It’s been a full year for a lot of us working from home. In the beginning, it was all new and exciting and unusual, and we weren’t sure what to make of it. But a year later? Many of us are worn out by the dual-duty that we’ve been doing, especially if we have kids or other family members at home with us. And it can be hard to keep working without connecting in person with your co-workers. There were lunches and meetings and other times to look forward to.
Unfortunately, that’s led to a reduction in engagement, and employees who are not as engaged are not as productive or loyal. Even before the pandemic, only about one-third of employees described themselves as engaged. But companies with engaged employees have a better per-share price than their competitors. What can you do about it and why should you care? This graphic from Ten Spot explains it.
Stop letting disengaged employees and high turnover impede your company’s progress and performance!
CONTACT US to learn how the management consulting services of RevSherpas can transform your culture and increase employee engagement and staff productivity so you can better serve the demanding needs of your growing client base and execute change and your backlog of strategic initiatives at a much faster rate.
The CFI Group, an Ann Arbor, MI think tank focused on customer satisfaction and feedback analytics, occasionally releases research findings showing that the level of a publicly-traded company’s customer satisfaction directly correlates to the firm’s stock price. For one of its studies, the CFI Group managed and tracked a portfolio of stocks based on their performance in the American Customer Satisfaction Index (ACSI) and the National Customer Satisfaction Index UK (NCSI-UK). The portfolio results were then compared to the benchmark S&P 500 in the case of U.S. companies and the FTSE 100 for firms in the United Kingdom.
Overall, their research found that the top companies on the ACSI and NCSI-UK, which represented the ones with the highest customer satisfaction scores, significantly outperformed their competitors and the overall stock market.
Key conclusions from the report are highlighted below:
The ACSI portfolio of U.S. companies returned 390% vs. the S&P 500 return of -7% (from April 2000 to April 2012)
The NSCI portfolio of UK companies returned 59% vs. the FTSE 100 return of -6% (from April 2007 to June 2011)
As Claes Fornell, the CFI Group and ACSI founder and University of Michigan professor, states:
“Companies with highly satisfied customers generate superior returns because customer satisfaction is critical for repeat business, and that type of business is usually very profitable. That is, loyal customers tend to be highly profitable as long as their loyalty comes from their satisfaction and not because prices are low.”
On a related and more recent note, Watermark Consulting, a customer experience consultancy, analyzed the stock market performance of the Top 10 Leaders and Top 10 Laggards in Forrester Research’s Customer Experience Index compared to the broader S&P 500 Index from 2007 to 2017.
Their significant findings include:
The total cumulative return of the Customer Experience Leaders portfolio was nearly three times higher than the Laggards (183.8% vs. 63.1%).
The total cumulative return of the Customer Experience Leaders portfolio was 45 points higher than the S&P 500 (183.8% vs. 138.7%).
The total cumulative return of the Customer Experience Laggards portfolio was almost 76 points lower than the S&P 500 (63.1% vs. 138.7%).
It’s indisputable that companies investing in improving their overall customer experience are being rewarded by not just their customers, but also their shareholders.
Not to be outdone, another study over an even longer time frame came to the same conclusion. In this case, Fortunewith the help of FTSE Russell, a global money manager and institutional consultant, discovered that companies named to the Fortune annual “Best Companies to Work For” list, typically “demonstrate stronger financial performance, reduced turnover, and better customer and patient satisfaction than their peers.”
In fact, the outperformance is quite substantial when comparing the annual returns from 1998 to 2016:
An equal weighted index of the top 100 companies to work for on the Fortune list returned 11.66% annually which was almost 5% higher than two other key benchmarks over the same stretch:
The Russell 3000 Index, a U.S. all cap benchmark, returned just 6.72%.
The Russell 1000 Index, a U.S. large cap benchmark, returned only 6.68%.
It’s clear that companies with more satisfied customers tend to outperform the stock market, while companies with disloyal and frustrated customers typically underperform the broader stock market.
The first step to enhancing customer experience quality in order to boost customer satisfaction is to better understand the needs of one’s customers.
It is safe to assume that the companies with high customer experience scores currently leverage a leading flexible and scalable CRM platform to track customer preferences, patterns, and purchasing history in order to:
Deliver more targeted messaging
Respond quicker to customer requests
Streamline customer interaction touchpoints
Improve client satisfaction levels
Consistently provide a better and unique customer experience
Customer experience leaders and pioneers have happier, trusting clients that are less sensitive to price and far easier to service. Their greater loyalty leads to more referrals, higher retention rates, and expansion of client wallet share. All of these benefits result in higher revenues, lower acquisition costs, increased earnings, and ultimately a boost in company stock prices.
To sum up, having a clear, effective customer experience strategy driven by highly engaged employees and a robust, centralized CRM system can transform your firm from a product-centric to a client-centric culture in route to elevating your customer service and outperforming not only your competition, but also the stock market overall.
Ready to innovate your employee and customer experience and improve your financial performance?
CONTACT US today to speak with one of our customer experience strategists and profit acceleration advisors about how we can take your business or practice to the next level.
As small to mid-sized businesses look to grow market share or enter new markets, they often hire new staff. Many times, though, the addition of more personnel does not always lead to more work getting done overall, less workload for others, enhanced client service, or better territory coverage. The reason for these unanticipated, unintended, and unfortunate consequences is that firms’ technology infrastructure, or lack thereof, impedes employee productivity and progress as the organization grows.
In particular, companies without a leading-edge CRM system in place experience significant challenges when onboarding new employees. After all, learning a new role and a new organizational hierarchy and culture can be hard enough in itself. Complicating matters, a new hire without CRM is going to struggle to get up to speed quickly, regardless if she was brought on due to a new role or division being created, a firm experiencing enormous growth, or a department undergoing high turnover.
Below, I have summarized some of the negatives a new hire will face without CRM and contrasted them with some of the pluses she will have if a robust, intuitive CRM platform is available.
As the new employee comes onboard without CRM, he probably will not be the only one struggling to locate data on clients, prospects, sales opportunities, and service cases due to the abundance of legacy, disparate systems and delayed or non-existent information flow between various departments and channels. Lack of visibility into all client and stakeholder relationships results in too much administrative work done in a vacuum and excessive duplication. Client trust diminishes, especially if ongoing staff turnover compounds these operational bottlenecks and inefficiencies.
On the other hand, CRM streamlines and automates common sales, marketing, and service processes and gives employees, particularly new hires, the information that they need to succeed. New employees can find key background info on customers and partners and come across as if they have been with the firm managing their sales territory for over a decade. The resulting productivity and performance gains from CRM thereby quickly justify the hiring of the new staff.
Are your sales units and new hires still struggling to get by without a solid CRM system and strategy?
Are you still not sure if you need a CRM or how it can help your firm operate more efficiently, serve your clients more effectively, and scale faster?
Are you overwhelmed by the plethora of options in the CRM software marketplace?
Have you recently experienced a choppy software implementation with your IT consulting partner or feel you overpaid for the junior, overhyped resources who worked on your project?
Do you wish you could deliver results faster to your customers and employees/CRM users?
Do you desire to transform your digital customer experience, but lack the in-house expertise and just not sure where to start?
As a leading boutique CRM and Customer Experience Strategy Consulting firm, RevSherpas can help point you in the right direction and grow your business!
CONTACT US to explore a potential partnership and to schedule a complimentary discovery and strategy consultation session.
Every couple of years, Gallup releases its State of the American Workplace annual report on trends in the U.S. working population. The report places a particular emphasis on employee engagement and it highlights that in order to have engaged customers, companies first must engage their employees. According to Gallup, this is proving to be extremely challenging in businesses of all sizes across America…On that note, we’d love to see a more recent version of this report that accounts for the fact that so many employees now work from the comfort of their home due to the ongoing COVID-19 pandemic.
Key findings from Gallup reveal:
Employee disengagement costs American businesses between $483 to $605 billion per year.
Nearly 70% of the American workforce is considered to be disengaged (in other words, only 3 out of your 10 employees are fully engaged at their jobs – YIKES!)
Disconnected, underperforming firms in the bottom quartile of employee engagement severely lag their more actively engaged top quartile peers as they experience:
22% lower profitability
21% lower productivity
10% lower customer satisfaction
41% higher defects
25% higher employee turnover
Say it ain’t so! Such apathetic employees negatively influence co-workers and damage client relationships to destroy company performance.
Whatever happened to the days of maximum collaboration, frequent communication, and tight camaraderie at the company foosball or ping-pong table? If you’ve ever grinded at a start-up, you know what I’m talking about!
So the question becomes, how can you as a business owner or executive overcome employee disengagement and improve financial and business results?
Well, the business growth advisory and customer experience strategy consulting practice and research team of RevSherpas finds that industry leaders are choosing to equip their staff with superior Customer Relationship Management (CRM) technology and simplify, standardize, and streamline their core business development, sales conversion, client onboarding, ongoing marketing communication outreach, customer service, and client retention processes.
Serving as the centralized data hub, knowledge repository, and business intelligence tool of the organization, CRM provides a clear, comprehensive picture of client, prospect, and partner relationships for all employees, regardless of their role in the front, middle, or back office.
Compared to the 1990s and even 2010s, you’ll be amazed at how many high-quality, low-cost, and easy to implement CRM solutions there now are that are exclusively built for small to mid-sized businesses.
Furthermore, CRM empowers all employees to harness the necessary insights to foster more efficient information sharing and more effective decision making in order to exceed client expectations and deliver optimal levels of service. With CRM, administrative search time and costs are reduced, as employees know where to go to get answers. Plus, no one wants to be known as the individual whose missing key client interaction notation resulted in the sales team being unprepared in route to botching a huge deal. Therefore, employees develop a greater sense of ownership, pride, and accountability in updating CRM and leveraging it as a productivity and performance enhancer.
As employees become more engaged with CRM, customers will certainly begin to notice the elevation in client service levels. In particular, customers will notice how the employees they interact with are much more focused, committed, and responsive compared to the competition. In a nutshell, a more engaged workforce at all customer touchpoints leads to a more engaged, loyal client base that is more likely to make repeat purchases, promote the firm’s brand in the marketplace, and actively send referrals to significantly grow revenues.
“RevSherpas…Client Focused. Elevated Results.”
Yes, that’s our motto, but the secret to customer-driven growth and delivering a world-class, differentiated customer experience that many firms repeatedly ignore is that your employees need to be locked in, fully engaged, and fired up to go to work and serve your client base every day. The reality is that without efficient business processes in place, your employee engagement will stagnate, and thus your deals won and customer service will suffer as well.
After all, happy, motivated employees = happy customers!
*** Let’s commit to one another ASAP that our respective firms will not be one of the companies going forward where only 30% of our staff is focused and engaged at work! That is absolutely unacceptable and not what our increasingly demanding clients, partners, and investors deserve! ***