Tag Archives: Customer Obsessed Culture

“But We Don’t Have Any Customers!”

That was the response when John Stanhope stood up to deliver his first address as Chancellor of Deakin University in 2016 and declared he wanted to make the university customer-centric.

John Stanhope AM standing in front of Deakin University, Geelong, Australia.

The academics were genuinely confused. Customers? This is a university, not a retailer.

I have known John for many years and he is one of the most customer-centric leaders I have met. He knew something they didn’t.

As the former CFO of Telstra and Chairman of Australia Post, he’d spent decades proving that “customer” isn’t a dirty word — it’s the only word that matters. Students are customers. Employers who hire those students are customers. And if you don’t measure how well you’re serving them, you’re guessing.

So he asked the university three questions:

What? What are students and employers actually telling us?

So what? What do those signals mean for how we teach, support, and prepare graduates?

Now what? What are we going to change — starting this week?

Simple questions. Devastatingly hard to answer honestly.

At Telstra, the same three questions had delivered a $15 million bottom-line improvement in just 10 months when he turned a 2,500-person finance department into a value-added service function. So he knew the approach worked — even in places where people insisted “we don’t have customers.”

At Deakin, the results spoke for themselves. By 2025, the university had climbed from #3 to #1 in Melbourne for producing graduates rated “employee ready” by employers. Applying a survey of students as customers, that is the same for all Australian public universities, Deakin has been rated number one in Victoria for student satisfaction for over a decade. Not through a rebrand. Not through a new tagline. Through systematically closing the gaps between what their customers needed and what the institution was delivering.

John kept a reminder sign on his desk for years: “Be here now.”

A reminder to be fully present with whoever was in front of him. Not checking email. Not rehearsing his next point. Just there.

It’s one of the simplest leadership principles I’ve ever encountered, but it is so powerful in its effect, yet possibly the hardest to practise.

What would happen if you asked your team “Who is our customer?” tomorrow? I suspect the answers would surprise you.

John Stanhope wrote in the foreword to our book, The Human Culture Imperative, where he emphasizes the importance of collaboration, empowerment, and strategic alignment — the three internal enablers that determine whether a business can actually respond to its market.e

Leading Without the Title: How Johannes Spille is Driving Strategic Change at Rosen Group

This week I had the opportunity to catch up with Johannes from Rosen Group USA. The time I spent with him was so valuable that I felt compelled to put together a story about it.

Challenging Conventional Wisdom

I don’t often write about clients, but occasionally someone reshapes the way you think about leadership and influence. Johannes Spille did exactly that.

Conventional wisdom says meaningful organisational change starts at the Executive Leadership Team (ELT) table, strategy flows top-down and execution follows. Johannes challenged that assumption. Deeply committed to the organisation he serves and confident in its potential, he stepped into an initiative typically owned by the ELT and delivered significant impact.

Leading the MRI Initiative

I’ve had the privilege of partnering with Johannes at Rosen Group to implement the Market Responsiveness Index (MRI) over the past five months. At MarketCulture, we usually work directly with executive leadership teams. In this case, Johannes led the initiative himself, gaining full ELT support.

When he presented the MRI proposal to the ELT, it was exactly what they wanted to hear, clear, strategic, and actionable. They immediately gave him the green light to move forward, empowering him to implement the MRI and drive change across the organisation. What impressed me most was how he leveraged the MRI to elevate the conversation, moving the organisation from operational discussions to focused, strategic priorities.

Using the MRI as a Strategic Lever

As Johannes explained, the MRI allowed him to speak strategically rather than tactically, giving voice to leadership in a way that inspired collaboration and action. He didn’t treat it as a survey, he used it as a strategic lever to strengthen customer-centricity and organisational alignment.

The insights revealed blind spots previously unseen or unaddressed and created clarity on where change was needed, what to prioritise, and how to move forward confidently.

Engaging the Organisation

Rather than prescribing solutions, Johannes invited participation. He presented the findings transparently and asked one powerful question: What matters most?

The response was remarkable. He mobilised a Customer Champions team of 34 volunteers across 14 departments, a clear signal of engagement and shared ownership. Instead of defending the status quo, both management and employees leaned into improvement.

Strengthening Executive Collaboration

The process also deepened Johannes’ connection with the ELT. By presenting MRI insights objectively and facilitating a structured vote on 2026’s key focus disciplines — customer foresight, customer insight, collaboration, strategic alignment, and empowerment — he transformed insight into shared executive ownership. Discussion turned into commitment.

Today, structured 90-day plans and cross-functional alignment initiatives are underway, translating culture into execution.

About Rosen Group

For context, Rosen Group is a global engineering and technology company specialising in inspection, integrity management, and maintenance of critical industrial assets. In complex, high-risk industries, clarity and alignment aren’t optional, they’re essential.

What started in USA/Mexico (700 employees with approx 80% completing the assessment) is now positioned to scale globally, proof that influence isn’t defined by title, but by clarity, courage, and action.

Conclusion: Leadership in Action

Johannes is a thoughtful, strategic leader who pairs clear direction with the ability to mobilise people across functions. It has been a privilege to support this continued journey and witness tangible change take shape.

Leadership isn’t always about the seat you hold at the table. Sometimes, it’s about having the courage to start the conversation.

I look forward to partnering with Johannes and Rosen Group for many years to come.

The Market Responsiveness Index (MRI) is a strategic diagnostic tool that uncovers organisational blind spots, aligns teams, and turns insight into actionable, customer-focused change. Test with a small team and see for yourself. Click here

The 12th Man: Your Ultimate Competitive Advantage

The roar is deafening. 137.6 decibels, to be precise. That is the sound of a stadium purpose-built not just for sport, but for customer-centric design. When the American Superbowl champions, the Seattle Seahawks, take the field, they don’t just bring eleven players; they bring an entire city. In the world of professional sports, we call them “fans”—short for “fanatics”. The Seahawks call them the “12th man”. In the world of business, we call them “customers.” But imagine for a moment if your customers were as vocal, loyal, and fiercely protective as the Seahawks’ 12th Man.

The Architecture of Loyalty

Success is never an accident. It is planned, nurtured, and engineered from the top down. The Seahawks’ dominance—including their first Super Bowl title in 2014 and their triumphant return to glory in 2026—is built on a culture where the fan is the North Star. What they have done is to:

  • Design for Proximity: The Seahawks’ stadium was built to keep fans closer to the action than any other stadium in the competition.
  • Create a Strategic Barrier: That noisy enthusiasm creates a literal “competitive advantage,” making it impossible for opposing teams to hear their own plays.
  • Formalize the Bond: Through their magazine called “The 12th Man Rising,” the club has embedded its fan base into the very fabric of its communications, its plans and its players.

A Story of Unity: The 2026 Triumph

The 2026 Super Bowl victory over the New England Patriots was more than just a 29–13 scoreline; it was a masterclass in an integrated culture where every player, no matter their origin, played a vital role.

Consider Michael Dickson, the Australian-born punter who transitioned from Australian Rules football to become a pillar of the Seahawks’ special teams. In the heat of the championship, Dickson’s wizardry was on full display, punting seven times and pinning the Patriots deep in their own territory—including one precise kick that came to rest just one yard from the endzone.

This victory wasn’t just about individual brilliance; it was about a “brotherhood” where veterans like Leonard Williams and Sam Darnold fought alongside homegrown talent. As linebacker Uchenna Nwosu noted the team functioned as “one unit” that “rides for each other.” It is this internal culture of shared value that radiates outward, turning a team into a community and a stadium into a fortress. Everybody in the offensive and defensive teams were unified.

This is the ultimate lesson for any business: when your “defensive” operations (back-end staff) and your “offensive” players (frontline staff) are perfectly aligned, they create an experience so powerful it mobilizes a city of 600,000 fans (most of the population of Seattle) to the streets in celebration.

From Transactions to Tribes

How does this affect the bottom line? The answer is as clear as a touchdown in the fourth quarter. When you put long-term relationships ahead of short-term profit, you create sustainable, profitable growth.

“To win in the marketplace, you must first win in the hearts of your people.”

In a truly integrated culture, every member of the organization—from the senior leadership to the frontline and backline staff—understand that they have a vital role in delivering value. When the fans are at the center of your decision-making, they cease to be spectators and become your strongest advocates.

The Human Culture Imperative

The Seahawks didn’t just win a trophy; they mobilized an entire population to celebrate in the streets of Seattle. They proved that a customer-centric culture is not a “soft” metric—it is the engine of victory.

Richard Branson achieved this when he saved his UK Virgin Trains franchise with the combined support of his customers and his employees. – see the story in The Customer Culture Imperative, L. Brown and C. Brown pp.228-229

If you are ready to turn your customers into a “12th Man” for your brand, the blueprint is waiting. You can discover the full strategy for building this level of devotion in our new book, The Human Culture Imperative.

The “12th Man” Leadership Principles: Building Your Corporate Fortress

To replicate the Seahawks’ success, your leadership must move beyond managing transactions and start nurturing a “tribe.” Here are the core principles derived from the Seahawk model to align your team and turn your customers into a permanent competitive advantage.

Garry Ridge, longtime CEO of WD-40 created a tribe mentality that resulted in happy employees, loyal customers and profitable growth for all stakeholders – see The Human Culture Imperative, L. Brown, C Brown and S. Crichton-Browne, pp. 39-40, 52, 55.

1. Design for Proximity

The Seahawks’ stadium was “purpose built” so fans would be closer to the field than in any other arena. 

  • Leadership Action: Remove the layers between your executives and your customers.
  • The Goal: Ensure your decision-makers can hear the “noise” of the market firsthand, rather than through filtered reports.

2. Create a “12th Man” Culture

In Seattle, the fan is seen as an extra “man” on the field, providing a “supportive force” that disrupts the opposition. 

  • Leadership Action: Treat your loyal customers as an extension of your internal team.
  • The Goal: Develop “The 12th Man Rising” style communications used by the seahawks that make customers feel like insiders, turning them into vocal, lifelong advocates.

3. Integrated Performance (The Punter Principle)

Winning the 2026 Super Bowl required every player—from the star quarterback to the Australian-born punter to the linebacker – to execute their specific role with a “special teams wizardry.”

  • Leadership Action: Clearly define how every department, especially non-customer-facing ones, contributes to the final “customer value.”
  • The Goal: Foster a “one unit” mentality where staff engagement is driven by a shared mission to serve the fan.

4. Prioritize the Long Game

The Seahawks’ leadership puts “long term customer relationships ahead of short term profit.”

  • Leadership Action: Reward metrics that favor customer retention and advocacy over immediate quarterly gains.
  • The Goal: Create “sustainable profitable growth” by building a base of fans who will stand by you even after a “narrow defeat.”

The Result: When you put fans at the center of your thinking, you don’t just win games; you win the marketplace. You create a culture like the Seahawks where 600,000 people—almost the entire Seattle population—show up to celebrate your success.

To turn the “12th Man” philosophy from an aspirational story into a functional reality, the Seahawks’ leadership utilizes the principles and practices of the Market Responsiveness Index (MRI).

Think of the MRI as the “medical-grade” diagnostic for your organization’s health. It moves beyond traditional feedback to measure the specific daily behaviors of your staff that either build or block a customer-centric culture.

Here is how the MRI enables the principles discussed to become your reality:

1. Hard Data for Soft Culture (The Design Principle)

The Seahawks’ stadium was “purpose built” for noise. The MRI acts as your cultural blueprint, identifying the “blind spots” in your organization’s design.

  • How it works: It measures 8 critical disciplines—including Customer Insight and Peripheral Vision—to ensure your business structure is literally built to hear the customer.

2. Eliminating Silos (The Integrated Unit Principle)

Just as all the position players must work as one in a winning sporting team, the MRI measures Cross-Functional Collaboration.

  • How it works: It identifies where information is getting “stuck” between departments. By fixing these internal enablers, you ensure that every staff member—no matter their role—is aligned to deliver value to the fan.

3. Empowerment vs. Permission (The Customer Advocacy Principle)

To create “12th Man” loyalty, staff must be able to act in the customer’s interest without reference to a manual or waiting for permission.

  • How it works: The MRI specifically measures Empowerment. It checks if your frontline employees feel they have the authority to make decisions that are best for the customer. High scores in this discipline correlate directly with the kind of “special events” and connections that nurture lifelong fans.

4. Foresight Over Reaction (The Long-Term Principle)

The Seahawks’ victory in 2026 was the result of years of planning. The MRI measures Customer Foresight.

  • How it works: Instead of just looking at past satisfaction scores (NPS), the MRI benchmarks your team’s ability to anticipate future customer needs. This shifts leadership focus from short-term profit to the “sustainable profitable growth” found in long-term relationships.

As Jeff Bezos of Amazon famously said when asked why their growth and profitability was growing exponentially: “It’s probably because of what we did three years ago.”

The Blueprint for Your “12th Man”

The MRI provides the MarketCulture benchmark, comparing your team’s behaviors against global leaders like Apple, Amazon and Google. It provides the “clear mandate” leaders need to move from a transaction-based business to a fan-based franchise.

“What gets measured gets managed.”

By implementing the MRI, you are no longer guessing if your culture is customer-centric and responsive to change; you are measuring the very behaviors that turn a customer into a “12th Man” advocate for life and a unified team from directors to senior leadership to employees that deliver value to their customers, community and shareholders.

Try the MRI and find out how you can win just like the Seahawks – http://www.marketculture.com/pricing

How Lexus Lost a Lifelong Customer Over One Hour—And What It Reveals About Your Blind Spots

The Story Behind the Shiny Badge

I was talking with a friend recently about his new Lexus. It’s a beautiful piece of engineering, and he loves driving it. But when I asked if he would buy another, his answer was a flat “No”.

For a brand that treats “personalized service” as its North Star, that “No” should make every executive in the building lose sleep.

The High Price of Inflexible Rules

The trouble didn’t start with the car; it started with a clock. Lexus called him for a software upgrade and offered a home pickup with a loan car—exactly what his contract promised.

My friend is a late-night worker. When the service department insisted on a 7:00 am pickup, he simply asked for 8:00 am.

The answer? “Not possible”.

This wasn’t an isolated incident. It was the third time he had run into a brick wall of “the rules”. To him, it felt like the people at Lexus simply didn’t care to understand why he needed that extra hour.

The Silent Killer: Leadership Blind Spots

On paper, everything looks perfect to Lexus leadership.

  • The Service Rep followed the procedure to the letter.
  • The Salesman is busy chasing new commissions, having never checked in on my friend since the sale two years ago.
  • The “Rule Book” is intact.

But underneath the surface, customer churn is rising. When rigid compliance takes the place of human empathy, employees stop reporting the “bad news” that leaders desperately need to hear.

How to Find What Your Customers Aren’t Telling You

Even a successful giant like Lexus has blind spots. The only way to uncover them is to look at the “MRI” of your organization—a diagnostic for your leaders and employees to see what is really happening.

It’s designed to expose:

  • Rigid processes that frustrate your best customers.
  • A lack of empowerment among your frontline staff.
  • Hidden risks that are quietly killing your brand loyalty.

Don’t wait for your best customers to say “No” before you decide to listen. I mean “really listen”.

Use this checklist to determine if your business is inadvertently pushing loyal customers toward your competitors.

  • The “Rule Book” Test: Can your frontline staff deviate from standard operating procedures to accommodate a reasonable customer request without seeking management approval?
  • The Silence Gap: Does your sales team have a structured “after-care” protocol to provide guidance and advice years after the initial transaction?
  • The “Why” Audit: When a customer makes a request that is denied, is the reason for the request recorded and analyzed by leadership, or is it simply logged as “not possible” or not logged at all?
  • The Empowerment Metric: Are employees incentivized to report friction points in the customer journey, even if those points reflect poorly on current “efficient” processes?
  • The Signal-to-Transaction Ratio: Are your KPIs focused solely on “successful” transactions (like a completed software upgrade) while ignoring the “discontent signals” generated during the process?
  • The Personalized Reality: Does your marketing promise “personalized service” while your infrastructure enforces “rigid compliance”?
  • The Churn Diagnostic: Do you know exactly why your last ten “lost” customers chose not to return, or are you relying on the assumptions of busy managers?

At MarketCulture, we turn organizational blind spots into sources of competitive power.

Your people on the front line already know what’s holding the business back — but that truth rarely makes it to the boardroom.

If you genuinely want to understand what is limiting your organization’s performance, book a call with MarketCulture using the link below.

Book a Meeting Now

The 4 Ways CEOs of Million-Customer Companies Stay Connected to Reality

When a company grows from a handful of employees to thousands, when customers multiply from dozens to millions, something profound happens. The once-crystal-clear connection between leadership and customers becomes obscured by layers of management, data reports, and operational complexities.

But the truth is, the moment leaders lose touch with their customers’ experiences is the moment a business begins its decline.

So how can leaders of large businesses maintain that vital connection to customer reality? — not as a luxury, but as a necessity.

The Danger of Disconnection

Think about companies that once dominated their industries but eventually failed. Kodak, Blockbuster, Nokia. What united them? Their leadership lost touch with evolving customer needs. They listened to internal voices rather than customer signals.

In contrast, companies like Amazon have thrived because, despite their enormous scale, their leadership maintains an almost obsessive focus on customer experience. Jeff Bezos famously kept an empty chair in meetings to represent the customer, ensuring their perspective was never forgotten.

Four Vital Sources of Customer Truth

So how can leaders stay connected? I’ve found there are four essential channels that provide the truth about customer experience, even at a large scale.

1. Customer Metrics: The Quantitative Compass

Numbers tell stories. Key metrics provide our first window into customer reality:

  • Net Promoter Score (NPS): Measuring customer loyalty and likelihood to recommend
  • Customer Satisfaction Score (CSAT): Gauging immediate satisfaction with interactions
  • Customer Effort Score (CES): Evaluating how easy we make things for customers
  • And my personal favorite, the POC or ” Pissed Off Customers” measure: A blunt but honest assessment of where we’re creating frustration

These metrics provide a dashboard, but they’re just the beginning. Numbers without context are like trying to understand a person solely by their vital signs—necessary but insufficient.

2. Employee Stories: The Front-Line Reality

Your employees—especially those on the front lines—are living repositories of customer truth. They hear the unfiltered feedback, feel the emotional temperature, and witness the unscripted moments.

When I was at Hewlett-Packard, our most important product improvements came not from formal research but from our support team sharing stories about customer pain points. These narratives gave the data a human dimension.

Great leaders create channels for these stories to flow upward. Town halls, skip-level meetings, and “day in the life” programs all ensure that the richness of customer reality reaches leadership.

3. Direct Experience: The Irreplaceable Immersion

Nothing—absolutely nothing—replaces direct experience. Leaders must regularly put themselves in the customer’s shoes.

  • Try to purchase your own product through your website
  • Call your own customer service line
  • Use your product in the real world, not in a controlled demo
  • Sit with customers as they interact with your offering

These experiences create what I call “visceral knowledge”—understanding that lives in your gut, not just your head. It creates urgency that spreadsheets cannot.

4. Deep Listening: The Unfiltered Truth

Finally, create opportunities to hear directly from customers, unfiltered by layers of organization:

  • Customer advisory boards with direct leadership involvement
  • Executive sponsorship of key accounts
  • Regular customer roundtables led by senior leaders
  • A systematic review of customer feedback, especially complaints

This direct listening catches signals that might otherwise get lost in translation.

Putting It Into Practice

Let me share a simple framework for incorporating these sources of truth into your leadership rhythm:

  1. Weekly: Review key customer metrics in leadership meetings
  2. Monthly: Read unfiltered customer feedback and employee stories
  3. Quarterly: Engage in direct customer experiences
  4. Annually: Conduct deep listening sessions with diverse customer segments

When done consistently, this rhythm creates what I call “customer muscle memory”—an intuitive sense of your customers that informs every decision, even when they’re not explicitly represented.

The Ultimate Leadership Question

I’ll leave you with this: the ultimate test of customer connection is whether you can answer one simple question: “What is it actually like to be our customer today?”

Not what it was like last year. Not what you hope it will be next quarter. What is it like today, in all its messy, imperfect reality?

If you can answer that question with confidence, specificity, and honesty, you’re connected. If you can’t, no amount of business success can protect you from eventual disruption.

Because in the end, scale doesn’t change the fundamental truth of business: we exist to serve our customers. The moment we forget that is the moment we begin to fail.

If you want to stay connected to customers, try out the MRI Benchmark and engage them in the conversation!

10 Barriers to Building a Customer-Centric Culture—And How to Overcome Them

photo of people doing handshakes
Photo by fauxels on Pexels.com

Creating a customer-centric culture isn’t just a buzzword—it’s a business imperative. But many leaders struggle to get there. Here are the top 10 factors working against building a customer-centric culture, actionable strategies to overcome them, and real-world examples of leaders who made it happen:

  1. Lack of Leadership Commitment
    Barrier: Without top-down commitment, customer-centric initiatives often fizzle.
    Solution: Leaders must champion customer-centricity, making it a core value. It starts by taking an honest look at how customer centric the company really is…not what leaders think it is.
    Example: Jeff Bezos at Amazon prioritizes customer obsession, integrating it into every company decision.
  2. Siloed Departments
    Barrier: Departments working in isolation lead to fragmented customer experiences.
    Solution: Foster cross-functional collaboration with shared customer-focused goals.
    Example: Zappos breaks down silos by empowering every employee to deliver exceptional customer service, regardless of department.
  3. Short-Term Focus
    Barrier: Focusing solely on quarterly results can undermine long-term customer relationships.
    Solution: Balance short-term targets with long-term customer loyalty strategies.
    Example: Adobe shifted from product sales to subscriptions, focusing on long-term customer engagement.
  4. Inadequate Customer Insights
    Barrier: Decisions made without deep customer insights often miss the mark.
    Solution: Invest in tools and processes to gather and analyze customer data.
    Example: Netflix uses data analytics to understand viewer preferences, creating content that resonates with their audience.
  5. Resistance to Change
    Barrier: Organizational inertia can stall customer-centric initiatives.
    Solution: Lead with change management strategies that emphasize the benefits of customer-centricity not just to the organization but to individuals and their teams.
    Example: Microsoft, under Satya Nadella, embraced a growth mindset, leading to a more customer-focused culture.
  6. Poor Communication
    Barrier: Miscommunication between teams and customers can erode trust.
    Solution: Establish clear, consistent communication channels focused on customer needs.
    Example: Slack improved customer communication by integrating feedback loops into their product development process.
  7. Misaligned Incentives
    Barrier: Employees may prioritize the wrong things if incentives don’t align with customer-centric goals.
    Solution: Align rewards and recognition with customer-focused outcomes.
    Example: Ritz-Carlton empowers employees to spend up to $2,000 per guest to resolve issues, incentivizing top-notch customer service.
  8. Underestimating Employee Experience
    Barrier: Disengaged employees lead to disengaged customers.
    Solution: Invest in employee engagement and create a customer-centric internal culture.
    Example: Southwest Airlines prioritizes employee satisfaction, knowing that happy employees create happy customers.
  9. Lack of Accountability
    Barrier: Without accountability, customer-centric initiatives can lose momentum.
    Solution: Establish clear ownership and accountability for customer outcomes.
    Example: Apple’s “DRI” (Directly Responsible Individual) approach ensures that someone is always accountable for customer-centric results.
  10. Ignoring Customer Feedback
    Barrier: Failing to act on customer feedback leads to missed opportunities for improvement.
    Solution: Create systems for gathering, analyzing, and acting on feedback.
    Example: Toyota’s “Customer First” philosophy ensures customer feedback drives continuous organizational improvement.

Real Success Comes from Taking Action

These barriers are common, but they’re not insurmountable. Leaders who commit to overcoming them are seeing actual results—like Amazon’s relentless focus on customer obsession or Microsoft’s transformation under a customer-first mindset.

Ready to take your business to the next level? Start by setting a baseline to see where you stand and get the actionable insights you need to make progress with the MRI Benchmark.

The rewards are clear: increased customer loyalty, stronger brand reputation, and sustainable business growth.

What steps are you taking today to overcome these barriers? Which of these are the biggest inhibitors in your company?

True customer-centricity is grounded in reality

There is a reason the most customer-centric businesses in the world were born that way. To begin and become sustainable they were forced to be grounded in reality. They had to discover needs in the market that could be met, they had to work out how to service those needs and make a profit.

The businesses that have retained their customer-centric approaches as they have grown understood the need to remain grounded in the marketplace. Their leaders have not floated off into the ivory tower, rather they retain the pain of not delivering what they promised.

These leaders realize the work of organizations gets done at the front line and the further removed you are the larger the distance between you and reality. Hence the compelling need to empower those that are doing the work.

The best leaders don’t talk, they take action. They spend time with employees on the front line, speak with customers, put themselves in the customer’s shoes, and experience what it’s like to be a customer of their organization.

It is not complicated but it requires leadership which means consistent visible customer-centric action.

Learn more in our award-winning book, The Customer Culture Imperative.

Is it possible to compete with Amazon and win?

hurbert_joly_fired_up

For businesses everywhere, this is becoming an increasingly relevant question.

Not long ago most business could just ignore Amazon and say to themselves that’s fine for them in retail they are not operating in our industry.

Well, times are changing, and Amazon is competing in not only retail but consumer electronics, entertainment, enterprise cloud services and is eyeing opportunities in healthcare and payments.

The question for all businesses to ask themselves is how would we respond if Amazon entered my marketplace?

Well, one company did not have to wonder for too long, in fact, they have been competing with them for the past 10 plus years. With the rise of Amazon, many analysts predicted the demise of Best Buy, the US brick and mortar retailer.

So how to Best Buy fight back? They applied the same approach as Amazon – customer obsession.

In fact, under the new CEO, Hubert Joly, they undertook a transformation from a transactional retailer focused on store traffic and closing sales to one focused on building customer relationships for life.

Where does a customer-obsessed transformation start?

It begins with your customers and employees when a business is under attack as Best Buy was around 2009, a new vision and purpose for the business’s future needs to be articulated.

Joly launched a turnaround plan called “Renew Blue” in 2012 that was designed to address all critical stakeholders in the business beginning with customers.

To gain insights on what was happening at the frontlines, Joly spent a week working in a store and talking with employees. They told him the website sucked, it was slow and difficult to navigate, and the employee discount had been reduced recently by previous management. They also described how customers were “showrooming” coming in to see products then buy them somewhere else online.

Joly began with some quick wins, restoring the employee discount and taking price off the table by guaranteeing to match online prices.

This showed he was listening and more importantly acting on feedback, a critical trait for a customer-obsessed leader.

He then focused on customer experience, redoing the website, investing in search and matching Amazon on free fast shipping.

By focusing on their unique strengths, the in-store personal experience, they have been able to focus and start winning again.

Joly shifted the employee mindset by instilling a new purpose. In his words “we’re not in the business of selling products or doing transactions, we have our purpose, which is to enrich lives with the help of technology.”

“We don’t see ourselves as a bricks-and-mortar retailer. We are company obsessed about the customer and in serving them in a way that truly solves their unique problems.”

What does this mean in practice?

For Best Buy that means introducing new service offerings such as the “in-home Advisor” which involves best buy employees going to people’s homes for free and providing expert advice on how to better select, buy and install technology to enhance their lives.

A second example is “Total tech support” which involved Best buy taking ownership of any technical problem in the home and fixing it, all for $200 a year.

The third example of their innovation is a focus on aging seniors with an emphasis on helping them stay in their homes independently for longer. Through the smart deployment of technology they can detect if something is wrong and people need help, they can then intervene to make sure people get the help they need.

Customer-obsessed Leadership

Hubert_Joly_jeff_bezos

Customer-obsessed leaders don’t just say they are focused on customers they act on it and make decisions with a customer lens every day.

A great example is Best Buy’s relationship with Amazon, although fierce competitors on many fronts, they also see opportunities to collaborate and work together because it is the right thing for their customers.

“A lot of other retailers have been reluctant to sell their products. The reason we’ve sold their products is because we’re customer-driven.” says Joly.

In fact, recently Amazon chose to launch its Fire TV Smart TVs exclusively through Best Buy.

“Every management meeting we have, we don’t start with the financial results. We start with people. Then we talk about the customers, and last we talk about the financial results”

 “I don’t believe that the purpose of a company is to make money. It’s an imperative. It’s a necessity. But it’s not the purpose”

Hubert Joly

 

The turnaround strategy with its reinvigorated purpose and customer obsession around enriching people’s lives through technology are paying off. The ship has turned, and the future looks bright for this retailer once thought to be following Circuit City into bankruptcy.

How can you instill a customer-obsessed culture in your business? It starts by understanding your current culture and charting a path based on purpose, people and delivering great customer experiences.

Sources:

http://tcbmag.com/honors/articles/2018/2018-person-of-the-year-hubert-joly

https://www.cmo.com.au/article/659314/how-best-buy-shifted-from-being-retail-led-customer-relationship-driven/

 

To get the right customer culture you have to be obsessive!

Passion Fuels Innovation

If you want to be one of the best at creating a consistently great customer
experience you have to be obsessive about it. Think professional athletes, think
sustainable weight loss, think the most customer-centric companies in the world
like Amazon.

Too many companies today have their weaknesses in their customer culture exposed – some with devastating effects for their customers, employees, and shareholders. Consider what’s happened in the banking sector, the retail sector, and the telecommunications industry.

The culture of companies towards customers is now exposed for what it is – both to their customers and to non-customers. Customer reviews, unwanted publicity for failures of service delivery as well as visual cues from its website and physical channels now expose a company’s customer culture – or lack of it.

This can’t be fixed using band-aids. A customer-centric culture is not a bolt-on. It has to be built-in. If your company needs to build-in a strong customer culture you will have to be obsessive about it – just like professional athletes, sports teams, and the world’s most successful companies.

Jeff Bezos, the founder of Amazon, has been obsessive about customers, since its inception just over 20 years ago. He has made sure that everyone working at Amazon is also obsessive about customers.

This means being obsessive about getting and acting on customer insights, giving permission (empowerment) to employees to do what’s right for the customer, working in collaborative teams to provide greater value for customers and aligning everyone in your business to deliver a customer-centered strategy.

This is not some nice intangible idea anymore, we have been obsessed with developing a proven methodology with measurement and best practices that any company can use.

If you really want your organization to be customer-obsessed, learn more in our MarketCulture Academy we know the way!

Why being customer obsessed pays! Lessons from the CEO of massively successful startup Naked Wines

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Luke Jecks, the Former CEO of Naked Wines, founded and led an online wine business that operates in the US, the UK, and Australia. The company connects wine lovers with boutique wineries and uses a subscription model where “angels” – consumers who pay a monthly subscription to help fund the winery’s next vintage – are able to order their favorite wines and pay for them from their subscriptions. It is a customer-funded wine business.

I asked Luke how this came about.

He replied: “The most important thing in the wine industry is that the only way this online business could work would be if we could have consumers that were “sticky” to the business. If we could get loyalty in perpetuity we would not have to be a business that is constantly out there chasing new sales. Instead what we could do is invest in loyalty in the consumer and if we did that we would have a sustainable business.”

“So we needed a model that did not trap consumers but made them want to stay. So the questions we had to answer were: How do you reinvent the wine club and its benefits with a subscription that had no cancellation fees, had no minimum period of membership, you could walk away at any time, and any money you put into the subscription you got back?”

“We found that a segment of wine consumers need to see a choice, a benefit, a feeling of being in control and where they feel they can connect with the values of the business. We felt that to keep customers in the long term we needed to make them feel proud – because they mattered and were part of the key wine choices being made and understood their role in making the business a success and the winemakers successful. Also proud because they feel they are doing good through the stories behind the winemakers that can’t happen without them”.

I asked Luke how this relates to customer-centricity. He said: “To me, you must have an “attract” model and not a “trap” model. It is a model where the customer plays a vital part in the success. So it is important for us to measure the customer lifetime value – that is how long they stay with us and how much they spend. That is much more important than today’s transaction. We believe that if we can get loyalty, we will get sales. We tested this by sending “high engagement” emails to half our consumers and “buy” emails to the other half. It turned out that the “engagement” emails created loyalty and those consumers bought more. We asked our consumers to rate their happiness with us. We found that people who rated us 5 stars (90%-100%) had much bigger lifetime value. So we set about investing to get 90%+ ratings by putting more people in the business, paying our staff more, investing in career programs for our staff and empowering them to empower our customers.

I asked Luke what has been the result. He said:

“From a standing start 5 years ago Naked Wine now has more than 100,000 angels. But more important than this number is the high level of loyalty. This has created a growing, profitable and sustainable business.”

A truly customer obsessed business has loyal customers that buy from you because they want to – and stay with you because they see that you care and that they are important. It is a business, like Naked Wines, that invests in and empowers its people to fully engage with their customers to create great customer experiences. This translates into increasing customer lifetime value. Sustainable profit and growth follow.

Hear more from Luke in this previous post – “What is the kryptonite for disruptors?”

Learn more about creating this culture in our latest book, the Customer Culture Imperative.