Apple Computer and Zingerman’s: It’s All About the Customer
I was thrilled to turn to today’s New York Times Business Section and find a story about one of my favorite places in the world - Zingerman’s. Zingerman’s is a deli (for lack of a better word) based in Ann Arbor, Michigan, home of my and my wife’s alma mater, the University of Michigan. We were, in fact, back in Ann Arbor two weeks ago for a stolen weekend and ate at Zingerman’s no less than four times in less than two days. No kidding. It is that good. Even by Manhattan standards. The article discusses how Zingerman’s sources the best ingredients from all over the world, and charges premium (but fair) prices for its top-shelf offerings. But what the article didn’t sufficiently do is give a reader a sense of the culture of the place. It does describe generous employee profit-sharing and benefits, which is hugely important. But this doesn’t begin to capture the customer-centric culture that is so rooted in Zingerman’s DNA that the founders actually teach classes in how to build a customer-centric organization. While is a stretch to analogize between a deli and a technology company, I have to say that when I think about Zingerman’s and its key elements of success it really has a lot in common with another company I know pretty well - Apple.
Zingerman’s has grown in a deliberate but purposeful way, expanding in areas where it can control the customer experience. It doesn’t franchise. It doesn’t lend its name to stuff that is not home-grown. It treats its brand like a rare and valuable jewel, pulling it out and sharing it only when its safe and only at appropriate times. It now has a thriving mail-order business. It can control how items are packaged, the presentation, and the consistency of quality of the items delivered. It also opened a restaurant in Ann Arbor, again a venue where they can control the customer experience front-to-back. I am a stickler for customer service. I am willing to pay a premium for excellent service, and get very, very irritated if I am asked to pay a premium price but the service doesn’t hold up its end. When I walk into Zingerman’s I always have a smile on my face because I know that I will get first-class, friendly, intelligent and informed service, every time. Zero variation. It is a study in six sigma+ process management, because I’m not sure that Zingerman’s service isn’t 100% on, all the time.
So what are some of these key success factors shared by both Zingerman’s and Apple?
- Laser-like focus on the customer experience, whether it is the integration of the Mac with the iPod and other peripherals or the perfectly prepared Ben’s Montreal smoked meat sandwich with Switzerland swiss cheese, cole slaw, Russian dressing on grilled home made rye bread (otherwise known as the S. Muno’s).
- Intense protection of the brand, and a deep understand that anything that is done under the rubric of the brand has to be top-notch quality.
- Committed, passionate employees who deeply believe in the mission of the enterprise and participate in its upside.
- Use of the best materials, for which a premium price can be charged.
- Consistency in delivery of the end product.
I urge all of you to take the time to either pass through Ann Arbor and make a pit stop at Zing’s or to try out some of its mail order delights. It’s products are wonderful to behold. Kind of like the way Apple users talk about their Macs and iPods, right?
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COMMENT:
AUTHOR: Mick Weinstein, Seeking Alpha
EMAIL: mick@seekingalpa.com
DATE: 05/04/2007 04:06:56 AM
Hey Roger, great comparison! I was a huge Zingerman’s fan when I was in college there - I lived for a couple years right down the street and on a college student’s budget had to restrain myself from eating there every day ;)
I don’t know if back then (1990ish) it was ‘all about the customer’ at Z - but the product, brand and packaging were certainly as you describe. I’m really glad to see they’ve had a bullish run like AAPL.
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COMMENT:
AUTHOR: Dan Grossman
EMAIL: dan.grossman@sac.com
URL:
DATE: 05/04/2007 08:01:20 AM
I completely agree—Zingerman’s is amazing. Have never had a bad mail order delivery from them.
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COMMENT:
AUTHOR: Jon
EMAIL: jvance@avondaalepartnersllc.com
URL: http://www.avondalepartnersllc.com
DATE: 05/04/2007 10:56:57 AM
Zingerman’s is the best! I am fortunate enough to have married a U of M grad who introduced me to this gem. We live in San Diego now, but order from them frequently. We too can be accused of over-indulging when we are in Ann Arbor, but we usually work Pizza House into the mix, so we can bring home a couple bottles of Chipati sauce.
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COMMENT:
AUTHOR: Yaser Anwar
EMAIL: yaser@yaseranwar.com
URL: http://www.yaseranwar.com
DATE: 05/04/2007 11:20:33 AM
While I’ve never had a meal from ZM, I’ve read a few chapters from the book, “ZM’s Guide To Great Service”
http://www.amazon.com/Zingermans-Guide-Giving-Great-Service/dp/1401301436
The co-founder talks about spending more than 1/3rd of his time trying to make the customer service better and add more value to them. Hmm, now where have I heard this before? Craigslist!
Craig himself spends 40 hours a week on customer service, so is any surprise than that great customer service = great profits? Not always but yes.
Dell could definitely learn from this example. IMO, they have the worst and slowest cust. service in the world!
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COMMENT:
AUTHOR: bluebox
EMAIL: blueboxmedia@comcast.net
URL:
DATE: 05/04/2007 02:58:50 PM
Holy Cow - their stuff ain’t cheap… Are you going to tell me their $26/lb cave-aged French Comte Gruyere is more than twice as good as the cave-aged French Comte Gruyere I can get from idealcheese.com for $11/lb? That must be some kinda packaging!
At least Apple sold me a most-excellent Quad Xeon for several hundred *less* than Dell could… :)
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3 years ago
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