Car Wash - Spring 2016 - (Page 60)

BY JOSEPH A. MICHELLI TODAY'S CONSUMERS EXPECT (no, demand) an extraordinary service experience. Providing it is no longer optional. With a hypercompetitive global economy spawning endless options for consumers - who, not incidentally, come to the table pre-armed with reams of Internet research - players who can't continuously up the "delight" ante might as well hang it up now. All leaders know this in theory...but how many are willing to bet their paychecks on their ability to knock the customer's socks off? Well, few are willing, perhaps - but more and more companies are moving in that direction. Customer-driven compensation makes people uncomfortable. We're used to thinking in terms of financial performance; it feels normal to have your income tied to sales or to overall profitability. To have it tied to what the customer thinks about how well you served him or her - well, that's scary because it feels arbitrary, or unpredictable. Yet, this is a trend whose time has come. Indeed, in healthcare, the U.S. government has gotten in on the act. With its Value-Based Purchasing initiative (part of the Affordable Care Act), the Centers for Medicare & Medicaid Services (CMS) already links a percentage of reimbursement to how well a healthcare organization scores on a standardized patient survey. Many private insurance companies are following the same "pay-for-service-performance" formula. Bold leaders in other industries are following suit in their own organizations. As described in the book Driven to Delight: Delivering World-Class Customer Experience the Mercedes-Benz Way, Steve Cannon, president and CEO of Mercedes-Benz USA (MBUSA), worked with his dealer partners to make customer-centric changes to their compensation structures. Essentially, MBUSA renegotiated to shift a portion of the dealer's guaranteed margin and instead make it contingent on the dealer's performance in key elements of MBUSA's customer experience initiative. In the words of Harry Hynekamp, general manager, customer experience, "...a sizable portion of the dealer margin structure was anchored to performance on customer experience standards, training that affects customer experience delivery, and use of the latest technologies and standards for customer care." The bottom line? On April 15, 2014, Mercedes-Benz USA paid out $44 million in leadership bonuses to the top-performing 70 percent of dealerships in customer experience. This is what accountability looks like when creating a customer-centric culture. Yes, people need a strong, compelling vision to buy into the change, but the "money" piece is what solidifies their commitment. The idea is to create ? SHOULD THE CUSTOMER HAVE A SAY IN EMPLOYEE PAY FIVE TIPS TO MOVE YOUR COMPENSATION STRUCTURE IN THAT DIRECTION 60 CAR WASH MAGAZINE | WWW.CARWASH.ORG | SPRING 2016 http://WWW.CARWASH.ORG

Table of Contents for the Digital Edition of Car Wash - Spring 2016

Letter from the ICA
Meet the Board
By the Numbers
Overheard Online
Keeping it Clean
When in drought
Reducing your environmental footprint
Continental divide
Will sympathetic pricing draw customers?
Women in Car Wash
Make money, work with friends
Should the customer have a say in employee pay?
International Profile
Women in Car Wash
Hear and be heard
OSHA update
ICA Annual Report
Creating exceptional managers
When professional contacts get personal
Ten tips for transforming your teams
Becoming an employer of choice
Show me the money
ICA launches new series of events for car wash professionals
CAR WASH Magazine wins award
Take a Tour
Wash Ideas
Focus on a Member
Blast from the Past
Marketing Minute
Download It!
Ask Champ
Top Tweets
Safety Tip
Mea Culpa
Advertiser Index
5 Things

Car Wash - Spring 2016