Management Kamran on 23 Oct 2007 09:15 pm
Customer Satisfaction is Where the Profits Are
First, a finding from a recent market research…
Did you know that a mere 5% increase in customer satisfaction increases profits by 85% ! Amazing, isn’t it?
Then, a true story…
There’s this well-known restaurant franchise close to where I work. I (used to) stop by at least twice a week during lunch breaks to grab a quick sandwich or have a bowl of soup.
Although I was a loyal customer or perhaps because of it, I couldn’t help but notice how the service has slowly deteriorated over a period of six months.
The counter staff, for example, who prepared the sandwiches as you watched, started to ignore the customer requests.
They began either to include ingredients that you did not order or forget to include the ones that you did.
Then the guy at the cashier developed a habit of getting into arguments with the customers over the ingredients or the style of preparation.
Clearly, they were not paying attention. You could see they started to regard the customers as a long line of “cash cows” to be processed through the queue as quickly as possible.
Then the rest rooms started to go down the tubes.
It first started as the empty soap dispenser; followed by the empty paper towel dispenser. Trash on the floor was not too far behind.
When I tried to bring the deteriorating conditions to the attention of the shift manager (who also doubled up as the cashier) I was told that I needed to talk to the general manager who would stop by twice a day (and so good-luck to me).
The last time I stopped by there was such disgraceful filth in the rest room that I don’t even dare describe it in this public blog.
That was also the day when I realized that people who were serving my food were also using the very same rest room!
I decided to quit giving my business to that establishment and that was it. I don’t think I’ll ever go there again. If others felt the same way as I did and changed their lunch time destinations I wouldn’t be surprised at all.
Thinking back on it – what was the main attraction of that store in the first place?
Yes, the food was tasty and affordable as well.
But I realized I would have gladly paid a quarter or even fifty cents more per visit to have the serving staff really listen to me, plus to have access to spotless rest rooms.
I’m sure that store continues to cut the branch it’s sitting on by putting all its fragile eggs into the low-price basket.
When the general manager finds out what’s going on I’m afraid it’s going to be too late for the business.
Low price is not everything because there are millions of customers who are looking for a pleasant shopping or eating experience and they don’t mind paying a few cents extra for the service.
Once customer loyalty is lost, what’s left behind?