The Customer Copernicus - Preview

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INTRODUC TION

accounts without the knowledge or approval of its customers, unfairly tak- ing advantage of customer relationships to meet sales targets. Whatever he said or thought, the reality on the ground was the antithesis of being on the customer’s side. What leaders say (and perhaps think) their company does and what it actually does can often be at odds. There is a saying/doing gap. We shouldn’t take customer-frst exaltations at face value. They are common. But true customer-led success is not. To understand what we mean, we need to get beyond soundbites and into reality. Timpson, a family-owned UK retail business that has experi- enced signifcant ups and downs since its launch in 1865, has become a shining example of customer-led success in the last two decades. Crucially, Timpson is also a commercial success, growing from 300 branches, 970 colleagues, £40 million in sales and £3.3 million in proft in 1998 to 2,120 branches, 5,800 colleagues, £330 million in sales and £30 million in proft by 2018. The work Timpson employees do is far from glamorous. Timpson’s core offer is in shoe repairs and key cutting. They also mend locks. And the group has grown into dry cleaning and photographic printing, not indus- tries others are rushing into. Timpson’s breakthrough into customer-led thinking followed a tough spell in the 1970s and ‘80s when the business, having been sold to a plc, was led based on targets. If a target was missed one week, then it was adjusted the next, usually by putting up prices a little to make the number appear possible while all else remained the same. Most times, this meant the situation got worse. In John Timpson’s (now chairman) view, it was missing the point of the business. So, in 1983, he with the backing of Candover, a venture capitalist, bought back the shoe sales and repair businesses – the original core of the family busi- ness. They were tough times. He thought he might lose it all and be the family member who failed to keep Timpson afloat after over 120 years of trading. Facing falling sales, he sold the shoe shop business and was left with just shoe repairs. Shoe repairing was a declining market and competition was intense – anyone could fix shoes from a small space on the high street. Gradually a way of running the company came together, built by paying attention to one shop at a time, looking at what worked and encouraging