Author: JoAnna Brandi
Summer is baseball season. Baseball is a game of percentages, where the smallest difference can mean a lucrative major league career or years languishing in the minor leagues. Customer service is also a "game" of percentages that can mean the difference between agency success and failure.
Summer is baseball season. Though I don't often read the sports page, I do occasionally stop and watch a few minutes of local games because it always brings a smile to my face. Perhaps it brings me back to my young adulthood when we'd pack the kids up and head out for the sights and sounds of a ballgame. The kids were thrilled, and that made it reason enough to go.
I don't know a lot about the game but I remember lots of talk about batting averages. I was always impressed with the way the guys knew all the numbers, and as time went on the gals knew lots of the numbers, too. It didn't take long for me to realize that even five percentage points in a batting average could make a big difference.
If you play outfield, and you're batting .275, you shouldn't give up your day job. But if you're able to hit a .325, you're an all star. YAY!
Batting .275 means you score a hit 27.5% of the time you go to the plate. If you could hit a .325 - meaning you hit 32.5% of the time - you're a hero! It's a difference of only five points. A scant five points determine who gets the competitive edge.
I learned this concept from Frederick Reicheld, the leader of Bain & Company loyalty practice and author of The Loyalty Effect When he challenges you to look at your retention rates he asks, "What percentage of your customers come back each year because you gave them such good value they want to try it again?" Great question! How many of us know the answer?
The research Fred did in the field and reported in his book taught him that a five percentage point lift in retention (5%) had an "explosive impact on profits." Those words make me very happy. He found that depending on the industry (and of course, the fixed costs), a small increase in retention rate - just 5% - could drive profits up 25-100 %.
WOW! That's a powerful argument for taking better care of customers.
All of which brings me to a recent poll we conducted, where we asked:
So what's the world of "service" out there look like to you these days? Thinking back over all the service experiences you have had over the last six weeks or so, please rate the service you have received as a customer.
4% Said, "Really great"
16% Said, "Better than average"
50% Said, "Okay - but not worth talking about"
30% "Just plain lousy"
Oh my goodness! Only 20% of our responding audience felt that service was better than average. There's an enormous competitive advantage waiting to happen!
Now, I know that subscribers to this newsletter are already a cut above the rest - and that I am, as they say, "preaching to the choir." But what can we learn from these numbers - how can we turn them into our advantage? Only a few more percentage points make you a hero!
So let's see - what are the kinds of things that you can do to outshine the competition? Sometimes even little things make a big difference in your overall score.
Answer the phone and all email inquiries promptly. Follow up and return calls.
Make it easy for customers to find the answers they need. Streamline your ordering process. Give customers the info they need to serve themselves on your website (that is, if they want to serve themselves). Give them options.
Help customers understand how to use your products and services better. Discover why they really buy and what they are buying. (Are they buying tires or security, a couch or comfort?) Develop an easy way for them to give you feedback, and maybe even reward them for it. Never be defensive when they are offering you a complaint (see it as a gift - or better yet, free consulting).
Understand their expectations from their point of view, and make sure everyone in the organization understands them as well. Develop a set of standards that have evolved from your values and their expectations. Involve everyone in the process.
Read, study, train, teach, coach, role-play, practice, and hone your skills in relationship building every day. Practice may not make perfect, but it does make profit. Adopt a more positive attitude. Create the kind of customer experiences that they can call "Exquisite."
And smile - even while you're on the phone. It's not that hard to get the edge on the competition!
See you at the Series...where your batting scores show up on your bottom line!
JoAnna
P.S. Looking to sharpen your competitive edge? (Remember, just a small increase in your customer retention rate - just 5% - could drive profits up 25-100 %.) Use our latest management training tool - the Customer Care Coach®. Why train with the Coach? Well, since '5' is the number du jour, here are five benefits to managers who enroll in the course:
You'll gain an all-new view of your ability to powerfully and positively impact the lives of your employees and customers.
You'll learn how to keep your team happy, fulfilled and engaged in their work. (Psssssst! That means less employee turnover!)
When your staff is happy, they're more likely to consistently create the kinds of 'Exquisite Customer Experiences' that lead to loyalty.
Loyal customers give you increased wallet share - and refer their friends and colleagues to you.
Cha-ching!! When you keep customers, you create profits!
Copyright 2005 by JoAnna Brandi. Used with permission.