Journal Entry Lesson 7

 This week I learned about customer service. I learned why Zappos pays new employees to quitin an effort to keep only the right people. Those people who stay are more willing to adopt the company’s culture and provide an exceptionally good customer service. Zappos is more profitable in the long run because of having the right people on board.

I also learned the concept of lifetime value of a customer. A customer’s profitability for a company increases over time as increased revenue offsets acquisition, marketing, and administrative costs of serving the same customer. Satisfied customers are more likely to return and even recommend the company to their friends and family creating positive referrals. A satisfied customer invites, on average, 5 people. A dissatisfied customer tells 11 people about his experience, on average.

I am making some progress with my $100 dollar challenge. More importantly, I am making mistakes. I had some problems with the recipe of the crepes and the ingredients. Fortunately, I started small so I can easily correct it now.

Today, my wife and I visited some of my wife’s relatives. As we visited her uncle Guillermo I met Jose, who is married to my wife’s cousin. Jose comes from Costa Rica but he moved to Mexico because of his wife. As we were talking about our jobs and education Jose mentioned how he is starting a construction business and he wants to make it grow into a successful construction company. He said that in Mexico there is a lot of money to be made and that he is very excited and optimistic to have so many opportunities available for him now that he became a permanent resident. He made me feel optimistic with his comments; he is definitely a person that I want to stay in contact with.