Jonathan Wilson, a specialist in leadership coaching and change management, at Budd, affirms that the right customer service metrics are fundamentally a ratio between how much real value you can create and how little time, cost or transactions you need to create that value. Only the ‘very best’ companies like Amazon and Southwest Airlines comprehend this. As a result, both companies fundamentally challenge conventional management notions of customer service and the relationship between input and output costs – and hence profitable pricing.

The quest for the right metrics has been almost as long as for the Holy Grail and for much the same reason. It would be lovely to find a single measure that answered every question and guided all action. Lovely – but fantasy! However, the good news is that the search itself brings great rewards and constant increases of awareness.

A few companies show core principles from which all organisations can learn. They do not keep them secret, but make them very clear – and yet very few other organisations do actually learn from them, because they believe that they, the exemplars, are special and that they, the potential learners, are unique with unique problems and challenges. Budd seeks to capture the essence of what the very best do and we help other businesses to learn from them, and then to implement their learning to improve their own performance. Among the very best, are Amazon and Southwest Airlines – both very different companies in different industries but they share similar characteristics of extraordinary growth, profitability and a reputation for extremely good customer service. Both companies fundamentally challenge conventional management notions of customer service and the relationship between input and output costs – and hence profitable pricing.

 

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