This morning I gave a talk at PTC as part of what they call their “Marketing Innovators” series (I’m in good company, as the founder of North Face – Hap Klopp – was the previous presenter).
PTC is a fascinating company that – from my admittedly limited vantage point – seems to deeply understand the perils and opportunities expressed in these slides, but, hopefully, I gave them some ideas/context.
In any case, these slides are a distillation of the models my consulting firm uses.
The title of the deck grew out of an ancient blog post I wrote back in 2011 in this space.
This idea – in addition to framing up our consultative approach – has also become the name of a course I teach at Brown, and – heaven help me – will be the title of my next book.
This is actually a great recipe for guacamole. It’s how I make it at home.
What’s remarkable, however, isn’t the recipe itself, but rather that Chipotle is – in theory – giving away their secret sauce.
Can you imagine, for instance, Coke posting their formula on their website; McDonald’s providing the recipe for their “secret sauce?” 1
This gesture on Chipotle’s part is interesting because it really shows the value of transparency that informs so much of what Chipotle does, and why they are succeeding in the manner they are, while McDonalds, for instance, is struggling, and promising to “to be more open with customers in an effort to not lose diners to competitors.”
Chipotle knows that they’re selling much more than some sort of “secret” recipe for guacamole that anyone who has even the slightest interest in cooking could replicate in about two seconds.
Chipotle’s core competency isn’t their guacamole (or any of their food).
The reason Chipotle succeeds is because – as with all great companies – when customers go to Chipotle they feel better about themselves for having done so.
I call this the “Mirror of Erised” theory of marketing; meaning, that great companies reflect back at their customers a more idealized version of the customer for having used the company’s product/service (in the same way The Mirror of Erised reflects back a more-realized version of Harry Potter when he gazes upon it (he sees his parents)).
When someone goes to Chipotle, the image that Chipotle’s mirror reflects back upon the customer is an image of the customer as a more healthy, values-orientated person; one who is informed about the food they eat, and chooses to eat healthily.
Chipotle, therefore, “giving” away their guacamole recipe (and the fact that said recipe is a health way of making guacamole) only enforces their “Mirror.”
Compare that against McDonald’s mirror. What is the image reflected back upon a customer when they go to McDonalds? Does going to McDonalds make them feel like a better version of themselves?
And so while, many, many people will continue to go to McDonald’s because it’s cheap, and some people genuinely enjoy the taste, people will likely no longer have the bond that they once did with McDonalds when it first emerged – when going to McDonald’s reflected a mirror that made the customer feel modern, committed to family values and hap, hap, hap, HAPPY:
The great companies know that in an era of commoditization, things like price or product differentiation (for instance recipes for “secret” sauce) are increasingly vulnerable to commoditization. What combats this is a bond that is forged between a customer and company that transcends price or features. A bond that emerges because – for whatever reason – when the customer uses the brand’s product or service she feels like a better version of herself.
Remember, Dumbledore had to stage an intervention to pry Harry away from The Mirror of Erised – it was that strong.