Posted 09/08/2016

The Most Profitable Metric

The Most Profitable Metric

In the hectic peaks and valleys of everyday business, it’s easy for staff members to lose sight of who their real boss is: The Customer. The demands of office routines and procedures, regulatory compliance, and unpredictable “fires” can quickly pull the focus away from creating a 5-Star service experience for patients or customers.

“Great customer service” is a concept to which everyone pays lip service — but how important is it really to your bottom line?

The Watermark Consulting group studied the direct impact of exceptional customer service on a company’s profitability.

They looked at the cumulative stock returns for two groups of companies: the top 10 “Leaders” in Forrester Research’s Annual Customer Experience Index Rankings, and the bottom 10 “Laggards.”

The analysis covered nearly ten years of company performance results. It spanned from the pre-recession market peak in 2007 to the post-recession recovery that continues today.

The difference in results was astounding.

The top 10 Leaders in Customer Experience outperformed the general S&P market average by 35%. The Laggards posted cumulative returns an average45% lower than the market average.

The companies that ranked highest in Customer Service were on average80% MORE profitable.

So here’s the BOTTOM LINE:  Great customer service is more than a nice business theory. It is rewarded, by customers and investors alike, with real financial growth.

That you are good at what you do in your practice is expected by today’s consumer… It is world class customer service that will set you apart from your competition.

When you dedicate yourself to consistently providing a positive, memorable customer service experience, you get:

  • Higher revenues— customers stay with the business longer, are less price sensitive, spend more frequently, and generate positive word of mouth (online and off).
  • Lower expenses—fewer new customers are needed to stay profitable, new customers are attracted organically, employees deal with fewer complaints, and the service requirements of happy, loyal customers are far less intense.

Compare that with businesses with poor customer service. They are weighed down by just the opposite: a poor experience that stokes customer frustration increases customer attrition, generates negative word of mouth and drives up operating expenses.

A great customer experience and the internal ecosystem supporting it can deliver massive strategic and economic value to a business in a way that’s difficult for competitors to replicate.

Customer satisfaction is the most important and most profitable aspect of your business. It’s the metric that every business should be carefully measuring and responding to. So the question becomes: How do you measure it?

It’s actually very simple: You create a specific monthly goal of earning and obtaining 5-Star online reviews, and you manage your team toward achieving that goal.

There are is endless number of metrics you can measure in your business. But if the customer is the real boss who ultimately writes everybody’s checks, customer satisfaction is the metric you should be most obsessed with measuring and improving.

Want to know more?

Get the full report for FREE: Click to download “The 7 Ways Your Online Reputation is Killing Your Business (and how to fix it)” by Richard Roll, M.B.A., and founder of ReadySetBoom.com.

Take control of your online reputation, and grow your business today.

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