Excerpt from Forbes Magazine…
Your frontline employees often know what’s wrong in your company before you do. They can tell you what delights customers and what frustrates them and, perhaps more importantly, they can tell you “why.” They can tell you why some customers are buying more of your services, while others are returning products, canceling contracts, and taking their business elsewhere.
The problem is that many companies aren’t listening.
Fred Reichheld says companies “can’t earn the loyalty of customers without first generating enthusiastic engagement and loyalty from employees, especially frontline employees.” The evidence bears this out. When the Medallia Institute compared employee engagement and customer loyalty across more than 130 retail outlets, we found that stores with more engaged employees (measured by the likelihood that they would recommend the store as a place to work) had customer loyalty ratings that were 12 percent higher than stores with less engaged employees. Stores with high employee engagement also achieved greater increases in customer loyalty year-over-year, while stores with low employee engagement saw loyalty drop. Further, according to Bain & Company, a five percent increase in customer loyalty can increase a company’s profitability by 25 to 95 percent. That’s a nice boost to your bottom line.
If this leaves you wondering how to ramp up engagement, I have two suggestions:
- Order my book, The Five Firsts, A Simple System to Engage and Retain Top Talent
- Start using Stay Conversations (aka Stay Interviews) right away. For a free, explanatory article, text the word “stayinterview” to 44222.