Category Archives: Customer Centric Leadership

Customer Centric Leadership in Action – A lesson from Elon Musk

tesla_charging_station

One of the central tenets of being a customer centric leader is listening to customer feedback and responding with action.

There is no better recent example than Elon Musk’s response to a customer complaining about the Tesla charging stations being used simply as car spaces.

The Tesla customer complaining happens to be Loic Le Meur, a fellow entrepreneur and major tech influencer, with 130k followers on twitter. You could argue that probably holds more weight than just your average customer but clearly the issue was one bubbling up and on Elon’s mind.

Here is the interchange from the two on twitter below:

elon_musk_twitter_response

Loic’s tweet was responded to within 20 minutes and within 7 days the press announced “Tesla to begin charging idle fees to those remaining on the charger beyond a full charge”

As the team at OfficeChai reported:

“Tesla was going to charge $0.40 for every minute a fully charged Tesla would stand at its parking stations after a five minute grace period. This simple change would ensure that people wouldn’t leave their cars at parking stations, preventing others from using them.

And what’s incredible is the pace at which the product change was implemented. Tesla might still call itself a startup, but it hardly is one – it has over 30,000 employees, and large engineering teams. To have a product feature conceptualized, implemented and shipped in a week is nothing short of miraculous.”

Now this might not be the perfect solution but Tesla will listen to customers and refine further as needed.

This is what customer centric leadership looks like in action, in this case led from the top. Elon’s expectation is that everyone in Tesla is listening to customers and responding to continually refine and improve the experience and value being offered.

Are you are customer centric leader? Find out more in our book, the Customer Culture Imperative

 

What is the kryptonite for disruptors?

Established businesses everywhere are under attack. The headlines are full of stories of business disruption. Entrepreneurs everywhere are building companies to unseat the entrenched firms.

While many think the answer is to invest in more technology, lobby government or follow their competitors actually the answer is right in front of them.

Our team in Sydney recently had the chance to sit down with Luke Jecks, the Global CEO of Naked Wines for his perspective. Listen to Luke talk about what he describes as the Kryptonite for disruptors, its a great lesson for anyone in business today:

So what’s the Kryptonite for disruptors? A Customer Culture or as Luke puts it:

“Love your customers”

If you spend time understanding and acting on your customers needs you will create loyalty that will keep you as immune as you can be to disruption.

So how did Naked Wines disrupt the wine industry?

Before Luke setup Naked Wines four years ago he was looking for an industry where customers felt disenfranchised. He found it in the Australian wine industry – a market dominated by two large retail chains owned by Coles and Woolworths that between them shared almost 70% of wine sales nationally. Not only did he find wine lovers who felt little connection with the vast array of brands but also boutique vineyards that were being squeezed out of the market by ever narrowing margins and an inability to finance the next vintage.

Luke knew that if he could create a personal connection between wine growers and consumers and a financial model that could provide more stability and certainty for wine growers he could build a new business.

He realized that he needed wine consumers as repeat customers and he came up with the idea of “angels’ – that is consumers as angel investors who would pay $40 per month and build up a credit in their account to be used to buy the boutique wines of their choice.

Four years after launch Naked Wines in Australia has more than 50,000 sustained angels, more than 35 boutique winery suppliers with an online communication and ordering system that connects them.

Annual Australian revenue of $30 million and more than $200 million globally is testament to the fact that the whole Naked Wines team have a culture that enables them to “love” their customers.

Isn’t it time to create a customerculture in your business and build up your disruptor defenses?

If you are interested in creating this type of culture in your organization why not attend one of our MRI Accreditation Workshops held all around the world!

 

How one person can make a difference role modeling customer centricity

tarpys

Tarpy’s Roadhouse just outside of Monterey, California is renowned for its good food, friendly hospitality and fast service. One person, Niranjan (“Nick”) Subedi, a native of Nepal, shines out as a role model in serving guests at the restaurant since 2000. A phrase known to every Nepali translates to “guests equal god” and offering all you have to a guest is considered a moral duty. Nick remembers every guest and their preferences even when they have not been back to Tarpy’s in a long time. Clint Eastwood, who lives in the area, is a big fan and he like many guests requests to be seated in the area where “Nick” is serving. Nick’s belief is that service is a duty and a pleasure and he shows this in his wide grin and attention to customers’ needs. But more than that he says: “I try to bring the human element to dining, to show that I love the guests”. He lives nearby with his wife in a house he owns “ because of my customers. I owe everything to them,” he said.

“Guests equal god”

It only takes one person like “Nick” Subedi to act as a powerful role model in a business reflecting strong customer-centric behaviors to lead others to do the same. If enough people in your organization follow this example you will have a strong customer culture – and a sustainable thriving business.

Trust – An essential Ingredient for Customer-Centric Leadership

 

Trust it the Foundation for Customer Centricity

Trust is the Foundation for Customer Centricity

A strange dynamic is happening in the run-up to the US Presidential nominations and voting for the November Election. The two front-runners leading up to Super Tuesday were Bernie Sanders (Democrat) and Donald Trump (Republican), both unlikely candidates. Sanders is believed to be a left wing socialist and Trump is an irreverent, anti-establishment, “say it as he sees it” first time politician. Both are seen to be extreme in their views in relation to the ruling Washington establishment.

How has this happened? It’s happened because the existing establishment politicians on both sides of politics have lost the trust of the American people – their customers. You cannot lead without your customers’, employees’ and key stakeholders’ trust in your vision, your ability to carry it through, your authenticity and your commitment to the long haul for their and everyone’s benefit.

Stephen Covey (Speed of Trust, 2006, p.1) says:

“There is one thing that is common to every individual, relationship, team, family, organization, nation, economy and civilization throughout the world – one thing which, if removed, will destroy the most powerful government, the most successful business, the most thriving economy, the most influential leadership, the greatest friendship, the strongest character, the deepest love…….That one thing is trust.”

Today there is a strong movement in all types of organizations to improve their customers’ experience. This requires customer-centric leadership that takes the view that “what’s best for the customer is best for the business.” For that to occur these organizations must have a strong customer culture which can only be developed by leaders who are trusted by their employees. We see trusted leadership in companies like LEGO, Starbucks, P&G, IKEA and the Virgin Group of companies.

What is the level of trust in leaders in your organization?

It’s LEGO, not EGO – collaboration is central to LEGO’s customer-centric culture

The name LEGO is an abbreviation of two Danish words “leg godt” meaning “play well”. It was founded in 1932 by Ole Kirk Kristiansen and remains a family owned company. It has incorporated a number of characteristics specific to the Danish culture, such as a non-hierarchical structure – which translates into a very flat organisation in LEGO. So they look for people who are going to embrace collaboration and have fun. Even in sales teams that are normally very competitive they look for people to be more collaborative to partner and work with their teams to build longer-term customer relationships and brand loyalty.

There is no room for “EGO” at LEGO where employees at every level are expected to challenge their boss as a means of coming up with the best ideas.

LEGO’s CEO, Jorgen Vig Knudstorp says “Blame is not for failure, it is for failing to help OR ask for help.” This is reinforced by the owners of LEGO, who promote collaborative family values.

David Gauntlett, in his contribution to the book LEGO Studies (Mark Wolf, 2014) sees LEGO bricks (the product made up of interconnecting parts) as a social tool, fostering connection and collaboration spurring the potential of children and adults and their natural imagination. New employees are already customers who use the LEGO system to create new products – in many cases part of the job interview is to design a new LEGO product from a bunch of bricks provided.

Collaboration – up, down and across the organization and with suppliers and customers – is a secret to LEGO’s spectacular growth over the last 10 years. It has given them the capability of customer foresight – a cultural ability to develop and deliver new products that excites their customers’ imaginations and creates incredible loyalty and advocacy.

To find out more about how you can create this culture in your business, read our book, “The Customer Culture Imperative“.

How to create a customer centric transformation – Lessons from Air New Zealand

air_new_zealand_middle_earth_captains

A little more than a decade ago Air New Zealand posted the largest corporate loss in New Zealand corporate history. Inside 24 months it was turned around to a profit. Since that time it has been amongst the consistently highest profitability of full-service airlines around the world.

The catalyst for this change was Sir Ralph Norris, who was called in as CEO to transform the business. Sir Ralph’s customer-centric leadership and customer focused strategy was embodied in the mindset change from “we fly planes” to “we fly people”. He immediately engaged the top 800 leaders in Air NZ to think about, discuss and act on insights from customer feedback and observation that told them about what customers valued and what they hated about the flying experience.

His legacy, established over several years as CEO of the airline, has been continued by the current CEO, Christopher Luxon. You can see it when you fly with Air NZ – even the safety announcements are engaging as they feature some of New Zealand’s star rugby players, spectacular scenes of the country and references to some famous movies made in the country….

This is a testament to the sustained revenue and profit that can be generated by a culture and strategy embedded in the belief that “what’s best for the customer is best for the business.”

See The Customer Culture Imperative for a roadmap on how businesses like Air New Zealand have done it.

Lessons from REI: Aligning your People

We have just completed one of the busiest weeks in retail in the United States, with Black Friday for the physical stores and Cyber Monday for the online retailers. This week now blends together with doorbuster deals bombarding us constantly online and instore in the week leading up to Thanksgiving as well as weekend afterwards.

What is different this year is that some major stores have decided to stay closed during this period. In the land of the consumer this a really big deal!

One chain in particular stands out, REI, the outdoor recreation retailer with more than 12,000 employees and 140 stores around the US decided to close this past Black Friday. See below, their CEO, Jerry Stritzke’s 30 second announcement:

 

“We believe that being outside makes our lives better. And Black Friday is the perfect time to remind ourselves of this essential truth.” – REI CEO, Jerry Stritzke

So what is behind this decision? I believe it is to better align REI’s core values with its actions in the market. REI’s core mission is “to inspire, educate and outfit for a lifetime of outdoor adventure and stewardship.”

What better way to live that mission and align all of their people around it than closing on a day that allows their own people get outside and live the company’s mission.

Now that all sounds great but how does that help their customers? No doubt some customers may be inconvenienced by their physical stores being closed. However they will still have a small number of staff manning their website so they are not completely close for business.

REI are reacting to growing concerns by their customers and others that retail in general is overshadowing the core purpose of thanksgiving which is to celebrate with family and friends. They are betting that this decision will pay off over the longer term by aligning their people with their mission while also meeting the changing expectations of their customers.

Ultimately if you want your people and customers to really buy-in to what your company is about you must walk the talk, for me this is strategic alignment in action!

Interested in what it takes to be truly customer centric? Learn more here