Your Company's Bottom Line is Tied to Customer Satisfaction
>>by Leanne Hoagland Smith
Did you know that you could measure your company's value by your
customer service? Read on..
Researchers discovered that regardless if your
customer service is outsourced either on shore or off shore this affects the
net worth of your business. If your customer service satisfaction as
determined through American Consumer Satisfaction Index (ACSI) created
by National Quality Research Center at the University of Michigan declines
so does your company's value.
This information was presented to determine the impact of off shore
outsourcing of customer service. The researchers reviewed the outsourcing
actions from 1998 to 2006 of 150 North American companies including business
units. All companies that outsourced their customer service
registered a decline in the ACSI scores. What is interesting the declines
stayed the same regardless if the customer service was outsourced
domestically or overseas.
The historical data suggests that the ACSI scores and the companies' share
prices tend to move in the same direction. Within this research, the range
of that drop averaged between 1% to 5% based upon the industry for each
respective business.
When businesses outsource customer service, they are widening the gap
between the business and the customer. Today's customers are pretty
savvy. They are not shy at all about asking the location of the customer
service center especially when the customer service representative does not
speak fluent English.
This research only strengthens previous customer service data that building
customer loyalty is critical to organizational success. With the average
business losing 10% of its customers annually and acquiring new customers
costs 5 to 6 times more than keeping existing ones, businesses must
create exceptional customer service action plans that will develop customer
loyalty from additional purchases to making those precious referrals.
Customer Service Coaching Tip: Survey your customers and ask them the level
of your customer service satisfaction based upon their expectations
(not yours)? Then also ask them if they would refer your business to someone
else? Finally, asked them the last time that they referred someone to
your business. These 3 questions will help you build an action plan to
secure an exceptional high performance culture that will improve your bottom
line
results.
Is your business facing inconsistent or insufficient cash flow, lacklustre
sales to poor productivity? Then do you have an action plan or are you
Captain
Wing It flying by the seat of your pants?
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