At the North American Conference On Customer Management, I listened to a presentation by Rodger Stotz, VP-Managing Consultant at Maritz, Inc. Rodger believes, as does Tom Peters, that to have consistent successful customer service experiences you must first have consistent successful employee experiences.
It is not a nicety; it is a business imperative.
There is a direct correlation between employee morale and stock increases.
If your business is large enough to have separate HR and marketing departments, they need to be working together to treat employees and customers in nearly identical ways.
Increasing employee retention by 2% is equivalent to cutting costs by 10%.
Reducing customer defections by 5% can increase profits by up to 85%. (If you find 85% hard to believe, as I do, then cut it down to 40%. That´s still very impressive.)
He pointed us to a Web site, www.performanceforum.org, that contains a great deal of data backing up the statements above. I´ve only spent a few minutes on the site, but I´m impressed, and I´ll return to spend more time there.
Find this hard to believe? Several days ago Seth Godin posted about an experience he “suffered” at Radio Shack. That post has been flying around the blogosphere due to Seth’s high ranking. Having read posts from several others who linked to Seth, I can tell you that negative word of mouth has reached in excess of ten thousand people (People who read Seth and who read those who link to him.)
But that’s not my experience. I’ve posted about how employees at my Radio Shack hustle. What we have here is a corporation that does not put a priority on the customer service experience; that doesn’t have it inbred into their culture as does Nordstroms or Southwest Airlines. Their failure to focus on legendary customer service opens the door for inconsistency to come in. Now their image is taking a beating at exactly the worst time of the year for a troubled company.
Don’t let that happen to you.