Studies by the Service Management Group (SMG) show that businesses (specifically with service and retail businesses) with higher customer satisfaction rates have much higher growth in in-store sales. Although practically every business understands that good customer service is important, I ask you which businesses have tools in place to track and measure their customer satisfaction index, and what systems do you have in place to ensure a great customer service at each location. You cannot manage what you cannot measure, so we believe that it is vitally important to manage how the customer experience translates into customer satisfaction and loyalty. In fact, if you do not know which employee behaviors and customer experience create customer loyalty in your stores, you are essentially competing with one of your hands tied behind your back.
Because the best brands DO know, we track customer satisfaction and loyalty in every unit, every day – the same as we track costs and inventory. We link customer experience data to financial metrics such as average transaction amount, lifetime customer value, and same store sales growth. When you are able to calculate the value of superior service, you can reinvest dollars deliberately to increase sales from the customer experience.

The founding principle of customer experience management, is that when you improve their experience, customers not only remain loyal, they give you a larger share of their wallet. They also refer others to you. Since the cost of these sales is essentially zero, your customer acquisition cost actually drops as your brand and service levels get stronger.

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