customer loyalty « Fired Up!

Posts Tagged ‘customer loyalty’

Head-Shaking Service

Sunday, August 29th, 2010

Do your customers shake their heads in disbelief – not because things are bad – but because things are amazing… no, extraordinary?

I read this great new phrase, “head-shaking,” in an article in Staffing Management Magazine that describe the responses customers have at Umpqua Bank, a Portland, Oregon-based bank chain. Not only has this bank ranked in the prestigious 100 Best Places to Work list for the fifth consecutive year, but it is also a bank – at a time when banks are so unpopular.

This organization has a culture that engages and inspires its employees. All employees are actively focused on exceptional service and are committed to the goals and direction of the company.

So I have to ask – why is this the situation the exception instead of the norm? Why are we so impressed when employees provide outrageously great service, and that employees could actually like working for an organization?

More and more organizations are becoming aware that what drives the bottom line is customer loyalty, inspired by employees who consistently do exceptional things for customers to engage them emotionally in the service event. Most any organization can ensure a customer gets what he asks for. But this level of service does not inspire customer loyalty – only satisfaction. And satisfied customers don’t necessarily come back, and they rarely tell their friends about you – loyal customers do. Loyalty drives the bottom line.

So to move from satisfaction to loyalty requires employees who not only work hard to always get it right for customers, but are emotionally invested in doing the extras to win customers for life.

So let’s look at what needs to be in place to engage and inspire this kind of employee performance:

1. The employee must be working in a role in which he feels capable and competent, and which appeals to him. Great performance never happens when employees are not good at, or hate, what they do.

2. The organization has a clear and compelling vision (“why” statement) that attracts like-minded people as employees and customers, and a commitment to greatness.

3. Management believes that it must first be an employee-focused workplace, and by building a culture that supports employees, the organization becomes a customer-focused organization. The workplace openly values, communicates with and respects its employees.

Organizations like Umpqua Bank understand the connection between great results, loyal customers and engaged employees – they work daily to create a powerful workplace culture that activates and supports the best from their employees. Then, employees are emotionally invested into the process of service greatness – they own their work, their impact, their reputation and their results.

How “head-shaking” is your service?

Please pass this on to someone who can benefit from it and contact me to help you create an employee-focused workplace capable of providing “head-shaking” service.

Tags: bottom line, customer loyalty, customer satisfaction, exceptional employee performance, extraordinary customer service, workplace culture
Posted in For Managers | No Comments »

You Are Not The Only Game In Town

Saturday, August 14th, 2010

Remember the soup nazi in the Jerry Seinfeld television series? His soups were so good that he could dictate who he would serve and who he would send away. He owned that market. He didn’t have to listen to what his customers said – they bought what he sold.

Fast forward to 2008. General Motors, Ford, Chrysler were making cars that few were buying. An economic recession reminded them that the products they make must meet the needs, values and interests of those they hope to sell to. So if you don’t want to make a car that gets exceptional gas mileage, includes the extra safety features important to your customers, or carries a cost that is prohibitive, then customers will go elsewhere. And they did.

In the August 13, 2010 New York Times article, “Detroit Goes From Gloom to Economic Bright Spot,” writer Bill Vlasic stated, “Detroit has vowed to change before, slimming down when sales slumped or pouring resources into vehicle quality to catch up to foreign competitors. Many auto analysts say the current makeover has a more permanent feel, largely learned from the near-death experience of last year’s bankruptcies at G.M. and Chrysler.”

This is just one industry where customer disconnect and management hubris sent the large players falling. What matters most are the lessons learned; here are several of the most important:

1. In a connected world, you are never the only game in town.
2. Always know your customers – what they want, need and value.
3. You earn the privilege of serving your customers by knowing them well, responding in an exceptional way, and by standing behind your product or service.
4. To be retained, employees must add value and make a difference; there is no right to employment – it must be earned.
5. Strip the excesses from the business – run lean, efficient and effectively.
6. Develop a “here today, here tomorrow” mentality; be strategic.

In today’s world, a company must stay connected its employees and customers, and all products or services must be responsive and responsible. We are rarely the only game in town. That is okay – it forces us to improve our game and constantly focus on greatness.

Please forward this to someone who can benefit from it and contact me to help you activate your employees to create sustainable value for your customers and organization.

Tags: auto industry, business failure, business strategy, Chrysler, customer loyalty, employee loyalty, employee motivation, Ford, G.M., management, recession, survive the recession
Posted in For Managers | No Comments »

Why Should The Best Work For You?

Sunday, August 8th, 2010

Top performers are the key to building customer loyalty, and customer loyalty is the driver of company profitability. Your people drive your profits. You need the best people – those who are good at what they do, passionate about doing and believe in your compelling and clear purpose. All company success starts with exceptional people.

And people talk. So, what is the word on the street about your business? Is it a great place to work? Do only the best work there? Are employees encouraged to be their best and do great things? Or, are you known as being difficult to work for, don’t value your employees and don’t move the world for your customers?

Your brand, your image, your impression – what do you create and why should anyone work for you?
“Once an organization earns a reputation for rewarding excellence and rejecting mediocrity, it can become a magnet for top performers.” This quote from Christopher Gergen and Gregg Vanourek shares some critical wisdom – when you commit to excellence and greatness, you attract it. Build a great employee-focused workplace and the best people will come.

Check in on the follow areas of your business and determine if greatness is what guides your approach:
1. Do you have a clear and compelling vision that employees and customers can believe in and rally around?
2. Do you hire people based on their talents, passions and commitment to greatness?
3. Do you provide opportunities for your employees to constantly learn, develop and improve?
4. Do you stay in constant contact with your employees, dialoging about challenges, sharing successes and coaching performance?
5. Do you share performance expectations, so every employee knows what is expected, and that all employees are fully accountable for their value contribution?
6. Do you build a culture that employees feel important, supported, cared for, listened to and most of all, appreciated.

So, what does the world know of your business and culture? Do the exceptional employees find you, and once hired, stay because of what you do and how you do it?

You build your company’s workplace brand everyday. Commit to becoming the employer of choice and build a culture that supports it. This attracts the best employees, who inspire customer loyalty, which drives the bottom line. It starts with employees. And it is true, build it (a great workplace culture) and the best (employees) will come.

Please pass this on to someone who can benefit from it, and contact me to help you create a powerful employee-focused workplace culture that attracts and retains the best employees.

Tags: bottom line, culture, customer loyalty, employee performance, employer of choice, workplace culture
Posted in For Managers | No Comments »

Employees Matter More Than Customers

Monday, May 31st, 2010

As I work with organizations, I generally ask, “Who is more important, employees or customers?”

In most cases, they say “customers.” Customers are the reason for their business; their goal is to satisfy their customers. I disagree.

Okay, this is really a trick question because ultimately organizations must be customer-focused. But the point is that in order to do extraordinary things for your customers, you must have extraordinary employees. So build an employee-focused culture first to create your customer-focus.

Employees who are not engaged, capable and passionate about their work will not connect in a way that will inspire customer loyalty. Loyalty matters, satisfaction does not. Organizations need employees to do extraordinary things to move customers from satisfied to loyal. This comes when employees feel they are valued, important and critical to the success of the business. This is created in the organization’s culture.

No employee-focused workplace, no extraordinary employees. No extraordinary employees, no customer loyalty. No customer loyalty, no great results.

Here are my 10 components of a powerful employee-focused culture (presented in greater detail in my book, Fire Up! Your Employees and Smoke Your Competition):
1. A clear and compelling company vision or purpose.
2. Clearly defined ethical standards.
3. A competent talent-based employee selection process.
4. A dynamic on-boarding process.
5. A fair and attainable reward and incentive process.
6. Fair and recurring performance feedback.
7. Regular skill development.
8. Regular career development.
9. Succession planning and mentoring.
10. An inclusive and diverse work environment.

How you treat your people determines how your people treat your customers. Focus first on employees to ultimately focus on customers. How employee-focused is your workplace culture?

Please forward this to someone who can benefit from it and contact me to help create a powerful employee-focused workplace culture.

Tags: components of company culture, corporate culture, customer loyalty, employee culture, employee loyalty
Posted in For Managers | No Comments »