Tips for Effective Leadership
Effective leaders have the guts to look
at what others do …
Don’t satisfy your customers! Wait, you say, I thought customer satisfaction is the key to business success? Yes, it’s the ticket to get into the ball game, but it won’t insure that you are going to win!
Think about a recent service encounter that they remember --- What do you remember? I’ll bet you recall the extremes --- service providers who messed up and those that exceeded your expectations. Seldom does anyone recall a service provider who has met their expectation, that is, satisfied them. That means only if you and your team members consistently exceed your customers’ expectations will customers remember you and your organization. And if they forget your organization often enough, you’ll feel the impact on your bottom line very soon.
How much of an impact? Researchers who analyzed the buying behavior of 1,500 PNC Bank customers found clear evidence that customers who ranked themselves as “highly satisfied” (the highest level of satisfaction) maintained a bank balance of nearly 20% greater than those customers who were “satisfied” (the second highest level of satisfaction).
The researchers also compared the impact of different levels of satisfaction on profitability by dividing 400 PNC branches into three tiers. The top tier contained the 15% of the branches who had the highest percentage of highly satisfied customers. The middle tier comprised the middle 70%, and the bottom tier consisted of the 15% of the branches who had the fewest highly satisfied customers. Using revenue per employee --- a key indicator of bank profitability --- researchers found that the top tier branches had 23% higher than average revenue, while the middle fell 3% and the bottom tier fell 9% below average revenue.
The researchers concluded: “Those [customers] displaying the highest level of satisfaction are, in economic terms, significantly more attractive than those showing only moderate levels of satisfaction. And a customer who stays highly satisfied becomes steadily more attractive over time.”
So, what can you do to exceed your customer’s expectations?
Dr. Wolf J. Rinke is a management consultant, executive coach and keynote speaker dedicated to helping organizations and individuals maximize their potential. In addition to his new book Don't Oil the Squeaky Wheel … and 19 Other Contrarian Ways to Improve Your Leadership Effectiveness (McGraw-Hill, May 2004), he is the author of several other best-selling books including Winning Management: 6 Fail-Safe Strategies for Building High-Performance Organizations. Rinke can be reached at 800-828-9653, WolfRinke@aol.com or www.WolfRinke.com .
Media Contact: Cindy Kazan: 414.352.3535; firstname.lastname@example.org .
Many more articles in Customer Service in The CEO Refresher Archives