Monday, January 11, 2010

What is your core competency?

Core Competency…. This was a key buzzword for many years and a majority of the reason why the whole industry of outsourcing has gained such momentum over the last 10 years. The key sales message and value proposition for the outsourcers was: “Manufacturing is not your core competency, we can do it cheaper” or “Let us manage your supply chain for you, and cut costs” or “ IT help desk is our bread and butter and not yours, let us take that over for you.”

But here is my question, Is Customer Service your companies Core Competency?

If it isn’t, should it be?

Why did Amazon pay $900 million for Zappos, a website and brand that sells things over the internet that you can get for the same price at your local Target or Walmart?

With the dynamics between companies and customers/prospects changing every day and more power and influence being put squarely in the hands of the customers/prospects, I would submit that every company should make customer service their core competency. No one knows or understands your products/service better than you. So why would you want to outsource one of your most critical points of influence and learning to someone else?

Zappos leadership understood this and are $900 million more secure because of it.

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