1. Customer Connection We Started Winning When We Listened to Customers -Anne M. Mulcahy BY: Christopher Huth & Gretchen Peed

2. “Customers determine whether we have a job or not. Their attitude determines our success.”“Customers determine whether we have a job or not. Their attitude determines our success.” –Xerox founder Joe Wilson

3. Recent History of Xerox 5 years ago the prospect of bankruptcy loomed over Xerox5 years ago the prospect of bankruptcy loomed over Xerox –Revenue and profits were declining –Cash was shrinking –Debt was mounting –Customers were irate –Employees were defecting Warren Buffet’s advice to new Xerox president Anne Mulcahy:Warren Buffet’s advice to new Xerox president Anne Mulcahy: Focus on your customers and lead your people as though their lives depended on your successFocus on your customers and lead your people as though their lives depended on your success

4. Two Aces A loyal customer base that wanted Xerox to surviveA loyal customer base that wanted Xerox to survive A talented and committed workforceA talented and committed workforce –People who love Xerox and would do anything to help save the company and return it to greatness

5. Starting Point Spent lots of time Listening to customers, industry experts and employeesSpent lots of time Listening to customers, industry experts and employees –Customers felt Xerox they had great technology, but response had slipped –Industry experts felt technology was leading edge, but needed to focus on doing a few things very well –Employees were loyal, but needed clear direction

6. The Value of Customer Service If you can retain 5 percent more of your customers then you currently do, your bottom line profit will grow from 25-50 percentIf you can retain 5 percent more of your customers then you currently do, your bottom line profit will grow from 25-50 percent It takes five times more money and effort to attract a new customer as it does to retain an old oneIt takes five times more money and effort to attract a new customer as it does to retain an old one

7. Five Strategies for Customer Priority Strategy 1: Listen and learn what your customers are facing - what their problems and opportunities areStrategy 1: Listen and learn what your customers are facing - what their problems and opportunities are Strategy 2: Even in the worst of times, invest in the best of timesStrategy 2: Even in the worst of times, invest in the best of times Strategy 3: Focus all your employees on creating customer valueStrategy 3: Focus all your employees on creating customer value Strategy 4: Don’t sell the customer your products, offer them solutions to their problemsStrategy 4: Don’t sell the customer your products, offer them solutions to their problems Strategy 5: Provide service beyond the customer’s expectationsStrategy 5: Provide service beyond the customer’s expectations

8. Strategy 1: Listen 500 major accounts are assigned to top executives500 major accounts are assigned to top executives “Customer Officer of the Day”“Customer Officer of the Day” –20 top executives rotate responsibilities to keep in touch with customers. It works out to be about a day a month –Deal with complaints from customers Listen, resolve the problem, and fix the underlying causeListen, resolve the problem, and fix the underlying cause

9. Strategy 2: Invest in the future Maintained research and development even with reducing spendingMaintained research and development even with reducing spending Customers knew that it would be a hollow victory if financial bankruptcy was avoided today only to face a technology drought tomorrowCustomers knew that it would be a hollow victory if financial bankruptcy was avoided today only to face a technology drought tomorrow Three-quarters of revenue come from offerings that were introduced in the past two yearsThree-quarters of revenue come from offerings that were introduced in the past two years

10. Strategy 3: Align Top to bottomTop to bottom Treat each customer as an individual - using our own technology to communicate with them one- to-oneTreat each customer as an individual - using our own technology to communicate with them one- to-one

11. Strategy 4: Deliver Value Don’t sell the customer your products, offer them solutions to their problemsDon’t sell the customer your products, offer them solutions to their problems Focus on what really matters – information and what our customers do with itFocus on what really matters – information and what our customers do with it Reducing cost and complexity while improving the customer experienceReducing cost and complexity while improving the customer experience

12. Strategy 5: Serve 75 percent of customers who defect say they were satisfied75 percent of customers who defect say they were satisfied When customers say they are very satisfied, they are six times more likely to continue doing business then those who are merely satisfiedWhen customers say they are very satisfied, they are six times more likely to continue doing business then those who are merely satisfied Only 40 percent of satisfied people repurchaseOnly 40 percent of satisfied people repurchase Success depends on customer loyaltySuccess depends on customer loyalty

13. Results Cut debt by more than halfCut debt by more than half More than doubled equityMore than doubled equity Took more than $2 billion out of cost base through tough choicesTook more than $2 billion out of cost base through tough choices Increased earnings – building value for share holdersIncreased earnings – building value for share holders Four years ago Xerox lost $273 million. Last year Xerox made $978 million.Four years ago Xerox lost $273 million. Last year Xerox made $978 million.

14. Lessons Learned Change the bad and leverage the good in your cultureChange the bad and leverage the good in your culture Articulate a vision of where you are taking the companyArticulate a vision of where you are taking the companyvision Bad leadership can ruin a company overnight, and good leadership can move mountains over timeBad leadership can ruin a company overnight, and good leadership can move mountains over time Good people, aligned around a common set of objectives, can do almost anythingGood people, aligned around a common set of objectives, can do almost anything The customer is the center of a company's universeThe customer is the center of a company's universe

15. Sources Mulcahy, Anne M.. "Customer Connection." Leadership Excellence 01/2007: 6-7.Mulcahy, Anne M.. "Customer Connection." Leadership Excellence 01/2007: 6-7. Pictures from Google ImagesPictures from Google Images Youtube.comYoutube.com