Why Are Your Customers Considering Leaving?
There are a number of variables that account for customer
attrition. However, indifference towards the customer by an employee or
employees finds itself as the leading catalyst for customers choosing to leave
a company in favor of a competitor.
Author and lecturer, Tom Peters reinforces this point in his
book, In Search of Excellence.
Over the course of 20 years, Peters conducted an extensive study to determine
the primary reasons consumers quit purchasing from one business and switched to
a business offering similar products and/or services
The study showed that customers left for the following reasons
·
3%-Move Away
·
5%-Other Friendships
·
9%-Competitive Reasons
·
14%-Product Dissatisfaction
·
68%-Indifference Towards Customer by an Employee or Employees
Companies can't control families relocating out of their service
area, but they can address feelings of indifference and lack of appreciation
among customers head-on with the implementation of an employee incentive
program that works to reduce customer attrition rates and improve customer
retention, while invigorating apathetic employees and maximizing performance.
A well developed employee incentive program that motivates,
incentivizes and rewards employees for their commitment to customer service can
significantly reduce attrition, increase sales and long-term profitability
through customer retention.
A Serco Study conducted over the course of three years found
that engaged employees improved customer satisfaction 12% which results in
decreased levels of attrition.
Furthermore, a PNC Bank Corp. survey concluded that
knowledgeable and attentive employees account for 80% of the reasons customers
feel satisfied. We all know satisfied customers are loyal customers.
Additional evidence suggests that engaged employees are crucial
to the bottom-line. A Towers Watson study determined that companies with a
highly engaged workforce improved operating income 19.2% over the course of 12
months, while low levels of engagement among employees reduce operating income
32.7% over the same period.
Focus on your Employees to Reduce Attrition
Many marketers fight attrition by focusing on customer
retention. Specifically, they direct their marketing resources directly at the
customer. There is little doubt that this approach is necessary and essential
to long-term profitability. However, far too few companies consider
implementing an employee incentive program in conjunction with customer
retention efforts.
It's no secret that committed and engaged employees improve
customer satisfaction and reduce churn, but their impact on revenue is
significant. IES found that a 1% increase in employee commitment leads to a 9%
increase in sales in as little as one month.
Marketers can greatly enhance their customer retention efforts
if they harness the power of their employees through an effective and well
executed employee incentive promotion.
The Award Zone is comprehensive employee incentive program
designed to motivate, incentivize and reward employees for their commitment to
customer satisfaction.
The Award Zone harnesses the power of technology to provide a
turn-key employee incentive program for marketers that requires little to no
effort on their end, allowing them to focus on core-competencies.
Employees earn tangible rewards for their commitment to customer
satisfaction and marketers reap the benefits of reduced attrition and increased
revenue.
Additional information regarding The Award Zone can be obtained
by contacting the author.
Oliver Gagnon Principal
