Clueing in customers

Leonard L. Berry and Neeli Bendapudi When customers lack the expertise to judge a company's offerings, they naturally turn detective, scrutinizing people, facilities, and processes for evidence of quality. The Mayo Clinic understands this and carefully manages that evidence to convey a simple, consistent message: The needs of the patient come first. From the way it hires and trains employees to the way it designs its facilities and approaches its care, the Mayo Clinic provides patients and their families concrete evidence of its strengths and values, an approach that has allowed it to build what is arguably the most powerful brand in health care. Marketing professors Leonard Berry and Neeli Bendapudi conducted a five-month study of evidence management at the Mayo Clinic. They interviewed more than 1,000 patients and employees, observed hundreds of doctor visits, traveled in the Mayo helicopter, and stayed in the organization's many hospitals. Their experiences led them to identify best practices applicable to just about any company, in particular those that sell intangible or technically complex products. Essentially, the authors say, companies need to determine what story they want to tell, then ensure that their employees and facilities consistently show customers evidence of that story. At Mayo, the evidence falls into three categories: people, collaboration, and tangibles. The clinic systematically hires people who espouse its values, and its incentive and reward systems promote collaborative care focused on the patient's needs. The physical environment is explicitly designed for its intended effect on the patient experience. In almost every interaction, an organization's message comes through. "Patients first," the Mayo Clinic's message, is not the only story a medical organization could tell, but the way in which Mayo manages evidence to communicate this message is an example to be followed.     

Creating the living brand

It's easy to conclude from the literature and the lore that top-notch customer service is the province of a few luxury companies and that any retailer outside that rarefied atmosphere is condemned to offer mediocre service at best. But even companies that position themselves for the mass market can provide outstanding customer-employee interactions and profit from them, if they train employees to reflect the brand's core values. The authors studied the convenience store industry in depth and focused on two that have developed a devoted following: QuikTrip (QT) and Wawa. Turnover rates at QT and Wawa are 14% and 22% respectively, much lower than the typical rate in retail. The authors found six principles that both firms embrace to create a strong culture of customer service. Know what you're looking for: A focus on candidates' intrinsic traits allows the companies to hire people who will naturally bring the right qualities to the job. Make the most of talent: In mass-market retail, talent is generally viewed as a commodity, but that outlook becomes a self-fulfilling prophesy. Create pride in the brand: Service quality depends directly on employees' attachment to the brand. Build community: Wawa and QT have made concerted efforts to build customer loyalty through a sense of community. Share the business context: Employees need a clear understanding of how their company operates and how it defines success. Satisfy the soul: To win an employee's passionate engagement, a company must meet his or her needs for security, esteem, and justice.