Last week, I visited a leading “big-box” retailer to do a bit of holiday shopping. The first thing I noticed upon entering the store was that a large group of perhaps twenty employees had formed a circle to conduct an informal pre-shift meeting. As I passed by the group, I made a few observations:

• No one in the group noticed me or any of the other customers—including one who was struggling to free a shopping cart from the end of the row—as we passed by.
• The fact that the group was facing inward and process-focused as opposed to facing outward and customer-focused, to me, contradicted its company’s mission statement which includes: “…delivering…an exceptional guest experience by consistently fulfilling our…brand promise.”
• I overheard that the previous day’s sales had exceeded the budgeted forecast. That’s good news—especially in this economy! Guess who made it possible? Ironically, the customers who were now largely ignored.
• Guest contact employees are always “on stage.” This group, although it was prominently featured in the very spotlight of center stage, was performing as if it was backstage and there was no audience!

I understand why this company holds these informal “huddles.” It’s a way to keep the lines of communication open between hourly employees and management as well as provide insight into the store’s operations and financials.

It’s also a great way to communicate and reinforce the company’s highest priority: serving customers. Unfortunately, in my view, this is where they missed the target…

Most companies seek to lead their competitors in market share.  But alas there is usually only one company with the largest percentage of market share.  While there are many factors that contribute to gains in market share, some of them such as advertising and discounting are quite expensive to maintain.

Why not take advantage of the goodwill you have developed with your very best customers?  Bain and Company, a global consulting firm, identified these customers as promoters.  These customers are the least price-sensitive, have the highest repurchase rates, and are responsible for between 80 and 90 percent of positive referrals to your company or brand.

In addition to promoters, they also identified two other categories of customers: passives and detractors.  All three categories emerged from ratings customers gave to companies in response to the question, “How likely is it that you would recommend this company to a friend or colleague?”

Bain and Company research over a ten-year period confirms that, in most industries, companies with the highest ratio of promoters to detractors in their sector typically enjoy both strong profits and healthy growth.  Mmm…maybe there’s something to this customer service stuff after all.

Interested in learning more?  Pick up the book.