High Performance Lemonade
August 15, 2007
By Mike Matheis
Who ever complained about the lemonade purchased from a child perched at a table on a family’s front lawn? Virtually no one. In fact, on a hot summer's day, that glass of cold, sweet but tart lemonade is one of life's simple pleasures. Surprisingly, many factors that contribute to the lemonade purchase being a pleasant experience apply to virtually any business—even a Fortune 500 company. It's not just the charm of a child. A child selling lemonade succeeds because certain business principles and practices are applied with finesse.
First, and most importantly, the child behind the table is driven to succeed. He has a defined business objective: earn enough money to buy a bicycle, video game or some other toy. He's got to earn enough money to convince mom and/or dad to take him to the store to make that purchase. Why else would a child sit in the sun on a hot summer day selling glasses of lemonade?
As with any other enterprise, a strategy to make the lemonade stand profitable is required and ultimately perfected. The stand must be open at the right hours and in a location where people will stop and buy lemonade. Pricing and signage are also important—as are the workers, alliances and sourcing.
Under alliance agreements, parents generally play an instrumental role in offering guidance on pricing so as to maximize profits without losing business to any potential competition in the neighborhood. They also might provide the table and the ingredients to make the lemonade (more on that later), and help with signage. To deliver consistently, sourcing supplies from parents are the means used by some children to ensure a reliable supply chain of the thirst-quenching drink. Every business must be able to depend on its supply chain.
A savvy child also might align him or herself with other kids in the neighborhood to work the stand and attract customers, thereby encouraging diversity and maximizing synergies. Human resources then plays an important role in the entrepreneurial lemonade stand.
The most successful children work with smiles on their faces—and doggedly pursue every passerby—tempting them with their refreshing product. It doesn't hurt in any way if their broad smiles reveal missing front teeth, or if they wear a Band-Aid because of a recent playground escapade. Their mere presence is part of the marketing package that sways potential customers to part not only with the price of a glass of lemonade, but often with a generous tip. There is no discounting the importance of the customer experience that is sealed into the close of every sale with the exuberant, genuine burst of gratitude that only children can deliver.
All of these factors combine into a recipie for sublime customer service consisting of short lines and the fresh, cold glass of lemonade that satisfies customers on a hot summer day.
To further performance, all businesses must continually seek ways to improve their business—the same as with the young lemonade purveyors. If they scanned their neighborhoods to better understand their target market, like any high performing company, they might appeal to customers by making recycling bins available near their stand for the empty cups.
Additionally, while nearly anyone would agree that these little neighborhood entrepreneurs have perhaps been slow to harness technology, it may not be long before that changes, given the ease with which children master other technologies—such as video games.
At the end of the day, all of these things add up to what consultants call customer relationship management—including sales, marketing and service. In the end, it is the friendly, well-priced service of a good product that sustains the business and keeps the customers coming back.
Mike Matheis is the managing partner for Marketing Transformation within the Accenture Customer Relationship Management service line. Accenture is a global management consulting, technology services and outsourcing company.
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