$21.95 USA / $25.95 CAN H Y What Is the Cult of the Customer? K It is a culture that focuses on creating an amazing E N N Cult o matter what you sell, who experience for both employees and customers. The you sell it to, or how much (or little) of it you sell, your business T revolves around customers. This book will take you through the fi ve cults, or phases, that all companies must go through to create Keeping customers happy, keeping them an experience that turns your satisfi ed customers into customer evangelists. These customers aren’t just h coming back for more, and keeping them loyal SHEP HYKEN is a speaker and loyal . . . they’re your company advocates. They give unsolicited testimonials and referrals and become to your brand are the most basic ingredients e author who helps companies extensions of your marketing and sales departments. Filled with dozens of case studies and lessons, P of business success. The Cult of the Customer ho build loyal relationships with this book will guide you through a process that develops an employee culture dedicated to creating an to: D customers and employees. exceptional service experience, both inside and outside of your company. C shows you how to create the kind of customer ov of the experience that leads to endless loyalty and Frie He is the author of Moments “This book refl ects the core values of our approach at Morton’s The Steakhouse®. We not only serve u Customer constant referrals. d of Magic and The Loyal man Customer, as well as the The Best Steak Anywhere™, but we are truly focused on providing our guests with Morton’s Genuine l n Hospitality, second to none in restaurant dining. This book is all about providing you with the necessary t In today’s competitive business climate, you creator of The Customer Focus™ program, tools to create that amazing, top-of-the-line experience for every guest.” can’t just satisfy your customers. You have to which helps clients develop a customer service o be better than that, giving them experiences —Thomas J. Baldwin, Chairman, CEO, and President, Morton’s Restaurant Group culture and loyalty mindset. His wide variety that they won’t forget. You must amaze them f of clients range from smaller companies to “At Zappos.com, we’ve always recognized that customers need to be more than satisfi ed—they need with “Moments of Magic” that transform such corporate giants as American Airlines, to be WOWed! Shep recognizes this as well in his book, and gives plenty of examples of how different t Create an Amazing Customer Experience That Turns them into customer evangelists—customers General Motors, IBM, Kraft, Marriott, Toyota, companies go about creating WOW experiences.” h who go out of their way to tell the world about Verizon, and many more. Satisfi ed Customers into Customer Evangelists you and your business. —Tony Hsieh, CEO, Zappos.com e For more information, visit www.hyken.com “At Verizon Wireless, we are passionate about creating a great customer experience in every customer Author Shep Hyken has spent twenty years or www.cultofthecustomer.com. C interaction. This book takes you through the necessary steps to create a world-class customer service studying great companies and the evangelists organization.” they create. In The Cult of the Customer, Hyken u —Eileen Creeden, Vice President, Northeast Customer Service, Verizon Wireless shows you how to design a strategy that leads s SHEP HYKEN both customers and employees through fi ve “Ultimately, we want loyal customers—not just loyal to our brand, but also to our dealerships. The Cult t distinct cultural phases—from “uncertainty” of the Customer teaches how to get customers, in virtually any business, to come back again and again. o to “amazement.” By presenting dozens of case —Mike Rencis, Customer Service Operations Manager, Toyota Motor Sales, USA m studies that show how great companies made this same journey, Hyken identifi es the critical internal and external changes that allowed e Jacket Design: Michael J. Freeland them to build a Cult of the Customer—and r Jacket Image: © Jupiterimages shows you how to do it too. Hyken’s message is both powerful and timely: the happier your customers and employees are, the more successful your company will be. The Cult of the Customer is your guide to creating a customer-focused culture that turns satisfi ed customers into customer evangelists. E1FTOC_1 01/27/2009 8 E1FFIRS_1 01/27/2009 1 Praise for The Cult of the Customer ‘‘ThisbookreflectsthecorevaluesofourapproachatMorton’sThe Steakhouse.WenotonlyserveTheBestSteakAnywhere,butMorton’s is truly focused on providing our guests with Morton’s Genuine Hospitality, second to none in restaurant dining. This book is all aboutprovidingyouwiththenecessarytoolstocreatethatamazing, top-of-the-lineexperienceforeveryguest.’’ —Thomas J. Baldwin Chairman, CEO and President, Morton’s Restaurant Group ‘‘AtZappos.com,we’vealwaysrecognizedthatcustomersneedtobe morethansatisfied—theyneedtobeWOWed!Sheprecognizesthisas well in his book, and gives plenty of examples of how different companiesgoaboutcreatingWOWexperiences.’’ —Tony Hsieh CEO of Zappos.com ‘‘Brilliant!TheCultoftheCustomerisalightthatshowsusthewaythat organizations can win and keep winning!’’ —Ralph Dandre CEO of ITX Corporation ‘‘Once again Shep has used his ‘‘magic’’ to make customer service easy—to understand and implement. I am definitely a member of ‘‘TheCultoftheCustomer,’’andonceyou’vereadthisbookyouwillbe, too.’’ —Keith Rhodes CFO and Senior VP of Alter Trading ‘‘Sellingmortgagesisacommoditybusiness,andthatpresentsareal problem.Howdowecompetewhenourcompetitionsellsthesame thingthatwedo—andatthesameprice?TheanswerisinTheCultof theCustomer.DrinkShep’sKool-Aid.Studythisbook.Workthrough the exercises. You will gain the competitive edge you need to succeed.’’ —Doug Schukar CEO, USA Mortgage E1FFIRS_1 01/27/2009 2 ‘‘Whatever happens on the inside of a company is also felt on the outside. This book delivers a step-by-step approach on how your company can create amazing internal experiences that directly impacts the customer.’’ —Jon Williams vice-president, Good Earth Tools ‘‘Years ago Shep Hyken defined a new standard for outstanding customer service through showing us how to create Moments of Magic.TheCultoftheCustomerexpandsonhispreviousworkinways bothevolutionaryandrevolutionary,movingbeyond‘‘moments’’to forming a culture of customer experience that creates not only advocates but ‘‘Evangelist’’ for you, your business and your brand. If this is your Vision then this is your book!’’ —Barry Knight President of NEXT Financial Group ‘‘The Cult of the Customer is an inspiration; written in a way that all companiesinallindustriescanrelateto,andthereforebenefitfrom, by using the tools in the book to build customer loyalty and employee evangelists, resulting in a journey toward amazement that is guaranteed to separate you from your closest competitor.’’ —Ken Muskat, ACC Vice President of Sales for Royal Caribbean International ‘‘WesellmorethanTeddyBears.Whatwesellareexperiencesand memoriesthatlastalifetime.GetintoTheCultoftheCustomerandyou won’t just amaze your customers; they will amaze you—with their love and passion for the experiences you create for them!’’ —Maxine Clark Chief Executive Bear, Build-A-Bear Workshop E1FFIRS_1 01/27/2009 3 THE CULT OF THE CUSTOMER Create an Amazing Customer fi Experience That Turns Satis ed Customers into Customer Evangelists Shep Hyken John Wiley & Sons, Inc. E1FFIRS_1 01/27/2009 4 Copyright#2009byShepHyken.Allrightsreserved MomentsofMagic1,MomentsofMiseryTMandMomentsofInnovationTMaretrademarksof ShepHyken,ShepardPresentations,LLC.Allrightsreserved. PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey PublishedsimultaneouslyinCanada Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmittedin anyformorbyanymeans,electronic,mechanical,photocopying,recording,scanning,or otherwise,exceptaspermittedunderSection107or108ofthe1976UnitedStatesCopyright Act,withouteitherthepriorwrittenpermissionofthePublisher,orauthorizationthrough paymentoftheappropriateper-copyfeetotheCopyrightClearanceCenter,Inc.,222Rosewood Drive,Danvers,MA01923,(978)750-8400,fax(978)646-8600,oronthewebatwww.copyright .com.RequeststothePublisherforpermissionshouldbeaddressedtothePermissions Department,JohnWiley&Sons,Inc.,111RiverStreet,Hoboken,NJ07030,(201)748-6011, fax(201)748-6008,oronlineathttp://www.wiley.com/go/permissions. LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveusedtheir besteffortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespect totheaccuracyorcompletenessofthecontentsofthisbookandspecificallydisclaimanyimplied warrantiesofmerchantabilityorfitnessforaparticularpurpose.Nowarrantymaybecreated orextendedbysalesrepresentativesorwrittensalesmaterials.Theadviceandstrategies containedhereinmaynotbesuitableforyoursituation.Youshouldconsultwithaprofessional whereappropriate.Neitherthepublishernorauthorshallbeliableforanylossofprofitorany othercommercialdamages,includingbutnotlimitedtospecial,incidental,consequential, orotherdamages. Forgeneralinformationonourotherproductsandservicesorfortechnicalsupport,please contactourCustomerCareDepartmentwithintheUnitedStatesat(800)762-2974,outside theUnitedStatesat(317)572-3993orfax(317)572-4002. Wileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsin printmaynotbeavailableinelectronicbooks.FormoreinformationaboutWileyproducts, visitourwebsiteatwww.wiley.com. LibraryofCongressCataloging-in-PublicationData: Hyken,Shep. Thecultofthecustomer:createanamazingcustomerexperiencethatturnssatisfied customersintocustomerevangelists/byShepHyken. p.cm. Includesindex. ISBN978-0-470-40482-9(cloth) 1.Customerservices. 2. Customerloyalty. 3. Customerrelations. I. Title. HF5415.5.H9372009 658.8012—dc22 2008042913 PrintedintheUnitedStatesofAmerica 10987654321 E1FTOC_1 01/27/2009 5 Contents Read This First ix Part 1 The Purpose of Your Business Chapter 1 The Genie and the Ice Cream Shop 3 Chapter 2 Do You Need This Book? 5 Chapter 3 The Three Forces 19 Part 2 The Five Cults Chapter 4 Uncertainty 31 Chapter 5 Alignment 43 Chapter 6 Experience 53 Chapter 7 Ownership 63 Chapter 8 Amazement 73 v E1FTOC_1 01/27/2009 6 vi CONTENTS Amazement Part 3 The Journey to Chapter 9 What the Journey Looks Like from the Inside: The Internal March to Amazement 89 Chapter 10 What the Journey Looks Like from the Outside: The External March to Amazement 105 Chapter 11 Launching the Amazement Revolution 123 Amazement Part 4 in Action Chapter 12 Little Things: Snapshots of Organizations and People Who Get the Little Things Right 143 Chapter 13 Problem Solving and Recovery: Snapshots of Organizations and People Who Solve Problems and Recover Well 153 Chapter 14 Opportunity Knocks: Organizations and People Who Look for Opportunities to Be Better Than Average 171 Chapter 15 Proactive Service and Follow-Through: Snapshots of Proactive Organizations and People in Action 179 Chapter 16 The Art of WOW: Snapshots of Truly Amazing Organizations and People 189 Part 5 Creating the Cult of the Customer Chapter 17 Tools for Success 205 E1FTOC_1 01/27/2009 7 Contents vii Epilogue 227 Notes 231 Acknowledgments 235 About the Author 237 Index 239 E1FTOC_1 01/27/2009 8