By GREGG  CEBRZYNSKI

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LOUISVILLE, KY. (April  09, 2007 ) —If double-digit increases in same-store sales are any indication, 59-unit Tumble-weed Southwest Grill is finding success in its new twist on relationship building: chief executive Terry Smith’s televised vow to respond personally to all customer complaints and suggestions.

The tactic seems to be working. Comparable-store sales have risen nearly 13 percent since Smith began appearing in TV spots in January to solicit customer feedback and launch www.tellterry whatyouthink.com .

Louisville, Ky.-based Tumbleweed Southwest Grill launched the website www.tellterrywhatyouthink.com to support chief executive Terry Smith’s promise to personally address customer complaints and compliments.

Diner comment cards have listed his personal phone number and e-mail address since last year.

Smith is not the first restaurant chief executive to assume the role of TV pitchman. John Schnatter of Papa John’s International and Dave Thomas of Wendy’s International preceded him, as did Carl’s Jr. founder Carl Karcher. KFC founder Col. Harland Sanders preceded all of them.

But Smith’s decision to field and respond personally to all comments goes beyond the usual efforts of other chains and illustrates how restaurants are compelled to become more innovative in their marketing methods if they want to maintain their customer bases.

Since the program began, Smith said, he has answered 1,500 phone calls from customers and 2,000 e-mails. His website has received 1,700 comments.

“People just started calling and e-mailing on a very regular basis,” he said. “It was clear that people wanted to communicate directly with me.”

The idea for the program goes back about a year, Smith said, when he decided that Louisville-based Tumbleweed, which tallies about $100 million in annual sales, needed to establish closer relationships with diners to turn them into loyal customers. Every employee was to work toward that goal, especially Smith.

“The way I could do that most effectively was to establish a direct line of communication to any guest who wanted direct access,” he said.

Smith has added three hours to his workday as a result of responding to customers’ comments about their experiences at the casual-dining chain. He once was called out of a meeting because a customer was on the phone.

Smith said he always replies to e-mails and website postings usually within 12 hours and always within 24 hours. Customers have complained about poor service or meals, but they’ve also complimented Tumbleweed, he said.

“They let me know if there’s anything not up to standards, and they send praise when they get good service,” Smith said. “They’re really becoming the eyes and ears of the company.”

Initially, Tumbleweed did not give marketing support to the program. Customers knew about it only if they picked up a comment card and saw Smith’s e-mail address and phone number on it.

Then Smith decided to “take this to a next step and make it into a marketing campaign and let people know they will get a personal communication from me,” he said.

CurrentMarketing Inc. of Louisville created the TV spots and print ads for the campaign. Smith has appeared in two TV ads so far. A third is set to break May 1 and will promote baby back ribs.

The spots, like Smith’s extra duty as customer relations chief, are unusual because they’re not scripted. It was agency president Rick Schardein’s idea to use Smith instead of an actor in the spots and to have him answer questions that Schardein asked off-camera. When Smith speaks about Tumbleweed he’s answering those questions.

That was the best way to show Smith’s personality, Schardein said.

“You can see Terry is a very passionate spokesperson for the Tumbleweed brand,” he said. “I don’t think every CEO can pull it off as well as Terry did.”

Schardein said reading the comments sent to Smith’s website “gets to be kind of addicting. I read every one.”

Some people ask why a certain item is no longer on the menu. One complained about a problem with air vents at a restaurant.

The comments indicate where the problems are and what needs to be fixed at individual restaurants, whether it’s equipment, food or service, Schardein said.

“The maxim is that marketing doesn’t stop on television, it goes all the way to the server at the tables,” he said.

Smith has set up a procedure to ensure that Tumbleweed staff responds to consumer complaints and suggestions. If Smith receives a comment by phone, he sends a memo about it to the appropriate staff member. If the comment comes by e-mail or is posted to his website, he makes a copy of the comment and his response to the customer and sends both to whoever’s responsible for resolving the problem.

Then there’s a final follow-up.

“The manager of the restaurant gets in touch with the guest and thanks them for the comment and talks about any issue they have,” Smith said.

The program is not a test or a short-term way to build customer loyalty, he said, but a continuing effort to retain current customers and attract new ones.

“Right now I cannot imagine stopping it,” Smith said. “It is, in my opinion, by far one of the best things we have ever done in achieving guest satisfaction and improving our own operations and developing a personal relationship with our guests.”

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