Employer Hiring Quick Tip!

What is the relationship between Customer Retention and Engaged Employees?

Here are some staggering statistics.

  • The average business loses 50% of their customers every five years (HBR)
  • 68% of customers leave because of poor customer service (Study by US Chamber of Commerce and US Small Business Administration)
  • Attrition Costs equate to 1.5 x salary for professional staff and .5 x salary for hourly staff (BCHRMA, Metrics Interpretation Guide)

Just think about these statistics for a moment.  The financial impact is overwhelming.

Let me point out the (obvious) interrelationship.  We are losing half of our customers every five years, and most of them are leaving because they are unhappy with the level of service they are receiving.  Not surprisingly, the employees that are providing the unsatisfactory customer service are also planning to leave – because they too are unhappy.

Now you may think it is a good thing that these employees are leaving, given that they are negatively impacting your customers but unless you are making some fundamental changes within your organization, it is unlikely that the new employees you hire will provide levels of service that are any better.  In fact, it may be argued that the levels of service will further degrade.

What is so interesting to me about these statistics is that they are completely controllable AND they provide an opportunity to gain an advantage over your competitors.

If you are going to improve your customer satisfaction and retention levels, you are first going to have to focus on building a productive and engaged workforce and that is going to take time, commitment and strategy.