Unnecessary mistakes that produce lower profits

Customer Experience, Customer loyalty, Leadership

One of our latest studies shows that teams with a small number of loyal customers are significantly less profitable than teams with more loyal customers. A connection that might seem obvious and actually gives rise to the question of what creates profitable teams and what mistakes unprofitable teams are making.

Three common mistake that create unprofitable teams:

  1. The boss does not actively work to engage the employees. Teams with unclear goals and low motivation seldom go the extra mile for clients or colleagues.
  2. There are no processes based on customer experience. Internal processes, or lack thereof, often create dependencies on individuals and bottle necks that have a negative effect on both client and staff experiences.
  3. The company does not take note of feedback from customers to develop and improve. Most companies do currently measure customer experience one way or another, but surprisingly few act upon the feedback they get.

In our previous studies we found that the interplay between customer experiences and staff engagement has a major impact on profitability. It is your staff who meet your customers and who have to deliver excellent customer experiences. The most engaged employees create the most loyal customers, which spills over into profitability. It is, however, not uncommon for bad and unclear processes to have a negative impact on customer experiences – it is anything but simple being a customer. Read more about it in the article ”How much effort does it take for the customers to get what they want?”

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