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September 2014
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Does it Pay to Be a Service Leader?


Most firms do not understand the financial impact of being a service leader. For many firms it is just too much work. Actually, it does not take a lot of money but, it does take a fierce and unwavering focus by the CEO and everyone in management.  If you want to drive a service culture, take some time and track the financial performance of service leaders.  Following are invaluable examples you should track.

Read full blog post here

Minneapolis Worldwide Customer Service Conference October 2-4


The deadline to register for our October 2-4 Worldwide Customer Service Conference is approaching fast. If you want to learn from service leaders and network with others from around the world that are also committed to driving a service culture, this event is the place to be. Registration fee is $999. We have special rates of $135 per night at the Radisson Blu that expire Friday September 19. Rack rates of about $200 per night apply after this.

** If you are traveling from outside Minnesota, register BEFORE September 29 to enjoy a Travel Subsidy of $499 and attend the Worldwide Customer Service Conference for only $500 per person. Only a limited number of seats are available at this price, so call and register today.

Speaking at the conference are the following successful leaders who are passionate about customer service and will talk about how to drive a service culture.

Tom Raffio President and CEO of Northeast Delta Dental is sharing his strategy on how to build a 70% market share… unheard of in the insurance industry. Frankly we should charge insurance companies $10,000 per head just to hear from Raffio,

Tewolde Gebremarian, CEO of Ethiopian Airlines is the friendliest airline in Africa. They made more profit last year than all their competitors in Africa combined. Most of us have NO LOVE for the airline we fly. Few care about the customer. Ethiopian Airlines is a major customer of Service Quality Institute and has been using our 3 year Service Culture Plan. They loved our technology so much they also now represent SQI in Ethiopia.

Eric Simon, Vice President and General Manager of Urban Ski Areas from Vail Resorts. They are the most successful and largest ski resort in the world. Everything is built around the customer experience. 

Jessica Seoul Customer Quality Sr. Manager Nissan Mexicana S.A. De. C.V. Mexico
www.nissan.com.mx  will share the results they have achieved using our products and Mexico and Latin America. Is there a different culture in Latin America? Do customers demand and expect great service throughout the world?

Dr. Peter Johnson the most focused strategist in the world. The name of his game is EXECUTION. How do you get things done?  Strategic plans are worthless unless you actually implement them. Learn how to use and understand strategy in your organization. 

William Erio, Director General of PPF Pension Funds in Tanzania. How do you drive a service culture with a quasi government run pension and social security fund?  PPF has been using our service culture plan to successfully change their culture and increase revenue.

David Graebel, Chairman and founder of Graebel Relocation Services built the most successful and largest privately held household goods moving firm in the world. All built around customer service.

Josiah Blair, Assistant to Chairman of the Board, Technodom, Kazakhstan. This is a billion dollar electronics retailer similar to Best Buy. They are the largest and most successful retailer in Kazakhstan. Their goal is to become the most customer driven firm in the country and the first company in Kazakhstan to master customer service.  Eduard Kim is one of the wealthiest people in Kazakhstan and understands strategy and is more committed to making this happen than any CEO I have worked with. They are translating our programs to Russian and implementing 3 of our programs each year.

Oscar Orozco, Sr. Director Secretario, Banco Promerica El Salvador www.promerica.com.sv
Oscar has been using SQI programs for over 10 years and has driven incredible financial results and market share in Central America. There is NO ONE who knows the results and is a bigger believer in SQI products anywhere in the world.

John Tschohl, President of Service Quality Institute, the Global Leader in Customer Service. John wrote the world's first customer service training program. Feelings was released in January 1980. Millions of people from every corner of the world have been using his technology and strategy to become more customer driven.

In this issue

John Tschohl, President Service Quality Institute

»Does it Pay?
»Worldwide Conference
»IBM's Q4

  • In The Media:

» Servicio al cliente, camino al exito- La Nacion

» Brilliant and Efficient - The Art of Outsourcing - Small Biz Resources

» Service...It Consistently Pays -
Call Center Times

» Bending The Rules - Retail Observer

New 10th Edition Achieving Excellence Through Customer Service

Achieving Excellence Through Customer Service has been updated. The 10th edition will be released at our Worldwide Customer Service Conference on October 2 in English and Spanish. You can buy the 10th edition online by September 20. The online price is $9.95 and $19.95 for a printed copy.

IBM's Q4 Annual Online Retail Holiday Readiness Report 

The research IBM provides in this link is really interesting . It shows the pace of technology.

It’s a little bit early for all the holiday shipping prognosticators to have their forecasts out, but there is already some good news for Q4 in IBM’s annual Online Retail Holiday Readiness Report. There are also other indicators in the market – particularly the continued rise of mobile – that can help online marketers prepare for a successful online holiday shopping season this year.

 26 days between Black Friday and Christmas in 2014- , just one more than last year and five fewer than 2012 (IBM)


  • Average spend per buyer is expected to exceed $2,000 (IBM)

  • Twenty percent of site sales and more than 43 percent of site traffic will come from mobile devices in November 2014 (IBM)

  • Small business should expect at least 9 percent growth in the holiday season, compared to last year (Volusion)

  • Mobile commerce will account for 33 percent of U.S. online holiday sales (Custora)

  • Seventy percent of US ecommerce shipments during the 2014 Christmas shopping period include free shipping, a 3-percent increase over 2013, when about two-thirds of all US  holiday ecommerce shipments were sent at the merchant’s expense (UPS/comScore)

  • Look for some retailers to even offer a discount, free services (like gift wrapping), or cash back when shoppers choose in-store pickup for online orders (UPS/comScore)

2013 - Past Indicators

  • At the start of 2010, only 3.4 percent of total visits to ecommerce sites came from mobile devices (phones and tablets). Now, four years later, 36.9 percent of site visits are from tablets and phones (Custora)

  • Sales on smartphones and tablets reached a high of 19.1 percent of all e-commerce sales in December 2013, up three-fold from December 2011 (IBM)

  • Shoppers spent on average 9.3 percent more per online order in November 2013 than two years earlier, and 13 percent more per order in December. In 2011, consumers spent an average of $121.38 in November and $108.39 in December. In 2013, those figures jumped to $132.71 and $122.46 (IBM)

  • During the 2013 holiday season, the average time on site rose to 7 minutes, 40 seconds (IBM)

Positive Indicators/Trends

  • Mobile site traffic reached 38.2 percent in March 2014, more than double the percentage in March 2012 (IBM)

  • Forrester research projects a compound annual growth rate of nearly 10 percent for US online retail through 2018

  • Growth of US Sales using mobile devices leapt 43 percent in 2013, to 21.8 percent of all site sales (IBM)

  • AOV was $132.71 is up 9 percent from the same period two years ago (IBM)

  • Mobile site traffic reached a new high of 38.2 percent of all site traffic – more than double the rate from two years prior (IBM)

  • Websites see more traffic from smartphones than tablets, 23.8 percent vs. 13.6 percent (IBM)

  • However, consumers make more purchases from tablets 11.5 percent vs. 5 percent and conversion rate is higher on a tablet at 2.7 percent vs. 0.8 percent on smartphones (IBM)

  • Shipping clubs (Think Amazon Prime) are rising in importance to shoppers – 23 percent of online shoppers have memberships this year vs. only 9 percent in 2010 (Custora)

  • SMBs showed a 23 percent gain in sales via mobile devices during Q2 of 2014 (Volusion)
If I can personally be of help, feel free to contact me.

John Tschohl
Service Quality Institute
Minneapolis, Minnesota  55420
Office 952-884-3311
Cell 612-382-5636

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