FOCUSING ON COMPLETE CUSTOMER SATISFACTION

Customer loyalty is one of the most valuable assets a business can have. Throughout SYSCO's 29 years as a public company, its operating companies have built the loyalty of customers one-by-one, city-by-city and region-by-region because of their ability to provide quality products delivered on time, in excellent condition and at reasonable prices. SYSCO has achieved its position as the industry leader in foodservice marketing and distribution by leveraging product innovation, information technology, new warehousing techniques and transportation advances to continue building that customer loyalty.

Left to right: Thomas E. Lankford, Executive Vice President, Merchandising & Multi-Unit Sales; Richard J. Schnieders, Executive Vice President, Foodservice Operations.

Raising customer loyalty to an even higher level by focusing on converting satisfied customers into completely satisfied customers is a priority. To achieve its customer satisfaction objectives, SYSCO created a formalized process and action plan known as the C.A.R.E.S. initiative - Customers Are Really Everything to SYSCO. Goals of the program include building customer retention and substantially increasing sales to each customer. Opportunities for adding new customers are also available to SYSCO, which has but a modest 10 percent share of the ever-growing $165 billion foodservice distribution market.

Marketing Associate Samy Said accesses the purchasing history of the Hudson River Club in New York with just the touch of a finger to his laptop computer as he discusses the restaurant's menu needs with Chef Tommy McDonald.

To initiate C.A.R.E.S., SYSCO surveyed customers, then analyzed performance information and developed training materials, as well as measurement and reporting tools, based on input from SYSCO operating companies. The surveys defined what customers believe to be the most valued aspects of their relationship with SYSCO and new reports and techniques were designed to address those criteria. Such data monitors customer retention, penetration and the key elements of service performance that are especially meaningful to customers, who place a high priority on a few basic services, such as receiving all the products they order on time, in undamaged condition and accurately invoiced. Product innovation is another key component customers desire and SYSCO brand products give the company a competitive edge. Distinctive to SYSCO, they are produced to exacting specifications and provide consistent quality and exceptional yield, or servings per container, in comparison to competitors' offerings. Moreover, customers consider courtesy, reliability, productivity and responsiveness to be critical elements of the service product.

The Entrepreneur, a luxury pleasure yacht owned by the restaurant, is available for private dinner cruises.

DOING THE BASICS WELL

With this knowledge in hand, SYSCO instituted training methods and implemented measurements to reward outstanding performance, making C.A.R.E.S. a practical application for every aspect of the business. Training is ongoing, covering everything from specific job responsibilities that influence service levels, to customer recognition and employee awareness and recognition. It also promotes the prac-tices that support superb customer service by sales, marketing, merchandising, warehousing, delivery and administrative personnel. While these practices are not new, the widespread dissemination of best practices from all over the continent focuses the commitment to error-free service on a daily basis. By doing the basics exceptionally well - delivering what is promised when it is promised, without error - SYSCO can engender customer loyalty and help its customers achieve their goals.

SUPPORTING INDIVIDUAL CUSTOMER NEEDS

Making certain that customers are completely satisfied is no small task. It involves every facet of the organization, beginning with sales. Independent eateries are the fastest growing segment of the foodservice industry and SYSCO's 6,600 marketing associates, or sales personnel, must build the relationships needed to understand, in detail, each customer's needs. Serving as business consultants to customers, they visit as often as twice weekly, laptop in hand, to access product specifications, inventory availability, pricing information and customer purchasing history. Marketing associates also recommend new products and assist customers in comparing values and analyzing their buying patterns in an effort to reduce costs, boost sales and appeal to the tastes of each customer's particular clientele. Creating complete customer satisfaction often calls for extraordinary efforts by marketing associates to build long-term relationships. To assure the dedication that makes this kind of commitment possible, SYSCO has been strengthening its marketing associate selection techniques as well as the sales aids and training tools that enable marketing associates to enhance their knowledge and success. Career development programs have been implemented to assist marketing associates in fulfilling their professional aspirations, while compensation and recognition programs have been enhanced.

Marketing Associate-Served Sales (as a percent of traditional food service sales)

The Franciscan Restaurant is a 43-year-old San Francisco landmark. Located on historic Fisherman's Wharf, it is famous for its creatively prepared, mouthwatering seafood selections. Executive Chef Christopher Idso, who has been on board four years, redesigned the menu that now features his popular signature items.