'Lexus will treat each customer as we would a guest in our home' - The secret to creating a new luxury experience revealed.
While serving as Editor of the Harvard Business Review, Bill Taylor shared unique insights into the mindset of sales consultants trained by Lexus.
'I am just back from chairing the first ever Source Media Customer Engagement Symposium, and my notebooks are overflowing with good ideas, smart practices and fun stories.
There'll be more "Game-Changer" entries inspired by the conference over the next few weeks. But I thought I'd highlight just one point from one of my favorite talks, a presentation by Nancy Fein, vice president for customer services with Lexus (TM).
The story of Lexus' launch, rise and position of leadership in the US luxury car market is well known, as is the familiar (but still-impressive) Lexus Covenant. The covenant aims high: Lexus automobiles, it declares, "will be the finest cars ever built." As for creating a unique luxury experience, "Lexus will treat each customer as we would a guest in our own home."
Those are the sort of aspirations that stir the soul - but what happens when big dreams get mugged by reality? That's what Nancy Fein addressed in her talk. As soon as the Lexus 400 sedans hit the market, she said, the company learned that there were three minor technical problems with the car. Rather than cross their fingers and hope customers wouldn't notice, or issue the standard notice to ask customers to come in for repairs, Lexus saw this small problem as a chance to make a huge statement about what made the company different.
So more than 300 Lexus officials organized into small groups and travelled to all parts of the country. They visited the affected customers at home, brought them a gift, apologized for the glitches in person, and, of course, brought along a technician who fixed the problem.
It was a bold move that sent a loud message that Lexus was taking its covenant seriously.
Last year, another small problem developed with a Lexus model - this time, the new ES 350 sedan. Something about the transmission skipping second gear and slipping from first to third. The problem affected about 700 cars before Lexus factories fixed it. This time, rather than visit customers at their homes, Lexus did ask them to visit their dealer. But instead of just fixing the problem, Lexus gave all the affected customers a brand new car. No questions asked.
What was the upshot of the free-car move? Based on surveys, the affected customers were more loyal to Lexus than buyers who didn't have the problems in the first place. And Lexus was able to repair the problems on the original cars, put them up for auction, and sell them for as much (if not more) than the company would have gotten in the first place.
Two small stories that underscore one important point: It pays to do the right thing. In a world filled by companies that spend most of their time cutting costs, outsourcing jobs and reshuffling org charts, it doesn't take much to separate yourself from the crowd. And when you do go the extra mile, you earn the appreciation and loyalty of customers who have come to expect so little from the companies with whom they do business.
In the words of the Lexus Covenant: "If you think you can't win, you wont. If you think you can, you will."
So what's stopping you from doing the right thing?
Cheers
All Lexus
While serving as Editor of the Harvard Business Review, Bill Taylor shared unique insights into the mindset of sales consultants trained by Lexus.
'I am just back from chairing the first ever Source Media Customer Engagement Symposium, and my notebooks are overflowing with good ideas, smart practices and fun stories.
There'll be more "Game-Changer" entries inspired by the conference over the next few weeks. But I thought I'd highlight just one point from one of my favorite talks, a presentation by Nancy Fein, vice president for customer services with Lexus (TM).
The story of Lexus' launch, rise and position of leadership in the US luxury car market is well known, as is the familiar (but still-impressive) Lexus Covenant. The covenant aims high: Lexus automobiles, it declares, "will be the finest cars ever built." As for creating a unique luxury experience, "Lexus will treat each customer as we would a guest in our own home."
Those are the sort of aspirations that stir the soul - but what happens when big dreams get mugged by reality? That's what Nancy Fein addressed in her talk. As soon as the Lexus 400 sedans hit the market, she said, the company learned that there were three minor technical problems with the car. Rather than cross their fingers and hope customers wouldn't notice, or issue the standard notice to ask customers to come in for repairs, Lexus saw this small problem as a chance to make a huge statement about what made the company different.
So more than 300 Lexus officials organized into small groups and travelled to all parts of the country. They visited the affected customers at home, brought them a gift, apologized for the glitches in person, and, of course, brought along a technician who fixed the problem.
It was a bold move that sent a loud message that Lexus was taking its covenant seriously.
Last year, another small problem developed with a Lexus model - this time, the new ES 350 sedan. Something about the transmission skipping second gear and slipping from first to third. The problem affected about 700 cars before Lexus factories fixed it. This time, rather than visit customers at their homes, Lexus did ask them to visit their dealer. But instead of just fixing the problem, Lexus gave all the affected customers a brand new car. No questions asked.
Two small stories that underscore one important point: It pays to do the right thing. In a world filled by companies that spend most of their time cutting costs, outsourcing jobs and reshuffling org charts, it doesn't take much to separate yourself from the crowd. And when you do go the extra mile, you earn the appreciation and loyalty of customers who have come to expect so little from the companies with whom they do business.
In the words of the Lexus Covenant: "If you think you can't win, you wont. If you think you can, you will."
So what's stopping you from doing the right thing?
Cheers
All Lexus
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