Customer Satisfaction as a Business Strategy
Prophix Jan 24, 2018, 8:22:00 AMThere is a saying that “culture eats strategy for breakfast.” Many business leaders roll their eyes at this suggestion, skeptical that culture can do anything to improve their company’s bottom line. Yet, it has been proven that utilization strategies do not guarantee organizational success, there will always be fluctuations in profits and by extension, success. For many companies, particularly those in the Professional Services industry, it is time to redefine the metrics of success. Organizational focus on utilization should be shifted to a focus on customer satisfaction, creating a culture driven by a commitment to clients’ wellbeing. This will require a move away from billable hours in favor of actionable customer service initiatives, which have the potential to mitigate much of the risk of competition and business cycles. This is not to say that quantitative measures should be abandoned entirely; companies should just adopt different metrics for success, such as Net Promoter Score (NPS). [caption id="attachment_26185" align="aligncenter" width="922"] Measuring of customer loyalty[/caption] Net Promoter Score is used as a measure of customer loyalty. Using a scale from 1-10, companies can measure how likely a customer is to recommend their service or product to a business associate. You can learn more about how to use NPS from the Net Promoter Network. With that in mind, it should come as no surprise that client satisfaction metrics are the best predictors of healthy growth. Choosing to embrace this shift in business culture can also have a positive impact on employee turnover because it can give staff a renewed sense of purpose. NPS can also greatly impact how your organization is perceived in the marketplace, reducing your cost of acquisition by creating an army of advocates. This transition to client wellbeing should be supported by a corporate mythology that is made up of stories that prove actions are as important as words. These narratives are at the foundation of every successful customer service organization. Despite a move away from utilization strategy, there is still a place for operating efficiency metrics. Using Corporate Performance Management (CPM) software, best-in-class companies can forecast utilization variables to determine staffing requirements, increasing productivity and ensuring a continued focus on meeting customers’ needs. So, while “culture eats business strategy for breakfast,” you can work on making a culture of customer satisfaction your priority, shifting your overall business strategy. To read more in-depth, enjoy our white paper.