How to Improve Your Customer Loyalty and Double Your Growth Rate
Most companies today, 87% according to research, have a poor to average customer loyalty. It costs them millions in lost sales and profits. Few managers or executives know how to fix the problems. Rick will highlight that research in this video. In addition, he share details about five cultural habits of customer driven companies. Companies that apply these habits create gold mines for their organizations.
Key Research on the Bottom-line
- According to Harvard Business Review, The Employee-Customer Profit Chain, a 1.3% improvement in customer satisfaction scores results in .5% improvement in sales.
- The Profit Impact of Market Strategy found that companies, who lead in service charge 9% more, gain 8% more market share, have 12x the profitability and 9% greater growth than poor service providers.
- A Bain & Company survey of 362 companies found only 8 percent of customers surveyed described their experience as superior. Yet, 80 percent of the companies surveyed believe that the service they provided was indeed superior. Bain found that only 22% of the world’s major firms achieved a 5% growth rate over a ten year period of time. Bain found that increasing customer loyalty drives growth. They show that a 12 point increase in the net promoter score doubles a company’s growth rate.
- An ACSI study proved that the leading companies consistently outperformed the market by considerable margins. ACSI leading companies outperformed the Dow by 93%, the Fortune 500 by 20%.
5 Cultural Habits of Customer Loyalty Leaders
If you study the best companies, there are clues to success. It involves:
- Employee engagement
- Training and development
- Customer experience measurement
- Continuous improvement
Unfortunately, too few companies are willing to change. One organization we contacted had tried for a decade to get better. The corporate annual report talks about a commitment to the highest levels of customer loyalty. Yet, it continued to lag at the bottom of its market in service studies. Eventually, they were bought out by a better competitor. Unless exemplary customer service has been a part of a company’s culture for a long time, it’s almost impossible for it to improve results. They need a expert partner to help keep them focused. Too often competing corporate priorities will derail the effort through a lack of funding or support.
The good news is that their is a road-map to follow with proven principles and strategies. Yes, it takes change, but if companies leaders catch the vision, success is possible. The customer has the power today and even more so in the future. Today, they want it all: convenience, innovation, price, product and service. Are you ready?
By the way, do you want more information to improve your customer service and loyalty? Check out this complimentary article Creating Sustainable Customer Loyalty and Sales Increases.
Or, do you want a more in-depth proven process to make a bottom line impact improving your customer experience? Then check out this new eBook, Designing a Superstar Customer Experience.