I love the TV show Undercover Boss. On the show the CEO of a large company takes a week and goes undercover within their organization to get a better idea of how employees do their job and also how they really feel about the organization.
Recently, I watched an episode where the CEO of Frontier Airlines went undercover to work for the week doing various roles including flight attendant, baggage, gate agent, and unloading luggage. I was fascinated to see how shocked and at times naïve he seemed to be when it came to the challenges most of his employees had when performing their jobs within tight time constraints and with a lean staff. He also seemed floored by how physically demanding the job is and that many of his front line staff were working their butts off to keep up.
I applauded the CEO for not only going undercover, but also recognizing the HUGE importance that employees have with not just customers, but whether or not they’ll come back. This ties into this week’s message and the importance of customer service.
In a recent Customers 2020 Report it was found that customers will not only be pickier but “will expect companies to know their individual needs and personalize the experience.” Also, the report also revealed several eye-opening statistics to back up the importance of customer service.
Here are 7 findings from the Customers 2020 Report that should capture the attention of every business that seeks to retain and keep customers coming back again and again:
- U.S. brands are losing approximately $41 billion each year due to poor customer service. ~NewVoiceMedia Study
- 65% of 1,000 consumers surveyed said they’ve cut ties with a brand over a single poor customer service experience. ~ 2014 Parature State of Multichannel Customer Service Survey
- Only 14% of respondents in a 2014 CMO survey rated the customer-centricity of their organization as high; and only 11% believe their customers would say the same. ~ 2014 CMO Council Mastering Adaptive Customer Engagements Report
- More than two-thirds of 2,000 consumers who encountered a customer service/customer experience issue on a brand’s website left the site or visited a competitor. ~ 2014 IBM Digital Customer Experience Report
- The revenue impact from a 10 percentage point improvement in a company’s customer experience score can translate into more than $1 billion. ~ Forrester Business Impact of Customer Experience
- 58% of companies say they are just now developing a strategy for delivering an integrated customer experience; and only 8% of companies surveyed said they currently provide a ‘very integrated’ customer experience. ~Econsultancy/CACI Integrated Customer Experience Report.
- By 2020, the customer will manage 85% of the relationship with an enterprise without interacting with a human. ~ Gartner Research