Terry Leahy, Chief Executive Officer for Tesco called it his “crikey moment” when, more than twenty five years ago, he realised that Tesco was not listening to their customers. He recognised that unless he really understood what Tesco customers wanted from the store, he was unlikely to be able to meet, never mind exceed, their expectations. So, he introduced a number of mechanisms to ensure that customers would have the opportunity to put forward their thoughts, views and ideas.
Since then, as we know, Tesco has grown from a “pile it high, sell it cheap” supermarket to the multi billion pound turnover, international organisation it is today.
Whether or not you would say you like Tesco, as a nation we spend £8 out of every £10 on food in Tesco.
So how does Tesco listen to it’s customers?
Of course there is the Tesco Clubcard that provides the organisation with massive amounts of data about our shopping habits, and Tesco use this information to target shoppers with products or services that they are likely to buy. Some customers see this approach as a benefit looking forward to their Clubcard vouchers; others see it as a “big brother” providing Tesco with a large amount of information that is stored and then used by Tesco. Recently, Tesco has also introduced a number of ways that encourages customers to give them feedback about their shopping experience. This includes customer comment forms at the store and also via their website; a customer service telephone number; and a text number dedicated to each store individually.
An innovation that has been in place for some years is the Tesco TWIST week, when Tesco senior executives swap (or twist) places with their store-based colleagues to get an understanding of the challenges the store teams face. It also gives them a full week of direct interaction with the Tesco customers that use their stores every day.
During the TWIST week, you will find main store board directors serving behind the deli counter or filling the shelves. Having been in a Tesco store recently during such a week, cynics have suggested that the executives do not see a true reflection of what happens on a day to day basis, with extra efforts being put into the store to “get it right” ready for the visit. However, what cannot be affected or influenced are customers’ views of what the senior executives find and will reflect the other 50 weeks a year (as there are two TWIST weeks each year).
Management by walking about (MBWA) is a concept that has been adopted by a number of organisations that really want to understand how their team members and customers feel about the way they are treated and the level of service they receive.
Jack Welch of GE was a great fan of this approach. (More Jack Welch stories in future “in conversations with Geoff ”). There has even been a television programme about this approach called “back to floor” where bosses go into their own organisations undercover to find out exactly what is going on.
I have lost track of the number of times “the boss” said “I had no idea this was going on” or that “I had no idea the team feel like this about the organisation”.
So here is your challenge – how do you listen to your team and customers on a regular basis? What or who is going to encourage you to do this if you are not already? Please let me know!
Here are your next words of wisdom from Richard Branson, as promised in the last “in conversations with”:
9. We want our staff to bring their personalities to work and put them into their job. Bring individuality, freshness and care to their work.
10. We need our staff to be comfortable with the exceptions, to think outside the framework and do what is right for the Passenger, not just "the job".
11. We want our staff to anticipate a Passenger's problem. Think beyond the immediate, recognise the implications of their actions.
12. The only purpose in having front line positions is if the passenger experiences service excellence. Otherwise why not use machines?
Look out for more words of wisdom from Branson in our next conversation!
For regular tips and hints on how to improve your customer service levels, including examples of great service, log into “in conversation with Geoff Langston” every two weeks at www.customer-strategy.co.uk and sign up for Arizion’s regular newsletter at www.arizion.co.uk.