Beyond the Soup: Choo Ann NGOH on Why Experience Trumps Product in Business

In a recent LinkedIn post, Choo Ann NGOH explores the critical business lesson that many companies, particularly in Malaysia, are missing: the shift from selling a product to selling an experience. NGOH uses the popular hotpot chain Haidilao as a prime example of a business that has masterfully transformed customer perception by focusing on the overall experience rather than just the core offering.

The Haidilao Phenomenon: More Than Just a Meal

NGOH begins by posing a question that challenges conventional business thinking: why would customers pay a premium to watch a waiter dance? This seemingly simple observation leads to a deeper analysis of Haidilao’s strategy. While a traditional restaurant focuses solely on the transaction of eating and paying, Haidilao elevates the entire customer journey. NGOH highlights the various elements that contribute to this unique experience:

“You’ll see waiters performing the err Haidilao dance (I think it is known as the Subject Three dance), staff giving free manicures, and chefs doing ‘noodle kung fu’ at your table.”

This approach, NGOH argues, fundamentally reframes the customer’s perception of value. The extensive queues, which might deter customers from less innovative businesses, are turned into an opportunity for engagement and enjoyment at Haidilao.

Turning Waiting into Value: The “Surgical Tap” Approach

NGOH points out that most businesses ignore the frustration of waiting. In contrast, Haidilao proactively addresses this pain point, likening their strategy to a “surgical tap” that alleviates customer discomfort before it even becomes a significant issue. This proactive approach to managing the waiting period is a key differentiator.

The financial aspect is also reframed. While the food itself might be priced similarly to other establishments, the added value of free snacks, entertainment, and amenities significantly increases the perceived worth. As NGOH puts it:

“They aren’t just charging for soup; they are charging for the memory.”

This perspective suggests that customers are willing to pay more when they receive a memorable and enjoyable experience that goes beyond the basic product or service.

The Power of “Heart-count” Over “Head-count”

A significant part of Haidilao’s success, according to NGOH, lies in its staff. These employees are not merely serving; they are performing with a sense of ownership and engagement. NGOH emphasizes the concept of “Heart-count over Head-count,” suggesting that fostering genuine employee engagement and passion leads to better customer interactions.

This employee dedication translates into tangible business benefits. NGOH notes:

“They have the ‘Business Sense’ to know that a smiling customer who records a video for TikTok is worth more than a 10% service charge.”

This highlights how a positive customer experience, amplified by social media, can generate organic marketing and customer loyalty that traditional methods might struggle to achieve.

Applying the “Haidilao Dance” to Any Business

NGOH challenges business owners, regardless of their industry or location, to consider their own approach. The core message is not to replicate Haidilao’s specific actions, but to identify a unique element that brings unexpected joy and memorability to customers. NGOH poses a direct question to entrepreneurs:

“Are you just giving them the ‘Hammer’ (the basic service)? Or are you giving them the ‘Dancing Waiter’ (the unexpected joy)?”

The takeaway is that innovation in customer experience, finding that distinctive “Haidilao Dance,” is crucial for standing out in a competitive market and fostering deeper customer connections. NGOH concludes by inviting discussion on the most “think-out-of-the-box” services experienced in Malaysia and their impact on customer spending.