When Jan Carlzon took over Scandinavian Airlines (SAS) the business was making multi-million losses and in worrying decline. In just 12 months he turned the business around. In one year earnings were up £60 million in a drastically slumping market where other international airlines collectively lost £1.5 billion.
One of the key elements of Carlzon’s turnaround was his unerring focus and commitment to customer care.
10 million customers a year typically come into contact with 5 SAS employees. And each contact lasts an average of 15 seconds.
In Carlzon’s words: “SAS is ‘created’ 50 million times a year, 15 seconds at a time. These 50 million ‘moments of truth’ are the moments that ultimately determine whether SAS will succeed or fail as a company. They are the moments when we must prove to our customers that SAS is their best alternative”
Carlzon worked out SAS had 5 x 15 second moments of truth with every customer. How many moments of truth do you have? How long are they?
Just 75 seconds per customer determines SAS’s reputation, whether a customer comes back, and whether they recommend others to use SAS.
How long have you and your team got?
Because Carlzon and his 10,000 employees changed these 5 x 15 second interactions they turned multi-million losses into multi-million profits in just 12 months. Not bad.
The 5 x 15 second customer conversations at SAS were with front-line people. Not managers or directors. As at SAS, your front-line people similarly have the knowledge, insights and experience to help you improve your moments of truth.
Identify your moments of truth and get to work on improving them… now!