All U.S. companies fall into five levels of customer service.
Level 1 — Unacceptable: 12 percent
Level 2 — Below average: 29 percent
Level 3 — Average: 38 percent
Level 4 — Above average: 18 percent
Level 5 — World-class: 3 percent
A staggering 79 percent of organizations provide a level of customer
service that is, at best, average. It is probably no surprise that eight out
of every 10 customer experiences are not memorable. Yet, despite the
obvious advantages gained by those organizations that do make customer service the point of differentiation over their competitors, most
CEOs still don’t strive to make improvements.
Top-ranked customer satisfaction organizations are the market leaders in every industry. They lead in sales growth, higher profits and
employee retention. And they do so whether the economy is healthy
or hurting, essentially making them recession-proof.
While it’s true that growing your business artificially through mergers and acquisitions, price-cutting and novelty promotions may satisfy shareholders and investors for the short term, it is rarely effective
over the long haul. If what you’re really after is higher customer satisfaction, loyalty, repeat business and sustainable growth, there is only
one true type of growth: the type that occurs because customers
love doing business with you and sing your praises across their network.
Many of today’s organizations are built to sell rather than to serve.
However, those that are surviving with long-term sustainability are fanatical about differentiating themselves through the experience
they deliver.
But all is not gloomy. Customer service is making a comeback.
Consumer pressure is pushing the pendulum back the other way, and
customer service is once again becoming a critical benchmark in
business.
Business owners and CEOs have come to recognize the inherent
benefits that come with investments in customer service — higher
customer retention, higher customer satisfaction, increased sales,
higher comp sales, higher profits, increased cash flow, higher stock
prices, more shareholder earnings and value, lower employee
turnover, increased future earnings, reduced risk, and lessened effects
from economic fluctuations and third-party conditions.
With results like that, why wouldn’t you take whatever steps were
necessary to get your customers to love your organization?
JOHN R. DIJULIUS III is the author of “Secret Service: Hidden Systems That Deliver Unforgettable
Customer Service” and “What’s The Secret.” He is also president of The DiJulius Group, a firm specializing in giving companies a superior competitive advantage by helping them differentiate on delivering an experience and making price irrelevant. Reach him at [email protected].
