Are You Leaving Dollars On The Table?
Of course my default position is that delivering a great experience leads to more sales, more profit, more – well more success for everyone.
However, not so often do you publicly see a company cancelling bonuses, for their executives, worth over $750,000 because the company failed to meet its stated NPS (Net Promoter Score) objectives.
This is exactly what Telstra announced on October 13, 2020 – their top executives would not receive performance-based incentives of over $750,000 for failing to meet a number of metrics including their NPS (net promoter score) targets.
Missing the NPS target essentially means that Telstra was unable to deliver customer experience to a level that consistently deserved to be recommended to friends and family.
While the details aren’t known to me it would be interesting to understand how much of an impact COVID-19 had on Telstra’s service standards. At the time of writing some 6 months after the pandemic started to impact Australia, Telstra is still saying that they may not be able to take your call and that customers may be experiencing lengthy delays.
Do you think it is reasonable that 6 months later Telstra still hasn’t been able to pivot their operations to meet the needs of their customers?
Of course the Telstra example is talking specifically about executives missing out on bonuses for not achieving customer experience targets. However research conducted by Forrester every year shows that businesses are leaving money on the table.
The annual Forrester report ‘The ROI Of CX Transformation’ compares across thirteen industries the impact of improving just 1%. Very quickly we get to over a billion dollars in lost revenue through a failure to focus on the customer experience.
While on the employee experience side Gallup research shows that companies with highly engaged employees make on average 21% more profit than their competitors.
The real question is – why do companies fail to invest the time and energy to create a culture, a way of working that genuinely seeks to deliver a better customer experience, a better employee experience – an experience worthy of recommendation.
Well while we may not be able to answer that question today I can provide three steps to start improving the experience you deliver.
Step 1 – Define what you mean by customer experience.
Step 2 – Define the three to five steps that when delivered consistently deliver on your definition of customer experience.
Step 3 – Ask your customers to measure your performance against your customer experience definition / promise.
Everyone has the ability to start improving the experience of those we sell and serve.