“Removing Roadblocks on Your Path to Success”
Exemplary Customer Service
Labor Day was first celebrated in 1882 in New York City. It is a celebration of the contributions “workers have made to the strength, prosperity and well-being” of the United States. Many argue that the largest contribution to our economic growth has been a direct result of consistently providing a high level of customer service.
Pacific Crest Group is founded on what we call “exemplary customer service.” This begs the question: how important is customer service to a business?
According to “Zero Defections: Quality Comes to Services,” in the Harvard Business Review September-October 1990, “as a customer’s relationship with the company lengthens, profits rise. And not just a little. Companies can boost profits by almost 100% by retaining just 5% more of their customers” based on delivering excellent customer service. How does a company increase its customer service level?
Productivity Drives Value
Due to unparalleled productivity, Southwest Airlines “has approximately forty percent more pilot and aircraft utilization than its major competitors. Its pilots fly on average seventy hours per month in comparison to just fifty hours for other airlines.” This is why the company can charge fares from sixty to seventy percent less in most markets it serves and still make money. It was profitable for twenty-one consecutive years and was the only airline in the United States to be profitable in some of those years. Customers place a premium value on Southwest’s ability to provide frequent departures, on-time service, friendly employees and low fares.
Value Determines Satisfaction
Value is not determined by the company; it is measured by the customer. They experience value according to the results they receive in relation to the total cost (both the price and indirect fees incurred in acquiring a service). Satisfaction is measured based on the level of the company’s care regarding the client’s needs.
Satisfaction Creates Loyalty
A satisfied customer is loyal. Xerox surveyed four-hundred-eighty-thousand clients. It found that the relationship between scores and loyalty differed vastly between “satisfied” and “very satisfied” rankings. Customers who were “very satisfied” were six times more likely to repurchase Xerox equipment than patrons that were just “satisfied.”
Loyalty Accelerates Profitability
The lifetime value of a loyal customer can be enormous. This is especially true when we account for the referrals that come from customer retention and repeat business. Customer loyalty comes from the culture of the business.
Culture is a system of shared values that define what is important and the policies that delineate acceptable attitudes and behaviors. This process is described in the Pacific Crest Group blog “What Makes Working Relationships Work?” The posting presents six elements that are required to establish an environment that makes working relationships successful.
Special Event: Pacific Crest Group is a founding member of the Marin Business Forum. Our next meeting is Thursday October 8, 2015 from 5 PM to 7 PM in the Drake’s Landing Community Room located at 300A Drakes Landing Road in Greenbrae. The Community Room is adjacent to Jason’s Restaurant. Our speaker is Mickey Griffith from the Referral Institute. Mickey will explain the “Five Essential Steps to Referrals that Rock!” Please go to the Events page to register for this event.
Pacific Crest Group (PCG) provides professional services that keep your business focused on your critical objectives. We create custom made financial and Human Resource (HR) systems based on creative strategies that are always delivered with exemplary customer service. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed specifically to maximize all of your business opportunities.
Franka and TJ
About PCG Accounting Services:
Pacific Crest Group helps small and mid-sized businesses throughout the San Francisco Bay Area change their bookkeeping and accounting from a hassle to a strategic resource. We bridge the gap between your books and your business, so that you can intelligently manage your company.
About PCG HR Services:
We’re the most trusted company when it comes to outsourcing your HR functions. Whether it’s creating onboarding materials and employee development programs, or dealing with toxic employees, we ensure that your business is set up for short and long-term growth.
If you have any questions about how Pacific Crest Group can help make 2015 a success for your business, drop us a line or call us at 415-461-2586!
Until next month, we wish you the very best and much success in your business.
Forecasting for Success
Asset Based Lending Can Fuel Your Next Business Expansion
Income from Virtual Currency is Taxable
Successful Time Management Requires Discipline
Entrepreneurs’ Freedom Quest
Business Advice from our Fathers
Innovation Increases Market Share and Profitability
Strategic Planning Using “Big Data”
This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.
Copyright 2015, Pacific Crest Group, All rights reserved.