable living, overseen by HRH the Prince of Wales, Business in the Community and The Marketing Society.

Insurer More Th>n, which has signed up to the project, is running activity focusing on ‘greener gardening’.

Through a partnership with broadcaster Classic FM, it is using Blue Peter gardener Chris Collins in a direct, social-media and digital campaign based on offering consumers tips that can make gardening more sustainable.

‘We wanted to do something that was simple and tangible,’ said Pete Markey, chief marketing officer at RSA, which owns More Th>n. He insisted that there was a ‘clear relevance’ to the drive because the insurer has policies covering garden and house plants.

‘This is a real chance to make a statement about how progressive and forward-thinking we are,’ added Markey.

Meanwhile, DIY retailer B&Q is running an in-store and digital promotion aimed at encouraging consumers to switch off household electrical items, and to buy products that can help reduce utility use.

Ian Cheshire, chief executive of B&Q-owner Kingfisher, said: ‘The days of paying a massive premium for sustainability are probably gone. Consumers are interested in helping to save the planet but (want to) save money as well.’

When the plan for the day of action – originally dubbed One Day, 1/11/11 – was revealed earlier this year, the stated aim was for every piece of marketing communications running on 1 November in the UK to include a green message. However, just 10 companies signed up to the scheme.

Cheshire defended the take-up, stating: ‘It’s a great selection of brands. This is only year one; it came around a bit too quickly for many brands to build it into their marketing plans.’

START TODAY CAMPAIGN THEMES

via Major brands join forces in Start Today sustainability initiative – Brand Republic News.

Using Social Networks to Improve Operations

For decades the mystery shopper was the main way retailers assessed operations from a customer’s point of view. By sending in a fake shopper, typically once a month, an individual store essentially was buying a dozen performance snapshots per year.

Then telephone surveys began to supplement mystery shopping. Today, digital technologies are supplanting both, with online customer surveys providing an exponentially greater number of performance snapshots per day.

A well-managed loop that links customer experience feedback with recommendations on social networks like Facebook, Twitter, and Yelp, can boost service quality and operational performance, increase traffic and create more happy customers — people who crow about a retailer online for free, turning their friends into new customers too.

A new mini-industry has emerged using these techniques, known as “customer experience management,” or CEM. Our company, Empathica — as well as a number of competitors — are providing customer feedback to operations, while partnering with “web-scraping” companies to listen to random chatter online.

Now we’re turning attention to linking operations to marketing through “social CEM.” The aim is not to drive online advertising impressions, but to explicitly and transparently drive the behavior of customers, front line service staff and retail managers. The aim is to create a true dialogue, not simply a listening post for customer kudos and complaints. And by doing so, this loop can drive meaningful operations and customer satisfaction gains.

An example: At Debenhams, a major international department store chain based in London, a customer complained through an online survey about a poor meal they received at the store’s restaurant. “Ordered turkey dinner. Very dried out. Overcooked vegetables in greasy, cold gravy.” The store manager called the customer that night, apologized, and sent a coupon for two free meals. The customer was invited to post their happiness with the problem’s resolution on Facebook, and did. The store manager made sure the kitchen turned out better turkey dinners. The result: a satisfied customer, better kitchen operations, and free social network advertising. Debenham’s effectively took what would have been a one-off customer experience problem and turned that customer into an Debenham’s advocate online and improved its operations to reduce the possibility of future disgruntled customers.

A social network feedback loop starts with information gleaned from customer surveys conducted online. Those survey-takers are then linked directly to social networks like Facebook through a link on the survey.

So how many customers will actually bother to move from surveys to socializing their experience? We have some data that suggests a healthy amount. We conducted 25 million surveys last year; more than 80 percent of respondents said they’d recommend the brand they were being quizzed about. We’ve then seen 10 to 20 percent of customers follow through with social network postings after the survey.

Some recommendations for retailers considering tying together their feedback, social, and operations loops: Customers need some nudging: incentives like coupons do the job. At 100 Boston Market restaurants, customer advocates got $3 coupons for a recommendation. In a three-month period, Boston Market received 100,000 Facebook newsfeed recommendations; advocates redeemed more than 4,000 coupons.

Finding customer advocates isn’t the only goal. Unhappy customers need to be channeled through a “customer rescue” process to help solve problems and mend relationships, and provide feedback on problems for operations to solve.

At Citibank branches in New York City, for example, every customer who completes a survey receives a call back from their bank manager within one to two days. The manager uses survey feedback and software intelligence to determine whether complaints need resolution or whether the manager should provide a simple “thank you” to reinforce the local branch’s commitment to customer service — like old fashioned retail and small local banks or credit unions still do.

The advocate process is proving far more powerful than regular social network advertising. The key is authenticity: we listen to our friends and colleagues for advice and recommendations. So while retailers and restaurant owners can buy social media advertising, the real place to drive growth is on the consumer newsfeeds. Not only are those kinds of clickthroughs more numerous. They are also more powerful. Beyond simple word of mouth advertising, poor-performing outlets get suggestions for improvement, which they use to guide better operational performance.

via Using Social Networks to Improve Operations – Gary Edwards and Mike Amos – Harvard Business Review.