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
T.800.810.0572 | http://www.inkelement.biz
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