Recognise This! – Change the conversation about the importance of employee engagement by communicating to your CFO how you can affect a 5% increase in sales.
Rounding out a weeks’ worth of posts on employee engagement is a brief look at the impact of employee engagement on customer service and – consequently – your bottom line.
HR Magazine recently reported:
“As the UK readies to serve the world at the London Olympics, research reveals a pressing lack of engagement among UK frontline service staff.
“Consumers complain of bored and disinteresting staff working in high street shops and utilities companies, according to the study among 2,000 consumers by the Institute of Customer Service.
“But UK businesses may be missing an opportunity to maximise revenues, as one in four consumers are willing to pay more for their goods and services – on average 5% more – for better service.”
Is anyone really surprised by this finding? I’ve certainly walked out of stores where I experienced poor service.
US retailer Nordstrom’s is an excellent example of the importance of customer service. Nordstrom’s is known for its high-level of customer service. Indeed news about its entry into the highly competitive Manhattan retail market refers to Nordstrom this way: “envied by rivals for its top-notch customer service.”
An equities analyst is on record commenting that Nordstrom’s move into Manhattan will force long time stalwarts like Macy’s, Saks Fifth Avenue, and Bloomingdales to “up their game, particularly in customer service.”
How much additional revenue are you leaving on the table due to poor customer service that’s a result of disengaged employees? What would an additional 5% revenue to your bottom line be?