Brand Lessons From Chipotle

Chipotle was cruising, sitting atop the fast causal food business with a product and business model that was first to market.  The stock soared and everything pointed to a rosy future until the fall of 2015 when 15 of its restaurants were victimized by a supply chain issue that left 55 of its customers suffering from E. coli contamination.  On one hand, Chipotle was punished for being true to its brand of using fresh ingredients to create superior products.  On the other hand, Chipotle had received warning signs of potential contamination problems prior to October 2015.  The E. coli breakout caused the stock to tank by more than 300 points from its previous high, revenue to plummet and perhaps most significantly, the brand's integrity to be compromised.

Chipotle undertook a defined campaign to rebuild customer loyalty. It started by admitting fault and closed every one of its restaurants for a national safety day, viewed via broadcast by 50,000 employees.  To win customer loyalty back, the company offered free meals.  5.3 million customers downloaded the mobile coupon for a free burrito and 3 million people took advantage of the offer.

Chiptole grew from a small chain in Denver to an international powerhouse with more than 5,000 restaurants worldwide because of its core values that included a commitment to serving meat from animals raised humanely and sustainable food practices.  Values combined with both quality of meals and price points made Chipotle phenomenally successful.  Customers connected with the brand and became corporate ambassadors.  And therein lies the lesson for decorative plumbing and hardware showrooms.  To create your own enthusiastic fans who will recommend you to neighbors, peers and friends, you must understand that your business in not transactional.  Your clients are not simply buying a new bath from your showroom, they are trusting you to make their lives more enjoyable and fulfilling.  When a client or customer gives you permission to rip apart their home and inconvenience them for weeks or even months, you are being given an opportunity to create a deep personal connection.  Remember, trust is the hardest thing to earn in the business world.

Almost every project will encounter problems that can compromise the trust you have been given.  Your response can either reinforce or break your relationship with the customer.  Most likely that relationship will break if your problem solving approach is to turn the resolution of the problem over to someone other than your showroom.  Customers purchased their products from you.  If they encounter problems, they don't want to be passed on to a third-party.  While it is perfectly acceptable to involve representatives and manufacturers, your showroom needs to own the problem and the resolution. 

Chipotle learned that human empathy was key to rebuilding its customer relationships.  This was demonstrated by accepting responsibility, taking corrective action and continuing to improve on its core values. Chipotle teaches that brands need to be constantly reengaging and innovating to create and serve loyal customers.