I have never heard of anyone who has had a bad customer experience with Amazon, Apple, Costco, or
Salesforce. The aforementioned companies are incredibly successful due, in
large part, to a material focus on the customer experience. Not surprisingly,
the stock market has handsomely rewarded these four
companies over the past decade.
Amazon is so customer focused that it will literally send you a
replacement for a lost package immediately without ever implying that the
customer is at fault. The result is a consumer experience that is so optimal
that Amazon is the only place where many consumers decide to shop online.
The same can be said for Apple when it comes to the in-store
experience. Apple employees are so passionate about the products that I feel
like I am talking to a polite tech enthusiast in the Apple stores and not Apple
employees. The result is incredibly brand-loyal customers.
When
was the last time we heard of a consumer switching from using primarily Apple
products to non-Apple products? Apple's in store Genius Bar
customer-support concept is brilliant, and I can't understand why more
companies don't do it. The result is Apple's having the highest sales per
square foot of any retailer in the U.S., at more than $5,000 per square foot per year.
The customer experience at Costco is also superb. In fact,
Costco has the best return policy in the retail industry. We only buy televisions
from Costco, given the company's multiyear return policy. Costco also doesn't
even bother asking for a receipt when you return items (given the company's
digital receipt policy).
In addition, Costco has never raised prices on its fast
food products; you still pay only $1.50 for the hot dog and drink combo, which
was the same price Costco charged consumers 30 years ago! Most consumers don't
know that you can even trade in your old consumer electronic devices at Costco
and receive a "Costco Cash Card" in return. A friend of mine
jokes that "if you can't find it at Costco, then you don't need
it!"
Not
surprisingly, Salesforce, whose roots are in the customer relationship market,
also has superb customer service. In fact, Salesforce is so customer focused
and so transparent that the company will publicly disclose in real time when its cloud services are
unavailable or having reliance issues. Consumer trust is of paramount
importance to the company as "transparency builds trust."
What we can learn from these four companies is that the customer
is always right. In addition, it pays to be long-term greedy and understand
that the optimal and highest lifetime value of a customer is a result
of superb customer service.
Online ratings have altered the customer service role to
the benefit of the consumer. Remember the days when taxi drivers were not that
customer focused? Given the fact that you rate your driver on Uber, taxi
drivers are now materially more customer service focused.
The same can be said for other industries where online ratings
are tracked, including retail or auction companies like eBay, hotel
services like Airbnb, teaching services like Udemy, and of course the
restaurant industry through sites like Yelp. A few negative reviews can destroy
a brand.
In conclusion, a superb customer experience begets more loyal
customers who will no doubt spend more money on a company's products or
services in the long run. A superb customer experience also leads to higher
stock prices over time. In this digital, social media age, if a customer
has a poor experience, all of his or her online contacts might find
out about it very quickly.
It can take 30-plus years to build a brand and just a handful of
poor customer experiences to destroy it; a company is only as good as its
customer service, and the customer is always right.
Source:
inc.com
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