a story? Come on story. How Israel, indirectly, caused the world to rise to another level in customer service ...
a story? Come on story. How Israel, indirectly, caused the world to rise to another level in customer service. How failure becomes success, and how to think right and long term. You wouldn't believe us, huh? The funniest thing would be if someone read it while sitting in line at a health fund….
The year 1973 and the United States begins a severe fuel crisis. As Israelis, we love ties, so the crisis stemmed from a fuel embargo named Arab states over countries that supported Israel during the Yom Kippur War. Clearly the crisis has dramatic effects on the US car market, including the demand for economical small cars, speed limits, and more, but perhaps most of all, the most dramatic change will be the entry of Japanese cars into the US market. If, until the crisis, Japanese vehicles were a sidekick for the local auto industry, after the crisis and in the 80s, they would be completely mainstream across the state.
Although American car manufacturers weren't really happy about losing a Japanese market segment, they weren't really worried either. While Japanese vehicles were small, cost-effective and largely unprofitable, domestic manufacturers specialized in larger, more profitable vehicles. European manufacturers operating in the New World have also not really lost sleep. They specialized in luxury vehicles for which Brand had weight in the decision. No one will buy a Honda or Toyota instead of a Mercedes. Total makes sense.
On the other side of the ocean, a number of Japanese executives sat with Toyota and were laughing. They just decided to make big luxury cars. They decided they would give the best service. They'll also build a special brand for all this, so after brainstorming some bottles of sake they called the company "Lexus." This year is 1987.
In 1989, the new Lexus car line came out at $ 40 a piece, half the price of Mercedes. Although the cars were sold not bad, a few months after the launch a problem arose. It could even be called a potential catastrophe. In two different reports, from different areas, vehicle owners reported problems with the vehicle. Not something critical, not dangerous, Glitch Minor in the Cruise Control system, but Lexus understood the potential of the problem. Even if the minor issue can swell through negative publicity and make it even more difficult for the new company to be carefully scrutinized. Nightmare!
Lexus executives had two options: the first was to silence the matter. Take care of both problematic vehicles and hope there will be no more readings. A second option was to make a voluntary cancellation for all vehicles already sold, a move that will undoubtedly attract public attention, most likely negative. In Lexus, choose the second option.
Lexus saw themselves as a luxury car company, and not only that but another level of what is on the market. Despite the difficult circumstances for the company at the outset, it was a great and unique opportunity to prove to the world what they were trying to market - a company whose customer satisfaction is a priority. Not just in motto, but also in deeds. They will make the perfect voicemail. They will solve a small problem big time.
The first decision was to make a clearance for all vehicles sold. All car owners received an apology letter but also a surprise. The letter states that the vehicles need not be repaired. Emptying without bringing the vehicle? that's new. Lexus has decided that the agencies will send a representative to each of the vehicle owners, collect the vehicles from their home, and leave a replacement vehicle until the repair is complete. Free of course. Not bothering with customers' daily routines would be a good start. Good start but not enough, so keep going. Every vehicle that was returned was washed, waxed and so on and returned with a full fuel tank. In one case of a car owner who lived in Alaska, Lexus Flight Technician repaired the malfunction in Northern Territory.
Lexus company behavior at the outset paved the way for what it is today considered a top-class luxury car company. I even personally know a Lexus car owner who moved to Porsche and returned to the Lexus. The Lexus voicemail story is a wonderful opportunity to see how a company thinks long-term and gives up short-term results for future success. Someone said The infinite game?
Lexus also understood the importance of early purchasers. These are called English Early Adopters. They are usually a high socio-economic cut and are influenced by the specific technology sector, are active in sharing information and like to write opinion reviews about the new products and what they liked and liked less about them. In other words, Lexus realized that if they were to please this initial audience as they purported to please the entire customer, the rumor would spread and the brand could gain momentum.
it worked.
Everyone, have a good week.
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