Bovo-Tighe Client Newsletter – Summer 2011
We are pleased to share with you the summer edition of our client newsletter for 2011.
In this issue we examine how much more profitable customer loyalty is than customer satisfaction. Everyone is familiar with the ideas that it costs six times as much to attract a new customer as it is to retain a current customer. A key insight is that the ratio gets even better the more loyalty you can engender.
As with customers, so with employees. Staff turnover is ruinously expensive, even with entry-level employees. You must be creative in how you build employee loyalty, because loyal employees are much more forgiving of occasional managerial lapses than merely satisfied ones, and may even contribute to fixing the problem constructively.
And, oh by the way, loyal employees work hard to transfer that loyalty to customers, a virtuous cycle if ever there was one!
Finally, this newsletter carries a reminder that leaders can foster or dampen innovation and creativity within their organizations merely by the manner in which they respond to new ideas that are presented. In short, think before responding, respond constructively and encourage it appropriately. Always value it instead of judging it!!! And make sure the credit goes to the right places, not just the closest places!