Industry Trends
In today’s highly competitive marketplace there are numerous companies who offer similar products at comparable prices. Establishing a solid reputation and a significant share of the market requires strategic planning and thinking outside the box. Products are unique for a very short time and prices can be lowered only so much if a profit is to be gained. The only way to really set yourself apart as an industry leader is to become known for your superior customer service.
The knowledge that the quality of customer experience can influence a customer’s decision to switch to a competitor by as much as 18% is prompting companies to take action. It is also cited as one of the main reasons why 85% of companies who were surveyed, stated that customer experience will play a critical or very important role in their competitiveness. Throughout Canada, the demand for quality customer service has never been greater. Customers are increasingly intolerant of poor experiences and aren’t shy about expressing their dissatisfaction. (Source: 2009, SAS Institute Inc. and Peppers & Rogers Group, USA)
According to Shane Gibson, executive vice-president of Knowledge Brokers International, the main reasons why customers don’t return, can be attributed primarily to the following: customer complaints that are handled improperly (14%) the indifferent attitude of management and staff (68%) and concerns regarding price (9%). These numbers are significant, since boosting customer retention by as little as two per cent has the same effect on profits as cutting costs by 10 per cent.
Yet despite the obvious need for enhanced customer service training programs, there are very few companies offering customized training and service solutions that focus on both customer and employee retention as their primary objectives.
What makes employee retention so critical?
Seven years ago, Delta Hotels began to think seriously about how to improve the overall quality of its hotels. Using the National Quality Institutes (NQI) Model of Excellence, Delta began taking accountability for every aspect of its business processes measuring success and rewarding progress.