20Jan Customer Service And The Bottom Line – Businesses Fail To Connect!
82% of European companies believe that customer service is ‘very’ or ‘moderately’ important to their financial performance. According to a new report by BDO International, 60% of European companies admit that poor customer service has had a clear, significant impact on their financial performance! The report highlights that:
- 28% have lost customers as a result of poor customer service
- Service failings have hit the share price of 15% of them
- 24% have had to compensate customers due to poor service
That might not be particularly surprising – it’s common sense stuff isn’t it? It might actually be ‘rare sense’! Although they see it as important, many are doing very little about it! The report says that only a third of them (37%) have a strategy to link customer service and bottom line!
- 28% have made no investment in service whatsoever in the last two years.
- Only 29% have a designated head of customer service on the board
- Only 28% of business leaders said their company aims to exceed the expectations of their customers in the things that matter most to them.
- 92% say that employee and other internal issues are taking precedence over customer concerns
So, what does this mean for your business? Well, I’d suggest that a starting point is to ensure that customer service is an integral part of your strategic approach and that steps are taken to ensure that the link between customer service and the bottom line is recognised, and crucially, is managed!
In fact, our research suggests that winning businesses recognise the link between customer service and the bottom line, and crucially, work on maximising both! We’ve identified 7 Common Characteristics in winning businesses.
– Have ‘That Vision Thing’!
Customer service is an integral element of their vision and key corporate goals and targets, and they ensure that everyone has bought into these goals and understands the role they play in making them happen.
– Think in 3D!
That means they establish a Dramatic and Demonstrable Difference, and very often, ‘remarkable’ customer experiences are an integral element of that ‘Difference’.
– Create Delighted and Devoted Customers!
They exceed customer expectations (that’s customer delight!) and strive to do this consistently to create ‘devotion’ which means repeat business, referrals, more business and more profits!
– Forget CRM, Think MCR!
That means that they Maximise Customer Relationships and proactively give the best to, and get the best from, the customers they want – it’s a strategic approach that links great service to profitability.
– Create an UBER Culture!
Everyone Understands what’s expected of them, systems and processes are Built to support this, employees are Encouraged, Empowered and Enabled to deliver and they are Rewarded and Recognised for doing so – Again, there’s a link between customer service and financial goals and targets.
– KeeP In Control!
They monitor and measure performance and the impacts that their customer experiences are having on their customers and on their bottom line – they establish Key Performance Indicators to recognise and manage the links between the two!
They continuously and proactively work to improve both their customer service and their bottom line, and get everyone in the business doing so too!
For more information on the 7 Characteristics of 3D Businesses, you can visit here and download a free E-Book!