Victory at Sea
How Annemarie creates customer relationship magic
Vol. 5, Issue No. 11 | June 2009 By Denny HatchIN THE NEWS
Credit Card Industry Aims to Profit From Sterling Payers
Credit cards have long been a very good deal for people who pay their bills on time and in full. Even as card companies imposed punitive fees and penalties on those late with their payments, the best customers racked up cash-back rewards, frequent-flier miles and other perks in recent years. Now Congress is moving to limit the penalties on riskier borrowers, who have become a prime source of billions of dollars in fee revenue for the industry. And to make up for lost income, the card companies are going after those people with sterling credit. Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.
—Andrew Martin, The New York Times, May 18, 2009
Highlights of the week were to be a tour of Port Mahon, the major British deepwater port in the Mediterranean that's 150 miles southeast of Barcelona, where O’Brian’s series began. In addition, we were promised a reception at the reclusive author’s house in Collioure in the South of France, which very few outsiders have ever seen.
Invited lecturers scheduled for the tour were Count Nikolai Tolstoy—O'Brian's stepson, who's published the first of a two-volume biography of the author—and Brian Lavery—author of 17 books on naval history and consultant to director Peter Weir during the preproduction and filming of “Master and Commander,” which was based on the O’Brian stories. (Tolstoy, in need of a heart procedure, canceled.)
The fillip was Sea Cloud, the 360-foot, four-masted square-rigger. Sea Cloud was the largest private yacht of its era, built in 1931 by General Foods heiress Marjorie Merriweather Post and her dashing, skirt-chasing husband, E.F. Hutton (founder of the brokerage firm that bore his name). She carries a maximum of 64 passengers and a crew of 60.
I did a quick bit of research on the Internet. Included in the price was the hotel in Barcelona and welcome reception the first night, all meals aboard, all wine with dinner, all shore excursions. Not included: bar bills, laundry, telephone and tips (suggested €15 p.p. per day).
The cost of this caper on Sea Cloud would be huge—appealing to the very rich—but I wandered downstairs to show the ad to my wife, Peggy, who knew I was an O'Brian nut. I assumed she'd look at it as an amusing curiosity. To my astonishment, she said, “Why we have to go!”
We wrote a check for the down payment in mid-September. Soon afterward, when the market tanked, we thought seriously about canceling and losing the up-front money, but went ahead and booked the thing. This was a once-in-a-lifetime deal.
Joining the Tour
For the first night in Barcelona, we were booked into the ultramodern Arts Hotel, a glass and steel high-rise operated by the Ritz-Carlton and situated in the harbor area. When the taxi pulled in to the unloading area, the elegantly attired young man at the desk greeted us with, “Welcome to Barcelona and the Arts Hotel, Mr. and Mrs. Hatch.”
When the elevator door opened on the second floor, a young woman awaited us. “Mr. and Mrs. Hatch, this way, please.” She led us to the reception desk where we checked in.
How did the guy know who we were when we got out of the taxi? Obviously he surreptitiously glanced at the luggage tag on my computer bag. When we headed to the elevator, a call (or text) went upstairs to alert the staff of our imminent arrival.
Our spacious room, with its expanse of glass and steel overlooking the harbor and Mediterranean, was out of a James Bond movie—Bang & Olufsen sound system and flat-screen TV, a series of switches that controlled the myriad lights, and the remote-controlled metal blind that lowered to completely obliterate the outdoors.
That evening we attended the champagne welcome reception and dinner. As we entered the room and took a glass of champagne from a waiter’s tray, Annemarie Victory stepped forward and greeted us effusively by name. She immediately asked about my stepmother, who'd been on a previous cruise. Victory is a tiny blonde. She wore a stunning yellow outfit and sported a million-dollar smile. From her Web site:
Austrian born, Victory began her career in the travel industry while in college, working as a tour guide to various European cities and at a resort in Lugano, Switzerland. Professionally trained as a translator in Zurich, her schooling also included studies in London and at the Sorbonne. She is fluent in French, German, Italian and English and conversant in Spanish.
Whether it’s to Vienna for the famed New Year's Eve Ball, experiencing culinary creations by such legends as Alain Ducasse and Paul Bocuse, or cruising the Mediterranean aboard the legendary Sea Cloud, Victory has developed a special niche creating one-of-a-kind vacation experiences for the discriminating, upscale traveler. Inspired by a passion for travel, food and wine, she has spent her career touring the world, personally selecting those unique elements which become hallmarks of tours offered by the Annemarie Victory Organization.
Over the next seven days, Peggy and I were on the receiving end of a crash course in customer relationship magic. I discovered that Annemarie Victory is truly remarkable on three counts: (1) She makes the rich feel coddled, (2) makes the poor feel rich, and (3) makes dullards believe they're scintillating dinner companions. I'll spill three main takeaways from this piece right here:
- When a customer is made to feel extra special by people that run a business, it's a pleasure to spend money with them again and again.
- Every squinty-eyed bean counter, accountant and CFO who believes it’s smart to save money by cutting back on services and cheapening product should be required to take a tour with the Annemarie Victory Organization. I believe the investment would pay for itself many, many times over—for as long as these turkeys are in your employ.
- For example, at dinner one evening, Annemarie recounted the story of American Airlines going on strike two days before the scheduled departure for a week sailing the Caribbean aboard Sea Cloud. Without missing a beat, Annemarie chartered a jet and flew 40 stranded passengers to meet the ship at the appointed island at the appointed time. “You do what you have to do,” she said simply. Did she lose money on the deal? “You do what you have to do,” she repeated.
Day One
We took a bus tour of Barcelona with a world-class guide, followed by late lunch at a five-star restaurant on a high hill with spectacular views overlooking the entire city. Mid-afternoon we boarded Sea Cloud and were taken to our comfortable little cabin—twin beds, desk, and bathroom with shower and gold fixtures. What awaited us in the cabin? Ice in the ice bucket; bottled water; bottle of champagne; bowl of fresh fruit; all of our luggage; and a welcome brochure that introduced the crew, meal times and the departure schedule. One of the many goodies: “Chilled Champagne! See our barmen at any time to exchange the champagne bottle you will find in your room for a chilled bottle.”
Alas, we have set sail on the Mediterranean three times, and without fail the first night was heavy weather with rough seas. About half the passengers—ourselves included—didn't make it through dinner and retired to cabins early for the night. An affable German doctor had a pocket full of pills (presumably Dramamine) that he happily dispensed, and pretty much everyone was fine thereafter, especially since the seas calmed for the rest of the voyage.
Days Two Through Eight
One way a business can create magic is to make customers believe they're part of an extended family. Over the years, the Victory Organization has chartered the Sea Cloud for many cruises in the Mediterranean and Caribbean. While about 30 of us had read the entire O’Brian oeuvre—some multiple times—a number of others considered themselves family, both of Annemarie and Sea Cloud. When Annemarie announces a trip, they sign up. For example, we met several people who'd embarked on Annemarie’s Vienna New Year's junket numerous times. “It’s pricey,” confided one Annemarie aficionado, “but it’s worth it.” What follows are some random memories of customer relationship magic.
The quintessential cruise director. Whenever Annemarie hosts a Sea Cloud charter, you're guaranteed that at her right hand will be the smooth, brilliant Renaissance man Tom Hook out of Destin, Fla. Tom's multilingual, plays terrific cocktail piano, writes wonderfully literate narratives for the daily bulletin of events, delivers a fascinating slide show on the history of Sea Cloud, and is liaison with the crew.
Taking care of early birds. For those of us who are early risers that like to sit outside and watch the world go by, a table of fruit, hot coffee and pastries is set on the promenade deck by 6:30. In lousy weather, rain gear and blankets are available.
A personal touch. By the second day, the barmen knew our names and drink preferences.
Open bridge. During the day—except when entering or leaving port or hoisting the sails—passengers are welcome on the bridge to take pictures or watch the action.
Food. Every meal was simply outstanding, from the incredible breakfast and lunch buffets to the creative dinners that were so delicious you didn’t think about how healthy they were. Do you know the “The Iron Chef” TV series, where top restaurateurs engage in a cook-off in state-of-the art kitchens, incorporating the episode's “secret ingredient” in every course? Aboard Sea Cloud, Chef de Cuisine Maik Albrecht, from Germany, outdid himself with two such dinners. The secret ingredients: white asparagus and vinegar. (See the illustration below for the vinegar dinner menu.)
Simon. One standout in the superb crew is Hotel Manager Simon Kwinta from Poland—outgoing, funny and absolutely on top of his game. When we pulled in to Port Vendres for the tour of Collioure and reception at Patrick O’Brian’s house, Simon was met by a team of purveyors and went shopping with them to produce a spectacular spread of dried sausage, fresh bread, fruit and hearty wines from the local vineyards.
Personal service. For older passengers and those who had trouble walking, special transportation was always arranged for shore excursions. When the bus pulled in to Aix en Provence, Peggy and I opted to see Cézanne’s studio and catch up with the walking tour later. The guide said that it was a long hike up the hill (it wasn’t) and ordered the bus driver to drop us off there.
Tours of the ship. When built as a yacht in 1931, Sea Cloud had 10 deluxe cabins, all of which have been restored, complete with antique furnishings and fine art on the walls. The high rollers who reserved these sumptuous digs were asked if they would be kind enough to let the ship put on an open house, and a champagne tour was arranged. They were eye-popping. Several of those passengers asked if they could see our little cabin, and Peggy gave them a tour of steerage (just kidding). Another tour was the engine room, so spotless you practically could eat off the floor. Off Corsica, the sea was very calm and the crew hoisted all the sails so we could go out on Zodiac boats and take photographs. (See illustration below.)
Isolation. No TV, no radio, no Internet—a bit of an adjustment for a news junkie like me. Every night we found the next day’s schedule with an informative, literate backgrounder by Tom Hook. Every morning, eight-page text précis of top stories from The New York Times (including crossword puzzle and answers to yesterday’s puzzle) were delivered to the cabins. BlackBerrys worked some of the time. International telephone and free e-mail were available.
The other half. I would be remiss not to mention the graciousness of Annemarie’s investment banker husband, the avuncular Michael Victory, who was every bit as attentive to the guests as were Annemarie, Tom Hook and the crew. Etched in memory is a picture of Michael elegantly attired in blue blazer and tie, drink in hand, staring out at the Mediterranean sparkling in the warm sun. “Welcome,” he muttered, “to another shitty day in paradise.”
Takeaways to Consider
- When a customer is made to feel extra special by people who run a business, it's a pleasure to spend money with them again and again.
- Every squinty-eyed bean counter, accountant and CFO who believes it’s smart to save money by cutting back on services and cheapening product should be required to take a tour with The Annemarie Victory Organization. Consider it an investment in continuing education that will pay for itself many, many times over—for as long as these turkeys are in your employ.
- For example, at dinner one evening, Annemarie recounted the story of American Airlines going on strike two days before her guests were to depart for a week of sailing the Caribbean aboard Sea Cloud. Without missing a beat, Annemarie chartered a jet and flew 40 stranded passengers to meet the ship at the appointed island at the appointed time. “You do what you have to do,” she said simply. Did she lose money on the deal? “You do what you have to do,” she repeated.
- An example today (May 27): After making the trek to Cézanne’s studio in Aix en Provence and seeing Mont Sainte-Victoire, which the artist painted many times, I got off the dime and made a reservation for the blockbuster show at the Philadelphia Museum of Art, “Cézanne and Beyond.” As 15-year dues-paying members of the museum, we're entitled to free tickets for special shows. When I reserved online, the tickets were refused until I gave a credit card for a $5 fee. Instead of looking forward to the show, I feel ripped off. When the next museum fundraising letter arrives, I'll ignore it.
- If you nickel-and-dime your customers, you'll be punished.
- When you allow bean counters and data analysts to make marketing decisions, you'll be punished.
- To be specific, if you offer something free, and some insecure member of the management team says it’s OK to remove the “r” from “free,” think again.
- Forget the terms “customer retention marketing” and “customer relationship marketing.” That’s the gibberish spouted by number-crunching business school grads and MBAs. If you're in marketing, your business is to create customer relationship magic.
Web sites related to today's edition
“Delinquencies Mount for American Express”http://tinyurl.com/65y3yd
“Credit Card Industry Aims to Profit From Sterling Payers”
http://tinyurl.com/qdwsbq
“AmEx's Customers Leave Cards at Home”
http://tinyurl.com/oeo6ma
“AmEx Targets $800 Million in Cost Cuts
http://tinyurl.com/rcd5b4
Annemarie Victory Organization
http://www.annemarievictory.com/
Sea Cloud Cruises
http://www.seacloud.com/
“What Is Your Home Worth”—More on the Patrick O’Brian Cruise
http://tinyurl.com/ps8qwd
The World of Patrick O’Brian
http://www.wwnorton.com/pob/pobhome.htm
“Patrick O’Brian: A Life Revealed” by Dean King
http://tinyurl.com/qp6hbr
“Patrick O’Brian: The Making of a Novelist” by Nikolai Tolstoy
http://tinyurl.com/pthyv9



