One of the major weaknesses of most organizations is top management’s lack of a customer service strategy. They fail to realize the strategic opportunity on how to use superior service as a vehicle to build market share and market dominance.
Sam Walton, one of the most powerful retailers in the world, built Walmart on Customer Service and price. They are now known for price only. The value of their company as a service leader has dropped as they have lost their focus on customer service when Lee Scott took over as CEO in January 2000. When Scott left in January 2009 the stock value was less than when he started as CEO. I always had trouble understanding why management for Walmart has simply focused on price alone for the last 13 years.
The $1000 I invested in Walmart and eight other service leaders in May 2003 is only worth $3,499 as of October 2022. The investment at Amazon is worth $73,478, Costco $19,648 and Home Depot $14,858. All three companies provide Relentless Customer Service. Very few executives understand the financial impact when you provide Relentless Customer Service year after year. COVID gave most firms in the world an opportunity to abandon Customer Service. A fatal mistake.
Along came Amazon. Jeff Bezos, Amazon’s founder and Executive Chair is one of the world’s richest person as of October 2022 with a Net Worth of $138.6 billon. He built his company to become the most trusted and well-liked brand. No one can challenge them. Wal-Mart is so far behind!!
Mr. Bezos is responsible for creating over 352,000 new full -time jobs since 2020 for the American economy and is on schedule to create more.
Use these guidelines in making decisions about the features of your customer service culture plan:
1. Under-promise and over-deliver. Don’t make a promise you can’t keep.
2. Only the customer knows what he or she wants:
3. Make it easy to do business with your company
6. Communicate. Be like Amazon and have a “relentless” focus on customer service through regular communication.
7. Continue to drive the plan strategically. According to Jeff Bezos, “Focus on the things that don’t change”. Bezos built Amazon around things he knew would be stable over time.
In my book Relentless I state that if you want to grow and succeed long-term. You got to be a service leader. To do that, you’ve got to be “Relentless”.
“Also essential is… a chief executive who is just as committed to customer satisfaction as he is to stockholder satisfaction….just look at Amazon, Costco and Home Depot!! –John Tschohl
About the Author
John Tschohl is a professional speaker, trainer, and consultant. He is the President and founder of Service Quality Institute (the global leader in customer service) with operations in over 40 countries. John is a self-made millionaire traveling and speaking more than 50 times each year. He is considered to be one of the foremost authorities on service strategy, success, empowerment and customer service in the world. John’s monthly strategic newsletter is available online at no charge. He can also be reached on Facebook, LinkedIn and Twitter.
For more information on John Tschohl and the Service Quality Institute, visit www.customer-service.com.