The Ever-Widening Tesla Gap
Tesla, continues to grow by leaps and bounds, providing a products that defy industry standards. As a Tesla consumer, I've been very fond of their products for more than a decade. I've owned a total of 3 Tesla (two Model 3's & one Model Y) and I also was one of many who ordered the CyberTruck within a day of release. Tesla continues to be one of the greatest companies I've seen in my lifetime when it comes to innovation. In many ways it stands up to my other favorite company when it comes to Innovation, Apple. However, Tesla struggles to keep up with a widening "gap" when it comes to customer service, something Apple tackled early on.
No matter how you put it, in today's automotive market Tesla produces what I would consider a niche product that doesn't appeal to every consumer. However it does appeal to the green, eco-friendly, tech savvy, safety focused, and innovative consumer. As someone who has personally walked away from a T-Boned wreck where a driver hit me on the driver's side at 55 mph, I can attest to the benefits of owning a Model 3. While safety is a great incentive to keep customers, it's not enough. Over the years Tesla has consistently struggled to meet deadlines and communicate effectively to its' customers. These 2 things could easily be resolved by someone who has tremendous experience when it comes to satisfying and exceeding customer expectations.
I recently finished listening to a wonderful book called "Excellence Wins" by Horst Schulze, Cofounder of the Ritz-Carlton. I've read the book several times but never quite got through it as quickly as I did recently listening to it as an audio book. For years I've designed and facilitated training programs based off of Horst Schulze's "We are ladies and gentlemen serving ladies and gentleman." Until recently, I had never really quite enjoyed the Ritz-Carlton experience, nor had I experienced the emotional connection that it conveys. In many ways, I feel like a hypocrite for training on some variation of delivering the Ritz-Carlton experience without first experiencing it. Recently, I had the opportunity through my Marriott Bonvoy Rewards to enjoy two bookings, one at the Ritz-Carlton Fort Lauderdale and the other at the Ritz-Carlton Montreal. I can't even begin to convey how the experience I had at both hotels through my expectations of customer service out the window. It forced me to pick up Horst Schulze's "Excellence Wins" and take it apart to further analyze what companies today are missing when it comes to delivering customer service.
Horst Schulze's "Excellence Wins" could easily be applied to Elon Musk's Tesla, specifically the launch of the CyberTruck and I'm certain Tesla would see significant improvements to its' brand loyalty. Horst Schulze shares a critical point in the book that we can all agree Tesla has been facing for quite some time:
"The People you serve want three main things:
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Doesn't this should like some advice Tesla could use right now?
Horst Schulze also shared that, "Loyalty is cemented not by extra points, gimmicks, or goodies. It is rather confirmed by fulfilling the customer’s expectations every time they make contact with us."
Right now there are quite a few customers who are upset that the CyberTruck, a product they've been dreaming about for 4 years price has increased over 50% and for the most loyal of dreamers who were amongst the first to place a deposit down on the vehicle 4 years ago, will have to not only pay 50% more, but also shell out an additional $20,000 for the "Founder's Edition" that has Founder's Edition lasered into different parts of the vehicle as well as receive a few extra "gimmicks or goodies" that are likely not worth the the significant cost. Furthermore, Tesla has shared virtually no information as to where buyers are in line, when they can expect delivery, or even how many Founder's Edition Trucks will be released. For those not willing to shell out the additional $20,000 right away, they will be pushed further back in the delivery line. Tesla is really hitting the mark when it comes to rewarding loyalty. And then most recently Tesla has been forced to re-evaluate the ranges of their other vehicles, creating even more doubt that their vehicles are truly capable of delivering on their promise.
I could go on and on, but it seems clear to me that Tesla is in desperate need of Horst Schulze to revitalize its' brand image. Simply put, innovation can only take a company so far. Tesla needs to focus on delivering on their customer service experience. With someone like Horst Schulze supporting Tesla, I can see many of their existing and new customers happily handing an extra $20,000 for an unparalleled experience.
By Sean Sassoon