Have You Really Listened to Your Customers and Employees Lately?

Do you want to compete with WalMart? Do you think that treating your employees well and listening to their pains, wants and needs is an unneccesary cost, especially in this economy? Nothing could be further from the truth!

Costco has been criticized for treating their employees too well by Wall Street analysts. Many of the so-called experts have said that Costco could charge higher prices for their goods. They have complained that Costco could ask their employees to pay a higher percentage of their healthcare costs, for example. What has Costco done?

Jim Sinegal, founder of Costco, listened to his employees because, as he says, It is not altruism, it is just good business. His stores have done well competing with the largest retailer in the world. A much higher percentage of his workers have health care than Sams Club. His employees typically take home more money. The unions have said that he gave them a better deal than any other national retailer. He listened to his employees concerns. The employees shopped at Costco. Their friends did too. 

His philosophy and approach applies to the customer as well as the employees. We're very good merchants, and we offer value, he said. The traditional retailer will say, I am selling this for $10. I wonder whether I can get $10.50 or $11? We say, We are selling it for $9. How do we get it down to $8? We understand that our members do not come and shop with us because of the fancy window displays or the Santa Claus or the piano player. They come and shop with us because we offer great values.

Jim Sinegal was a student at San Diego Community College when a one day job helping carry matresses turned into a career. He became a protege of Sol Price of FedMart and later Price Club.

Listening to your employees and the customer is just good business, regardless of what Wall Street analysts have to say about it. Some surveys have suggested that as many as 75% of senior managers and above never talk to a customer. Is that you?

As the Listening Coach, I have often advocated listening to the customer, but what about the employees? Have you documented their pains, wants and needs? Have you surveyed them, or had an actual conversation with them, to make sure they care about your survey questions? Make sure you have had actual conversations with your customers and employees before you survey them. It makes a difference!