Lesson #1: A Happy Customer Is Your Walking Advertisement
Lesson #1: A Happy Customer Is Your Walking Advertisement
When Penney started his first business with the butcher shop, it was a fast flop. But, it was not because Penney had bad business sense. Rather, it was because of his conscience. Penney’s biggest customer at the time was the local hotel. When the hotel’s meat cutter demanded a bottle of whiskey weekly as a bribe, Penney at first gave in. However, he forever regretted it and from then on, refused to give the bribe. As a result, the hotel withdrew its business and the butcher shop folded.
It was with this attitude of doing the right thing that Penney was able to create one of the largest retail chains in America. Penney’s parents had always preached to him the Golden Rule: Do unto others what you would have them do unto you. It was a lesson Penney would apply well in the business world.
When Penney first took over total ownership of the Golden Rule Stores, he operated in a completely different environment than that which we know today. Back then, store owners paid little attention to their customers. They were often treated rudely and sold poor-quality goods. Store managers would also routinely change their prices according to each customer, charging more to poorer people because they might not have known better.
Penney decided to change all of that. “The friendly smile, the word of greeting, are certainly something fleeting and seemingly insubstantial,” he said. “You can’t take them with you. But they work for good beyond your power to measure their influence. It is the service we are not obliged to give that people value most.” He took the store’s slogan – that of practicing the Golden Rule – with strict literalness. Penney pledged to give each customer friendly, reliable service, and guaranteed the same price to everyone.
“In setting up a business under the name and meaning of the Golden Rule, I was publicly binding myself, in my business relations, to a principle which had been a real and intimate part of my family upbringing,” said Penney. “Our idea was to make money and build business through serving the community with fair dealing and honest value.” To this end, Penney himself would often stop to help a customer on many of his random store checks. Penney’s strategy worked as word of mouth helped the company earn a profit margin of 29 percent in its first year.
“The store that sells its wares for less but pays little attention to the service it renders does not meet with the success of the store with courteous employees,” said Penny in 1954. “The public is not greatly interested in saving a little money on a purchase at the expense of service. Courteous treatment will make a customer a walking advertisement.”
Lesson 1 A Happy Customer Is Your Walking Advertisement
Like this article? Share it with your friends
 |
Free Download - Lesson #1: A Happy Customer Is Your Walking Advertisement |
“When this business was founded, it sought to win public confidence through service, for it was my conviction then, as it is now, that nothing else than right service to the public results in mutual understanding and satisfaction between customer and merchant,” said Penney. “It was for this reason that our business was founded upon the eternal principle of the Golden Rule.”
When Penney started his first business with the butcher shop, it was a fast flop. But, it was not because Penney had bad business sense. Rather, it was because of his conscience. Penney’s biggest customer at the time was the local hotel. When the hotel’s meat cutter demanded a bottle of whiskey weekly as a bribe, Penney at first gave in. However, he forever regretted it and from then on, refused to give the bribe. As a result, the hotel withdrew its business and the butcher shop folded.
It was with this attitude of doing the right thing that Penney was able to create one of the largest retail chains in America. Penney’s parents had always preached to him the Golden Rule: Do unto others what you would have them do unto you. It was a lesson Penney would apply well in the business world.
When Penney first took over total ownership of the Golden Rule Stores, he operated in a completely different environment than that which we know today. Back then, store owners paid little attention to their customers. They were often treated rudely and sold poor-quality goods. Store managers would also routinely change their prices according to each customer, charging more to poorer people because they might not have known better.
Penney decided to change all of that. “The friendly smile, the word of greeting, are certainly something fleeting and seemingly insubstantial,” he said. “You can’t take them with you. But they work for good beyond your power to measure their influence. It is the service we are not obliged to give that people value most.” He took the store’s slogan – that of practicing the Golden Rule – with strict literalness. Penney pledged to give each customer friendly, reliable service, and guaranteed the same price to everyone.
“In setting up a business under the name and meaning of the Golden Rule, I was publicly binding myself, in my business relations, to a principle which had been a real and intimate part of my family upbringing,” said Penney. “Our idea was to make money and build business through serving the community with fair dealing and honest value.” To this end, Penney himself would often stop to help a customer on many of his random store checks. Penney’s strategy worked as word of mouth helped the company earn a profit margin of 29 percent in its first year.
“The store that sells its wares for less but pays little attention to the service it renders does not meet with the success of the store with courteous employees,” said Penny in 1954. “The public is not greatly interested in saving a little money on a purchase at the expense of service. Courteous treatment will make a customer a walking advertisement.”
Lesson 1 A Happy Customer Is Your Walking Advertisement
Like this article? Share it with your friends
 | |
 |
I found what I was looking for...thanks so much
Commented on Lesson 1 A Happy Customer Is Your Walking Advertisement. |
| |
Leave Your Feedback |
 | |
| |||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
|
 | ||
 |
||
 |
||
|
||
 | ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
 |
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
 |
 Pro-Forma Template Instant Business Letter Self-Employment Guide Managing the Unimaginable 10 Areas of Differentiation |
|
 | ||
 |
Top 50 Marketing Blogs
Top Marketing Blogs of 2010 | |
 |
The Top 10 ProBlogger Posts
Best Posts for Bloggers | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
