Customer Service - the relentless pursuit of perfection
Written by Shirley Lichti for The Record, May 16, 2001

For Lexus Canada, the relentless pursuit of perfection isn’t just a fancy tagline in its advertising efforts. It’s a philosophy the automotive company lives by in everything it does.

So when Lexus recently asked me to speak to its Canadian sales managers on the topic of customer service excellence, I was perplexed. Here was an organization that was already doing a great job. How could I possibly help it improve?

Then I remembered a scenario last fall when one of my third-year marketing students at Wilfrid Laurier University came to see me about a project mark. She had received an A- and said she wanted to understand what she had done wrong.

I was shocked. Most students would have accepted the mark as "good enough." At first I thought she was simply angling for a higher grade.

But I quickly realized that although she accepted that A- was a very good mark, she genuinely felt she could do better and wanted to discuss how to do this.

Similarly, while Lexus is recognized for excellence, like my student, the company isn't content to settle for "good enough." It always wants to improve, do an even better job and achieve the highest grade possible.

And that presents a special challenge. When you are already doing a good job, it's unlikely you will realize a quantum-leap type of improvement. Instead, you need to adopt of philosophy of continuous improvement and inch your way toward the ultimate goal.

For Lexus, the focus on improving customer service is especially important because it competes in a market where product innovations provide competitive advantage for less and less time. While it continually adds new safety features such as vehicle-skid controls and accident-prevention systems, it doesn’t take long for competitors to introduce similar product improvements.

Today, the most sustainable competitive advantage comes from consistently providing exceptional customer service. So according to Dan Borg, Lexus Vehicle Sales Manager, the company's dealers commit themselves to providing the highest levels of product quality and customer service.

This philosophy is outlined in business-card sized document called The Lexus Covenant. It emphasizes valuing customers as important individuals, treating them the way they want to be treated, exceeding their expectations and "treating each customer as we would a guest in our home."

At the bottom of the card are these words for the dealers: "In the eyes of the customer, I am Lexus!!!"

To ensure the company meets or exceeds customer expectations, Lexus conducts detailed customer satisfaction surveys. If weak areas are identified, full reviews are held with the dealers and corrective action plans put in place.

In one case, Borg said, the surveys identified poor parking as a concern at some dealerships. Interestingly enough, it was the most successful dealers that had the most limited parking, a situation created by having plenty of inventory on the lot, plus the cars of prospective customers.

To address the problem, Lexus rolled out an inventory-pooling system, that allows dealers fast access to products. In addition to improving customer service, the system results in less damage to vehicles because there is reduced handling.

The Lexus focus on customer service and continuous improvement extends even to non-front line staff. For example, Borg said, staff members responsible for moving vehicles about on dealership lots are trained to ensure that if they see customers in need of help, they can and will respond appropriately.

While Lexus has its own internal "university" to deliver training, it also studies excellence in other organizations outside the automobile industry. And it hold seminars where trainers like me remind dealers that when it comes to customer service, no magic formulas exist, excellence is achieved through practice and repetition.

Delivering excellent customer service has its challenges. When you set the bar high, customer expectations go up, too.

On one occasion, for example, a Lexus client was involved in an accident. Although his car had been repaired, he claimed he no longer felt comfortable in it and asked the company to replace it with a new vehicle.

In the same way, a woman who noticed a very slight imperfection in the paint in a doorjamb also demanded to be given a brand new vehicle.

Borg says that dealers need "to set expectations for what will happen when a customer arrives at the dealership to pick up a new vehicle. If the delivery is not handled well, it reflects on the entire company."

Achieving satisfaction can sometimes be complicated. Clients are often excited about getting the keys, and don’t always want to be shown all the features of their cars, or learn how to book a service appointment. It's important not to neglect these activities, however, Borg says. "Dealers need to strike a fine balance, showing new customers the ropes and maintaining the excitement for repeat customers, making the experience as pleasant as possible."

Like my student, Lexus understands that there is always room for improvement. And so it continues to strive for the relentless pursuit of perfection, day in and day out.

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