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in adopting tools such as customer relationship management (CRM) and the “Net Promoter Score” (NPS) (Reichheld & Markey, 2011). However, once convinced of the impact of these tools, they tend to be fast in execution.
Seven Golden Rules for Improving Customer Satis- faction and Retention
Continuous research into Japanese organizations has identi ed seven golden rules that are fundamental
for improving service quality. Although many Western companies are already practicing some of these, this non-exhaustive list of best practices in the service area may offer some fresh insights into maximizing customer satisfaction and retention. Although these concepts
do not differ greatly from the ones developed in the West, Japanese corporations put them into practice more energetically and with more attention to detail. Remember how vigorously leading Japanese companies pursued quality management? They are expected to bring the same intensity to customer service in this decade.
1. De ne Your Corporate Mission in Terms of Cus- tomer Bene ts:
Many Japanese marketers believe that customer satisfaction is, quite simply, the primary goal of management. Already back in the 1950s, K. Matsushita, the founder of Panasonic and still one of the most admired entrepreneurs in Japan today, famously stated, “Don’t sell customers goods that they are attracted to, sell them goods that will bene t them.” Today, many of the leading Japanese corporations have placed this idea at the core of their business model (Turner & Kalman, 2014). For example, on the very rst page of its annual report, Kao, the leading manufacturer of household
and personal care products, states, “Our mission is to strive for the wholehearted satisfaction and enrichment of the lives of people globally and to contribute to the sustainability of the world, with products and brands of excellent value that are created from the consumer’s and customer’s perspective. This commitment is embraced by all members of the Kao Group as we work together with passion to share joy with consumers and customers in our core domains of cleanliness, beauty, health and chemicals.” Canon’s corporate philosophy of Kyosei focuses on “harmonious living and happiness of customers and communities” and RICOH emphasizes customer centricity in its Vision, Mission, and Values: “Although we are a global company, we must not lose sight of our entrepreneurial spirit to understand each customer’s needs from their ‘eye-level’, which brings new value to those we serve.”
To de ne corporate mission in terms of customer bene ts makes sense in the minds of Japanese
strategists because strategy determines both tactics and the sequence of all managerial actions to achieve the corporate mission and its associated objectives. When a company de nes its corporate mission and its objectives in terms of sales or shareholder value, all corporate actions are likely to lead these objectives with customer satisfaction as a secondary priority. For example, an insurance company that de nes
its mission in terms of “selling insurance” is more
likely to push for volume. The result is well known – customers are apt to feel pressured by the salespeople, resulting subsequently in contract cancellations, extra administrative costs and adverse goodwill for the company. By contrast, a competitor who de nes his corporate mission in terms of customers’ personalized needs (such as problem solving, risk reduction, or safety) is likely to be better perceived and even admired by his customers. Consequently, corporate actions
are more likely to result in tailor-made products, less administrative costs, and positive word of mouth.
2. Gain the Long-Term Commitment of Senior Management
Writing customer satisfaction into the corporate mission statement is not enough to turn a company into a customer-driven organization. Leading Japanese companies believe that the commitment of senior management is critical, just as it has been in quality management programs. A European executive who has worked for both a US and a Japanese company commented, “The rst thing my boss from the US wanted to see was the nancial statement. The rst thing my Japanese boss wants to see is a store, a retailer, and a customer. In Tokyo, they don’t talk
so much about customer satisfaction, they do it!”In interviews with Japanese executives, the topic of long-term management commitment comes up again and again as a major differentiator between the Japanese and Western approach to customer service. Changing corporate priorities too often results in limited mobilization of the organization. Even Japanese corporations are no exception to this rule. As the senior executive of a major Japanese electronics corporation explained, “Last year, in his New Year speech our CEO emphasized that maximizing customer satisfaction was the ultimate goal of our corporation. The message was very convincing and the organization immediately started to run in this direction. This year, because of our strong export ratio and the unfavorable exchange rate between the US dollar and the yen, our CEO emphasized that the new priority should be nancial performance. No reference was made to customer satisfaction. As a result, we all started to move in different directions: Customer satisfaction is now being perceived by the staff as one of these ‘ avors of the month.’” Contrasting the failure of this company to implement a customer care program with the success
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