The Big New Idea for Retail, Service and Hospitality: Lagniappe.

A ‘word worth travelling for’ is something I have always enjoyed.

A ‘word worth traveling for’ is something I have always enjoyed. Mark Twain writes about just such a word, ‘lagniappe’ in a chapter on New Orleans in Life on the Mississippi (1883). Its origin is probably Spanish. Its meaning is special and for companies striving to make a difference – or merely to survive – its value is enormous. As Mark Twain explained,

It is the equivalent of the thirteenth roll in a ‘baker’s dozen’ … something is thrown in, gratis, for good measure.

In other words, lagniappe (pronounced “LAN– yap”) is about making an extra effort … about going the extra mile … about doing something extra special. It is a gift. It is a courtesy. It is a way to stand out in a positive way. For companies like Ben & Jerry’s, Zales, Starbucks, and Sodexho … it is a way of life. Successful companies know how to run successful businesses. They know how to win over and keep customers. They know how to hire and inspire their workforces. They know the importance of giving MORE THAN. They know lagniappe.

We can learn from this well-traveled word in retail, service, and hospitality. Lagniappe then is a small gift given to a customer by a merchant at the time of purchase. It is the basis of the Gift Economy and comes from our long history in tribes. For over 99% of the history of mankind, we’ve lived in small tribes. These tribes consisted of between 10 to 50 individuals that lived by hunting and gathering. Existing through a concept called by anthropologists as a gift economy. Each member provided for others and status was achieved through the concept of gifting. Cooperation was the route to success as a whole.

Status was not a consequence of how much you had, but rather how much you gave away. Giving for the benefit of others with no expectation of immediate return. Trade existed, but only with outside groups. This trading was inherently competitive and thus only done with strangers.

Today we are firmly entrenched in an exchange-based economy. With the adoption of money, almost everything is now traded freely. Trading involves trying to get the best deal, typically at the expense of others. The basis of exchange is inherently antagonistic with the aim of giving less and getting more. The market economy is a zero-sum game. You give me A and I give you B. Transactions strive to be equal, leaving no additional place left to go in the relationship. So how can you “wow” consumers with lagniappe? Consider these ideas:

Greet consumers enthusiastically at the door – You had me at hello – is a famous line from the movie Jerry Maguire. Rather than saying next or wave the person forward, start your welcoming process by opening the door for them.
Metro Bank in the UK gives dog biscuits to their customers (those with dogs rather, than just feeding the queues).
Providing cold bottled water on a hot summer day—It’s simple but it works.
Walking a consumer to their car with an umbrella on a rainy day—No one likes getting wet when they are running their banking errands. Go that extra mile on rainy days.
Writing on lovely notepaper (in ink) a thank you note after the transaction to thank them for their business. Follow-up is the key to success in any business.
Or Just Pick Up The Phone and leave a message; It takes all of 20 seconds to leave a thank you voice mail yet that message can brighten someone’s day.

As a business why would you want to incorporate lagniappe into your marketing mix? I believe there are at least 3 distinct reasons and corresponding benefits of giving more to exceed expectations (in service, retail, and hospitality).

Better Positioning– stand out from your competition. If everyone is providing x, the fact that you provide x + y (gift) differentiates your offering. Less than 30% of consumers buy on price. You want to tap into the 70+% who are looking for value and a strong customer experience. Business Benefit: Differentiation
Increased Loyalty– giving the little extra (gift) enhances the customer experience. It creates a bond between the business and the customer. The benefit of that bond includes increased loyalty and ultimately patronage as a form of repayment. Business Benefit: Retention
Increased Reciprocity– Part of giving extra is to create goodwill (inequality). That inequality is repaid by positive word of mouth or word of mouse. The best form of marketing is via positive word of mouth. By giving a signature extra (gift) you provide something for your customers to talk, tweet, blog, or Facebook about. Business Benefit: Referrals

The gift or little extra is about respect for the relationship. It becomes a beacon, a sign that shows you care. It’s a physical sign of goodwill and customer appreciation. Let’s be honest. Most people see retail or service as boring.

Spice it up with a little lagniappe.

Be Amazing Every Day

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