Significant Stat: Reduce Customer Defection, Grow Profits
Reducing your customer defection rate by 5% can increase your profitability by 25 to 125%. (source)
Advice from Jennifer Blackmon, Corporate Director, Culture Transformation at The Ritz-Carlton Leadership Center:
Many organizations dedicate significant resources to effective problem resolution training when they could be training their employees on how to avoid the same incidents altogether. Most of us understand this logic but fail to completely refocus the energy. Knowing the difference between a one-time mistake and a recurring issue is a great place to begin. Effectively tracking defects gives you the ability to view the scope of your customer incidents and identify those that will make the biggest impact when resolved. The good news is, once you understand the causes and consequences of the breakdown, many of the answers are most likely right in your building. Leverage your employees’ expertise and creativity to solve the problem and improve your customers’ experiences. At The Ritz-Carlton, we understand that the best ideas come from the people actually doing the work. When employees have the opportunity to submit ideas or be involved in root cause analysis, then processes are in a state of continuous improvement and breakdowns have a way of disappearing. ∞
Join us for a one-day symposium on November 12th. The day includes a Ritz-Carlton executive panel with Herve Humler, president & chief operations officer of The Ritz-Carlton Hotel Company, L.L.C.