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Short term quick fix thinking must go in 2011 if business is to make any sustainable progress, this according to Chris Bell Managing Director Customer Experiences an organisation specialising in the development of high quality customer experiences.
New Zealand SMEs have a reputation for short term thinking however it’s now time to stand back and recognise just how important some of the non financial drivers are and the significant impact they can have on a businesses growth and profitability.
Customer loyalty is declining; high employee disengagement is having a dramatic impact on productivity, customer word of mouth is now more powerful than any other form of advertising and increasing commoditisation is making it extremely difficult to develop a sustainable competitive advantage.
All this according to Chris Bell is driving an increasing focus on price with the resulting impact on profitability.
If business focuses more on engagement, loyalty, staff turnover and the overall quality of the customer experience, business would benefit from not only a long-term strategic view but a more holistic approach to growth and profitability.
The following recent survey results back up Bells suggestions
Exceeding customer’s expectations
50 percent of satisfied customers and 25 percent of very satisfied customers are doing business with a competitor.
The value of positive word of mouth
83 percent will act on a recommendation over any other form of advertising
The damage of negative word of mouth
A customer will tell on average 8-10 other people – Colmar Brunton
Increased employee engagement
80 percent of market value comes from the intangible
Higher engagement = higher growth
The savings from low staff turnover
Skill development costs
Lost productivity costs
The value of a sustainable competitive advantage
Competitors don’t have it and don’t know how to get it
An investment not a cost
Strong word of mouth