Author Archives: Shep Hyken

About Shep Hyken

Shep Hyken is a customer service expert, keynote speaker, and New York Times, bestselling business author. For information on The Customer Focus™ customer service training programs, go to www.thecustomerfocus.com. Follow on Twitter: @Hyken

Five Key Findings – 2023 State of CX Report

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Unlock The Secrets To Exceptional Customer Service

Five Key Findings - 2023 State of CX Report

GUEST POST from Shep Hyken

Are you looking for a competitive advantage to keep your customers coming back? I have the answer. The 2023 Achieving Customer Amazement (ACA) study, sponsored by Five9, uncovers the current state of customer service and customer experience (CX). This customer service and CX research is vital to anyone in any industry (B2B or B2C) who has customers—and that’s everyone!

Each year we survey more than 1,000 consumers about what they like, dislike, want and more to find out what it takes to get customers to come back. Regardless of the type of business or industry you are in, your customers will compare the experiences they have with you to the best customer experience they have had with any type of business—not just your direct competitors. In other words, customers are smarter and expect more because of the “rock star” companies that are setting a higher benchmark.

To kick off the new report, I have compiled a list of five of the most important findings:

1. Bulletproof Yourself From Your Competition

Okay, maybe you can’t completely bulletproof yourself from competitors, but creating a good service experience can give you an amazing competitive advantage. Seventy-six percent of the more than 1,000 American consumers we surveyed are willing to go out of their way to do business with a company that provides better customer service. Furthermore, a great service experience makes prices less relevant. We asked, “Is customer service more important than price?” Almost half (48%) said, “Yes!”

2. The Top Three Most Important Things When It Comes to Customer Service

This may seem like common sense, but unfortunately, it’s not as common as it should be. What customers want is simple. The top three “customer wants” are: (1) Employees who are helpful; (2) Being able to reach the right person in customer support; and (3) Knowledgeable employees.

3. The Top Three Reasons a Customer Will Leave You

Once again, you will probably say, “That’s common sense.” If so, why do so many companies fail on these three? They are: 1. Rudeness; 2. Inconsistent information; and 3. The inability to connect with someone from customer support. What’s interesting about “rudeness” being the top reason a customer leaves is that back in the 1980s—40 years ago—the White House commissioned a study with the Technical Assistance Research Program (TARP) which found that the top reason a customer would leave to do business elsewhere was rudeness or apathy. Basically, an employee being impolite or indifferent toward the customer. And here we are, decades later, and nothing has changed.

4. If You Want Your Customers to Trust You More, Deliver a Great Customer Service Experience

There is an old saying that people like to do business with people (and brands and companies) they know, like and trust. It’s easy to get people to know and like you, but it’s much more difficult to earn their trust. When you do, customers come back. You can’t have loyalty without trust. Here’s the finding: 82% of customers say great service increases their trust in a company.

5. Customers Love a Convenient, Low/No Friction Experience

You can’t ignore the impact of a convenient experience. Eighty-eight percent said convenience was important when deciding where they wanted to do business. Fifty-three percent would pay more if they knew they would receive a more convenient experience, and 69% say a convenient experience alone will make them want to come back. All things being equal, it’s the company that is easier to do business with that will win over its customers.

Conclusion

Of course, there are many more stats, facts and findings in this report, but these should give you an idea of just how important customer service can be to your organization. The findings will help you make better customer-focused decisions and make a case for investment in new technologies and customer service training to unlock the competitive advantage you’ve been looking for.

This article originally appeared on Forbes.com

Image Credit: Pixabay

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Breaking Rules to Delight Customers

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Breaking Rules to Delight Customers

GUEST POST from Shep Hyken

There is a massive benefit to empowering employees to “break the rules” for their customers. And what I mean by “breaking the rules” is to consider what you can do for a customer outside of the norm that doesn’t cost the company money, isn’t illegal or immoral, and won’t hurt “business as usual.” In reality, employees aren’t breaking any rules. They are finding ways to take care of the customer while not breaking the “rules” mentioned above.

One of the concepts I cover in my customer service keynote speech is the idea of the “line in the sand.” Many companies train their employees in what they can’t do for customers. They have “rules” that have little or no flexibility. While it’s essential for employees to be trained on what they shouldn’t do, it may be more important to train them on what they can do. By that, I mean how far employees are allowed to go before they have to say, “No.”

I call this The Line in the Sand concept. It is important to draw that line, which is the boundary that employees aren’t allowed to cross, but at the same time, teach them what they can do to get right up to the line.

For example, I have a client in the luxury automobile market. This client has a team that travels to auto dealerships to help dealers with demanding customers they can’t seem to please. Members of this team believe in the power of saying “Yes” instead of “No.” They have the authority to refund the entire price of the car, even if it’s 10 years old. That’s their line in the sand – their last resort. They can get right up to it but can’t go past it. And by the way, they have never made it to that last resort. They have always found other ways to make discontented customers happy without getting to that line.

The key is training, but it isn’t just imparted in one session to tell employees what to do – or not do. It’s about continuously sharing stories of what other employees are doing to meet customers’ needs and demands, all without crossing the line in the sand. When an employee does something right, congratulate them and share the example with others. And if they do something wrong, or in other words, if they cross the line, turn it into a learning opportunity that is also shared with others. Routinely sharing examples helps employees recognize their opportunities to delight their customers.

Some examples of “breaking the rules” might be honoring a warranty that expired a month ago – or stretching a 14-day return policy to the 15th or 16th day. Some retail organizations, like Nordstrom, have an easy, no-questions-asked return policy. Even though the employees at Nordstrom aren’t breaking the rules, the customer feels as if they are going above and beyond. That’s all this really is. Making customers feel like you are on their side, willing to be flexible and giving them reasons to say, “I’ll be back!”

Image Credit: Pixabay

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Customers Have Bad Days Too

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Customers Have Bad Days Too

GUEST POST from Shep Hyken

You’ve probably experienced this. No matter how hard you try to please some customers, they aren’t happy. It’s frustrating, but at the same time, it’s reality.

And speaking of reality, no matter how good you are at creating an amazing customer experience, it is the customer’s perception that counts. Their perception is their reality.

I once went to an amazing restaurant – at least, I was told it was amazing. That evening, I had a bad cold. The people I was with raved about the food, however, I didn’t have the same experience. It had nothing to do with the food. It had to do with how I was feeling.

When customers aren’t responding to the excellent service you’re providing the way you want them to, you might refer to them as “difficult” customers. The question to ask is, “What’s making them difficult?” Maybe they have a legitimate gripe. Maybe they have unreasonable expectations. Or maybe, as in my example of the restaurant, they aren’t feeling well.

I was reading a LinkedIn post from Valerie Choniuk, the national director of patient experience at Agilon Health, who described exactly what I’m referring to. A hospital may be known for its compassionate treatment and commitment to taking care of its patients, but if patients are in great pain, they may not be able to “enjoy” the experience you provide. That patient may be the nicest person in the world, but because of the pain, may become a difficult customer. To Choniuk’s point, “Patients are not purposely GIVING us a hard time. They are HAVING a hard time.”

Sure, some people are chronic curmudgeons. You may never be able to make them happy. Accept it. Other customers are very nice people just having a bad day. You must accept that, too. Continue to do your best, regardless. If you can turn the mood of a person having a bad day into something better, you can declare victory. But don’t stress over it if you can’t.

Not every experience you create for your customers will be exceptional, no matter how hard you try. But the point is that you try. Nobody is perfect, and things can go wrong. That’s okay. It’s how you fix it that makes the difference. And then there are days when it seems things did go well, but you still can’t make that customer happy, no matter how hard you try. It’s like a professional sports team that played a great game but lost. It’s going to happen. It’s not your fault. If you can sleep at night knowing you did your best, you should sleep well.

So do your best, and remember, sometimes customers are just having a bad day!

Image Credit: Pixabay

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Eliminating 100% of Live Customer Service is a Mistake!

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Eliminating 100% of Live Customer Service is a Mistake!

GUEST POST from Shep Hyken

You need help. You call customer support. Nobody’s home!

Actually, somebody is there. They just aren’t taking support calls. Someone at home—as in a corporate office—has decided to eliminate live, human-to-human customer support, pushing the customer to a digital option such as a chatbot, frequently asked questions page, etc.

My opinion is that this could happen in the distant future, but I can’t imagine that in the next few years there will be 100% digital and AI automated customer support. And here’s why. If all you are is an automated company, you have no way to emotionally connect with your customers. That means your customers have only one way to compare you to direct competition that sells exactly what you do, and that is price.

At that point, the only way to keep your customer is to always have the lowest price, and that is typically not a viable long-term strategy.

Recently I wrote about Frontier Airlines’ decision to drop traditional live phone support, and the reviews have not been good. That said, I give them credit for a bold move that may be just a little ahead of its time—and time will tell. Maybe the reactions are from initial shock. Perhaps there have been glitches that can be fixed for a smoother experience in the near future. We’ll know in six months. If the current reactions continue, at best, some changes will be made, provided the airline wants to stay in business.

I had a chance to interview Paulo Almeida, the CEO of Clientscape, on Amazing Business Radio. We talked about the possibility of AI and automation taking over the contact center. We briefly discussed Frontier Airlines, but more importantly, Almeida articulated the perfect answer to my question:

How do you feel about complete elimination of a human-to-human customer support department?

Almeida responded, “If you’re working in an industry that chooses to automate everything, you can potentially become a commodity. If that is what a company wants to do, the only difference from one company to the next will be what they charge. If that’s the only way a customer makes a decision, the company will go bankrupt!”

“It is not a sustainable financial model. It’s the human factor that makes the difference. It’s about giving the customer the care they deserve. That’s a way to differentiate. For example, Apple may make some of the best products, but they also have some of the best support. If their reputation for support goes away, they will no longer be perceived as having the best product. They will also lose pricing power. When that disappears, they could be on the path to failure. They will lose customers, and the cost to get them back will be extravagant.”

Almeida used a powerful word to summarize a decision to eliminate a human connection, and that word is bankrupt. I can buy into this for some companies, but there will always be exceptions.

People have said, “What about Amazon?!” Yes, Amazon is a digital company, and it has great digital customer support. However, if you need to talk to someone, you can. It’s a last resort, but when you do so, it’s typically a very pleasant experience. Amazon knows how far it can go with automation before it has to say, “It’s time to talk to one of our reps.”

Many products and services are becoming automated. To Almeida’s point, 100% automation is a mistake. Without a human-to-human relationship, how can you create an emotional connection? How can you differentiate yourself from other automated companies? You can’t. You’re a commodity.

More automation and AI technology are in our future. It shouldn’t surprise you that at some point in time planes will be flown by computers, not pilots. We’re already seeing self-driving trucks moving across the country. Companies like Tesla, Google and others are investing tens of billions into autonomous self-driving vehicles (even if they are still a long way from success). Amazon and Walmart are betting on alternative delivery methods that include drones and robots. And yes, some customer service functions are being handled by automation and artificial intelligence (AI).

We can’t fight progress. I love seeing products and services get better through automation. But I’m concerned about the companies and brands that are distancing themselves from their customers by not letting them connect with customer support people, who are also brand ambassadors for the company.

If the leadership of a company thinks the customer support agents’ only role is to fix a problem, then shame on them. Your agents can do much more. If they handle a call well, they can confirm that the customer made the right decision to do business with you and give them the confidence to do even more business. So, at least for now, don’t miss that opportunity. Don’t make the mistake of 100% elimination of live customer support.

Image Credit: Pixabay

This article originally appeared on Forbes.com

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Act Like an Owner – Revisited!

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Act Like an Owner – Revisited!

GUEST POST from Shep Hyken

One of my favorite concepts to cover in my customer service keynote speeches is to act like an owner. I originally wrote about this in 2011 and shared the story of an 18-year-old server at a pizza restaurant who took so much pride in his work that the guests thought he owned the restaurant.

In preparing for an upcoming speech, I worked with Anthony Demangone, CMO of the National Association of Federally Insured Credit Unions. We discussed the ownership concept and how everyone can act like an owner or leader. Anyone can be “that person” everyone admires and wants to emulate. He shared the remarkable story of Richard Montañez, a janitor at a Frito-Lay plant in California. Here’s the short version:

One day Montañez heard Roger Enrico, the CEO of Frito-Lay, share an inspiring message: to “act like an owner.” Montañez took this message to heart, and for almost 10 years, while still working at the plant, tried to learn everything he could about Frito-Lay. One day he asked a Frito-Lay salesperson if he could spend a day and learn about the sales process.

The salesperson took Montañez to a Latino neighborhood where he noticed something that would eventually change his life. As he helped restock the shelves, he noticed that the Lay’s, Fritos and Ruffles were all plain – in other words, no spicy products. And right next to their display was a shelf of Mexican spices. Montañez wondered what Cheetos would taste like if dipped into chili powder and other spices, so he went home and made his own version of spicy Cheetos. He liked what he tasted and reached out to the Frito-Lay CEO to set up a meeting.

Somehow Montañez landed an appointment to meet with the CEO and other company executives. During the meeting, an executive asked, “How much market share do you think you can get?” Montañez nervously opened his arms wide and said, “This much!”

The CEO smiled at Montañez and said, “Put the mop away. You’re coming with us.” The rest is a corporate fairytale come true. Montanez became an executive and worked his way up to VP of multicultural sales for PepsiCo America, the holding company for Frito-Lay.

I love this story for two reasons. First, it’s about an employee who took initiative and thought beyond the role he was hired to do, which was to be a janitor. He took such pride in his work and loved his job so much that he was willing to step out of his comfort zone and reach out to the CEO of a major company with his idea. And second, just as impressive is that Roger Enrico, then-CEO of Frito-Lay, imparted the inspiring “act like an owner” message and was willing to meet with Montañez!

So, are you an employee who’s willing to share your ideas with leadership? Or are you an executive who’s willing to listen? Not every idea will have a Richard Montañez fairy-tale ending, but every idea has potential. So, I encourage you to adopt and embrace the “act like an owner” mindset inside your organization.

Image Credit: Shep Hyken

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CEOs Should Get Out of the C Suite

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Starbucks Shows the Way

CEOs Should Get Out of the C Suite

GUEST POST from Shep Hyken

There is a gap between the C-Suite and reality. Many leaders make decisions from their office, mistakenly believing that they understand what their company’s customers want and expect. One way to close that gap is to leave the C-Suite and take a trip to the front line. And not just once, but on a regular basis.

More than 30 years ago, I wrote my first book, Moments of Magic: Be a Star With Your Customers and Keep Them Forever. There is a chapter in the book titled Understand Your Customer. In this chapter, I shared an example from Anheuser-Busch. Back then, the world’s largest brewer had a program called “All Aboard,” in which executives went out with delivery drivers and salespeople to restaurants, taverns, liquor stores, grocery stores and anywhere else that sold beer. The goal was to hear firsthand from their customers. This put the executives in touch with reality and helped them make better customer-focused decisions.

In my most recent book, I’ll Be Back: How to Get Customers to Come Back Again and Again, I included a similar story. It was back in November 1989 when Microsoft co-founder Bill Gates, already a billionaire, was touring the product support department’s new building. Gates asked a manager, “Do you mind if I take a customer call?” According to the story, he took the phone and answered, “Hello, this is Microsoft Product Support, William speaking. How may I help you?” Of course, the call went well. So well, in fact, that the customer called back and specifically asked for “the nice man named William who straightened it (her problem) all out.”

When was the last time you heard of a billionaire CEO taking customer support calls? When have you heard of the CEO of any large company spending time on the phones in a contact center or venturing out of the office to work on the front line? That’s the reason I love the concept behind the reality TV show Undercover Boss. The CEO or president of a company does exactly what the executives at Anheuser-Busch and Bill Gates did. They just do it covertly, and it’s amazing what they learn.

Recently, I read an article in RetailWire about the new Starbucks CEO, Laxman Narasimhan, who plans to work a half shift once a month as a barista at a Starbucks café. His goal is to “promote a better connection and engagement between leadership and workers.” He wrote a letter to employees that characterized the “health” of the company as needing to be stronger despite the brand’s already strong performance.

That’s a wonderful example of a modern leader taking the time to understand what’s happening on the front line, not just with customers, but also with employees. My only suggestion is that he require his fellow C-suite leaders and VPs to do the same. Imagine how powerful a monthly meeting to compare notes from fellow executives spending time on the front lines could be!

Mark Ryski, founder and CEO of HeadCount Corporation, commented on the RetailWire article. He said, “This must be more than for ‘show’—Mr. Narasimhan sends a strong message that frontline workers and their work are important, but now he needs to live up to that commitment. Having executives get first-hand experience by working a shift is not new, but it never goes out of style. All executives should commit to spending some time working the front lines so that they can truly understand the employees’ and customers’ experience.”

So, when I’m suggesting the C-suite get out of the C-suite, it’s not to fire or replace them. It’s to get them out of their offices to move around and get to know what’s really going on with the company. If you care about your customers and employees—and I know you do—then get out of the C-suite!

This article originally appeared on Forbes.com

Image Credit: Shep Hyken

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Customer Service is a Team Sport

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Customer Service is a Team Sport

GUEST POST from Shep Hyken

The other day I was having breakfast with 11 of my friends. The server came over, introduced herself, and said, “I’ll be taking care of you.” She took our orders, and a few minutes later, a different server dropped off three of our meals. Then, two more servers brought a few more meals a moment later, and another server showed up just after that with the rest of our meals. It wasn’t until after all the meals were served that our original server came over to ask if everything tasted great.

Was it this server’s job to simply take our orders and let others do the work? No!

I observed all of the people who brought us our meals. They also had other tables to attend to. And, I noticed that our server was dropping food off at different tables.

Different restaurants may have different processes, but in this one, the food is prepared, plated and set on a counter with heat lamps. Once the food is ready, it doesn’t matter whose table the food is for, whoever is available to take the hot food out immediately becomes responsible for the meal.

I liked what I was seeing. The employees recognized that customer service is a team sport. It’s everyone’s job to make sure the customers leave happy.

Shep Hyken Waiter Cartoon

Unfortunately, I’ve also witnessed the opposite at a restaurant. The food is set out on the counter, but the server responsible for it is busy taking care of another table. So, the food just sits there while other employees ignore it – because it’s not for one of “their guests.” Talk about a lack of team spirit!

Another example of this lack of team spirit is something I once saw at an airport. A baggage handler was driving a load of bags out to an airplane, and one of them fell off. I watched as numerous other baggage handlers drove by it. They would slow down, look at the bag sitting there by itself on the tarmac and then drive away. At least a half-dozen employees drove by the bag and did nothing. I’m pretty sure that the passenger arrived at their destination and was disappointed when their luggage didn’t show up at the baggage carousel.

The point of these examples is that everyone must take care of the customer, regardless of who the customer “belongs” to. If they see that something isn’t right, they shouldn’t just ignore it like the baggage handlers did.

Lately, I’ve resurrected a concept I used to cover in keynote speeches: every employee has at least two jobs. The first is to do the job they were hired to do. The second is to take care of the customer. When all employees understand that, the customer will most certainly have a better experience.

Image Credit: Shep Hyken, Pixabay

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Customers Care About the Destination Not the Journey

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Customers Care About the Destination Not the Journey

GUEST POST from Shep Hyken

On a recent flight, the captain of the airplane announced over the PA system what time we would arrive at our destination. That would have been enough to make most people happy. However, he continued his announcement with a three-minute-plus speech. We learned that we would take off to the west, make a U-turn a few minutes later to head east, how high we would go, the various cities we would be flying over, that we would take a right turn as we approached the runway to land, and more. I looked around and noticed many people were annoyed or had stopped paying attention to the long-winded announcement.

The point is most customers don’t care as much about the details of the journey as they care about the destination.

Here’s another example, which has nothing to do with a journey but does have to do with an overload of details that can hurt a sale or erode the customer experience. Some people love a fancy, expensive sports car, while others just want reliable transportation. Even though these customers essentially want the same thing – a car to get them from one place to another – they are very different customers.

Shep Hyken Lobster Cartoon

A few years ago, my wife and I were looking for a new car. We narrowed it down to the make and model – even the color – we thought we wanted. We walked into the dealership and were approached by a salesperson who was very friendly and engaging. Then, we told him what we were looking for. So, he took us over to the exact car we wanted. He was very excited. He started to share details about the size of the engine, how many cylinders, how quickly the car could accelerate from zero to 60, the RPMs, and other details that mattered nothing to us.

Had he asked why we were interested in this model car, he would have realized we had no real interest in such details. Our version of the destination was that we wanted a nice-looking car (and it was) that was comfortable, safe, and easy to drive. Maybe we wanted to know a few other details about the car, but nothing to the extent he was sharing. Had he paid attention, he would have noticed he had us when he said, “I have the exact car you’re looking for.”

My point is that most customers don’t care about the details behind the experience or product they are buying. It’s up to us to recognize this and respond accordingly. All they want to know is what awaits them at their metaphorical destination.


Image Credit: Shep Hyken, Pixabay

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Five Ways Fender Guitar Rocks Customer Service

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Five Ways Fender Guitar Rocks Customer Service

GUEST POST from Shep Hyken

In 1946, Leo Fender, founder of Fender’s Radio Service, renamed his company Fender Electric Instrument Company—better known as Fender—and it became an iconic music company that manufactures some of the greatest guitars and amplifiers on the planet. Leo Fender had a saying back then: “Artists are angels. It’s our job to give them wings to fly.”

You could call that saying a mission, vision or values statement. In just 12 words it sums up Fender’s desire to create the best musical instruments for his customers. Even though the company was sold to CBS in 1965 and then purchased by its employees in 1985, the words are still a part of Fender’s culture 77 years later.

I had a chance to interview Scot Pickerill, Fender’s vice president of Americas Inside Sales, Service and Sales Operations, for Amazing Business Radio, and he repeated Leo Fender’s vision. He referred to it as Fender’s “call to action.” He also shared several other ideas that I want to examine here. Before we get into that, you should know that Fender recognizes and supports two types of customers. There is a dealer network that sells the products. These range from independent “mom-and-pop” stores to large chains like Guitar Center. They also support the consumers who own and play their instruments.

So, with that in mind, here are five ways Fender rocks customer service. I’ll share Pickerill’s strategies, followed by my comments.

1. Continuous Improvement

Continuous improvement is about identifying friction points with every department involved and analyzing the process to correct problems and prevent issues from happening in the future.

Continuous improvement goes beyond improving the customer experience. It’s looking at every part of the process, including what’s happening behind the scenes. Even if the customers don’t feel any friction in their experience, it’s essential to eliminate or mitigate any internal friction caused by outdated or cumbersome practices and processes.

2. Treat Your Customers Like Partners

Fender doesn’t want to just sell a customer a guitar. They want to partner with customers in their musical journeys, and they want their partners to be successful. When they take care of their customers, the customers want to give back, and they do so in the form of repeat business.

3. Embrace Feedback from Both Customers and Employees

Fender goes beyond asking for feedback from its customers. It also asks for feedback from employees, especially those on the front line. And getting that feedback is just the start. As Pickerill said, “Feedback is one of the few things in life that is free. Take that feedback and do something with it.” I’ll add that once you do something with the feedback, let everyone know what you did. If you want more feedback, prove that you’re listening and taking action on the feedback you receive.

4. Get uncomfortable

Taking a business to the next level isn’t easy. There could be a little pain and fear involved. Innovation is about moving forward, and that requires change. Many people are happy to settle for the status quo because they are uncomfortable with anything new or different. But not Fender. Pickerill said, “The world is evolving daily. Customer expectations are increasing, and buying behaviors are shifting. Don’t be afraid to lean into discomfort, test new things and then measure to ensure that it’s working the way you designed it.”

5. It’s All About Culture

Pickerill is proud to acknowledge that Fender employees live, breathe and speak the brand. He sees the passion in employees, including executives. They have the desire to leave a mark and constantly improve to help artists and potential artists and make them as great as they can be. This way of thinking comes from the top down and is a perfect reminder of Leo Fender’s words, which Pickerill refers to as Fender’s call to action: “Artists are angels. It’s our job to give them wings to fly.”

This article originally appeared on Forbes.com

Image Credit: Pexels

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Don’t Confuse Culture with Strategy

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Culture is the Who and How We Work; Strategy is What We Do

Don't Confuse Culture with Strategy

GUEST POST from Shep Hyken

Culture is quite different from strategy. It’s what a company is and stands for. Peter Drucker, the legendary management guru, once said, “Culture eats strategy for breakfast.” It’s not that strategy isn’t important. It absolutely is. However, culture must come first. Then strategy must align with the culture.

One of several definitions of culture by Merriam-Webster is:

“The set of shared attitudes, values, goals and practices that characterizes an institution or organization.”

That is exactly what culture should be. However, there can be problems.

Some companies state their culture in mission, vision and/or values statements. However, those are just words—they are meaningless if not lived. And they can’t be aspirational. They must be true in the moment. A culture that is not actively practiced by leadership and employees is just a dream—just words on paper that are somewhat meaningless, regardless of how well-written and aspirational they are.

For a culture to be successful, leadership must live it and be the role model for others to emulate. And while most people think of leadership as the executives who sit in the C-suite, it is really anyone of authority. It could be anyone in management, in a supervisory position, or anyone who has direct reports. And while leaders must be role models, everyone must know and understand the culture. In the “perfect” organization, everyone is in alignment.

That is why Target is a great case study for how the right culture works. The title of this article is a quote from Christina Hennington, chief growth officer of Target, who sat on a panel at the recent 2023 National Retail Federation (NRF) Big Show. Hennington says, “We use culture as a guidepost, as a set of filters for the decisions we make in the business, both big and small. That’s all in the pursuit of our purpose, which is to help all families discover the joy of everyday life.”

Just last year, Target was No. 2 in Fortune’s Best Workplaces in Retail. It was also No. 1 in People’s Companies that Care, and No. 12 in Fortune’s 100 Best Companies to Work For. Those are some fine accolades, and with good reason. A RetailWire article noted that in 2021, when most companies were struggling to hire and keep employees, Target had its lowest turnover rate in five years. A good paycheck is a start. Good benefits are also important, and they go beyond medical benefits. For example, Target has a debt-free college program in which all full-time and part-time employees can participate. Another benefit is that Target likes to promote from within. Employees starting on hourly wages can become leaders. They take care of their people, and in turn their people take care of their customers.

Mark Ryski, founder and CEO of HeadCount Corporation, says, “Target continues to set the standard for driving up worker pay. I can only believe there is one key reason why—because a well-compensated, appreciated, happy workforce delivers better results. Imagine how it must feel to work for a company like Target that continues to look for ways to enrich employees.”

Melissa Kremer, EVP and chief human resources officer at Target, said, “Our team is at the heart of our strategy and success, and their energy and resilience keep us at the forefront of meeting the changing needs of our guests year after year.”

So, Target has nailed a big part of the culture, in that it has taken the words on paper to the people who work there. The message from Target’s leadership is clear. Build a culture that starts with a focus on your own people. Take care of them, and they will in turn, take care of the company, which includes the company’s customers.

Does that sound familiar? If you’ve been following my work for any length of time, it probably reminds you of my Employee Golden Rule: Do unto employees as you want done unto your customers. And it looks like it’s working.

This article originally appeared on Forbes.com

Image Credit: Pexels

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