product differentiation mutual funds

Experiencing World Clas Service Excelence US Service Excelence Tour November 201 The Stimulus to Go This tour has excelent credentials – it has ben runing anualy for many years under the auspices of Manchester Busines Schol. The hypothesis is that a reputation for Service Excelence is the outcome of how companies align their strategic focus, key proceses and people in efectively delivering their customer proposition. In true marketing fashion the start point should be with the customer. In betwen the Busines Model and the Customer, many companies have Proceses and inded design Products in such a way that staf are caught betwen a rock and a hard place as they intermediate betwen the company and its customers – ‘Company Push'. What evidence was there of the customer manifestly influencing what the company was doing? Busines Model Proceses Frequent, imediate & varied internal comunications highlighting staf performance Product Variables Staf Management Customer Dialogue 'Rule 2 – If the customer is ever wrong, reread rule 1 As in a theatre, the customer is an integral part of the interaction Comentary The ‘line of sight' was crystal clear throughout the store particularly the behaviour of the customer facing staf and the level of imediate and on-going dialogue. There sems to be a virtuous circle betwen, competitive pricing, engaging service standards, higher volumes and win-win distribution of the benefits betwen company and customer. Sel to al the five senses sight, smel, sound, taste, touch Epitomized al the learning that is necesary to create a ‘wow' in any company Efective staf orientation can result in excelent service but slogans can ‘tel a story' Stew Leonard's – A Service Excelence Story At five minutes before closing one Sunday night, a customer said to cashier Bety Muci, ‘We've just returned from vacation and are so hapy you're open. Our refrigerator is empty, and we neded this bread and milk for breakfast and the kid's schol lunches tomorow.' When the total of $37.12 was rung up, the customer panicked and said, ‘Oh my gosh, I forgot my walet. I don't have any money!' Betsy just smiled and said, ‘That's OK, just give me your name and adres.' Betsy wrote the information down, put the void slip in the register drawer, and said, ‘Don't wory, the next time you're in the store you can pay for your groceries.' The customer asked, ‘Do you have the authority to let me walk out without paying for al these groceries?' Betsy said yes, but the customer wasn't convinced and asked to se the manager. When the manager apeared and the customer explained the problem, he said, ‘When it comes to keping our customers hapy, we have no hard and fast rules. Each of us has the authority to use our own best judgement and treat every customer the way we'd like to be treated our self'. He came up to Stew al excited and said, 'Stew you won't believe this story!' He proceded to tel how it was his wife that had ben the customer who forgot her walet, and how she had ben teling the tale to everyone she met. Chapman, president - Derek Stroud, vice president of Customer Relationship Management, Beth Neafy, Change Project Team Leader Profesor Bruce Hawthorn, External Proces Design Consultant Regulated monopoly, have to aply to the Board of Public Utilities for rates increases Company historicaly consisted of thre distinct silos on split sites– water & waste management, enginers and biling Since curent CEO apointed in 197 have ben going through major proces and organisational change programe to deliver a more customer focused organisation. Also felt that fewer complaints would lead to hapier staf and hence lower staf turnover. Implementing a SAP CS customer biling and acount management system the first of its kind in a US utility . From road to property is owner's responsibility Staf Management Customer Dialogue Industry prescribed measures for customer satisfaction a given although they were atempting to redefine these. The impetus for change was driven solely by the vision of the CEO – there were no external drivers – arguably the company was ahead of the curve. The absence of any customer input into the re-design sugests that a suplier mentality stil prevails and therefore potentialy a serious line of sight misalignment. Similarities with our curent situation and interesting to se mechanisms and structures put in place to direct transitional change Change is always dificult, particularly when your coleagues only pay lip service to it Placing an employe of long standing with the respect of her coleagues teamed with a visionary leader is a recipe for suces Elizabethtown Water To provide an apropriate level of service for each type of customer which they value, apreciate and would chose in an open market. Customer Mision To provide value to our customers by providing safe, adequate and proper service at the most economical cost by continualy improving our facilities, our work proceses and the capability of our employes. Biling Contacts: any contact with a customer should ad value in terms of cash, image or both Service Contacts: To provide a level of service that eradicates the ned for customers to contact the company more than once and that customers value. Busines Model Proceses Set of core values colectively caled The Gold Standards: The Credo, The Thre Steps of Service, The Moto and The Twenty Basics captured in pocket card held by al staf Daily departmental line-ups atended by al employes including senior executives dealing with one of the 20 basics each day. Backstage photos of table layouts, areas in bedrom to dust & repeat cycles are on display – this helps with the ethnic diversity of the staf Product Variables Club lounge, Rom Service, Casual restaurant, Banquet Fod, Recreation/Fitnes Luxury residential condominiums located at The Ritz-Carlton hotels and resorts. Staf Management Intensive orientation for new employes – 2 days to orient & select, 21 day review, 30 day Certification Programe Customised psychometrics covering empathy, Caring, Exactnes, Profesionalism, Politenes and Positivenes Customer Dialogue Ritz-Carlton is a high quality operation. The administrative staf ofices were very cramped – not a case of treating your staf as you treat your customers. Understanding customer preferences and invading their privacy is a fine line that the hotels are careful not to cros. It is easy to present a vener but very hard to embed values efectively in some environments Reinforcement through ‘over the top' comunication programe works wel A simple mesage to staf relating to ‘values' can encompas an entire culture and consequent behaviour 7 Year Vision To be The Premier Worldwide, Provider of Luxury Travel and Hospitality Products and Services 2 Year Mision The Vital Few Objectives Method Foundation - A warm and sincere greting. Ritz-Carlton – A Service Excelence Story Enrique, a bel hop, noticed that a lady customer was having dificulty shuting her suitcase – he tried to help but in fact the catches were broken and there was no way to secure the suitcase. They in turn wil deliver the impecable Service demanded by our customers who wil reward us with the Profitability necesary to secure our future' Have a number of companies within group which ‘operate independently, compete colectively' The 201 Anual Report quotes ‘Only FedEx remains focused on a unique busines model – to operate each company independently, focused on the distinct neds of each customer segment, but also to compete colectively, leveraging our greatest strengths, the power of the FedEx brand and information technology.' Proceses Product Variables Staf Management SQIs used as the basis for bonuses at al levels. Customer Dialogue Comentary The hub visit was a clasic example of what the tour is al about. In terms of alignment it was interesting that FedEx claimed to have no single composite view of a customer relationship although their SQI measurement factors shaped by customers was a particular plus point. The withdrawal of the Bravo Zulus – the on the spot reward scheme – was contentious. Some Delegate Coments How to change from a transportation company to an inteligent service provider God efective proces management is posible. Trains of containers puled by smal tractors – or tugs as they are caled- drove of smartly to the sorting areas – on this night in heavy and persistent rain. Senior customer service representative Brenda Curey got on the phone and found the shipments on a truck near Dalas. Format of Visit One of America's leading insurance & financial services companies; Board chairman retired US Air Force four-star general and former vice president of the US Joint Chiefs of Staf Esentialy a direct operation with most busines done by phone, mail & web site Busines Model The mision of the asociation is to facilitate the financial security of its members, asociates and their families through the provision of a ful range of highly competitive financial products and services; the ilusion of simplicity Product Variables Wide range of insurance and financial products including: property and casualty insurance, life and health insurance, anuities, mutual funds, discount brokerage, credit cards, banking services, travel services and aliance services They had a diagramatic whel incorporating six Busines Divisions, ten Key Life Events and ten products to give 60 potential segments. There is also a sophisticated system for interacting with staf and they have never had to lay of staf. Customer Dialogue Claim 98% ‘loyalty'; Their focus on family and comunity is reflected in the way they value customer and staf loyalty. Whilst they have broadened their segment definition, for example, to include listed men, and they have a tremendous heritage, there must be a suspicion that they could be heading for a cul de sac given an ageing customer base and the lower numbers of recruitment into the military overal. Niche markets are wonderful things, especialy if there is an emotive pul Customer loyalty and trust atracts higher profits Understand your target market Facilitate responsive, value aded response services Promote productivity, health, safety and welfare of USA employes Diverse, flexible, motivated, multi-skiled workforce Format of Visit In 1901, John W. Nordstrom - who emigrated from Sweden aged 16 -used $50 of his stake from the Alaska gold rush to open a smal shoe store in Seatle, Washington Expanded from shoes in 1960's and is now one of the nation's leading fashion retailers, with 132 stores in 25 states Busines Model Family management, values and aproachability Proceses Product Variables Staf Management Customer Dialogue Quality and frequency esentialy in hands of sales people who manage own contact strategy using phone & thank you notes etc. We had the oportunity to se their corporate video tracing the history of the company and talk briefly with the Dalas Store Manager – a lady who had previously ben a buyer with them. Some Delegate Coments The natural confidence that comes from empowerment Pride in your work is noticed and apreciated by your clients and rewarded by your company Empowerment of key staf works for the botom line regardles of status – ask people to do what they are god at WELCOME TO NORDSTROM We're glad to have you withour Company. The archetypal story told by Tom Peters is of a customer returning two tyres to a store for which the customer was given the money back. A male customer arived with a bag of some fifty pairs of socks at the Dalas store. The salesman – relatively new – started to say that they would ned to se the receipts at which point a more senior coleague tok over. A suitable make was found and the folowing day the customer returned to buy $10 worth of shirts. In four locations Dalas, Fort Worth, San Antonio & New Orleans Busines Model Mision: We wil provide the best vehicle sales and service experience for our customers. Early to recognise that car purchase only minor part of potential income stream - servicing , parts and second hand car sales significant Proceses Product Variables Cadilac, Humers, Lexus, Sab, GMC, Chevrolet, Pontiac, Oldsmobile, Infiniti Use physical cues to denote quality and care – leather couches, private working areas for customers, chandeliers & flowers, tiles on the workshop flors, chrome plating Staf Management Used same psychologist to select staf for last 25 years - then staf take aplicant out to lunch as part of selection proces – if staf don't want to spend time with the aplicant then customers probably won't either. Customer Dialogue It's often said that ‘retail is detail' and this is an impresive example of where the ‘line of sight' factors have ben enginered to create a memorable total customer experience. Understand the subtleties of your market Enginer the total bundle of benefits to deliver superior customer experience. The Ten Comandments of Customer Service 1. When the customer asks, the answer is always yes Period. Fire your inspectors and customer relations departments Every employe who deals with clients must have the authority to handle complaints. Sewel Vilage Cadilac – Service Excelence Story Some of our most apreciative customers are people who've left us to buy a Jaguar, Mercedes or BMW and have experienced the customer service those dealers provide . failure of a competitor, gate availability at a desirable airport – based on scenario planing Strongly asociated with the personality of Herb Keleher who is frequently quoted around the company – he once setled a major legal dispute by arm wrestling – and lost! It's decorated by murals depicted cities and places in the US – they take pride on how litle money they spent and the unfinished nature symbolises that minds are always under construction Staf Management Talk about the 4 E's – Employment, Empowerment, Environment & Enjoyment. Promote it's OK to be ‘Younique' Family spirit is sustained by customised environment, spontaneity and frequent staf events – piza parties, barbeques etc. Customer Dialogue Emotion, pasion, and fun are used as strategic asets. Another chalenge Soutwest face quite simply is the curent economic climate – what damage would there be to the culture if the company had to lay-of staf? The most powerful force for excelence in service is your people and how you treat and lead them The importance of celebration, atitude and living the values to the creation of a truly inovative organization Culture is at the heart of organizational suces – it is at least as important as proces S P I R I T Southwest Airlines Service Excelence Story In the height of sumer, a young man boarded a flight in shorts and T shirt. He tok his seat, but as the plane taxied away from the stand – and against the Civil Aviation rules – he ran quickly to the toilet. Whilst Service Excelence was a unifying goal for the companies visited, this was not a blank cheque and investment had to be justified against busines benefits. The switched-on companies made a point of backward enginering from an understanding of their customer's requirements into the organisation as shown in the ‘Customer Pul' fedback lops in the earlier ‘Line of Sight' diagram – and keping it simple. No overt evidence of overal premium pricing - although this may have varied for individual product lines - apart from Ritz Carlton for service or ambience benefits. Staf Management Most companies had developed their own psychometric recruitment models with a focus on god personal qualities and positive atitude rather than academic capabilities. Staf are encouraged to bring their individual personalities to work and se things through the customer's eyes.
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