Short- term business strategies a danger in 2011

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

Separation costs

Replacement costs

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

Continual development

End

For further information – chris@customerexperiences.co.nz mob 027 2792360 www.customerexperiences.co.nz