Business Lessons

It’s 8:00, and the family is gathering in front of the television to enjoy one of the few shows they can all watch together. Sitting next to the sofa is the telephone so everyone will be ready to vote once the show is over.

It’s time for “American Idol,” a phenomenon that has taken the country by storm. Well, not just our country, but countries all over the world. What’s it all about? How has this show and its associated business ventures become so successful? How have its owners been able to brand, market and partner their product to ensure unbelievable revenues? If it is not the high-profile, high-priced stars that are attracting our attention, then what is?

Is there something that home care companies can learn from the Idol experts? I’m not talking about the Simon’s, Randy’s or Paula’s of the world, but I’m referring to those men and women sitting in the American Idol corporate boardroom making deals, developing partnerships, looking for new products and planning a business strategy like nothing we have ever seen in television history.

Let’s take a careful look at the strategies and lessons we can learn from American Idol. Can we translate this model into something that will work for HME companies?

Keep in mind that Idol is a cultural sensation, an enterprise and a business we may all want to consider emulating. It’s the series that attracts us, not the identifiable stars we often hope to see.

With that in mind, here are seven lessons we can learn.

• Lesson #1: Everything old is new again. As a concept, American Idol is not a new idea. It comes from the days of vaudeville (most of you realize that was from the caveman days), or, more recently, a reincarnation of the Ed Sullivan show. American Idol is simply an old wheel with a flashier turn. Not much change except for a dazzling opening, some spectacular set designs and new music that gets our attention. How can you relate to Lesson #1? There is always something new you can bring to your home care company. You can rearrange the store products, begin introducing new staff to your referral sources or begin marketing new programs to your customers. While the programs may not be new to you, they could be to your customers. Consider these examples. In Washington, a dry cleaning service has a matchmaker program for single customers, and in California, a hairdresser does hair in a bus so she can travel directly to your business or home. In Dallas, a cafe serves the same food as other restaurants, but you don’t know what’s on the menu till you get there. Each of these companies does the usual in an unusual way. Creative suggestions based on Lesson #1: How about a home care company that matches up patients with a support group that meets in the store? Consider having special meetings on a Monday evening for respiratory patients (“Respiratory Mondays”), or a nutritionist or cook who comes in on Thursday evenings to meet with diabetic patients. The meetings may not be a new idea, but planning a full schedule of educational sessions might get you the attention you are seeking. How about a doorman service on certain days of the week or during certain hours, or a special cooking class for those on special diets? And here’s one more. Let’s take away those big, ugly, white trucks. How about painting them red and with a big sign on them that says, “We bring good health to you.” Now is time for you to consider how to do something that has been done before — but with a new twist.
• Lesson #2: Spread the wealth. Consider ways other companies can work with you and gain wealth and exposure. American Idol has millions of viewers calling exclusively on the Cingular wireless network. Although no exact figures are published, it has been estimated that in 2005, this partnership generated 41.5 million text messages. In 2006, the phone company reported a $350 million profit, attributing a good part of it to an increase in Idol callers. There is also a program where you can buy ring tones of Idol performances. Ford gives away cars on the show, Coca-Cola sponsors the Red Room and leaves glasses on the judges’ tables. According to a Coke spokesperson, “[The partnership] has given us a lot of opportunities to involve local markets and take the American Idol experience outside your TV room.” How can you relate to Lesson #2? No matter how big or small, you can find a useful partner. A tutoring company could possibly use some of the time when your conference room is vacant. Or, how about offering a senior citizens group some meeting space. Think about who you might partner with. Creative suggestions based on Lesson #2: A home care company could team up with a printer to develop educational materials, with the printer’s logo on all distributed materials, to give to social service agencies, business offices or local professional associations. You could also partner with a social service agency to help raise money for needy families during holiday times. Or you could partner with a local car dealership in their efforts to reach the physically challenged or elderly. They may have a service that provides wheelchair lifts and customization for the very customers you meet every day.
• Lesson #3: Foster enthusiasm among your customers. The American Idol viewer is excited and wants to talk about his or her vote, and is always interested in how others voted. Although not everyone votes, everyone has an opinion about who should go! How can you relate to Lesson #3? Some of your best customers may never come into your store, but will eagerly refer others to your company. Some of your customers may actually enjoy knowing they are helping you grow your business and increase your recognition. Creative suggestions based on Lesson #3: Patients and referral sources can help you by making suggestions for the best hours of your operation or suggesting the products you should be selling. You may even want to ask your referral sources to suggest pictures that would accompany the theme of your yearly calendar. Continue to solicit opinions and advice from your customers, as you will then be involving them in the quality improvement of your company.
• Lesson #4: Get your employees to talk reverently about you. As you have come to realize, American Idol stars seem to be showing up on every network television show. Paula, Randy and Simon are continually doing interviews and play a key role in marketing the show. They have become the show’s most important public relations agents. How can you relate to Lesson #4? Your employees are your most important asset and must also understand the role they play in building the image of your company. If they cannot talk positively about your company, they may need to consider employment elsewhere. Creative suggestions based on Lesson #4: How about creating a more positive working relationship with your own staff? Set up a time for coffee with the owner. Create a time to share business goals and plans and get to know each other better. Suggest to staff that they talk about the company at community meetings or at other meetings that specialize in senior programming. Create a list of organizations, schools and professional associations that may be interested in a speaker from your company. Your goal is to spread the word about your company.
• Lesson #5: Get the public to talk about you. While the news coming out about the American Idol show is not always wonderful, people still talk about it. Often the singers lack talent, but the audience still finds them interesting to talk about. Those not watching the show hear others talk about it, which often fuels the fire for even more discussion. How can you relate to Lesson #5? Remember that publicity is important to the growth of your business, and it is imperative that you spread the word about what you are doing. You can often do this through your involvement in community associations and fundraising projects. Keep working at the challenge of getting your customers to come to your doorstep. Not an easy challenge, but one with great rewards. Keeping your business visible will provide you the rewards you are looking for. Creative suggestions based on Lesson #5: You can get attention in lots of ways. You may want to paint your store in a color that stands out a bit from the rest. Create your own Patient Educational Resource Center, staffed by a person in your office who can help your customers find just the right materials they are looking for. Offer free educational programs to your local Optimist or Rotary clubs. Let them begin talking about you and the services you can provide.
• Lesson #6: Brand yourself. American Idol has clothes, track bags, videos and products that can be purchased online. American Idol controls its own image and reminds you that you can buy it if you like. How can you relate to Lesson #6? You want people to ask when they see your name, “Who are they?” From your name or logo placed on hats to water bottles, there is an endless list of branded marketing products to consider. You may not have the products to sell with your logo on them now, but get some ready to use when you need them. Creative suggestions based on Lesson #6: There are several ways you can help brand your company. Ask customers to write about the best experience they have had with your company so that you can enter their comments into a drawing for free movie tickets. A staff member could write a press release about a new product or service your company is providing. The local newspapers in your area are always searching for human interest stories, so an announcement from your community-based company could be exactly what they are looking for.
• Lesson #7: Once you have a new idea up and running, think of new twists to add to the mix. What has American Idol done to continue to attract a national home viewing audience? The show has given them what they want again and again.

Producers bring back winners and losers from years past. They never forget why viewers watch and what they like most about the show. They make sure the audience stays in touch by taking American Idol on the road so their fans can get even closer to those they have already invited into their homes. They never stop thinking of new ideas to place American Idol in front of the public’s eyes.

How can you relate to Lesson #7?

While it does cost money to expand, you may find that adding new products with new colors may get your customers’ attention. The public will show interest in your new products or services if they have come to respect what they have already seen of your company.

Creative suggestions based on Lesson #7: Is it possible to extend your business hours, or even open several hours on a weekend? You could create special disease state management programs with new monitoring twists or weekly phone calls to your patients. You can open up an “HME School” for respiratory therapists who want to work in the industry.

You can be creative, but also think more about redesigning what you already have. American Idol added colors and new sounds to what we have all known as a talent show. Any chance you could make some simple changes to your home care company?

Here’s what we have learned from American Idol:

• We learned that it could be about something as simple as creating a new look and a new experience, and about doing more with what you’ve got. News flash: I just saw on television the start of the American Idol Camp! Will this ever end? (Maybe we should all go to HME Camp and become winning providers …)
• We learned that it is about partnering.
• We learned that it is about branding and getting your name out there. Bottled water with your logo on the label may be an interesting addition to your product line.

As we get ready for a new season of American Idol, are you prepared to look at your operation with new eyes? What can you do to bring some of the Idol strategies to your home care business?

Heck, if none of this works, just invite Taylor Hicks to your store and I am sure the crowds will come. Just make them buy something before you let them in, and you can give American Idol full credit for your success!

Louis Feuer is president of Dynamic Seminars & Consulting Inc. and the founder and director of the DSC Teleconference Series, a teleconference training program. He can be reached at www.DynamicSeminars.com or by phone at 954/435-8182.