The Secret Behind Sweetwater’s Billion-Dollar Online Business

Sweetwater is an online retailer specializing in selling whatever musicians need.

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Sweetwater is an online retailer specializing in selling whatever musicians need, from instruments to audio equipment and lighting. In 1979, Chuck Surack founded the company in Fort Wayne, Indiana. It started as a mobile recording studio and over time, evolved into a retail business selling musical instruments. In 1995, the company launched a website, and just a few years later was selling most of its inventory online. Surack was an early adopter of online retailing, and today, with 2,500 employees, Sweetwater is the largest online retailer of musical instruments and audio equipment in the U.S., serving millions of customers with $1.7 billion in sales.

I had a chance to interview David Fuhr, Sweetwater’s chief sales officer, for an episode of Amazing Business Radio. We discussed the secrets to creating an exceptional customer experience that drives repeat business. It turns out, it’s not a secret at all. It’s a common-sense approach to putting the customer at the center of all decisions. When a company becomes customer-focused—even customer-obsessed—magic happens. Here are six lessons any business can learn from our discussion:

1. Creating Experiences Out of Love for Your Customers Beats Just Chasing Money

This seems like a good place to start. Fuhr shared Sweetwater’s philosophy: “Our team is in it for the love of the game.” Surack started Sweetwater out of love and passion for the business, and success followed. Fuhr started playing clarinet when he was young, eventually decided to teach music, and now he gets to sell music. There are many similar stories from Sweetwater employees. They love what they do!

2. Hire the Right People

Even if you love music, it’s not easy to get hired to be a salesperson at Sweetwater. Keep in mind, Sweetwater is in Fort Wayne—not a major city like Chicago, LA or New York. All employees are expected to work in the Sweetwater office. With a smaller population, one might think Sweetwater would have difficulty hiring enough staff to support its customers. Only 5% of applicants vying for the coveted role of selling and serving customers with a shared passion for music are hired. They choose the best.

3. Training Never Stops

Sweetwater wants to ensure its salespeople have the technical information they need to sell and the soft skills to communicate effectively with customers. It’s all done through training. Once hired, new employees complete 13 weeks of training at Sweetwater University. They are paid to be in a classroom for the first 90 days of their Sweetwater journey, and it doesn’t stop there. Each week, salespeople go through 90 minutes of additional training. This reinforces something I’ve preached to my clients for decades: Training isn’t something you did. It’s something you do.

4. Core Values Create the Foundation for Strong Business

Surack was successful because of his core values-based rules, and his No. 1 core value was simple: Just do the right thing. Fuhr used my salesperson, Blake Strickland, as an example. I recently bought a guitar from Sweetwater, and he not only helped me choose the right guitar, but also took the time to go downstairs to their “store” to compare it with similar models, ensuring I would receive, in his opinion, the best guitar of the lot. This was time spent away from the phone when he could have been talking to other customers. But, as Fuhr points out, Strickland wanted me to have the best experience. In addition, Strickland didn’t want my new guitar to spend a week in various locations and climates in the back of a truck or in a warehouse while en route to my home, so he surprised me by upgrading my purchase to overnight delivery. Fuhr says, “Who are we to stop him? He’s doing the right thing for you. … We empower our employees to do the right thing.”

5. Small Acts of Generosity Surprise Customers

One of the fun things Sweetwater does is include a small bag of candy with every order. Pun intended, it’s a “sweet” gesture that gets people to smile. Fuhr says, “Generosity doesn’t need to cost much. It’s about showing you care.” A small bag of candy, a follow-up email or phone call after a sale to make sure the customer is happy, or a surprise upgrade to overnight shipping are the small acts of generosity that pleasantly surprise customers.

6. Don’t Solve Problems—Solve Customers

I asked Fuhr how Sweetwater handles complaints. He said, “We solve the customer.” His point was that the problem or complaint is not the most important factor. Sure, you must fix what needs to be fixed, but more important is to “solve the customer.” That means the customer walks away with renewed confidence that Sweetwater stands behind its products and takes care of its customers. Once “the customer is solved,” the complaint or issue is escalated to a team to discuss how to mitigate or prevent it from happening again.

Final Words

As a musician, I’m a big fan of Sweetwater. But as someone who studies customer experience for a living, I’m an even bigger fan of how they do business. The company reminds us that a great customer experience isn’t complicated. And as important as anything, they don’t just chase dollars. They chase and build relationships. Their relentless focus on the customer experience is why their customers say, “I’ll be back!”