1. Outstanding customer service should not be reserved for retailers that
cater to an elite clientele. Neeli and Venkat Bendapudi are surely right to
argue that even mass market-oriented companies can provide excellent
customer-employee interactions. In this six-page article, the authors
convey details from their case studies of convenience stores QuikTrip (QT)
and Wawa to show that the key to profitable service excellence lies in
training employees to reflect the brand’s core values. By investing in their
employees this way, companies can create a “living brand” that brings a
variety of benefits to both companies and customers.
First of all, why bother? Creating a living brand as exemplified by QT and
Wawa costs considerable effort and money. That’s wonderful for
customers, but does it really pay off? Based on their in-depth study of the
convenience store industry, the authors have no doubt of the potential
results. Companies can readily appreciate one clear benefit: greatly
reduced turnover. In the same way that Costco has enjoyed remarkably
low turnover rates compared to its peers, QT and Wawa have achieved
turnover of 14 percent and 22 percent, respectively, in an industry where
the average exceeds 100 percent. These companies also benefit from
intensely loyal customers and the sustained outperformance of their stock
price.
Underpinning the success of both QT and Wawa, the authors uncovered
six principles that foster a strong culture of customer service: First, know
what you're looking for. Both companies focus on job candidates’ intrinsic
traits by using a rigorous, structured process to detect the people who
genuinely bring the right qualities to the job. Second, make the most of
talent. QT and Wawa have thrown out the typical mass-market retail view
that talent is a commodity. These companies give far more training than
their peers, they support employees in their self-development efforts,
they promote from within—thereby creating more of a stake in the future,
they maintain loyalty with tailored benefits packages, and they provide
employees with the support they need to do their jobs well.
Third, create pride in the brand. Service quality will only be high if
employees are attached to the brand. Fourth, build community. Both
companies have made determined efforts to build customer loyalty
through a sense of community. Their customers say that employees seem
to be glad to be there and to like one another. QT’s customer-service
appraisal system and the reward structure reinforce community by
focusing on team performance in satisfying and delighting customers.
Fifth, share the business context. Employees flourish when they have a
clear understanding of how their company operates and how it defines
success. Executives encourage innovation and openness by readily
acknowledging and analyzing their mistakes. Finally, satisfy the soul.
Companies need to meet an employee’s needs for security, esteem, and
justice if they are to win their passionate engagement.

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