Four Seasons Goes to Paris HFT3240 Study Guide Test 2 Cirque du Soleil Formed in 1984 by a group of street performers Circus without animals Learned how to present a mystique the branding cross culture message Challenge to find the right artists because it is hard on the road and some people don t fit into the culture Anything is possible if it s crazy it can be done 53 properties 24 countries 1 philosophy 1999 first four seasons hotel George V Paris Consistently exceptional service Standards were run according to what country they were in Adjustments according to way of life where hotel was located Golden rule was treating those the way you wanted to be treated La Calvez returned to improve the business Hilton Hotels IBM Values 1000 hotels in north America 1000 in the rest of the world 1919 opened operations Mobley Hotel in Cisco Customers Really Matter program Founded in 1911 2003 Sam Palmisano presented a values jam stating what IBM stands for Test of IBM technology and a test of their culture VALUES dedication to every client s success innovation that matters to customers and the world trust and personal responsibility in all relationships KidSmart was a program that demonstrated good partnership Module 6 Control of density year after year Successful companies o Stress excellence over growth o Having systems in place to achieve company goals and sustain success VIDEOS o These companies control their density by They identify and commit to an expansion pace that allows superior execution of the strategy What happens if they grow too fast Lose control over their future Weakens the market offer and impairs the customer experience o Act like a private company Give employees and customers specialized services and attention that builds trust and long term relationships o Control customer value creation Maintain quality standards Creating excitement about your products and service Offering new options for customers Product knowledge training for employees Controlling processes that directly affect customers perceptions of quality and value o Compete against themselves Successful companies seek to outdistance themselves STARBUCKS GOOGLE SOUTHWEST Have a unique and valuable market offer Have an independent attitude a mindset Focus on creating superior value for the customer o GROUPON Rapid growth meant a ton of people excited to try out Groupon but not customer who consistently came back o GREEN CAB PROBLEM Rapid growth meant looking for appropriate funding getting more expensive things for the cars to make them go longer built a solid foundation so when they do expand it will be a smooth transition o TIDE Acts like a private company by creating TIDE LOADS OF HOPE that travels to people who just experienced a natural disaster to let people wash and dry their clothes o CONTAINER STORE Controls customer value creating by finding the best and most efficient ways to organize a space Providing the customer dance Love the product show it off and tell others about and they tell more people so on o STARBUCKS Creates value by going above and beyond to get customer s orders right remember names and work efficiently o PUBLIX o FACEBOOK Creates value by doing the online deli pickup Faster service and avoids the lines Outdistances themselves by three keys Cultural values Move quickly Make bold decisions Focusing on leverage and impact o IKEA Outdistances themselves by everyday values Challenge each other Working together to have a strong colleague culture Module 7 o Trust based relationships Valued Relationships that last helping a company control its density and perpetrate itself EACH COMPONET Perceived Competence Perceived Fairness Trust of Company Customer Relationships Employee Relationships Partner Relationships Relationship Commitment Levels 1 Interest in alternatives 2 Acquiescence 3 Cooperation 4 Enhancement 5 Identity 6 Advocacy 7 Ownership o Perceived competence Customers idea of the companies ability to carry out the service Doing things right Service Promises Kept customer Trust How the customer sees the company s reactions behavior and ONE PERCIEVED ACT OF UNFAIRNESS CAN RUIN A o Perceived Fairness degree of justice RELATIONSHIP o Trust of a company Formed when the company meets customers expectations with service and quality consistently Model of trust plays a role in the size of the tolerance zone for which a customer will allow to slide before the relationship is ruined Companies that operate ABOVE the zone of tolerance sustain success o Employee Relationships Critical for labor intensive service companies Employee relationships facilitate the customer company relationship Great companies have relationships where Relationships are personalized Mutual respect is abundant Leaders are accessible approachable and caring Organizational trust is nurtured Fun is always in the air o Partner relationships Can help a company serve its customers better and bring new customers to the company Between Seller and Supplier Increased Trust Commitment to Relationship Less likely to develop alternative sources Increase in sales for those supplier s products Higher Sales Increased Tolerance Zone of tolerance effect o Customer Relationship Crucial element to the service company Encourages repeat business Helps market the company through word of mouth Increase chance of add on sales Customer benefits to company relationships Confidence benefits Social benefits NUMBER ONE WAY TO BUILD EXCELLENT RELATIOSHIPS KNOW the CUSTOMER o How do companies learn about their customers Track buying patterns Customize services and promotions to customers needs Coordinate multiple services to same customer Provide two way communication channels Augment services with valued extras Personalize service encounters VIDEOS JERSEY MIKES o Keeps his customers coming back by providing good service o Knows customers names o Good fresh products keeps them coming back o Credit card companies often put hidden fees in their contracts CREDIT CARD OMNITURE CIO SUMMIT o Omniture keeps its promise to customers by Had to lay off some of the employees and eventually gave them back the severance that they were promised 5 years later o Gives advice to leaders with suppliers Be firm and let people know what service and attitude you expect Regard as partnerships at the get go Know what it is you re spending your money on Know quality of service and value of product SOUTHWEST o Story of the employee that called one of the customers mom to let