Does it Really Pay to Focus on Exceptional Service?
by John Tschohl
My experience and persistent advice to companies clamoring for a top spot in their market and the road they take in life isâ€¦focus feverishly on Exceptional Service and you will be rewarded. I have found that any company that can build a brand around exceptional service will increase its value by at least 25%. Frankly it could be 100-400% or more. Every now and then I run into service leaders that are an example of what I have been preaching for the past 40 some years. Service leaders that truly understand the power of incredible customer service.
Amazonâ€¦From humble beginnings in Jeff Bezosâ€™ garage in 1995, everything Amazon does is about enhancing the customer experience. Its success is mainly attributed to its approach to its customer.
In 2003 I invested $1,000 in Amazon and the stock on May 1, 2019 is worth $61,867.
Home Depot.,.. The Home Depotâ€™s goal is to provide the highest level of service, the broadest selection of products and the most competitive prices.
In 2003 I invested $1,000 in Home Depot and the stock on May 1, 2019 is worth $9,809.
Costcoâ€¦ The corporate vision statement emphasizes customer experience and satisfaction and states that Costco aims to continually provide their members with quality goods and services at the lowest possible prices. Light years ahead of Samâ€™s Club.
In 2003 I invested $1,000 in Costco and the stock on May 1, 2019 is worth $9,626.
TD Bankâ€¦ Their published Values Statement stated they are client driven and that they: Listen to each client and are empowered to deliver solutions that best fit their needs. They aspire to deliver client experiences and interactions they are proud to stand behind.
In 2003 I invested $1,000 in TD Bank and the stock on May 1, 2019 is worth $4,514.
Southwest Airlinesâ€¦ Their vision is to become the worldâ€™s most loved, most flown, and most profitable airline. They exist to connect people to whatâ€™s important in their lives through friendly, reliable, and low-cost air travel.
In 2003 I invested $1,000 in Southwest Airlines and the stock on May 1, 2019
is worth $3,610.
Appleâ€¦ The company is committed to bringing the best user experience to its customers through its innovative hardware, software and services. They provide a high-quality buying experience with knowledgeable salespersons who can convey the value of the Companyâ€™s products and services and that greatly enhance its ability to attract and retain customers.
From its 1980 initial public offering (IPO), its share price has gained 98,000%. As of May 2017, it was the most valuable company in the world with a market capitalization of approximately $800 billion and nearly $256 billion in cash. Stock price up 270% over last 3 years and 103% in past 12 months.
There are only a handful of firms that really provide awesome customer service. I always ask myselfâ€¦if this is true, why do most firms feel satisfied with just okay customer service? I simply do not understand why more companies donâ€™t tip the scales in their favor by copying successful companies or taking a leap of faith by getting into the game with a clear cut pathway to increasing their value and the success of their company and their employees. It all starts and ends with your Customer experience. Exceptional Service includes:
- Eliminating stupid rules and policies
- Mastering empowerment
- Mastering Service Recovery
- Constant training on Customer Service
- Remembering & using customer names
- No IVR. Answer phones with a live person in 1 -2 rings.
Management must drive a customer service program with continuous training for all employees with reinforcement by means of rewards for high-performing service employees and with management standards that are regularly reinforced.
When management is committed to customer service by daily word and deed, the result is a well-established infrastructure that facilitates free communication interchange internally and externally. As essential as strategy, objectives, and support system are a foundation for a service plan, the entire program would collapse without a corporate culture and training to sustain it.
â€œFirst and foremost for success is a chief executive as committed to customer satisfaction as he or she is to stockholder satisfaction.â€