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January 2016
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The Power of Speed
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The marketplace today demands speed. Apple with its iPhones and iPads, has apps downloaded every millisecond. Eric Schmidt and Jonathan Rosenberg of Google in their book, How Google Works say "The pace of change is accelerating."
 
Firms are born and die faster. Ideas move around the world more quickly. 
 
Amazon is building a company that excels at Speed. Today in over 20 cities in the U.S. you can be at home in your pajamas and order products on your Prime. I can order at 6 AM and if willing to wait 2 hours get free delivery. The shipping cost is $7.99 if I want my product in one hour. They are moving toward the use of drones so packages can be delivered in less than 30 minutes. Amazon sales grew 20% in 2014 to almost $89 billion and the company will continue to spend money on adding new features to prime membership. Sales results for 2015 will be announced any day. Expect another 20% increase.
 
This is my order on Prime December 17, 2015.  They send a confirming email the order has been delivered but they deliver until midnight Christmas Eve. Unbelievable!
Amazon Prime order Confirmation
 
If you are Best Buy, Target, Sears or Walmart with huge stores and huge overhead, you are in serious trouble. Over the Holiday Shopping over 94% of those buying gifts bought something from Amazon.
 
In the U.S. on the Amazon website, you have three options if you need personal help. You can email, chat or have them call you. They call you with a live person in ONE SECOND. 24/7 In the U.S. most firms have banker hours (meaning hours convenient to the owner of the business) Most U.S. firms have IVR. Technology designed to prevent you from talking to a live knowledgeable person.
  
Amazon wants to be the most customer-centric company in the world. Very few firms want to copy the success of Amazon. They are unable to keep up and cannot grow fast. CEO Jeff Bezos is one of the most successful and innovative business leaders around. Amazon stock has delivered massive gains for investors over the years, at the same time inflicting enormous damage on many competitors in the brick-and-mortar retail category. Bezos is the 15th wealthiest person in the world. Way too much money according to most CEO's who feel focusing on the Customer Experience is too much work. Crazy!
 
This is a quote from Jeff Bezos, CEO Amazon:  
 
“If you want to make more of something make the friction less. If you want to make less of something make the friction more.”
 
Inditex, the owner of Zara, a "fast fashion" retailer, designs 40,000 products a year that are shipped to stores twice a week. It has helped end the idea that fashion only has two big seasons a year.
 
SQI has a program called Speed which is designed to help your employees DRAMATICALLY REDUCE THE TIME IT TAKES TO GET THINGS DONE. Obstacles are employee mindsets and their understanding of empowerment and organizational policies and procedures.  
 
A key part of the Customer Experience is Speed which also is part of convenience. The survivors in the future will master speed.  It is part of the hours you are open, the speed of getting a live person on your call center, the speed of getting your product or service to the client.
 
Do Investments in Service Leaders Deliver a Better Financial Return?
 
All my research shows that a firm that builds a brand around the customer experience will increase their value by over 25%. When you lose your focus, (maybe you just got tired of the focus) you will lose the value just as fast. Most top executives have no idea of the financial power of driving a service culture.
 
Firms tend to replace their CEO with a financial person who often has NO grasp of the service experience. This happened to Michael Dell at Dell, GE, and Walmart. We are talking billions of dollars in value. This is real money. When you are the Walton family (the richest family in the U.S.) it really does not matter. 
 
In May 2003, I invested $9000 in 9 service leaders. What I did not know at the time is very few firms would continue to deliver great customer service. I will show you how the $1000 invested in each firm is valued on December 31. 2015. In previous newsletters, I have reviewed the results. When you talk about the Service Strategy internally use the information in this newsletter to drive the service culture and build a brand around incredible customer service. 
 
Amazon $21,628
Home Depot $5,925
Costco $5,879
TD Bank $2,809 (Formerly Commerce Bank. Was the leader when Vernon Hill was CEO before selling)
Southwest Airlines $2,809
General Electric $1,661 Jeff Immlet is no Jack Welch. His focus on his personal compensation. The more he gets paid the worse they do.
JetBlu $1,631 When they had passengers stuck on a plane for 13 hours they lost their value and brand.
Walmart $1,215 When Lee Scott took over in 2000 as CEO they lost their focus on customer service
Dell $465 Dell lost their brand when Kevin Rollins took over as CEO and eliminated the customer experience
 

Books To Read Challenge
 
Each month I will list up to 3 books I have read and would suggest everyone would benefit from reading. Join me and read at least one book a month to enhance your skills. I find it very fulfilling and would love to hear which books you  would suggest for not only me but all of our readers/partners.
  • Eat That Frog by Brian Tracy “Brian offers 21 Great ways to stop procrastinating and get more done in less time.”
  • Achieving Excellence Through Customer Service by John Tschohl “the strategy and bible for customer service”.
  • Fans Not Customers by Vernon Hill “The CEO and founder of Metro Bank in London. A must read.”

Customer Service Certification Seminar
 
April 11th - 14th 2016
Who Should Attend? Service champions who want to improve their coaching and reinforcement skills and learn how to facilitate Leading Empowered Teams and Feelings to build a more customer-driven organization. 

Need More Business/Channel Partners
 
If you are passionate about customer service and want to join the SQI team please contact us. We operate all over the world with licensees, distributors, consultants and representatives. For more information contact us:
Marina@servicequality.com  Russia and CIS Countries
Carmen@servicequality.com  Latin America.

New Vice President of Africa
Murtaza Versi
 
Murtaza Versi Managing Partner of Noesis Strategic Institute in Tanzania has been appointed Vice President of Africa by SQI. Murtaza has been an awesome partner. He is now going to help us build a greater presence throughout Africa. Cell 255-786-142 424  Email  mversi@noesistz.com
 

Worldwide Customer Service Conference October 13-14 Minneapolis

On October 13-14 we have a Worldwide Conference on Customer Service. This two-day conference will help you learn from service leaders across the world. Registration is here


John Tschohl
President 
Service Quality Institute
9201 E. Bloomington Freeway
Minneapolis, Minnesota 55420 USA
Office 952-884-3311
Cell 612-382-5636
www.customer-service.com
www.JohnTschohl.com
JTschohl@aol.com
John@servicequality.com
 
In this issue
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»Do Investments in Service Leaders Deliver a Better Financial Return?
»Books to Read Challenge »Customer Service Certification Seminar
»Need More Business/Channel Partners
»New Vice President of Africa
»Worldwide Customer Service Conference October 13-14 Minneapolis

John Tschohl, President Service Quality Institute

  • In The Media:

» Customer Service of Black Friday - Is There Any? - Seize the day

» The Importance of the "Little Things" - Retail Observer

» Know How to Rock the Boat - Global Banking and Finance Review

» In the Customer's Shoes - Call Center Times

» Move Lost Customers Into the Profit Zone  Retail Observer

» 6 Principles of Customer Service - Multi-Unit Franchisee

» Skillfull Complaining (Motivating) - The Retail Observer

» When the Going Gets Tough  - Call Center Times


Certification Seminars:

April 11, 2016 Minneapolis, MN - Feelings (Certification)
Sign up here

April 11-13, 2016 MInneapolis, MN - Certified Customer Service Leader (CCSL)
Sign up here

April  11-14, 2016 Minneapolis, MN - Certified Customer Service Trainer (CCST)
Sign up here

April  12-13, 2016 Minneapolis, MN - Leading Empowered Teams (Certification)
Sign up here

 
 
 
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