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The service you provide is…By Royal Bush | Date Submitted: 08/24/05
Category: Business:Management The service you provide is… By Royal D. Bush Customer Service has been a catch phrase used more since the '90s. Every industry is promising exceptional customer service. So what's the problem? Even though everyone is talking about exceptional service, very few businesses are actually delivering it. Where is the service? "If you ask the first 5 people you see tomorrow if they can list five businesses that provides them wow, legendary and personalized service most every time that they come into contact with them, that they could do that. In fact they could probably provide you a list of five businesses that they go to because they actually do their jobs, but nothing more then that,” says Royal Dano Bush, founder of the Omaha-based WOW! 1st Impressions Hospitality Services and creator of several training customer service and employee training programs. Many businesses do not budget time, money or resources to train and develop the very employees that are in charge of delivering the service to the end user… the customer! Often, says Bush, the reason is that businesses don't understand how important customer service is to their bottom line. Any business can focus on providing exceptional customer service. And, by focusing on customer service, developing a service-oriented work environment training employees, any business can enhance its current business strategies. "Training employees to provide consistent, wow empowered service works to an business's triple bottom line," says Bush. "Creating the effort to find out what not just customers want and need, employers need to find out what their employees want and need.” “Companies that have found out what makes their employee happy, and provide that to the employees, will find that they will have a WOW Triple Bottom Line (being employer of choice, company of choice and investment of choice)” Loyal customers are not only important, they are essential. Loyal employees are not only important, they are essential. Research shows that 65 percent of a typical business's business comes from current loyal customers. And, companies who invest in their employees see a higher return on that investment. How important is customer loyalty to your bottom line? A large supermarket chain completed a study about their loyal customers. They had 100 stores. They determined if each of those stores alienated one customer per day, how much money do you think that chain would lose annually? The loss was estimated at $94.4 million! Just because of an attitude of indifference by an employee! Loyal customers help to serve as an extended sales force for your product and service. They provide the most powerful and cheapest form of advertising available WORD OF MOUTH. "Word of mouth and those who experience your products and services first hand is the most credible source to potential customers." says Bush. There are many ways to get people to try a business or product for the first time. In fact, on an average over $290 is spent on each American trying to get them to try a business or product for the first time. Unfortunately, very few businesses dedicate the time, money and resources to provide their employees the tools to insure that the company is getting a good ROI from marketing costs. "Setting the example and training is key," Bush says. "Most business will spend more money repairing copy machines, computers and lawn care then they will on training their employees to provide exceptional customer service. Once you get customers in the door, you have only one shot at making that first impression. And, are your employees empowered to do what it takes to handle most any customer service problem? If not, you are not only losing the money you spent on marketing to get the customer there in the first place, you are losing money because of negative word of mouth from those have experience an attitude of indifference by the staff. In addition, you might be losing money weeks, months, even years from now because of that one experience." Frederick Reichheld and W. Earl Sasser, writing in Harvard Business Review, point out that "as a customer's relationship with a company lengthens, profits rise. Customer defections have a surprisingly powerful impact on the bottom line. It is common for a business to lose 15 to 20 percent of its customers each year. When defections are cut in half, the average growth rate more than doubles. A 5 percent change in rate of retention swings profit increases from 25 percent all the way to 100 percent." How can you ignore these facts? Bush asks. Bad service has another pitfall: It causes employee turnover. The Forum Corporation found that employee turnover was inversely proportional to employee perceptions of the quality of service provided by their employers. Bush says. "Employees are resilient. They know when the situation is bad. They know if people are not being taken care of. Survey’s time and time again show if the employees know service standards are low, they will NOT recommend the business to those in need. The will NOT use the business themselves. And, they will NOT recommend a friend to work there.” The Forum study found that the highest turnover rates are associated with companies possessing the lowest employee ratings of service quality. That finding was confirmed when Sears surveyed customers in 771 of its stores. In stores that received relatively high customer service ratings, 54 percent of the sales force turned over in a year, compared with 83 percent at stores with low customer service scores. "If you lower turnover it will not only decrease the costs associated with recruiting and training new employees, it will in fact increases productivity," says Bush. It's clear, says Bush, that businesses that talks the talk and walks the walk will see increased triple bottom line increases. In addition, customers will be satisfied, and employees will be more productive and be willing to provide that wow 1st Impression.
omaharoyal@yahoo.com
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