How One Moment of Truth Builds Customer Loyalty through the Behaviors of Your Employees
How One Moment of Truth Builds Customer Loyalty through the Behaviors of Your Employees
Recognizing that acquiring a new customer costs 6 to 7 times more than keeping an existing one and the cost to replace an employee ranges from one to three times the annual salary, common sense should tell most businesses that customer loyalty is a no brainer. This leads to the question of how are your employees building customer loyalty?
Here is a story that I just found that explains a real life experience. Of course you can find others in Carlzon’s book Moments of Truth.
Lesson from a Rainy Day (Author Unknown)
August 26, 1999 is a day that many New Yorkers would probably like to forget. However, this New Yorker will always remember that day because that is the day that I learned what a powerful gift appreciation can truly be.
On August 26, 1999, New York City experienced a torrential downpour. The relentless rain caused the streets to flood. New York City's subway system came to a screeching halt as the subway stations were inundated with water. Unfortunately, this happened during the morning rush hour. Many people who were going to work were stranded and forced to go home. Some battled with fellow New Yorkers to hail a
cab or to get on a bus. Still others braved the storm, walking miles to get to work. I happened to be one of people on her way to work that morning. I went from subway line to subway line only to find that most service had stopped. After running around like crazy and making my way through crowds of people, I finally found a subway line that was operating. Unfortunately, there were so many people waiting to board the subway that I could not even get down the stairs to the platform. Undaunted and determined to get to work, I decided to take the train uptown several stops and then switch back to the downtown train. It was a hassle, but it paid off. However, the train got more packed at each stop. People pushed and shoved. I was constantly hit with elbows and bags.
Finally, after what seemed like an eternity, the train reached my stop. But the journey was not over yet. I would still have to walk several blocks to get to my office. The rain had intensified, and no umbrella was enough to withstand the forces of Mother Nature. When I finally got to work, I was completely soaked and left a puddle of water everywhere I sat. I was also exhausted and discouraged from my commute. My coworkers and I spent most of the day drying off.
When 5:00 rolled around, I was ready to go home. I was about to log off my computer when I received an email from Garth, my Deputy Director. I opened the email and found the following message: I would like to thank all those associates who made the effort and eventually reported to work. It is always reassuring, at times like these, when employees so clearly demonstrate their dedication to their jobs. Thank you.
As you can see, Garth's email was short, but I learned more from that brief message than I ever did from a textbook. The email taught me that a few words of appreciation can make a big difference. The rainstorm and the transit troubles had made me miserable and weary. But Garth's words immediately invigorated me and put a smile back on my face. Garth's actions also made me realize that words of appreciation not only make you feel good but it also motivates and inspires you. After reading his email, I felt that coming to work that day was an accomplishment that I should be proud of. Suddenly getting drenched and the extremely long commute did not seem so bad. As a matter of fact, his email made the whole subway ordeal all worthwhile.
Wow, just a short email message acknowledging an employee’s dedication created an incredibly strong moment of truth. Additional employee retention research suggests that simple and authentic acknowledgments such as:
Thank you for your efforts,
A job well done,
You are a valued member of this team
Are far more emotionally powerful than any monetary incentive. People want to be acknowledged and affirmed for making the right decision on the job. And the beauty of this is that it doesn’t cost anything. In this case, the cost was less than 30 seconds to send an email to everyone who had come to work.
Customer Loyalty Coaching Tip: Appreciation is a value. The behavior of sending an email demonstrated that value. If you want to build customer loyalty both internally (employees) and externally (paying customers), then return to your values statement (you do have one don’t you?) and identify the specific behaviors linked to those values. From my experience, this is not necessarily easy because many do not connect specific behaviors to specific values. However, the desired end results of saving thousands of dollars in new client acquisition costs to employee retention costs is well worth the investment of your time, energy and any dollars.
How One Moment of Truth Builds Customer Loyalty through the Behaviors of Your Employees - To learn more about this author, visit Leanne Hoagland-Smith's Website.
Like this article? Share it with your friends
Jan Carlzon, one time president of Scandinavian Airlines, defined moments of truth as any interaction between your customers and your employees. These experiences can be further separated into what are called by some as Points of Connection that are anything your customers see, hear, touch, taste, feel or smell.
Recognizing that acquiring a new customer costs 6 to 7 times more than keeping an existing one and the cost to replace an employee ranges from one to three times the annual salary, common sense should tell most businesses that customer loyalty is a no brainer. This leads to the question of how are your employees building customer loyalty?
Here is a story that I just found that explains a real life experience. Of course you can find others in Carlzon’s book Moments of Truth.
Lesson from a Rainy Day (Author Unknown)
August 26, 1999 is a day that many New Yorkers would probably like to forget. However, this New Yorker will always remember that day because that is the day that I learned what a powerful gift appreciation can truly be.
On August 26, 1999, New York City experienced a torrential downpour. The relentless rain caused the streets to flood. New York City's subway system came to a screeching halt as the subway stations were inundated with water. Unfortunately, this happened during the morning rush hour. Many people who were going to work were stranded and forced to go home. Some battled with fellow New Yorkers to hail a
cab or to get on a bus. Still others braved the storm, walking miles to get to work. I happened to be one of people on her way to work that morning. I went from subway line to subway line only to find that most service had stopped. After running around like crazy and making my way through crowds of people, I finally found a subway line that was operating. Unfortunately, there were so many people waiting to board the subway that I could not even get down the stairs to the platform. Undaunted and determined to get to work, I decided to take the train uptown several stops and then switch back to the downtown train. It was a hassle, but it paid off. However, the train got more packed at each stop. People pushed and shoved. I was constantly hit with elbows and bags.
Finally, after what seemed like an eternity, the train reached my stop. But the journey was not over yet. I would still have to walk several blocks to get to my office. The rain had intensified, and no umbrella was enough to withstand the forces of Mother Nature. When I finally got to work, I was completely soaked and left a puddle of water everywhere I sat. I was also exhausted and discouraged from my commute. My coworkers and I spent most of the day drying off.
When 5:00 rolled around, I was ready to go home. I was about to log off my computer when I received an email from Garth, my Deputy Director. I opened the email and found the following message: I would like to thank all those associates who made the effort and eventually reported to work. It is always reassuring, at times like these, when employees so clearly demonstrate their dedication to their jobs. Thank you.
As you can see, Garth's email was short, but I learned more from that brief message than I ever did from a textbook. The email taught me that a few words of appreciation can make a big difference. The rainstorm and the transit troubles had made me miserable and weary. But Garth's words immediately invigorated me and put a smile back on my face. Garth's actions also made me realize that words of appreciation not only make you feel good but it also motivates and inspires you. After reading his email, I felt that coming to work that day was an accomplishment that I should be proud of. Suddenly getting drenched and the extremely long commute did not seem so bad. As a matter of fact, his email made the whole subway ordeal all worthwhile.
Wow, just a short email message acknowledging an employee’s dedication created an incredibly strong moment of truth. Additional employee retention research suggests that simple and authentic acknowledgments such as:
Thank you for your efforts,
A job well done,
You are a valued member of this team
Are far more emotionally powerful than any monetary incentive. People want to be acknowledged and affirmed for making the right decision on the job. And the beauty of this is that it doesn’t cost anything. In this case, the cost was less than 30 seconds to send an email to everyone who had come to work.
Customer Loyalty Coaching Tip: Appreciation is a value. The behavior of sending an email demonstrated that value. If you want to build customer loyalty both internally (employees) and externally (paying customers), then return to your values statement (you do have one don’t you?) and identify the specific behaviors linked to those values. From my experience, this is not necessarily easy because many do not connect specific behaviors to specific values. However, the desired end results of saving thousands of dollars in new client acquisition costs to employee retention costs is well worth the investment of your time, energy and any dollars.
How One Moment of Truth Builds Customer Loyalty through the Behaviors of Your Employees - To learn more about this author, visit Leanne Hoagland-Smith's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
Dianne CramptonDianne Crampton is an executive leadership coach, team culture consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. Dianne's contribution to the 2010 Pfeiffer Consulting Journal (an imprint of John Wiley and Sons Publishers) entitled TIGERS Hearted Teams is available in November 2009. Her new book TIGERS Among Us: 5 Winning Business Team Cultures And Why, Three Creeks Publishing will release in March 2010. To receive publishing discounts, subscribe to the free TigerTracks Newsletter here. - Visit Dianne Crampton's Website |
|||
Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
|||
Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Leanne's articles
 | |
|
|  |
 | |
|
| |
 | ||
|
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
 |
 Business Coaching Entrepreneur Flight Manual Risk Management Measure Customer Loyalty Become a Better Closer! |
|
 | ||
 |
Guide To ERP Software
Business Management Software | |
 |
Top 50 Diversion Blogs
Top Diversion Blogs of 2009 | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
| ||||||||||||
| ||||||||||||
|
|
||||||||||||