Customer Satisfaction
SATOSHI SEINO
President and CEO
East Japan Railway Company
“Our mission is simple: to provide our passengers and communities with the utmost in safety, comfort and convenience.” That isn’t an executive of a global airline talking, but the CEO of a railroad company. Many people still think of railroads as an old-fashioned industry, but in Japan the railroad business has been charging into the 21st century at full speed.
No one knows this better than Satoshi Seino, president and CEO of East Japan Railway Company, commonly known as JR East, the largest rail operator in Japan.
Over the past decade, the company has made tremendous advances in efficiency and productivity while at the same time boosting customer satisfaction. Even more remarkable, the firm has slashed its greenhouse gas emissions by more than 20% in the same period. But perhaps Seino’s biggest success is that the 16 million passengers who flow through JR East gates every day are gradually discovering a positive “consumer experience” instead of enduring the dreary old “commuter experience.” The stations are changing, the trains are changing and the customer experience is changing.
One example: More than 20 million users have purchased JR East’s SUICA rechargeable IC card electronic pass, which speeds the flow of people through stations without the need to purchase tickets. Private rail lines, subways and buses have adopted the same technology, allowing riders to use a single pass throughout their travels in greater Tokyo. In addition, as JR East has continued to develop its stations into upscale commercial centers, many stores and restaurants now accept these cards for payment, so customers can ride, eat and shop all with one electronic card.
“Passengers and communities aren’t only
interested in transportation; they want a lifestyle
of convenience and elegance as well.”
The rapid acceptance of SUICA surprised even Seino, who was in charge of its development before he took office as president in 2006. “More than 25,000 stores now accept it as payment, including some shops outside our service area,” he notes. “I want to continue promoting SUICA as a truly interregional service.”
The company is also making significant efforts in the area of environmental protection. “Our new railcars, introduced on urban and long-distance routes, not only reduce energy usage and emissions, they save us money. We are also researching fuel-cell powered trains and other clean-energy systems for transportation. In addition, we’re planting trees and replenishing forests along our tracks, which helps to further offset CO2 emissions.”
Seino points to the restoration of the iconic Tokyo Station building, a century-old symbol of the city’s dynamic history. The company is working to provide the cash flow necessary for this project by tapping into hidden property assets, namely the sale of air rights above the station complex. “By making effective use of this intangible asset, we can preserve the important heritage of Tokyo Station and transform it into a truly contemporary landmark.”
He concludes, “We want to provide a safe, reliable and enjoyable transportation service that is as fundamental to our daily lives as the air we breathe. At the same time, we want to improve the modern conveniences available in and around our stations. Passengers and communities aren’t only interested in transportation; they want a lifestyle of convenience and elegance as well.”
Investors understand that such accomplishments are not simple to achieve. They see how Seino and his team have turned an old-fashioned railroad company into a 21st century, technology-driven business with multiple revenue streams and millions of satisfied customers. Everyone is eagerly anticipating the next stage in JR East’s evolution.
