Use the following tips as training tools.

Present this situation to your group and brainstorm solutions together, or submit your own situation question to be answered in an upcoming newsletter.

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SITUATION QUESTION:
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Are you thinking about how your customers are being treated during this downturn? Are you keeping them engaged with your products and outstanding service, or are you making excuses and disappointing them? Are your customers going to be with you when we get into better economic times?

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SOLUTIONS:
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This newsletter caught my attention and reminded me that during a downturn companies need to be growing their people and treating customers royally, regardless of smaller staffs and stressful internal situations. They need to do what it takes to keep the customer engaged if they expect to be in business when the economy turns around.

At what companies do you still feel special as a customer? Take a look at the statistics in this article and see if the companies you frequent are listed in it.

Herman Trend Alert: Customer Engagement Today and Tomorrow, July 8, 2009

Consumers are spending less---and expecting more. In the third quarter of 2008, US consumer spending fell by 3.1 percent, the steepest decline since 1980. Concurrently, customer satisfaction is suffering. For the past 18 months, the American Customer Satisfaction Index (ACSI) has also decreased.

The companies that will survive are the ones that engage their customers. Recently, PeopleMetrics issued its 2009 Most Engaged Customers Study. Focusing on aspects of customer engagement, the report ranked the top-performing companies.

The study found "higher levels of customer engagement have a positive impact on the [desired customer] behaviors". Conversely, disengagement has the reverse effect. Specifically, "a fully engaged customer recommends a brand nearly four times more often than does an ambivalent customer". By contrast, an actively disengaged customer will tell an average of three people "to avoid a company and its services". "A fully engaged customer visits that company's website twice as often as an actively disengaged customer and makes three times as many online purchases."

Regrettably, engaging customers is more difficult now than in the past. Across the brands that were assessed in both 2008 and 2009, nearly half (13/27) experienced a significant drop in engagement levels (59 to 50 percent).

The brands found to be the best at customer engagement in rank order were Ritz-Carlton, Google, The Four Seasons, Netflix.com, Cartier, Armani, Newegg.com, Wegman's Food Market, Coach, and Costco. Three stand-out employers on the list are noted for being employee-centered organizations: Ritz-Carlton, Wegman's, and Costco. These employers put workers "firmly in the center of their service and business strategy". Essentially, the winning industries have more reliable service delivery than the lower performing industries.

The big winners in increased engagement were Wal-Mart (14 points) and RadioShack (12 points). In today’s economic climate, "getting greater value for one’s depleting dollars is paramount".

PeopleMetrics is an organization dedicated to helping clients engage their internal and external customers. To purchase the full report, email info@people-metrics.com.

Our forecast is that organizations that take care of their employees during this dangerous period will emerge from this contracted economy with a higher market share and a greater ability to recruit top talent.

"From 'The Herman Trend Alert,' by Joyce Gioia, Strategic Business Futurist. (800) 227-3566 or http://www.hermangroup.com. The Herman Trend Alert is a trademark of The Herman Group of Companies, Inc."

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Discuss with your staff how you can further grow your staff and increase customer engagement for now and the future. Call or email me if you need a fresh perspective on how to go about it.


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JJ's FAVORITE QUOTES:
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“Don't be afraid to give your best to what seemingly are small jobs. Every time you conquer one it makes you that much stronger. If you do the little jobs well, the big ones tend to take care of themselves.”
- Dale Carnegie

“Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it.”
- Lou Holtz


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Tele-COACHING & Tele-MENTORING
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http://www.jjlauderbaugh.com/about.html

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ABOUT JJ:

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JJ Lauderbaugh, CMC
408 445-1590 or 800 500-9656, 1716 Husted Ave., San Jose, CA 95124.

JJ works with companies that want to give exceptional customer service to increase sales, and with Directors and Call Center/Help Desk Managers who want to improve human performance.

She's an international speaker, trainer, facilitator and certified management consultant (CMC) on customer service management, specializing in performance improvement, call centers, up/cross selling and outbound calling.

For training resources, free articles, tips and streaming video, go to our web site at http://www.JJLauderbaugh.com

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Copyright and Reprints:
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Reprint permission is granted when the following credit appears:

© JJ Lauderbaugh, CMC, JJ Lauderbaugh & Associates, 2009. Reprinted with permission from JJ's Tips, a monthly internet newsletter. For your own personal subscription, email jj@jjlauderbaugh.com.
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JJ